Document:

exv10w1

Exhibit 10.1

AMENDMENT NO. 1 CREDIT AGREEMENT

     This Amendment No. 1 to Credit Agreement (this “Amendment”), dated as of December 23, 2010, is
made by and among GRANITE CONSTRUCTION INCORPORATED, a Delaware corporation (“Granite” and a
“Borrower”), GRANITE CONSTRUCTION COMPANY, a California corporation (“GCC” and a “Borrower”), GILC
INCORPORATED, a California corporation (“GILC” and a “Borrower”), BANK OF AMERICA, N.A., a national
banking association organized and existing under the laws of the United States (“Bank of America”),
in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement (as
defined below)) (in such capacity, the “Administrative Agent”), each of the Lenders signatory
hereto, and each of the Guarantors (as defined in the Credit Agreement).

W I T N E S S E T H:

     WHEREAS, Granite, Bank of America, as Administrative Agent, and the Lenders have entered into
that certain Credit Agreement dated as of June 22, 2010 (as hereby amended and as from time to time
further amended, modified, supplemented, restated, or amended and restated, the “Credit Agreement”;
capitalized terms used in this Amendment not otherwise defined herein shall have the respective
meanings given thereto in the Credit Agreement as amended hereby), pursuant to which the Lenders
have made available to the Borrower a revolving credit facility, including a letter of credit
facility and a swing line loan facility; and

     WHEREAS, each of GCC and GILC is joining the Credit Agreement as a “Borrower”; and

     WHEREAS, each of the Guarantors has entered into a Guaranty pursuant to which it has
guaranteed certain or all of the obligations of the Borrowers under the Credit Agreement and the
other Loan Documents; and

     WHEREAS, each of the Borrowers and all the Guarantors have agreed to enter into a Security
Agreement pursuant to which each such Loan Party will grant a lien on certain of its assets as
security for its obligations under the Credit Agreement and the other Loan Documents; and

     WHEREAS, each of the Borrowers and all the Guarantors have agreed to enter into a Pledge
Agreement pursuant to which each such Loan Party will grant a lien on certain of its equity
interests as security for its obligations under the Credit Agreement and the other Loan Documents;
and

     WHEREAS, the Borrowers have requested that the Administrative Agent and the Lenders agree to
amend certain terms of the Credit Agreement in order to, among other things, (i) add GCC and GILC
as “Borrowers” under the Credit Agreement, (ii) restructure the financial covenants contained in
Section 7.12 of the Credit Agreement, (iii) reduce the Aggregate Commitments from
$150,000,000 to $100,000,000, such reduction being applied to the Commitment of each Lender
according to its Applicable Percentage, (iv) reduce the Letter of Credit Sublimit from $100,000,000
to $50,000,000, (v) create a security interest in certain assets of the Borrowers and the
Guarantors, (vi) revise certain covenants set forth in Articles VI, VII,

 

 

and X of the Credit Agreement, and (vii) update certain of the Schedules and Exhibits
attached to the Credit Agreement, which the Administrative Agent and the Lenders party hereto are
willing to do on the terms and conditions contained in this Amendment;

     NOW, THEREFORE, in consideration of the premises and further valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Amendments to Credit Agreement, Schedules and Exhibits. Subject to the terms and
conditions set forth herein, the Credit Agreement, including all schedules and exhibits thereto, is
hereby amended such that, after giving effect to all such amendments, it shall read in its entirety
as attached hereto as Exhibit A.

     2. Effectiveness; Conditions Precedent. The effectiveness of this Amendment and the
amendment to the Credit Agreement provided in Paragraph 1 hereof are subject to the
satisfaction of each the following conditions precedent:

     (a) The Administrative Agent shall have received each of the following fees, payments,
documents or instruments in form and substance reasonably acceptable to the Administrative
Agent:

     (i) counterparts of this Amendment, duly executed by each Borrower, the
Administrative Agent, each Guarantor and the Required Lenders, which counterparts
may be delivered by telefacsimile or other electronic means
(including .pdf), but
such delivery will be promptly followed by the delivery of five (5) original
signature pages by each Person party hereto unless waived by the Administrative
Agent;

     (ii) counterparts of the Security Agreement and the Pledge Agreement, duly
executed by each Borrower, the Administrative Agent and each Guarantor, which
counterparts may be delivered by telefacsimile or other electronic
means (including .pdf), but such delivery will be promptly followed by the delivery of five (5)
original signature pages by each Person party hereto unless waived by the
Administrative Agent;

     (iii) the originals of all promissory notes issued in connection with
Indebtedness permitted by Section 7.03(e) of the Credit Agreement, together
with duly executed undated endorsements in blank affixed thereto;

     (iv) an amendment fee payable to each Lender that executes this Amendment by
1:00 p.m. EST on December 21, 2010, such amendment fee for each Lender’s own
account, in an amount equal to twenty-five basis points (25 “bps”)
multiplied by such Lender’s Commitment effective the date hereof;

     (v) prepayments of principal amounts under the Revolving Loans such that the
Outstanding Amount with respect to the Revolving Loans is not greater than
$100,000,000, in accordance with the terms of the Credit Agreement;

2

 

     (vi) an opinion of the general counsel to the Borrowers and the Guarantors and
such corporate resolutions, charters, bylaws, certificates and other customary
closing documents as the Administrative Agent reasonably may require;

     (vii) a Note executed by GCC and GILC in favor of each Lender requesting a
Note;

     (viii) such certificates of resolutions or other action of GCC and GILC as the
Administrative Agent may require evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Amendment, the Credit Agreement and the other Loan Documents to
which such Borrower is a party;

     (ix) delivery of Uniform Commercial Code financing statements suitable in form
and substance for filing in all places required by applicable law to perfect the
Liens of the Administrative Agent under the Security Instruments (as defined in the
Credit Agreement as amended hereby) as a first priority Lien as to items of
Collateral (as defined in the Credit Agreement as amended hereby) in which a
security interest may be perfected by the filing of financing statements, and such
other documents and/or evidence of other actions as may be reasonably necessary
under applicable law to perfect the Liens of the Administrative Agent under such
Security Instruments as a first priority Lien in and to such other Collateral as the
Administrative Agent may require, including without limitation the delivery by the
Borrowers or any other Loan Party of all certificates evidencing pledged interests,
accompanied in each case by duly executed stock powers (or other appropriate
transfer documents) in blank affixed thereto; and

     (x) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect, together with the certificates of
insurance, naming the Administrative Agent, on behalf of the Lenders, as an
additional insured or loss payee, as the case may be, under all insurance policies
maintained with respect to the assets and properties of the Loan Parties that
constitute Collateral.

     (b) All fees and expenses payable to (i) the Administrative Agent and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, including, without limitation, fees pursuant to that
certain Engagement and Fee Letter dated as of December 6, 2010 by and among Granite, the
Administrative Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated, and the
reasonable fees and expenses of counsel to the Administrative Agent, and (ii) each Lender
that executes this Amendment shall, in each case, have been paid in full (without prejudice
to final settling of accounts for such fees and expenses).

     3. Consent of the Guarantors. Each Guarantor hereby consents, acknowledges and agrees
to the amendments and the other matters set forth herein and hereby confirms and ratifies in all
respects the Guaranty to which such Guarantor is a party (including without limitation the
continuation of such Guarantor’s payment and performance obligations thereunder upon and

3

 

after the effectiveness of this Amendment and the amendments described in Paragraph 1
hereof) and the enforceability of such Guaranty against such Guarantor in accordance with its
terms.

     4. Representations and Warranties. In order to induce the Administrative Agent and
the Lenders to enter into this Amendment, the Borrowers and the Guarantors represent and warrant to
the Administrative Agent and the Lenders as follows:

     (a) The representations and warranties made by (i) the Borrowers in Article VI of
the Credit Agreement and in each of the other Loan Documents to which it is a party and (ii) each
Guarantor in each of the Loan Documents to which it is a party are, in each case, true and
correct in all material respects on and as of the date hereof, except to the extent that such
representations and warranties expressly relate to an earlier date;

     (b) The Persons appearing as Guarantors on the signature pages to this Amendment constitute
all Persons who are required to be Guarantors pursuant to the terms of the Credit Agreement and
the other Loan Documents, including without limitation all Persons who became Subsidiaries or
were otherwise required to become Guarantors after the Closing Date, and each of such Persons has
become and remains a party to the Guaranty as a Guarantor and any other Loan Document to which it
required to be a party;

     (c) This Amendment has been duly authorized, executed and delivered by the Borrowers and the
Guarantors party hereto and constitutes a legal, valid and binding obligation of such parties;

     (d) (i) No Liens on any of the Collateral have been granted in favor of, and the
effectiveness of this Amendment will not require any Liens to be granted in favor of, any Person
with respect to or under the Senior Note Documents; and (ii) the effectiveness of this Amendment
will not require any amendment, waiver or other modification to any Senior Note Document; and

     (e) No Default or Event of Default has occurred and is continuing; and no default or event
of default under the Senior Note Documents exists, or would result from the effectiveness of this
Amendment.

     5. Entire Agreement. This Amendment, together with all the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the
parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and
agreements among the parties relating to such subject matter. No promise, condition,
representation or warranty, express or implied, not set forth in the Relevant Documents shall bind
any party hereto, and no such party has relied on any such promise, condition, representation or
warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express or implied, have
been made by any party to the other in relation to the subject matter hereof or thereof. None of
the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or
otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement.

     6. Post-Effectiveness Obligations. The Borrowers hereby agree to deliver, or cause

4

 

to be delivered, to the Administrative Agent on or before March 31, 2011 fully-executed
instruments, documents or other deliverables specified on Exhibit B hereto (as such Exhibit
may from time to time be revised by the Administrative Agent to reflect a current list of documents
required to be delivered), each in form and substance acceptable to the Administrative Agent, or
such other instruments, documents or other deliverables as the Administrative Agent or the Required
Lenders may reasonably require. The Administrative Agent may, but shall not be obligated to,
extend the time (if applicable) for the satisfaction of any of the requirements set forth herein by
up to thirty (30) days in its sole discretion. The Borrowers hereby acknowledge and agree that the
failure to satisfy any of the requirements set forth in this Paragraph 6 within the time
provided therefor (including any extension granted by the Administrative Agent pursuant to the
terms hereof) shall constitute an Event of Default under the Credit Agreement for all purposes,
and, without limiting the foregoing, all rights, powers, remedies and restrictions, including
restrictions on extensions of credit, under the Loan Documents resulting from an Event of Default
shall be applicable.

     7. Full Force and Effect of Credit Agreement. Except as hereby specifically amended,
modified or supplemented, the Credit Agreement and all other Loan Documents are hereby confirmed
and ratified in all respects and shall be and remain in full force and effect according to their
respective terms.

     8. Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which shall together constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Amendment by telecopy or other electronic means (including .pdf) shall be effective as delivery of a manually executed counterpart of this Amendment.

     9. Governing Law. This Amendment shall in all respects be governed by, and construed
in accordance with, the laws of the State of California applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the provisions of
Sections 10.14 and 10.15 of the Credit Agreement.

     10. Enforceability. Should any one or more of the provisions of this Amendment be
determined to be illegal or unenforceable as to one or more of the parties hereto, all other
provisions nevertheless shall remain effective and binding on the parties hereto.

     11. References. All references in any of the Loan Documents to the “Credit Agreement”
shall mean the Credit Agreement, as amended hereby.

     12. Successors and Assigns. This Amendment shall be binding upon and inure to the
benefit of the Borrowers, the Administrative Agent and each of the Guarantors and Lenders, and
their respective successors, legal representatives, and assignees to the extent such assignees are
permitted assignees as provided in Section 10.06 of the Credit Agreement.

     13. No Novation. Neither the execution and delivery of this Amendment nor the
consummation of any other transaction contemplated hereunder is intended to constitute a novation
of the Credit Agreement or of any of the other Loan Documents or any obligations

5

 

thereunder.

[Signature pages follow.]

6

 

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

BORROWERS:

GRANITE CONSTRUCTION INCORPORATED

	 	 	 	 	 
	 	 
	By:  	            /s/ Jigisha Desai
 	 
	 	Name:  	Jigisha Desai 	 
	 	Title:  	V.P. Treasurer 	 
	 

GRANITE CONSTRUCTION COMPANY

	 	 	 	 	 
	 	 
	By:  	           /s/ Jigisha Desai
 	 
	 	Name:  	Jigisha Desai 	 
	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	By:  	           /s/ Laurel J. Krzeminski
 	 
	 	Name:  	Laurel J. Krzeminski 	 
	 	Title:  	VP and CFO 	 
	 

	 	 	 	 	 
	GILC INCORPORATED

 	 
	By:  	/s/ Jigisha Desai
 	 
	 	Name:  	Jigisha Desai 	 
	 	Title:  	V.P. and CFO 	 
	 
	 	 	 
	By:  	           /s/ Laurel J. Krzeminski
 	 
	 	Name:  	Laurel J. Krzeminski 	 
	 	Title:  	President and CEO 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

GUARANTORS:

	 	 	 	 	 
	GRANITE CONSTRUCTION NORTHEAST, INC.

 	 
	By:  	/s/ Jigisha Desai
 	 
	 	Name:  	Jigisha Desai 	 
	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	By:  	           /s/ Laurel J. Krzeminski
 	 
	 	Name:  	Laurel J. Krzeminski 	 
	 	Title:  	VP and CFO 	 
	 

	 	 	 	 	 
	GRANITE NORTHWEST, INC.

 	 
	By:  	/s/ Kathleen Schreckengost
 	 
	 	Name:  	Kathleen Schreckengost 	 
	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	By:  	       /s/ Cynthia Johnson
 	 
	 	Name:  	Cynthia Johnson 	 
	 	Title:  	Authorized Officer 	 
	 

	 	 	 	 	 
	GRANITE LAND COMPANY

 	 
	By:  	/s/ Jigisha Desai
 	 
	 	Name:  	Jigisha Desai 	 
	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	By:  	           /s/ Laurel J. Krzeminski
 	 
	 	Name:  	Laurel J. Krzeminski 	 
	 	Title:  	VP 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	INTERMOUNTAIN SLURRY SEAL, INC.

 	 
	By:  	/s/ Kathleen Schreckengost
 	 
	 	Name:  	Kathleen Schreckengost 	 
	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	By:  	       /s/ Cynthia Johnson
 	 
	 	Name:  	Cynthia Johnson 	 
	 	Title:  	Authorized Officer 	 
	 

	 	 	 	 	 
	POZZOLAN PRODUCTS COMPANY (P.P.C.)

 	 
	By:  	/s/ Kathleen Schreckengost
 	 
	 	Name:  	Kathleen Schreckengost 	 
	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	By:  	       /s/ Cynthia Johnson
 	 
	 	Name:  	Cynthia Johnson 	 
	 	Title:  	Authorized Officer 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.,

as Administrative Agent

	 	 	 	 	 
	 	 
	By:  	            /s/ Aamir Saleem
 	 
	 	Name:  	Aamir Saleem 	 
	 	Title:  	Vice President 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

LENDERS:

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

Line Lender and L/C Issuer

	 	 	 	 	 
	 	 
	By:  	            /s/ Mathew Griesbach
 	 
	 	Name:  	Mathew Griesbach 	 
	 	Title:  	Director 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

BANK OF THE WEST

	 	 	 	 	 
	 	 
	By:  	/s/ Kathy Rosner-Galitz
 	 
	 	Name:  	Kathy Rosner-Galitz 	 
	 	Title:  	Regional Vice President 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

COMPASS BANK

	 	 	 	 	 
	 	 
	By:  	/s/ Payton K. Swope
 	 
	 	Name:  	Payton K. Swope 	 
	 	Title:  	Vice President 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

COMERICA BANK

	 	 	 	 	 
	 	 
	By:  	/s/ Steve Clear
 	 
	 	Name:  	Steve Clear 	 
	 	Title:  	Vice President 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

UNION BANK, N.A.

	 	 	 	 	 
	 	 
	By:  	/s/ Kevin W. Herr
 	 
	 	Name:  	Kevin W. Herr 	 
	 	Title:  	Vice President 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

U.S. BANK NATIONAL ASSOCIATION

	 	 	 	 	 
	 	 
	By:  	/s/ John I. Paul
 	 
	 	Name:  	John I. Paul 	 
	 	Title:  	Portfolio Manager 	 
	 

Granite Construction Incorporated

Amendment No. 1 to Credit Agreement

Signature Page

 

 

Exhibit A

to Amendment No. 1 to Credit Agreement

Credit Agreement, including Schedules and Exhibits

See attached.

 

 

 

Published CUSIP Numbers:

Deal: 387329AC9

Revolver: 387329AD7

CREDIT AGREEMENT1

Dated as of June 22, 2010

among

GRANITE CONSTRUCTION INCORPORATED,

GRANITE CONSTRUCTION COMPANY and

GILC INCORPORATED,

as the Borrowers,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

BBVA COMPASS

and

BANK OF THE WEST,

as Co-Syndication Agents

and

The Other Lenders Party Hereto

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (as successor to

BANC OF AMERICA SECURITIES LLC),

as

Sole Lead Arranger and Sole Book Manager

 

 

			
	1	 	This composite copy includes Amendment No. 1
to the Credit Agreement.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	1.01 Defined Terms
	 	 	1	 
	Pricing Level
	 	 	3	 
	1.02 Other Interpretive Provisions
	 	 	28	 
	1.03 Accounting Terms
	 	 	29	 
	1.04 Rounding
	 	 	29	 
	1.05 Exchange Rates; Currency Equivalents
	 	 	30	 
	1.06 Additional Alternative Currencies
	 	 	30	 
	1.07 Change of Currency
	 	 	31	 
	1.08 Times of Day
	 	 	31	 
	1.09 Letter of Credit Amounts
	 	 	31	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	31	 
	 
	 	 	 	 
	2.01 Revolving Loans
	 	 	31	 
	2.02 Borrowings, Conversions and Continuations of Revolving Loans
	 	 	32	 
	2.03 Letters of Credit
	 	 	33	 
	2.04 Swing Line Loans
	 	 	42	 
	2.05 Prepayments
	 	 	45	 
	2.06 Termination or Reduction of Commitments
	 	 	46	 
	2.07 Repayment of Loans
	 	 	46	 
	2.08 Interest
	 	 	47	 
	2.09 Fees
	 	 	47	 
	2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	 	 	48	 
	2.11 Evidence of Debt
	 	 	48	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	49	 
	2.13 Sharing of Payments by Lenders
	 	 	51	 
	2.14 [Intentionally Omitted.]
	 	 	52	 
	2.15 Cash Collateral
	 	 	52	 
	2.16 Defaulting Lenders
	 	 	53	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	55	 
	 
	 	 	 	 
	3.01 Taxes
	 	 	55	 
	3.02 Illegality
	 	 	59	 
	3.03 Inability to Determine Rates
	 	 	59	 
	3.04 Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	60	 
	3.05 Compensation for Losses
	 	 	61	 
	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	62	 
	3.07 Survival
	 	 	62	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	63	 
	 
	 	 	 	 
	4.01 Conditions to Effectiveness and Initial Credit Extension
	 	 	63	 

i

 

	 	 	 	 	 
	Section	 	Page	 
	4.02 Conditions to Credit Extensions After the Amendment No. 1 Effective Date
	 	 	65	 
	4.03 Conditions to all Credit Extensions
	 	 	65	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	66	 
	 
	 	 	 	 
	5.01 Existence, Qualification and Power
	 	 	66	 
	5.02 Authorization; No Contravention
	 	 	66	 
	5.03 Governmental Authorization; Other Consents
	 	 	66	 
	5.04 Binding Effect
	 	 	66	 
	5.05 Financial Statements; No Material Adverse Effect
	 	 	66	 
	5.06 Litigation
	 	 	67	 
	5.07 No Default
	 	 	67	 
	5.08 Ownership of Property; Liens
	 	 	67	 
	5.09 Environmental Compliance
	 	 	67	 
	5.10 Insurance
	 	 	68	 
	5.11 Taxes
	 	 	69	 
	5.12 ERISA Compliance
	 	 	69	 
	5.13 Subsidiaries; Equity Interests
	 	 	70	 
	5.14 Margin Regulations; Investment Company Act
	 	 	70	 
	5.15 Disclosure
	 	 	70	 
	5.16 Intellectual Property; Licenses, Etc
	 	 	70	 
	5.17 Swap Contracts
	 	 	71	 
	5.18 Labor Relations
	 	 	71	 
	5.19 Solvency
	 	 	71	 
	5.20 Taxpayer Identification Number
	 	 	71	 
	5.21 Representations as to Foreign Obligors
	 	 	71	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	72	 
	 
	 	 	 	 
	6.01 Financial Statements
	 	 	72	 
	6.02 Certificates; Other Information
	 	 	73	 
	6.03 Notices
	 	 	74	 
	6.04 Payment of Obligations
	 	 	75	 
	6.05 Preservation of Existence, Etc
	 	 	75	 
	6.06 Maintenance of Properties
	 	 	76	 
	6.07 Maintenance of Insurance
	 	 	76	 
	6.08 Compliance with Laws
	 	 	76	 
	6.09 Books and Records
	 	 	76	 
	6.10 Inspection Rights
	 	 	76	 
	6.11 Environmental Laws
	 	 	77	 
	6.12 Use of Proceeds
	 	 	77	 
	6.13 Tax Clearance Certificates
	 	 	77	 
	6.14 New Material Subsidiaries; Additional Guarantors
	 	 	77	 
	6.15 Appraisals
	 	 	79	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	79	 
	 
	 	 	 	 
	7.01 Liens
	 	 	79	 
	7.02 Investments
	 	 	81	 

ii

 

	 	 	 	 	 
	Section	 	Page	 
	7.03 Indebtedness
	 	 	83	 
	7.04 Fundamental Changes
	 	 	84	 
	7.05 Dispositions
	 	 	85	 
	7.06 Lease Obligations
	 	 	86	 
	7.07 Restricted Payments
	 	 	86	 
	7.08 Change in Nature of Business
	 	 	87	 
	7.09 Transactions with Affiliates
	 	 	87	 
	7.10 Burdensome Agreements
	 	 	87	 
	7.11 Use of Proceeds
	 	 	88	 
	7.12 Financial Covenants
	 	 	88	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	89	 
	 
	 	 	 	 
	8.01 Events of Default
	 	 	89	 
	8.02 Remedies Upon Event of Default
	 	 	91	 
	8.03 Application of Funds
	 	 	92	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	93	 
	 
	 	 	 	 
	9.01 Appointment and Authority
	 	 	93	 
	9.02 Rights as a Lender
	 	 	93	 
	9.03 Exculpatory Provisions
	 	 	93	 
	9.04 Reliance by Administrative Agent
	 	 	94	 
	9.05 Delegation of Duties
	 	 	95	 
	9.06 Resignation of Administrative Agent
	 	 	95	 
	9.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	96	 
	9.08 No Other Duties, Etc
	 	 	96	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	96	 
	9.10 Collateral and Guaranty Matters
	 	 	97	 
	9.11 Secured Cash Management Agreements, Secured Hedge Agreements and
Secured Card Related Products Agreements
	 	 	97	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	98	 
	 
	 	 	 	 
	10.01 Amendments, Etc
	 	 	98	 
	10.02 Notices; Effectiveness; Electronic Communication
	 	 	99	 
	10.03 No Waiver; Cumulative Remedies; Enforcement
	 	 	101	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	102	 
	10.05 Payments Set Aside
	 	 	104	 
	10.06 Successors and Assigns
	 	 	104	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	108	 
	10.08 Right of Setoff
	 	 	109	 
	10.09 Interest Rate Limitation
	 	 	110	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	110	 
	10.11 Survival of Representations and Warranties
	 	 	110	 
	10.12 Severability
	 	 	110	 
	10.13 Replacement of Lenders
	 	 	111	 
	10.14 Governing Law; Jurisdiction; Etc
	 	 	111	 
	10.15 Arbitration and Waiver of Jury Trial
	 	 	112	 
	10.16 California Judicial Reference
	 	 	113	 

iii

 

	 	 	 	 	 
	Section	 	Page	 
	10.17 No Advisory or Fiduciary Responsibility
	 	 	114	 
	10.18 Electronic Execution of Assignments and Certain Other Documents
	 	 	114	 
	10.19 USA PATRIOT Act
	 	 	115	 
	10.20 Judgment Currency
	 	 	115	 
	 
	 	 	 	 
	ARTICLE XI. SECURITY
	 	 	115	 
	 
	 	 	 	 
	11.01 Security
	 	 	115	 
	11.02 Further Assurances
	 	 	116	 
	11.03 Mortgages
	 	 	117	 
	 
	 	 	 	 
	SIGNATURES
	 	 	S-1	 

SCHEDULES

	 	 	 	 	 	 	 

	 

	 	 	1.01	(e)	 	Existing Letters of Credit
	 

	 	 	1.01	(g)	 	Guarantors
	 

	 	 	2.01	 	 	Commitments and Applicable Percentages
	 

	 	 	5.05	(d)	 	Project Debt
	 

	 	 	5.06	 	 	Litigation
	 

	 	 	5.09	 	 	Environmental Matters
	 

	 	 	5.13	(a)	 	Subsidiaries and Other Equity Investments
	 

	 	 	5.13	(b)	 	Senior Note Guarantors
	 

	 	 	5.16	 	 	Intellectual Property Matters
	 

	 	 	7.01	 	 	Existing Liens
	 

	 	 	7.02	(a)	 	Existing Investments
	 

	 	 	7.02	(b)	 	Investment Policy
	 

	 	 	7.02	(g)	 	Investments by any Land Development Company
	 

	 	 	7.03	 	 	Existing Indebtedness
	 

	 	 	7.03	(i)	 	Project Debt Outstanding in the Amendment No. 1 Effective Date
	 

	 	 	7.06	 	 	Existing Leases
	 

	 	 	10.02	 	 	Administrative Agent’s Office; Certain Addresses for Notices

EXHIBITS

Form of

	 	 	 	 	 

	 

	 	A
	 	Revolving Loan Notice
	 

	 	B
	 	Swing Line Loan Notice
	 

	 	C
	 	Note
	 

	 	D
	 	Compliance Certificate
	 

	 	E-1
	 	Assignment and Assumption
	 

	 	E-2
	 	Administrative Questionnaire
	 

	 	F
	 	Guaranty
	 

	 	G
	 	Opinion
	 

	 	H
	 	Pledge Agreement
	 

	 	I
	 	Security Agreement
	 

	 	J
	 	List of Mortgaged Properties

iv

 

	 	 	 	 	 

	 

	 	K
	 	Conditions to Credit Extensions After the Amendment No. 1 Effective Date

v

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (“Agreement”) is entered into as of June 22, 2010, among GRANITE
CONSTRUCTION INCORPORATED, a Delaware corporation (the “Company” and a “Borrower”),
GRANITE CONSTRUCTION COMPANY, a California corporation (“GCC” and a “Borrower”),
GILC INCORPORATED, a California corporation (“GILC” and a “Borrower”, and together
with Company and GCC, collectively, the “Borrower”), each lender from time to time party
hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK OF
AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

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

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

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

     “80% Threshold” has the meaning set forth in the definition of “Material
Subsidiary”.

     “2007 Note Agreement” means that certain Note Purchase Agreement to be dated on or
about December 12, 2007, among the Borrower, the purchasers of the Borrower’s Series 2007-A Senior
Notes party thereto, and the purchasers of additional notes from time to time party thereto.

     “Acquisition” means any transaction or series of related transactions for the purpose
of or resulting, directly or indirectly, in (a) the acquisition of the assets of a Person, or of
any business or division of a Person (other than a Person that is a Subsidiary), (b) the
acquisition of the capital stock, partnership interests, membership interests or equity of any
Person (other than a Person that is a Subsidiary), whether or not causing any Person to become a
Subsidiary, or (c) a merger or consolidation or any other combination with another Person.

     “Adjusted Consolidated EBITDA” means, for any Subject Period, for the Company and its
Subsidiaries on a consolidated basis (excluding, however, any Project Debt Entity), an amount equal
to Consolidated Net Income for such period plus (a) the following to the extent deducted in
calculating such Consolidated Net Income: (i) Consolidated Interest Expense for such period, (ii)
Consolidated Cash Taxes for such period, and (iii) depreciation and amortization expense for such
period and minus (b) during the relevant Subject Period only, one time non-cash charges
pursuant to the restructuring plan disclosed to the Lenders on December 10, 2010 in an amount not
to exceed $46,100,000 in the aggregate.

1

 

     “Adjusted Consolidated Leverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Adjusted Consolidated EBITDA,
measured for the Subject Period ending on or most recently ended prior to such date.

     “Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means, with respect to any currency, the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02
with respect to such currency, or such other address or account with respect to such currency as
the Administrative Agent may from time to time notify to the Borrower and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in substantially
the form of Exhibit E-2 or any other form approved by the Administrative Agent.

     “Affiliate” means, with respect to any 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 Commitments of all the Lenders.

     “Agreement” means this Credit Agreement.

     “Alternative Currency” means each of Canadian Dollars, Euro, Sterling and each other
currency (other than Dollars) that is approved in accordance with Section 1.06.

     “Alternative Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as
determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the
basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase
of such Alternative Currency with Dollars.

     “Amendment No. 1 Effective Date” means December 23, 2010, the effective date of that
certain Amendment No. 1 to Credit Agreement by and among the Borrowers, the Guarantors, the Lenders
and the Administrative Agent.

     “Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time, subject to adjustment as provided in Section 2.16. If the
commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Commitments
have expired, then the Applicable Percentage of each Lender shall be determined based on the
Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent
assignments. The initial Applicable Percentage of each Lender is set forth opposite the name of
such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such
Lender becomes a party hereto, as applicable.

2

 

     “Applicable Rate” means, from time to time, the following percentages per annum,
based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate
received by Administrative Agent pursuant to Section 6.02(a):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Applicable Rate for	 	 	 	 
	 	 	 	 	 	 	 	 	LIBOR Loans and	 	Applicable Rate for	 	 
	 	 	Consolidated Leverage	 	 	 	 	 	Financial Letter of	 	Performance Letter	 	Applicable Rate for
	Pricing Level	 	Ratio	 	Commitment Fee	 	Credit Fee	 	of Credit Fee	 	Base Rate Loans
	1

	 	Less than 0.50 to 1.00
	 	 	0.300	%	 	 	2.000	%	 	 	1.500	%	 	 	1.000	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2

	 	Greater than or equal
to 0.50 to 1.00 but
less than 1.00 to
1.00
	 	 	0.400	%	 	 	2.250	%	 	 	1.6875	%	 	 	1.250	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	Greater than or equal
to 1.00 to 1.00 but
less than 2.00 to
1.00
	 	 	0.500	%	 	 	2.750	%	 	 	2.0625	%	 	 	1.750	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4

	 	Greater than or equal
to 2.00 to 1.00 but
less than 3.00 to
1.00
	 	 	0.500	%	 	 	3.000	%	 	 	2.250	%	 	 	2.000	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5

	 	Greater than or equal
to 3.00 to 1.00 but
less than 4.00 to
1.00
	 	 	0.500	%	 	 	3.500	%	 	 	2.625	%	 	 	2.500	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6

	 	Greater than or equal
to 4.00 to 1.00
	 	 	0.550	%	 	 	4.000	%	 	 	3.000	%	 	 	3.000	%

     Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day immediately
following the date a Compliance Certificate is delivered pursuant to Section 6.02(b);
provided, however, that (i) if a Compliance Certificate is not delivered when due
in accordance with such Section, then, upon the request of the Required Lenders, Pricing Level 6
shall apply as of the first Business Day after the date on which such Compliance Certificate was
required to have been delivered and shall remain in effect until the date on which such Compliance
Certificate is delivered, and (ii) subject to the preceding proviso, from the Amendment No. 1
Effective Date to the date of delivery of the Compliance Certificate for the fiscal quarter ending
December 31, 2010, Pricing Level 5 shall apply.

     Notwithstanding anything to the contrary contained in this definition, the determination of
the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).

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

3

 

     “Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated (successor to Banc
of America Securities LLC), in its capacity as sole lead arranger and sole book manager.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit E-1 or any other form approved by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Company and its Subsidiaries for the fiscal year ended December 31, 2009, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Company and its Subsidiaries, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Bankruptcy Code” means the federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101
et seq.).

     “Base Rate” means for any day a fluctuating rate per annum equal to the
highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect
for such day as publicly announced from time to time by Bank of America as its “prime rate,” and
(c) the Eurodollar Rate plus 1.00%. The “prime rate” is a rate set by Bank of America
based upon various factors including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such prime rate announced by Bank of
America shall
take effect at the opening of business on the day specified in the public announcement of such
change.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

     “Base Rate Revolving Loan” means a Revolving Loan that is a Base Rate Loan.

4

 

     “Borrower” has the meaning specified in the introductory paragraph hereto. All
singular references to the Borrower shall mean any Borrower, each Borrower, the Borrower that has
received a Credit Extension hereunder or all of the Borrowers, as the context may require.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing, as the context may
require.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day that is also a London Banking Day.

     “Canadian Dollar” means the lawful currency of Canada.

     “Card Related Products Agreement” means any agreement to provide credit, purchasing,
debit and other credit related card arrangements.

     “Card Related Products Bank” means any Person that, (a) at the time it enters into a
Card Related Products Agreement, is a Lender or an Affiliate of a Lender, or (b) is party to a Card
Related Products Agreement on the date that such Person or its Affiliate becomes a Lender, in each
case in its capacity as a party to such Card Related Products Agreement.

     “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative
Agent, for the benefit of the Administrative Agent, L/C Issuer or Swing Line Lender (as applicable)
and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans, or
obligations of Lenders to fund participations in respect of either thereof (as the context may
require), cash or deposit account balances or, if the L/C Issuer or Swing Line Lender benefitting
from such collateral shall agree in its sole discretion, other credit support, in each case
pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and
(b) the L/C Issuer or the Swing Line Lender (as applicable). “Cash Collateral” shall have a meaning
correlative to the foregoing and shall include the proceeds of such cash collateral and other
credit support.

     “Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, electronic funds transfer and other cash management
arrangements.

     “Cash Management Bank” means any Person that, (a) at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, or (b) is party to a Cash Management
Agreement on the date that such Person or its Affiliate becomes a Lender, in each case in its
capacity as a party to such Cash Management Agreement.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof

5

 

by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “Change of Control” means an event or series of events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person
or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or
other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all securities that such
person or group has the right to acquire, whether such right is exercisable immediately or
only after the passage of time (such right, an “option right”)), directly or
indirectly, of 25% or more of the equity securities of the Company entitled to vote for
members of the board of directors or equivalent governing body of the Company on a
fully-diluted basis (and taking into account all such securities that such person or group
has the right to acquire pursuant to any option right); or

     (b) during any period of 12 consecutive months, a majority of the members of the
board of directors or other equivalent governing body of the Company cease to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing
body or (iii) whose election or nomination to that board or other equivalent governing body
was approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of that board or
equivalent governing body.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

     “Code” means the Internal Revenue Code of 1986.

     “Collateral” means, collectively, all property of each Borrower, any Subsidiary or any
other Person in which the Administrative Agent or any Lender is granted a Lien under any Security
Instrument as security for all or any portion of the Obligations.

     “Commitment” means, as to each Lender, its obligation to (a) make Revolving Loans to
the Borrower pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and
(c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

     “Company” has the meaning specified in the introductory paragraph hereto.

6

 

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
D.

     “Consolidated Cash Taxes” means, for any Subject Period, for the Company and its
Subsidiaries on a consolidated basis (excluding, however, any Project Debt Entity), the aggregate
of all taxes actually paid by such Persons in cash during such period.

     “Consolidated EBITDA” means, for any Subject Period, for the Company and its
Subsidiaries on a consolidated basis (excluding, however, any Project Debt Entity), an amount equal
to Consolidated Net Income for such period plus the following to the extent deducted in
calculating such Consolidated Net Income: (a) Consolidated Interest Expense for such period, (b)
Consolidated Cash Taxes for such period, and (c) depreciation and amortization expense for such
period.

     “Consolidated Funded Indebtedness” means, as of any date of determination, for the
Company and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal
amount of all obligations, whether current or long-term, for borrowed money (including Obligations
hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments, with or without recourse, but not including Project Debt, plus (b)
Attributable Indebtedness in respect of capital leases, Synthetic Lease Obligations and
sale-leaseback transactions, but not including Project Debt, plus (c) without duplication,
all Guarantee Obligations with respect to Indebtedness of the types specified in subsections
(a) and (b) above of Persons other than the Borrower or any Subsidiary.

     “Consolidated Interest Expense” means, for any Subject Period, for the Company and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, fees, charges
and related expenses of the Company and its Subsidiaries in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase price of assets, in
each case to the extent treated as interest in accordance with GAAP, plus (b) the portion
of rent expense of the Company and its Subsidiaries with respect to such period under capital
leases that is treated as interest in accordance with GAAP and the portion of Synthetic Lease
Obligations payable by the Company and its Subsidiaries with respect to such period that would be
treated as interest in accordance with GAAP if such lease were treated as a capital lease under
GAAP; excluding for purposes of clause (a) and (b) hereof, such amounts in respect
of Project Debt.

     “Consolidated Interest Coverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated EBITDA, measured for the Subject Period ending on such date, to (b)
Consolidated Interest Expense, measured for the Subject Period ending on such date.

     “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA, measured for the
Subject Period ending on or most recently ended prior to such date.

     “Consolidated Net Income” means, for any Subject Period, for the Company and its
Subsidiaries on a consolidated basis, the net income of the Borrower and its Subsidiaries from
continuing operations, excluding extraordinary items and excluding gains and losses from
Dispositions for that period; not including, however, net income in respect of or attributable to
any Project Debt Entity.

7

 

     “Consolidated Stockholders’ Equity” means, as of any date of determination for the
Company and its Subsidiaries (excluding Project Debt Entities) on a consolidated basis,
stockholders’ equity as of that date, determined in accordance with GAAP.

     “Consolidated Tangible Net Worth” means, as of any date of determination, the amount
equal to Consolidated Stockholders’ Equity on that date minus the Intangible Assets of the
Company and its Subsidiaries (excluding Project Debt Entities) (determined on a consolidated basis
in accordance with GAAP) on that date.

     “Construction JV” means any Joint Venture entered into by the Borrower or any of its
Subsidiaries, initially, with any one or more other Persons in the Ordinary Course of Business
solely for purposes of undertaking or completing a construction project; provided that a
Construction JV shall not be deemed to cease being a Construction JV after the withdrawal or
buy-out of such other Person(s) from the Joint Venture or the purchase, acquisition or redemption
of such other Person’s interest in such Joint Venture.

     “Construction JV Investments” means Investments in any Joint Venture arising upon any
initial capital contribution to or subsequent capital contribution in such Joint Venture, and
participated in ratably by all then existing co-joint venturers having an interest in such Joint
Venture, solely for purposes of undertaking or completing a construction project and Investments
arising in connection with the purchase, acquisition, redemption or buy-out of another co-joint
venturer’s interest in such Joint Venture; provided Construction JV Investments shall not
include the incurrence, directly or indirectly, of any Guarantee Obligation by the Borrower or any
of its Subsidiaries.

     “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 Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

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

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any,

8

 

applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to
the Applicable Rate plus 2% per annum.

     “Defaulting Lender” means, subject to Section 2.16(b), any Lender that, as
determined by the Administrative Agent, (a) has failed to perform any of its funding obligations
hereunder, including in respect of its Loans or participations in respect of Letters of Credit or
Swing Line Loans, within three Business Days of the date required to be funded by it hereunder, (b)
has notified the Borrower or the Administrative Agent that it does not intend to comply with its
funding obligations or has made a public statement to that effect with respect to its funding
obligations hereunder or under other agreements in which it commits to extend credit, (c) has
failed, within three Business Days after request by the Administrative Agent, to confirm in a
manner satisfactory to the Administrative Agent that it will comply with its funding obligations,
or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a
proceeding under any Debtor Relief Law, (ii) had a receiver, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with reorganization or liquidation
of its business or a custodian appointed for it, or (iii) taken any action in furtherance of, or
indicated its consent to, approval of or acquiescence in any such proceeding or appointment;
provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership
or acquisition of any equity interest in that Lender or any direct or indirect parent company
thereof by a Governmental Authority.

     “Direct Foreign Subsidiary” means a Foreign Subsidiary a majority of whose Voting
Securities, or a majority of whose Subsidiary Securities, are owned by any Borrower or a Domestic
Subsidiary.

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by any Person, including
any sale, assignment, transfer or other disposal, with or without recourse, of any notes or
accounts receivable or any rights and claims associated therewith.

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

     “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency,
the equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C
Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of
the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

9

 

     “Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii) and (v) (subject to such consents, if any, as may be
required under Section 10.06(b)(iii)).

     “EMU” means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam
Treaty of 1998.

     “EMU Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European currency.

     “Environmental Claims” means all claims, however asserted, by any Governmental
Authority or any other Person alleging potential liability or responsibility for violation of any
Environmental Law or for release or injury to the environment or threat to public health, personal
injury (including sickness, disease or death), property damage, natural resources damage, or
otherwise alleging liability or responsibility for damages (punitive or otherwise), cleanup,
removal, remedial or response costs, restitution, civil or criminal penalties, injunctive relief,
or other type of relief, resulting from or based upon (a) the presence, placement, discharge,
emission or release (including intentional and unintentional, negligent and non-negligent, sudden
or non-sudden, accidental or non-accidental placement, spills, leaks, discharges, emissions or
releases) of any Hazardous Material at, in or from property, whether or not owned by the Borrower
or any of its Subsidiaries, or (b) any other circumstances forming the basis of any violation, or
alleged violation, of any Environmental Law.

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to waste or
public systems.

     “Environmental Permits” has the meaning set forth in Section 5.09(b).

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

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which such entity was a “substantial employer” as defined in Section
4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section
4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from
a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination
under Section 4041 or 4041A of ERISA; (e) the institution by the

10

 

PBGC of proceedings to terminate a
Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the
determination that any Pension Plan is considered an at-risk plan or a plan in endangered or
critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304
and 305 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

     “Euro” means the lawful currency of the Participating Member States introduced in
accordance with the EMU Legislation.

     “Eurodollar Rate” means:

     (a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal
to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or such other commercially available source providing quotations of BBA LIBOR as may be designated
by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two London
Banking Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery
on the first day of such Interest Period) with a term equivalent to such Interest Period or, (ii)
if such rate is not available at such time for any reason, the rate per annum determined by the
Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of
such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being
made, continued or converted and with a term equivalent to such Interest Period would be offered by
Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 11:00 a.m. (London time)
two London Banking Days prior to the commencement of such Interest Period; and

     (b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per
annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time determined two London
Banking Days prior to such date for Dollar deposits being delivered in the London interbank market
for a term of one month commencing that day or (ii) if such published rate is not available at such
time for any reason, the rate per annum determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the date of determination in same day funds in the
approximate amount of the Base Rate Loan being made or maintained and with a term equal to one
month would be offered by Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at the date and time of determination.

     “Eurodollar Rate Loan” means a Revolving Loan that bears interest at a rate based on
clause (a) of the definition of “Eurodollar Rate.”

     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction

11

 

(or any political subdivision thereof) 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, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which the Borrower is located, (c) any backup withholding
tax that is required by the Code to be withheld from amounts payable to a Lender that has failed to
comply with clause (A) of Section 3.01(e)(ii), and (d) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under Section 10.13),
any United States withholding tax that (i) is required to be imposed on amounts payable to such
Foreign Lender pursuant to the Laws in force at the time such Foreign Lender becomes a party hereto
(or designates a new Lending Office) or (ii) is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with clause (B) of
Section 3.01(e)(ii), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section
3.01(a)(ii) or (c). Notwithstanding anything to the contrary contained in this
definition, “Excluded Taxes” shall not include any withholding tax imposed at any time on payments
made by or on behalf of a Foreign Obligor to any Lender hereunder or under any other Loan Document,
provided that such Lender shall have complied with Section 3.01(e)(i).

     “Existing Credit Agreement” means that certain Credit Agreement dated as of June 24,
2005 (as amended) among the Borrower, Bank of America, N.A., as “Administrative Agent”, and the
“Lenders” thereunder.

     “Existing Letters of Credit” means those letters of credit outstanding immediately
prior to the effectiveness of this Agreement, as more particularly described on Schedule
1.01(e).

     “Facility Termination Date” means the date as of which all of the following shall have
occurred: (a) the Aggregate Commitments have been terminated, (b) all Obligations have been paid
in full, other than (i) contingent indemnification obligations, (ii) the undrawn portion of Letters
of Credit and (iii) all fees relating to any Letters of Credit accruing after such date (which fees
shall be payable solely for the account of the L/C Issuer and shall be computed (based on interest
rates and the Applicable Rate then in effect) on such undrawn amounts to the respective expiry
dates of the Letters of Credit), in each case as have been fully Cash Collateralized or as to which
other arrangements with respect thereto satisfactory to the Administrative Agent and the L/C Issuer
shall have been made, (b) the Commitments of all Lenders, if any, shall have terminated or expired,
(c) the obligations and liabilities of the Borrowers and each other Loan Party under all Secured
Hedge Agreements and Secured Cash Management Agreements shall have been fully, finally and
irrevocably paid and satisfied in full and the Secured Hedge Agreements and Secured Cash Management
Agreements shall have expired or been terminated, or other arrangements satisfactory to the
applicable Cash Management Bank or Hedge Bank shall have been made with respect thereto, (d) the
obligations and liabilities of the Borrowers and each other Loan Party under all Secured Card
Related Products Agreements shall have been fully, finally and irrevocably paid and satisfied in
full and the Secured Card Related Products Agreements shall have expired or been terminated, or
other arrangements satisfactory to the applicable Card Related Agreements Bank shall have been made
with respect thereto, and (e) each Guarantor shall have fully, finally and irrevocably paid and
satisfied in full its respective obligations and liabilities arising under the Loan Documents
(except for future obligations

12

 

consisting of continuing indemnities and other contingent
Obligations of the Borrowers or any Loan Party that may be owing to any Related Party of the
Administrative Agent or any Lender pursuant to the Loan Documents and expressly survive termination
of this Agreement).

     “FASB ASC” means the Accounting Standards Codification of the Financial Accounting
Standards Board.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative
Agent.

     “Fee Letter” means, collectively, the letter agreement, dated May 11, 2010, among the
Company, the Administrative Agent and the Arranger, and the letter agreement, dated December 6,
2010, among the Company, the Administrative Agent and the Arranger.

     “Financial Letter of Credit” means any Letter of Credit that is a “financial standby
letter of credit” as set forth in applicable Laws promulgated from time to time by the FRB.

     “Foreign Lender” means any Lender that is organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes (including such a Lender when
acting in the capacity of the L/C Issuer). For purposes of this definition, the United States,
each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction.

     “Foreign Obligor” means a Loan Party that is a Foreign Subsidiary.

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

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

     “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect
to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C
Obligations other than L/C Obligations as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the
terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable
Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s
participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance
with the terms hereof.

13

 

     “Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its activities.

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “GLC Venture” means any Joint Venture, now or hereafter formed by any Land Development
Company or any of its Subsidiaries with any other Person in the Ordinary Course of Business of such
Land Development Company or Subsidiary; provided that a GLC Venture shall not be deemed to
cease being a GLC Venture after the withdrawal or buy-out of such other Person(s) from the Joint
Venture or the purchase, acquisition or redemption of such other Person’s interest in such Joint
Venture.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

     “Granite Land Company” means Granite Land Company, a California corporation, and any
successor thereto.

     “Guarantee Obligation” means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of such Person, direct
or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the
payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into
for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or
other obligation of the payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any
Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person. The amount of any Guarantee Obligation shall be deemed to be
an amount equal to the stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guarantee Obligation is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof as determined by the guarantying
Person in good faith.

14

 

     “Guaranteed Cash Management Agreement”, as used in the Guaranty, means the “Secured
Cash Management Agreement” as defined herein and shall include the “Secured Card Related Products
Agreement” as defined herein.

     “Guaranteed Hedge Agreement”, as used in the Guaranty, means the “Secured Hedge
Agreement” as defined herein.

     “Guaranteed Parties”, as used in the Guaranty, means the “Secured Parties” as defined
herein.

     “Guarantor Assessment Date” means each of (a) the date on which the Company delivers
or is obligated to deliver to the Administrative Agent financial statements pursuant to Section
6.01(a) or (b), (b) the date on which the Borrower consummates any Acquisition of all
or substantially all of the assets or capital stock of another Person, or acquires or creates any
new or additional Subsidiary, (c) the date on which any Subsidiary becomes a Senior Note Guarantor,
and (d) the date on which the Borrower sells, transfers, divests or otherwise Disposes of any
Subsidiary or all or substantially of the assets of any Subsidiary.

     “Guarantors” means all of the Subsidiaries listed on Schedule 1.01(g),
together with all other Persons who, following the Closing Date, execute and deliver a guaranty or
guaranty joinder or supplement pursuant to Section 6.14.

     “Guaranty” means that certain Guaranty Agreement executed by the Guarantors in favor
of the Administrative Agent and for the benefit of the Secured Parties, substantially in the form
attached as Exhibit F hereto and reasonably satisfactory to Administrative Agent, as
supplemented from time to time by the execution and delivery of any Guaranty Joinder Agreements
executed and delivered pursuant to Section 6.14.

     “Guaranty Joinder Agreement” means each Guaranty Joinder Agreement, substantially in
the form thereof attached to the Guaranty, executed and delivered by a Subsidiary to Administrative
Agent pursuant to Section 6.14.

     “Hazardous Materials” means, collectively, as of any date: (a) any petroleum or
petroleum products, flammable explosives, radioactive materials, asbestos in any form that is or
could become friable, urea formaldehyde foam insulation, and transformers or other equipment that
contain dielectric fluid containing polychlorinated biphenyls (PCB’s); (b) any chemicals or other
materials or substances which as of such date are defined as or included in the definition of
“hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,”
“restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “contaminants,” “infectious
wastes,” “pollutants” or words of similar import under any Environmental Law; and (c) any other
chemical or other material or substance, exposure to which or use of which as of such date is
prohibited, limited or regulated under any Environmental Law.

     “Hedge Bank” means any Person that (a) at the time that it enters into any Swap
Contract, is a Lender or an Affiliate of a Lender, or (b) is party to an interest rate Swap
Contract on the date that such Person or its Affiliate becomes a Lender, in each case in such
Person’s capacity as a party to such Swap Contract.

15

 

     “Honor Date” has the meaning specified in Section 2.03(c)(i).

     “Indebtedness” means, as to any Person at a particular time, all of the following,
whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of
credit (including standby and commercial), reimbursement agreements, bankers’ acceptances,
bank guaranties, surety bonds and similar instruments (in each case, whether or not such
obligations are contingent or absolute); provided that the amount of any such
contingent obligation shall be deemed to be equal to the maximum reasonably anticipated
liability in respect thereof;

     (c) net obligations under any Swap Contract in an amount equal to the Swap
Termination Value thereof;

     (d) all obligations of such Person to pay the deferred purchase price of property
or services (other than trade accounts payable in the Ordinary Course of Business);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) capital leases and Synthetic Lease Obligations; and

     (g) all Guarantee Obligations of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
Joint Venture (other than a Joint Venture that is itself a corporation or limited liability
company) in which such Person is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to such Person and to such Person’s assets (subject only to customary
exceptions acceptable to the Required Lenders). The amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The
amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the
amount of Attributable Indebtedness in respect thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.04(b).

     “Information” has the meaning specified in Section 10.07.

16

 

     “Intangible Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trade marks,
patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and
capitalized research and development costs.

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two, three or six months (or such other period that is twelve months or
less requested by Company and consented to by all of the Lenders) thereafter, as selected by the
Company in its Revolving Loan Notice; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business
Day shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

     (ii) any Interest Period that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period; and

     (iii) no Interest Period shall extend beyond the Maturity Date.

     “Investment” means, as to any Person, any acquisition or investment by such Person,
whether by means of (a) the purchase or other acquisition of capital stock or other securities of
another Person, (b) a loan, advance or capital contribution to, guaranty of debt of, or purchase or
other acquisition of any other debt or equity participation or interest in, another Person,
including any partnership or joint venture interest in or with such other Person, (c) the provision
of goods or services to another Person for consideration other than cash payable in full upon the
delivery or provision of such goods or services (other than trade accounts payable in the Ordinary
Course of Business), or (d) the purchase or other acquisition (in one transaction or a series of
transactions) of assets of another Person that constitute a business unit of that Person. For
purposes of covenant compliance, the amount of any Investment shall be the amount actually
invested, without adjustment for subsequent increases or decreases in the value of such Investment.

     “IP Rights” has the meaning specified in Section 5.16.

     “IRS” means the United States Internal Revenue Service.

17

 

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
any Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of
Credit.

     “Joint Venture” means a single-purpose corporation, partnership, limited liability
company, joint venture or other similar legal arrangement (whether created by contract or conducted
through a separate legal entity) now or hereafter formed by one Person with another Person in order
to conduct a common venture or enterprise with such Person.

     “Land Development Company” means Granite Land Company and any and all other
Subsidiaries of the Company (or the Company itself) now or hereafter engaged, directly, or
indirectly through Subsidiaries or Joint Ventures, in the business of land or real estate
development.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage. All L/C Advances
shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Revolving
Borrowing. All L/C Borrowings shall be denominated in Dollars.

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

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.09. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn

18

 

thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Company and the Administrative Agent.

     “Letter of Credit” means any standby letter of credit issued hereunder and shall
include each Existing Letter of Credit. Letters of Credit may be issued in Dollars or in an
Alternative Currency.

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

     “Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Letter of Credit Fee” has the meaning specified in Section 2.03(h).

     “Letter of Credit Sublimit” means an amount equal to the lesser or the Aggregate
Commitments and $50,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the
Aggregate Commitments.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” means an extension of credit by a Lender to any Borrower under Article
II in the form of a Revolving Loan or a Swing Line Loan. All Loans shall be denominated in
Dollars.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, each Security
Instrument, any agreement creating or perfecting rights in Cash Collateral pursuant to the
provisions of Section 2.15 of this Agreement, the Fee Letter, and the Guaranty.

     “Loan Parties” means, collectively, the Borrowers and the Guarantors.

     “London Banking Day” means any day on which dealings in Dollar deposits are conducted
by and between banks in the London interbank eurodollar market.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, condition (financial or otherwise) or
prospects of the Company or the Company and its Subsidiaries taken as a whole; (b) a material
impairment

19

 

of the ability of any Loan Party to perform its obligations under any Loan Document to
which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect
or enforceability against any Loan Party of any Loan Document to which it is a party.

     “Material Subsidiary” means,

     (a) as of the last day of any fiscal quarter of the Company, any Subsidiary that meets
either of the following conditions at such time: (i) such Subsidiary’s consolidated total revenues
for the period of the immediately preceding four fiscal quarters is equal to or greater than 10% of
the consolidated total revenues of the Company and its Subsidiaries for such period, determined in
accordance with GAAP, in each case as reflected in the most recent annual or quarterly (as
applicable) financial statements required to be delivered pursuant to Section 6.01; or (ii)
such Subsidiary’s total assets, as of the last day of the immediately preceding fiscal quarter, are
equal to or greater than 10% of the consolidated total assets of the Company and its Subsidiaries
as of such date, determined in accordance with GAAP, in each case as reflected in the most recent
annual or quarterly (as applicable) financial statements of the Company required to be delivered
pursuant to Section 6.01; and

     (b) as of any other Guarantor Assessment Date, any Subsidiary that has, on a pro forma basis,
based upon the then most recently delivered financial statements delivered pursuant to Section
6.01, and after giving effect to the applicable Acquisition, divestiture or creation, as though
occurring on the first day of the four fiscal quarter period ending on the effective date of such
delivered financial statements, (i) total revenues for the period of the immediately preceding four
fiscal quarters is equal to or greater than 10% of the consolidated total revenues of the Company
and its Subsidiaries for such period, determined in accordance with GAAP, or (ii) total assets
equal to or greater than 10% of the consolidated total assets of the Company and its Subsidiaries
as of such date, determined in accordance with GAAP;

provided, however, that at all times prior to the date on which the Company shall
have delivered the quarterly financial statements for the fiscal quarter ending June 30, 2010 in
accordance with Section 6.01, each of the entities listed on Schedule 1.01(g) shall
be deemed a “Material Subsidiary”; provided further that if at any time
Subsidiaries qualifying as Material Subsidiaries pursuant to clause (a) or (b)
above which, in the aggregate and together with the total assets and total revenues of the Company,
do not represent at least 80% of the consolidated total assets and consolidated total revenues of
the Company and its Subsidiaries (the “80% Threshold”), the Company shall designate
additional Domestic Subsidiaries or, to the extent no material adverse tax consequences shall
result, Foreign Subsidiaries as Material Subsidiaries until the 80% Threshold is satisfied
collectively by all Material Subsidiaries, and in the event the addition of all such Subsidiaries
does not result in satisfaction of the 80% Threshold by such then designated Material Subsidiaries,
the Company shall also designate Foreign Subsidiaries as Material Subsidiaries until the 80%
Threshold is satisfied collectively by all Material Subsidiaries. Once a Subsidiary qualifies as
or is designated by the Company as a Material Subsidiary, it shall continue to constitute a
Material Subsidiary throughout the term of this Agreement, until such time as the Company provides
to the Administrative Agent a certificate in accordance with Section 6.14(b) that such
Subsidiary is no longer required to be designated as such pursuant to the terms hereof

20

 

     “Maturity Date” means June 22, 2013; provided, however, that if such
date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

     “Mortgage” means any mortgage, deed of trust, trust deed or other equivalent document
now or hereafter encumbering any fee-owned real property of any Loan Party in favor of the
Administrative Agent, on behalf of the Secured Parties, as security for any of the Obligations,
each of which shall be in form and substance reasonably acceptable to the Administrative Agent. A
listing of such mortgaged properties is to be set forth in Exhibit J.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Multiple Employer Plan” means a Plan which has two or more contributing sponsors
(including the Borrower or any ERISA Affiliate) at least two of whom are not under common control,
as such a plan is described in Section 4064 of ERISA.

     “Note” means a promissory note made by any Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit C.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any
Loan, Letter of Credit, Secured Cash Management Agreement, Secured Hedge Agreement or Secured Card
Related Products Agreement, in each case whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against any Loan Party or any
Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed claims in such
proceeding.

     “Ordinary Course of Business” means, in respect of any transaction involving the
Borrower or any Subsidiary of the Borrower, (a) the ordinary course of such Person’s business,
substantially as conducted by any such Person prior to or as of the Closing Date, or in a manner
reasonably related thereto, and undertaken by such Person in good faith and not for purposes of
evading any covenant or restriction in any Loan Document, or (b) transactions outside the ordinary
course of such Person’s then-existing business, as long as the Borrower provides written notice to
the Administrative Agent and the Lenders prior to such Person undertaking such business,
specifically referencing this definition, provided that the Required Lenders shall not have
delivered written objections to the Administrative Agent within five (5) Business Days after their
receipt of such written notice.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, Joint Venture, trust or other form of business entity, the partnership, Joint

21

 

Venture or other applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its formation or
organization with the applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or organization of such
entity.

     “Other Taxes” means 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
under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

     “Outstanding Amount” means (i) with respect to Revolving Loans and Swing Line Loans on
any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings
and prepayments or repayments of Revolving Loans and Swing Line Loans, as the case may be,
occurring on such date; and (ii) with respect to any L/C Obligations on any date, the Dollar
Equivalent amount of the aggregate outstanding amount of such L/C Obligations on such date after
giving effect to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by the Borrower of Unreimbursed Amounts.

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the
Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case may be, in accordance
with banking industry rules on interbank compensation, and (b) with respect to any amount
denominated in an Alternative Currency, the rate of interest per annum at which overnight deposits
in the applicable Alternative Currency, in an amount approximately equal to the amount with respect
to which such rate is being determined, would be offered for such day by a branch or Affiliate of
Bank of America in the applicable offshore interbank market for such currency to major banks in
such interbank market.

     “Participant” has the meaning specified in Section 10.06(d).

     “Participating Member State” means each state so described in any EMU Legislation.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Act” means the Pension Protection Act of 2006.

     “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension Plans and set forth
in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412
of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter,
Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

     “Pension Plan” means any employee pension benefit plan (including a Multiple Employer
Plan or a Multiemployer Plan) that is maintained or is contributed to by the Borrower
and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the
minimum funding standards under Section 412 of the Code.

22

 

     “Performance Letter of Credit” means any Letter of Credit that is a “performance
standby letter of credit” as set forth in applicable Laws promulgated from time to time by the FRB.

     “Permitted Lien” means any Lien permitted by Section 7.01.

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

     “Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA
(including a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or any
such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of any
of its employees.

     “Platform” has the meaning specified in Section 6.02.

     “Pledge Agreement” means that certain Securities Pledge Agreement dated as of the
Amendment No. 1 Effective Date among the Borrowers, certain Guarantors and the Administrative Agent
for the benefit of the Administrative Agent and the Secured Parties substantially in the form of
Exhibit H, as supplemented from time to time by the execution and delivery of Pledge
Joinder Agreements pursuant to Section 6.14, as the same may be otherwise supplemented
(including by Pledge Agreement Supplement).

     “Pledge Agreement Supplement” means, with respect to each Pledge Agreement, the Pledge
Agreement Supplement in the form affixed as an Exhibit to such Pledge Agreement.

     “Pledge Joinder Agreement” means each Pledge Joinder Agreement, substantially in the
form thereof attached to the Pledge Agreement, executed and delivered by a Guarantor to the
Administrative Agent pursuant to Section 6.14.

     “Pledged Interests” means the Subsidiary Securities heretofore pledged to the
Administrative Agent and the Subsidiary Securities required to be pledged as Collateral pursuant to
this Agreement or the terms of any Pledge Agreement.

     “Project Debt” means, in respect of any GLC Venture (the “obligor”), any
Indebtedness of such obligor incurred in the Ordinary Course of Business of such obligor and of the
Borrower and its Subsidiaries, secured by a Lien on assets of such obligor, but as to which there
is no general recourse to any Loan Party except against such obligor (a) for breach of customary
representations and warranties, or (b) to the extent such obligor is a limited liability company,
corporation, limited partnership or other entity as to which no Loan Party (other than obligor) is,
directly or indirectly (at law, through any Guarantee Obligation or otherwise), liable to pay the
debts of such obligor.

     “Project Debt Entity” means at any time, any GLC Venture obligated in respect of
Project Debt at such time.

     “Public Lender” has the meaning specified in Section 6.02.

     “Register” has the meaning specified in Section 10.06(c).

23

 

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

     “Release” means any release, spill, emission, leaking, pumping, injection, deposit,
disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment,
including the movement of Hazardous Materials through ambient air, soil, surface water, ground
water, wetlands, land or subsurface strata.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Revolving Loans, a Revolving Loan Notice, (b) with respect to an L/C Credit
Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line
Loan Notice.

     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

     “Responsible Officer” means the president, chief operating officer, chief executive
officer, chief financial officer, treasurer or controller of a Loan Party. Any document delivered
hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to
have been authorized by all necessary corporate, partnership and/or other action on the part of
such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock of the Borrower or any Subsidiary,
or any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any such capital stock or of any option, warrant or other right to acquire any
such capital stock.

     “Revaluation Date” means with respect to any Letter of Credit, each of the following:
(a) each date of issuance of a Letter of Credit denominated in an Alternative Currency, (b) each
date of an amendment of any such Letter of Credit having the effect of increasing the amount
thereof (solely with respect to the increased amount), (c) each date of any payment by the L/C
Issuer under any Letter of Credit denominated in an Alternative Currency, (d) in the case of the
Existing Letters of Credit denominated in an Alternative Currency, the Closing Date, and

24

 

(e) such additional dates as the Administrative Agent or the L/C Issuer shall determine or the Required
Lenders shall require.

     “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans of
the same Type and having the same Interest Period made by each of the Lenders pursuant to
Section 2.01.

     “Revolving Loan” has the meaning specified in Section 2.01.

     “Revolving Loan Notice” means a notice of (a) a Revolving Borrowing, (b) a conversion
of Revolving Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans,
pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit A.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Secured Card Related Products Agreement” means any Card Related Products Agreement
permitted by Article VII that is entered into by and between any Loan Party and any Card
Related Products Bank.

     “Secured Cash Management Agreement” means any Cash Management Agreement permitted by
Article VII that is entered into by and between any Loan Party and any Cash Management
Bank.

     “Secured Hedge Agreement” means any Swap Contract permitted by Article VII
that is entered into by and between any Loan Party and any Hedge Bank.

     “Secured Parties” means, collectively, with respect to each of the Security
Instruments, the Administrative Agent, the Lenders, the L/C Issuer, the Hedge Banks, the Cash
Management Banks, the Card Related Products Banks, each co-agent or sub-agent appointed by the
Administrative Agent from time to time pursuant to Section 9.05 and the other Persons the
Obligations owing to which are or are purported to be secured by the Collateral under the terms of
the Security Instruments.

     “Security Agreement” means that certain Security Agreement dated as of the Amendment
No. 1 Effective Date among the Borrowers, the Guarantors and the Administrative Agent,
attached as Exhibit I, as supplemented from time to time by the execution and delivery
of Security Joinder Agreements pursuant to Section 6.14, and as modified, amended, amended
and restated or supplemented from time to time.

     “Security Instruments” means, collectively, the Pledge Agreement, the Security
Agreement, the Mortgages, the Guaranty, and all other agreements (including control agreements),
instruments and other documents, whether now existing or hereafter in effect, pursuant to which any
Borrower or any Subsidiary or other Person shall grant or convey to the Administrative Agent or the
Lenders a Lien in, or any other Person shall acknowledge any such Lien in, property as security for
all or any portion of the Obligations or any other obligation under any Loan Document, as any of
them has been or may be amended, amended and restated, modified or supplemented from time to time.

25

 

     “Security Joinder Agreement” means each Security Joinder Agreement, substantially in
the form attached to the Security Agreement, executed and delivered by a Guarantor or any other
Person to the Administrative Agent pursuant to Section 6.14.

     “Senior Note Documents” means any and all note purchase agreements, notes and other
documents evidencing or relating to any outstanding Indebtedness from time to time of the Company
evidenced by senior notes.

     “Senior Note Guarantor” means, at any time, any Subsidiary that is at such time a
guarantor of Indebtedness of the Company pursuant to any Senior Note Documents.

     “Solvent” means, as to any Person at any time, that: (a) the fair value of the
property of such Person is greater than the amount of such Person’s liabilities (including
disputed, contingent and unliquidated liabilities) as such value is established and liabilities
evaluated for purposes of Section 101(32) of the Bankruptcy Code and, in the alternative, for
purposes of the California Uniform Fraudulent Transfer Act; (b) the present fair saleable value of
the property of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured; (c) such Person is able
to realize upon its property and pay its debts and other liabilities (including disputed,
contingent and unliquidated liabilities) as they mature in the normal course of business; (d) such
Person does not intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay as such debts and liabilities mature; and (e) such Person is not
engaged in business or a transaction for which such Person’s property would constitute unreasonably
small capital.

     “Special Notice Currency” means at any time an Alternative Currency, other than the
currency of a country that is a member of the Organization for Economic Cooperation and Development
at such time located in North America or Europe.

     “Spot Rate” for a currency means the rate determined by the Administrative Agent or
the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 9:00 a.m. on the date two Business Days
prior to the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution
designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does
not have as of the date of determination a spot buying rate for any such currency; and
provided further that the L/C Issuer may use such spot rate quoted on the date as
of which the foreign exchange computation is made in the case of any Letter of Credit denominated
in an Alternative Currency.

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

     “Subject Period” means, as of any date of determination, the four consecutive fiscal
quarter period ending on such date.

     “Subsidiary” of a Person means a corporation, partnership, Joint Venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than

26

 

securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Company.

     “Subsidiary Securities” means the shares of capital stock or other equity interests
issued by or equity participations in any Material Subsidiary, whether or not constituting a
“security” under Article 8 of the Uniform Commercial Code as in effect in any jurisdiction.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

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

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

     “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.04(a).

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B.

27

 

     “Swing Line Sublimit” means an amount equal to the lesser of (a) $15,000,000 and (b)
the Aggregate Commitments. The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Type” means, with respect to a Revolving Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “Voting Securities” means shares of capital stock issued by a corporation, or
equivalent interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the happening of such
a contingency.

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

     (a) 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
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) 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 or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “hereto,”
“herein,” “hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to
any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law

28

 

shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting
such law and any reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time, and (vi) 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 properties, including cash, securities,
accounts and contract rights.

     (b) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and
including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms. Generally. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein. Notwithstanding the
foregoing, for purposes of determining compliance with any covenant (including the computation of
any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall
be deemed to
be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC
825 on financial liabilities shall be disregarded.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Company or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the Company shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Required Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Company shall provide to the
Administrative Agent and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations
of such ratio or requirement made before and after giving effect to such change in GAAP.

     (c) Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of the Company and its Subsidiaries or to the determination of
any amount for the Company and its Subsidiaries on a consolidated basis or any similar reference
shall, in each case, be deemed to include each variable interest entity that the Company is
required to consolidate pursuant to FASB ASC 810 as if such variable interest entity were a
Subsidiary as defined herein.

     1.04 Rounding. Any financial ratios required to be maintained by the Company pursuant to this
Agreement shall be calculated by dividing the appropriate component by the

29

 

other component, carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05 Exchange Rates; Currency Equivalents. (a) The Administrative Agent or the L/C Issuer, as
applicable, shall determine the Spot Rates as of each Revaluation Date to be used for calculating
Dollar Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies. Such Spot Rates shall become effective as of such Revaluation Date and shall be the
Spot Rates employed in converting any amounts between the applicable currencies until the next
Revaluation Date to occur. Except for purposes of financial statements delivered by Loan Parties
hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the
applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be
such Dollar Equivalent amount as so determined by the Administrative Agent or the L/C Issuer, as
applicable.

     (b) Wherever in this Agreement in connection with the issuance, amendment or extension of a
Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed in
Dollars, but such Letter of Credit is denominated in an Alternative Currency, such amount shall be
the relevant Alternative Currency Equivalent of such Dollar amount (rounded to the nearest unit of
such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the
Administrative Agent or the L/C Issuer, as the case may be.

     1.06 Additional Alternative Currencies. (a) The Company may from time to time request that
Letters of Credit be issued in a currency other than those specifically listed in the definition of
“Alternative Currency;” provided that such requested currency is a lawful currency (other
than Dollars) that is readily available and freely transferable and convertible into Dollars. Such
request shall be subject to the approval of the Administrative Agent and the L/C Issuer.

     (b) Any such request shall be made to the Administrative Agent not later than 11:00 a.m., ten
Business Days prior to the date of the desired Credit Extension (or such other time or date as may
be agreed by the Administrative Agent and the L/C Issuer, in its or their sole discretion). The
Administrative Agent shall promptly notify the L/C Issuer thereof. The L/C Issuer shall notify the
Administrative Agent, not later than 11:00 a.m., five Business Days after receipt of such request
(or such other time or date as may be agreed by the Administrative Agent and the L/C Issuer, in its
or their sole discretion) whether it consents, in its sole discretion, to the issuance of Letters
of Credit in such requested currency.

     (c) Any failure by the L/C Issuer to respond to such request within the time period specified
in the preceding sentence shall be deemed to be a refusal by the L/C Issuer to permit Letters of
Credit to be issued in such requested currency. If the Administrative Agent and the L/C Issuer
consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent
shall so notify the Company and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the
Administrative Agent shall fail to obtain consent to any request for an additional currency under
this Section 1.06, the Administrative Agent shall promptly so notify the Company.

30

 

     1.07 Change of Currency. (a) Each obligation of the Borrower to make a payment denominated in
the national currency unit of any member state of the European Union that adopts the Euro as its
lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption
(in accordance with the EMU Legislation). If, in relation to the currency of any such member
state, the basis of accrual of interest expressed in this Agreement in respect of that currency
shall be inconsistent with any convention or practice in the London interbank market for the basis
of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member state adopts the Euro as its
lawful currency.

     (b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
the adoption of the Euro by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.

     (c) Each provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
a change in currency of any other country and any relevant market conventions or practices relating
to the change in currency.

     1.08 Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Pacific time (daylight or standard, as applicable).

     1.09 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of
Credit at any time shall be deemed to be Dollar Equivalent the stated amount of such Letter of
Credit in effect at such time; provided, however, that with respect to any Letter
of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one
or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall
be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Revolving Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make loans (each such loan, a “Revolving Loan”) to the Borrowers from
time to time, on any Business Day during the Availability Period, in an aggregate amount not to
exceed at any time outstanding the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Revolving Borrowing, (a) the Total Outstandings
shall not exceed the Aggregate Commitments, and (b) the aggregate Outstanding Amount of the
Revolving Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment. Within the limits of
each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrowers may
borrow under this Section 2.01, prepay under Section 2.05, and reborrow under this
Section 2.01. Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
provided herein. Revolving Loans may be made in Dollars only.

31

 

     2.02 Borrowings, Conversions and Continuations of Revolving Loans.

     (a) Each Revolving Borrowing, each conversion of Revolving Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans shall be made upon the Company’s irrevocable notice
to the Administrative Agent, which may be given by telephone. Each such notice must be received by
the Administrative Agent not later than 9:00 a.m. (i) three Business Days prior to the requested
date of any Revolving Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of
any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any
Revolving Borrowing of Base Rate Revolving Loans; provided, however, that if the
Company wishes to request Eurodollar Rate Loans having an Interest Period other than one, two,
three or six months in duration as provided in the definition of “Interest Period,” the applicable
notice must be received by the Administrative Agent not later than 9:00 a.m. four Business Days
prior to the requested date of such Revolving Borrowing, conversion or continuation, whereupon the
Administrative Agent shall give prompt notice to the Lenders of such request and determine whether
the requested Interest Period is acceptable to all of the Lenders. Not later than 9:00 a.m., three
Business Days before the requested date of such Revolving Borrowing, conversion or continuation,
the Administrative Agent shall notify the Company (which notice may be by telephone) whether or not
the requested Interest Period has
been consented to by all the Lenders. Each telephonic notice by the Company pursuant to this
Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a
written Revolving Loan Notice, appropriately completed and signed by two (2) Responsible Officers
of the Company. Each Revolving Borrowing of, conversion to or continuation of Eurodollar Rate
Loans shall be in a principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess
thereof. Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or
conversion to Base Rate Revolving Loans shall be in a principal amount of $1,000,000. Each
Revolving Loan Notice (whether telephonic or written) shall specify (i) whether the Company is
requesting a Revolving Borrowing, a conversion of Revolving Loans from one Type to the other, or a
continuation of Eurodollar Rate Loans, (ii) the requested date of the Revolving Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal
amount of Revolving Loans to be borrowed, converted or continued, (iv) the Type of Revolving Loans
to be borrowed or to which existing Revolving Loans are to be converted, (v) if applicable, the
duration of the Interest Period with respect thereto and (vi) the Borrower for which such Borrowing
is requested. If the Company fails to specify a Type of Revolving Loan in a Revolving Loan Notice
or if the Company fails to give a timely notice requesting a conversion or continuation, then the
applicable Revolving Loans shall be made as, or converted to, Base Rate Loans. Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans. If the Company requests a Revolving
Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Revolving Loan
Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest
Period of one month.

     (b) Following receipt of a Revolving Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount of its Applicable Percentage of the applicable Revolving Loans,
and if no timely notice of a conversion or continuation is provided by the Company, the
Administrative Agent shall notify each Lender of the details of any automatic conversion to Base
Rate Loans described in the preceding subsection. In the case of a Revolving Borrowing, each
Lender shall make the amount of its Revolving Loan available to the

32

 

Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than 11:00 a.m. on the
Business Day specified in the applicable Revolving Loan Notice. Upon satisfaction of the
applicable conditions set forth in Section 4.03 (and, if such Borrowing is the initial
Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received
available to the Company or the applicable Borrower in like funds as received by the Administrative
Agent either by (i) crediting the account of the Company or the applicable Borrower on the books of
Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent by the Company; provided,
however, that if, on the date the Revolving Loan Notice with respect to such Borrowing is
given by the Company, there are L/C Borrowings outstanding, then the proceeds of such Borrowing,
first, shall be applied to the payment in full of any such L/C Borrowings, and
second, shall be made available to the Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan. During the
existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

     (d) The Administrative Agent shall promptly notify the Company and the Lenders of the interest
rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such
interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent shall
notify the Company and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such change.

     (e) After giving effect to all Revolving Borrowings, all conversions of Revolving Loans from
one Type to the other, and all continuations of Revolving Loans as the same Type, there shall not
be more than ten Interest Periods in effect with respect to Revolving Loans.

     (f) The Obligations of the Company and each other Borrower shall be joint and several in
nature.

     (g) Each Subsidiary of the Company that is a “Borrower” hereunder hereby irrevocably appoints
the Company as its agent for all purposes relevant to this Agreement and each of the other Loan
Documents, including (i) the giving and receipt of notices, (ii) the execution and delivery of all
documents, instruments and certificates contemplated herein and all modifications hereto, and (iii)
the receipt of the proceeds of any Loans made by the Lenders, to any such Borrower hereunder. Any
acknowledgment, consent, direction, certification or other action which might otherwise be valid or
effective only if given or taken by all Borrowers, or by each Borrower acting singly, shall be
valid and effective if given or taken only by the Company, whether or not any such other Borrower
joins therein. Any notice, demand, consent, acknowledgement, direction, certification or other
communication delivered to the Company in accordance with the terms of this Agreement shall be
deemed to have been delivered to each Borrower.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

33

 

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from
time to time on any Business Day during the period from the Closing Date until the Letter of
Credit Expiration Date, to issue Letters of Credit for the account of any Borrower or its
Subsidiaries, and to amend or extend Letters of Credit previously issued by it, in
accordance with subsection (b) below, and (2) to honor drawings under the Letters of
Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for
the account of any Borrower or its Subsidiaries and any drawings thereunder;
provided that after giving effect to any L/C Credit Extension with respect to any
Letter of Credit, (x) the Total Outstandings shall not exceed the Aggregate Commitments, (y)
the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such
Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C
Obligations shall not exceed the Letter of Credit Sublimit. Each request by the Company for
the issuance or amendment of a Letter of Credit shall be deemed to be a representation by
the Company that the L/C Credit Extension so requested complies with the conditions set
forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to
the terms and conditions hereof, each Borrower’s ability to obtain Letters of Credit shall
be fully revolving, and accordingly any Borrower may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have been drawn
upon and reimbursed. All Existing Letters of Credit shall be deemed to have been issued
pursuant hereto, and from and after the Closing Date shall be subject to and governed by the
terms and conditions hereof.

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

     (A) subject to Section 2.03(b)(iii), the expiry date of the requested
Letter of Credit would occur more than twelve months after the date of issuance or
last extension, unless the L/C Issuer has approved such expiry date; or

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

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

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

34

 

Closing Date, or shall impose
upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable
on the Closing Date and which the L/C Issuer in good faith deems material to it;

     (B) the issuance of the Letter of Credit would violate one or more policies of
the L/C Issuer applicable to letters of credit generally;

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer,
the Letter of Credit is in an initial stated amount less than the Dollar Equivalent
of $1,000,000;

     (D) the Letter of Credit is to be denominated in a currency other than Dollars
or an Alternative Currency; or

     (E) any Lender is at that time a Defaulting Lender, unless the L/C Issuer has
entered into arrangements, including the delivery of Cash Collateral, satisfactory
to the L/C Issuer (in its sole discretion) with any Borrower or such Lender to
eliminate the L/C Issuer’s actual or potential Fronting Exposure (after giving
effect to Section 2.16(a)(iv)) with respect to the Defaulting Lender arising
from either the Letter of Credit then proposed to be issued or that Letter of Credit
and all other L/C Obligations as to which the L/C Issuer has actual or potential
Fronting Exposure, as it may elect in its sole discretion.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue the Letter of Credit in its amended form under the terms
hereof.

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

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

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Company delivered to the L/C Issuer (with a copy to the Administrative Agent)
in the form of a Letter of Credit Application, appropriately completed and signed by two (2)
Responsible Officers of the Company. Such Letter of Credit Application must

35

 

be received by the L/C Issuer and the Administrative Agent not later than 9:00 a.m. at least two Business
Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree
in a particular instance in their sole discretion) prior to the proposed issuance date or
date of amendment, as the case may be. In the case of a request for an initial issuance of
a Letter of Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of
Credit (which shall be a Business Day); (B) the amount and currency thereof; (C) the expiry
date thereof; (D) the name and address of the beneficiary
thereof; (E) the documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such beneficiary in case
of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and
(H) such other matters as the L/C Issuer may require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail satisfactory to the L/C Issuer (A) the Letter of Credit to be
amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the
nature of the proposed amendment; and (D) such other matters as the L/C Issuer may require.
Additionally, the Company shall furnish to the L/C Issuer and the Administrative Agent such
other documents and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may
require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Company and, if not,
the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the L/C
Issuer has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in Article
IV shall not then be satisfied, then, subject to the terms and conditions hereof, the
L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the
Company (or the applicable Borrower or Subsidiary) or enter into the applicable amendment,
as the case may be, in each case in accordance with the L/C Issuer’s usual and customary
business practices. Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the
L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product
of such Lender’s Applicable Percentage times the amount of such Letter of Credit.

     (iii) If the Company so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such
extension at least once in each twelve-month period (commencing with the date of issuance of
such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a
day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed
upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C
Issuer, the Company shall not be required to make a specific request to the L/C

36

 

Issuer for
any such extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders
shall be deemed to have authorized (but may not require) the L/C Issuer to permit the
extension of such Letter of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the L/C Issuer shall not
permit any such extension if (A) the L/C Issuer has determined that it would not be
permitted, or would have no obligation, at such time to issue such Letter of Credit in
its revised form (as extended) under the terms hereof (by reason of the provisions of
clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has
received notice (which may be by telephone or in writing) on or before the day that is seven
Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that
the Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the Company that one or more of the applicable
conditions specified in Section 4.03 is not then satisfied, and in each such case
directing the L/C Issuer not to permit such extension.

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

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the Company and the
Administrative Agent thereof. In the case of a Letter of Credit denominated in Dollars or a
Letter of Credit denominated in an Alternative Currency, the Company shall reimburse the L/C
Issuer in Dollars. In the case of a Letter of Credit denominated in an Alternative
Currency, the L/C Issuer shall notify the Company of the Dollar Equivalent of amount of the
drawing promptly following the determination thereof. In the case of any such reimbursement
in Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the
L/C Issuer shall notify the Company of the Dollar Equivalent of the amount of the drawing
promptly following the determination thereof. Not later than 9:00 a.m. on the date of any
payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor
Date”), the Company shall reimburse the L/C Issuer through the Administrative Agent in
the Dollar Equivalent of the amount of such drawing and in the applicable currency. If the
Company fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing
(expressed in Dollars in the amount of the Dollar Equivalent thereof in the case of a Letter
of Credit denominated in an Alternative Currency) (the “Unreimbursed Amount”), and
the amount of such Lender’s Applicable Percentage thereof. In such event, the Company shall
be deemed to have requested a Revolving Borrowing of Base Rate Loans to be disbursed on the
Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and
multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but
subject to the amount of the unutilized portion of the Aggregate Commitments and the
conditions set forth in Section 4.03 (other than the delivery of a Revolving Loan
Notice). Any notice given by the L/C Issuer or the Administrative Agent pursuant to this
Section 

37

 

2.03(c)(i) may be given by telephone if immediately confirmed in writing;
provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available (and the Administrative Agent may apply Cash Collateral provided for this
purpose) for the account of the L/C Issuer, in Dollars, at the Administrative Agent’s Office
in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than
11:00 a.m. on the Business Day specified in such notice by the Administrative Agent,
whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so
makes funds available shall be deemed to have made a Base Rate Revolving Loan to the Company
in such amount. The Administrative Agent shall remit the funds so received to the L/C
Issuer in U.S Dollars.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Revolving Borrowing of Base Rate Loans because the conditions set forth in Section
4.03 cannot be satisfied or for any other reason, the Company shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment
to the Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

     (iv) Until each Lender funds its Revolving Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be
solely for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Revolving Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.03(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, any Borrower or any other Person for any
reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Revolving Loans
pursuant to this Section 2.03(c) is subject to the conditions set forth in
Section 4.03 (other than delivery by the Company of a Revolving Loan Notice). No
such making of an L/C Advance shall relieve or otherwise impair the obligation of the
Company or any other Borrower to reimburse the L/C Issuer for the amount of any payment made
by the L/C Issuer under any Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in
Section 2.03(c)(ii),

38

 

then, without limiting the other provisions of this Agreement,
the L/C Issuer shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately available to
the L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the L/C Issuer in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily
charged by the L/C Issuer in connection with the foregoing. If such Lender pays such amount
(with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s
Revolving Loan included in the relevant Revolving Borrowing or L/C Advance in respect of the
relevant L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted to
any Lender (through the Administrative Agent) with respect to any amounts owing under this
clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Company, any Borrower or otherwise, including
proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Lender its Applicable Percentage thereof in the same funds as
those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the
circumstances described in Section 10.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such
demand to the date such amount is returned by such Lender, at a rate per annum equal to the
applicable Overnight Rate from time to time in effect. The obligations of the Lenders under
this clause shall survive the payment in full of the Obligations and the termination of this
Agreement.

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

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that any
Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any

39

 

such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

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

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

     (v) any adverse change in the relevant exchange rates or in the availability of the
relevant Alternative Currency to any Borrower or any Subsidiary or in the relevant currency
markets generally; or

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

     The Company shall promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with the Company’s
instructions or other irregularity, the Company will immediately notify the L/C Issuer. The
Company shall be conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and the Company agree that, in paying any drawing
under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by the Letter of Credit)
or to ascertain or inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent, participant or assignee of
the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection
herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable;
(ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii)
the due execution, effectiveness, validity or enforceability of any document
or instrument related to any Letter of Credit or Issuer Document. The Company hereby assumes
all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Company’s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative

40

 

Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding, the Company may
have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Company, to the
extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Company which the Company proves were caused by the L/C Issuer’s willful misconduct
or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with
the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the
foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary,
and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason.

     (g) Applicability of ISP. Unless otherwise expressly agreed by the L/C Issuer and the
Company when a Letter of Credit is issued (including any such agreement applicable to an Existing
Letter of Credit), the rules of the ISP shall apply to each standby Letter of Credit.

     (h) Letter of Credit Fees. The Company shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, in Dollars, a Letter of Credit
fee (the “Letter of Credit Fee”) (i) for each Performance Letter of Credit equal to the
Applicable Rate (for Performance Letters of Credit) times the Dollar Equivalent of the daily amount
available to be drawn under each such Performance Letter of Credit and (ii) for each Financial
Letter of Credit equal to the Applicable Rate (for Financial Letters of Credit) times the Dollar
Equivalent of the daily amount available to be drawn under each such Financial Letter of Credit;
provided, however, any Letter of Credit Fees otherwise payable for the account of a
Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not
provided Cash Collateral satisfactory to the L/C Issuer pursuant to this Section 2.03 shall
be payable, to the maximum extent permitted by applicable Law, to the other Lenders in accordance
with the upward adjustments in their respective Applicable Percentages allocable to such Letter of
Credit pursuant to Section 2.16(a)(iv), with the balance of such fee, if any, payable to
the L/C Issuer for its own account. For purposes of computing the daily amount available to be
drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.09. Letter of Credit Fees shall be (i) due and payable on the
first Business Day after the end of each March, June, September and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears. If
there is any change
in the Applicable Rate (or in the characterization of such Letter of Credit as a Performance
Letter of Credit or Financial Letter of Credit) during any quarter, the daily amount available to
be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate (or characterization
thereof) was in effect. Notwithstanding anything to the contrary contained herein, upon the
request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall
accrue at the Default Rate.

41

 

     (i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Company shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee, with
respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on
the Dollar Equivalent of the daily amount available to be drawn under such Letter of Credit on a
quarterly basis in arrears. Such fronting fee shall be due and payable on the tenth Business Day
after the end of each March, June, September and December in respect of the most recently-ended
quarterly period (or portion thereof, in the case of the first payment), commencing with the first
such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration
Date and thereafter on demand. For purposes of computing the daily amount available to be drawn
under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.09. In addition, the Company shall pay directly to the L/C Issuer for its
own account, in Dollars, the customary issuance, presentation, amendment and other processing fees,
and other charges, of the L/C Issuer relating to letters of credit as from time to time in effect.
Such customary fees and standard costs and charges are due and payable on demand and are
nonrefundable.

     (j) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

     (k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Company shall be obligated to reimburse the L/C Issuer hereunder for any and
all drawings under such Letter of Credit. The Company hereby acknowledges that the issuance of
Letters of Credit for the account of Subsidiaries inures to the benefit of the Company, and that
the Company’s business derives substantial benefits from the businesses of such Subsidiaries.

     2.04 Swing Line Loans.

     (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing
Line Lender, in reliance upon the agreements of the other Lenders set forth in this Section
2.04, may in its sole discretion make loans in Dollars (each such loan, a “Swing Line
Loan”) to the Company from time to time on any Business Day during the Availability Period in
an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit,
notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage
of the Outstanding Amount of Revolving Loans and L/C Obligations of the Lender acting as Swing Line
Lender, may exceed the amount of such Lender’s Commitment; provided, however, that
after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not
exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Revolving
Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of
all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of
all Swing Line Loans shall not exceed such Lender’s Commitment, and provided,
further, that the Company shall not use the proceeds of any Swing Line Loan to refinance
any outstanding Swing Line Loan. Within the foregoing limits, and subject to the other terms and
conditions hereof, the Company may borrow under this Section 2.04, prepay under Section
2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall be a Base Rate
Loan. Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk

42

 

participation in such Swing Line Loan in an amount equal to the product of such Lender’s Applicable Percentage
times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Company’s
irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Swing Line Lender and the Administrative Agent
not later than 10:00 a.m. on the requested borrowing date, and shall specify (i) the amount to be
borrowed, which shall be a minimum of $1,000,000, and (ii) the requested borrowing date, which
shall be a Business Day. Each such telephonic notice must be confirmed promptly by delivery to the
Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by two (2) Responsible Officers of the Company. Promptly after receipt by the
Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with
the Administrative Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line
Lender has received notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 11:00 a.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set
forth in the first proviso to the first sentence of Section 2.04(a), or (B) that one or
more of the applicable conditions specified in Article IV is not then satisfied, then,
subject to the terms and conditions hereof, the Swing Line Lender will, not later than 12:00 noon
on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Company at its office by crediting the account of the Company on the books of
the Swing Line Lender in immediately available funds.

     (c) Refinancing of Swing Line Loans.

     (i) The Swing Line Lender at any time in its sole discretion may request, on behalf of
the Company (which hereby irrevocably authorizes the Swing Line Lender to so request on its
behalf), that each Lender make a Base Rate Revolving Loan in an amount equal to such
Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding. Such
request shall be made in writing (which written request shall be deemed to be a Revolving
Loan Notice for purposes hereof) and in accordance with the
requirements of Section 2.02, without regard to the minimum and multiples
specified therein for the principal amount of Base Rate Loans, but subject to the unutilized
portion of the Aggregate Commitments and the conditions set forth in Section 4.03.
The Swing Line Lender shall furnish the Company with a copy of the applicable Revolving Loan
Notice promptly after delivering such notice to the Administrative Agent. Each Lender shall
make an amount equal to its Applicable Percentage of the amount specified in such Revolving
Loan Notice available to the Administrative Agent in immediately available funds (and the
Administrative Agent may apply Cash Collateral available with respect to the applicable
Swing Line Loan) for the account of the Swing Line Lender at the Administrative Agent’s
Office not later than 1:00 p.m. on the day specified in such Revolving Loan Notice,
whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available
shall be deemed to have made a Base Rate Revolving Loan to the

43

 

Company in such amount. The
Administrative Agent shall remit the funds so received to the Swing Line Lender.

     (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Revolving
Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate Revolving
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request
by the Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the
account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed
payment in respect of such participation.

     (iii) If any Lender fails to make available to the Administrative Agent for the account
of the Swing Line Lender any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the Swing Line Lender at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with
banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Swing Line Lender in connection with
the foregoing. If such Lender pays such amount (with interest and fees as aforesaid), the
amount so paid shall constitute such Lender’s Revolving Loan included in the relevant
Revolving Borrowing or funded participation in the relevant Swing Line Loan, as the case may
be. A certificate of the Swing Line Lender submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (iii)
shall be conclusive absent manifest error.

     (iv) Each Lender’s obligation to make Revolving Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be
absolute and unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, the Company or any other Person for any reason
whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence,
event or condition, whether or not similar to any of the foregoing; provided,
however, that each Lender’s obligation to make Revolving Loans pursuant to this
Section 2.04(c) is subject to the conditions set forth in Section 4.03. No
such funding of risk participations shall relieve or otherwise impair the obligation of the
Company to repay Swing Line Loans, together with interest as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line
Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage thereof
in the same funds as those received by the Swing Line Lender.

44

 

     (ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line Lender under
any of the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate. The Administrative Agent
will make such demand upon the request of the Swing Line Lender. The obligations of the
Lenders under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

     (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Company for interest on the Swing Line Loans. Until each Lender
funds its Base Rate Revolving Loan or risk participation pursuant to this Section 2.04 to
refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.

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

     2.05 Prepayments.

     (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Revolving Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later than
9:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B)
on the date of prepayment of Base Rate Revolving Loans; (ii) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess
thereof; and (iii) any prepayment of Base Rate Revolving Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less,
the entire principal amount thereof then outstanding. Each such notice shall specify the date
and amount of such prepayment and the Type(s) of Revolving Loans to be prepaid and, if Eurodollar
Rate Loans are to be prepaid, the Interest Period(s) of such Loans. The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s
Applicable Percentage of such prepayment. If such notice is given by the Borrower, the Borrower
shall make such prepayment and the payment amount specified in such notice shall be due and payable
on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by
all accrued interest on the amount prepaid, together with any additional amounts required pursuant
to Section 3.05. Subject to Section 2.16, each such prepayment shall be applied to
the Revolving Loans of the Lenders in accordance with their respective Applicable Percentages.

     (b) The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by the Swing
Line Lender and the Administrative Agent not later than 10:00 a.m. on the date of the prepayment,
and (ii) any such prepayment shall be in a minimum principal amount of $100,000.

45

 

Each such notice
shall specify the date and amount of such prepayment. If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein.

     (c) If the Administrative Agent notifies the Borrower at any time that the Total Outstandings
at such time exceed the Aggregate Commitments then in effect, then, within two Business Days after
receipt of such notice, the Borrower shall prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount sufficient to reduce such Outstanding Amount as of such date of
payment to an amount not to exceed the difference of 100% of the Aggregate Commitments then in
effect less $250,000; provided, however, that the Borrower shall not be required to
Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless after the
prepayment in full of the Loans the Total Outstandings exceed the Aggregate Commitments then in
effect. The Administrative Agent may, at any time and from time to time after the initial deposit
of such Cash Collateral, request that additional Cash Collateral be provided in order to protect
against the results of further exchange rate fluctuations.

     (d) If the Administrative Agent notifies the Borrower at any time that the Outstanding Amount
of all Letters of Credit at such time exceeds (as a result of fluctuations in exchange rates or for
any other reason) an amount equal to 105% of the Letter of Credit Sublimit then in effect, then,
within two Business Days after receipt of such notice, the Borrowers shall Cash Collateralize L/C
Obligations in an aggregate amount sufficient to reduce such Outstanding Amount as of such date of
payment to an amount not to exceed 100% of the Letter of Credit Sublimit then in effect.

     2.06 Termination or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce
the Aggregate Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than 9:00 a.m. five Business Days prior to the
date of termination or reduction, (ii) any such partial reduction shall be in an aggregate
amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Borrower
shall not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments,
and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of
Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such
Sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate
Commitments. Any reduction of the Aggregate Commitments shall be applied to the Commitment of each
Lender according to its Applicable Percentage. All fees accrued until the effective date of any
termination of the Aggregate Commitments shall be paid on the effective date of such termination.

     2.07 Repayment of Loans.

     (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal
amount of Revolving Loans outstanding on such date.

46

 

     (b) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten
Business Days after such Loan is made and (ii) the Maturity Date.

     2.08 Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan
shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate;
(ii) each Base Rate Revolving Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate
plus the Applicable Rate.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate.

     (ii) If any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (without regard to any applicable grace periods), whether
at stated maturity, by acceleration or otherwise, then upon the request of the Required
Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per annum
at all times equal to the Default Rate.

     (iii) Upon the request of the Required Lenders, while any Event of Default exists, the
Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times equal to
the Default Rate.

     (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     2.09 Fees. In addition to certain fees described in subsections (h) and (i)
of Section 2.03:

     (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee in Dollars
equal to the Applicable Rate times the actual daily amount by which the Aggregate
Commitments exceed the sum of (i) the Outstanding Amount of Revolving Loans and (ii) the
Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.16.
The commitment fee shall accrue at all times during the Availability Period, including at any time

47

 

during which one or more of the conditions in Article IV is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the Closing Date, and on the last day of the
Availability Period. The commitment fee shall be calculated quarterly in arrears, and if there is
any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

     (b) Other Fees. (i) The Borrower shall pay to the Arranger and the Administrative
Agent for their own respective accounts, in Dollars, fees in the amounts and at the times specified
in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any
reason whatsoever.

     (ii) The Borrower shall pay to the Lenders, in Dollars, such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified. Such fees
shall be fully earned when paid and shall not be refundable for any reason whatsoever.

     2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate. (a) All
computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to
the Eurodollar Rate) shall be made on the basis of a year of 365 or 366 days, as the case may be,
and actual days elapsed. All other computations of fees and
interest shall be made on the basis of a 360-day year and actual days elapsed (which results
in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day
year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.12(a), bear interest for one day. Each determination by the Administrative Agent
of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent
manifest error. (b) If, as a result of any restatement of or other adjustment to the financial
statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i)
the Consolidated Leverage Ratio as calculated by the Borrower as of any applicable date was
inaccurate and (ii) a proper calculation of the Consolidated Leverage Ratio would have resulted in
higher pricing for such period, the Borrower shall promptly and retroactively be obligated to pay
to the Administrative Agent for the account of the applicable Lenders or the L/C Issuer, as the
case may be, promptly on demand by the Administrative Agent (or, after the occurrence of an actual
or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of
the United States, automatically and without further action by the Administrative Agent, any Lender
or the L/C Issuer), an amount equal to the excess of the amount of interest and fees that should
have been paid for such period over the amount of interest and fees actually paid for such period.
This paragraph shall not limit the rights of the Administrative Agent, any Lender or the L/C
Issuer, as the case may be, under Section 2.03(c)(iii), 2.03(h) or 2.08(b)
or under Article VIII. The Borrower’s obligations under this paragraph shall survive the
termination of the Aggregate Commitments and the repayment of all other Obligations hereunder for a
period of twelve (12) months following the date of such termination and repayment.

48

 

     2.11 Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the
Borrower and the interest and payments thereon. Any failure to so record or any error in doing so
shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the Administrative Agent,
the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may
attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Loans and payments with respect thereto.

     (b) In addition to the accounts and records referred to in subsection (a), each Lender
and the Administrative Agent shall maintain in accordance with its usual practice accounts or
records evidencing the purchases and sales by such Lender of participations in Letters of
Credit and Swing Line Loans. In the event of any conflict between the accounts and records
maintained by the Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall control in the absence of
manifest error.

     2.12 Payments Generally; Administrative Agent’s Clawback.

     (a) General. All payments to be made by the Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 11:00 a.m. on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office. All payments received by the Administrative
Agent after 11:00 a.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made by the Borrower
shall come due on a day other than a Business Day, payment shall be made on the next following
Business Day, and such extension of time shall be reflected in computing interest or fees, as the
case may be.

     (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Revolving Borrowing of Eurodollar Rate Loans (or, in the case of any Revolving Borrowing of Base
Rate Loans, prior to 10:00 a.m. on the date of such Revolving Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such Revolving Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Revolving Borrowing

49

 

of Base Rate Loans,
that such Lender has made such share available in accordance with and at the time required by
Section 2.02) 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
Revolving 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 in immediately available funds 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 (A) in the case of a payment to be made by such Lender, the greater of the
Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in
the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.
If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or
an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of
such interest paid by the Borrower for
such period. If such Lender pays its share of the applicable Revolving Borrowing to the
Administrative Agent, then the amount so paid shall constitute such Lender’s Revolving Loan
included in such Revolving Borrowing. Any payment by the Borrower shall be without prejudice to
any claim the Borrower may have against a Lender that shall have failed to make such payment to the
Administrative Agent.

     (ii) Payments by Borrower; Presumptions by Administrative Agent. 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 or the L/C
Issuer 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 or the L/C Issuer, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment,
then each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender or the
L/C Issuer, in immediately available funds with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to
the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank
compensation.

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

50

 

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Revolving Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender
to make any Revolving Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Revolving Loan, to purchase its participation or to make its payment under
Section 10.04(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of
the Revolving Loans made by it, or the participations in L/C Obligations or in Swing Line Loans
held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of
such Revolving Loans or participations and accrued interest thereon greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the
Revolving Loans and subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, 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 and other amounts owing them, provided
that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by or on behalf of the Borrower pursuant to and in accordance with the express terms of
this Agreement (including the application of funds arising from the existence of a
Defaulting Lender), (y) the application of Cash Collateral provided for in Section
2.15, or (z) any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Revolving Loans or subparticipations in L/C
Obligations or Swing Line Loans to any assignee or participant, other than an assignment to
the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall
apply).

     The Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

51

 

     2.14 [Intentionally Omitted.]

     2.15 Cash Collateral.

     (a) Certain Credit Support Events. Upon the request of the Administrative Agent or
the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of
Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrower
shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C
Obligations. At any time that there shall exist a Defaulting Lender, immediately upon the request
of the Administrative Agent, the L/C Issuer or the Swing Line Lender, the Borrower shall deliver to
the Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure
(after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the
Defaulting Lender).

     (b) Grant of Security Interest. All Cash Collateral (other than credit support not
constituting funds subject to deposit) shall be maintained in blocked, interest bearing deposit
accounts at Bank of America. The Borrower, and to the extent provided by any Lender, such Lender,
hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line Lender), and agrees
to maintain, a first priority security interest in all such cash, deposit accounts and all balances
therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of
the foregoing, all as security for the obligations to which such Cash Collateral may be applied
pursuant to Section 2.15(c). If at any time the Administrative Agent determines that Cash
Collateral is subject to any right or claim of any Person other than the Administrative Agent as
herein provided, or that the total amount of such Cash Collateral is less than the applicable
Fronting Exposure and other obligations secured thereby, the Borrower or the relevant Defaulting
Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative
Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

     (c) Application. Notwithstanding anything to the contrary contained in this
Agreement, Cash Collateral provided under any of this Section 2.15 or Sections
2.03, 2.04, 2.05, 2.16 or 8.02 in respect of Letters of Credit
or Swing Line Loans shall be held and applied to the satisfaction of the specific L/C Obligations,
Swing Line Loans, obligations to fund participations therein (including, as to Cash Collateral
provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for
which the Cash Collateral was so provided, prior to any other application of such property as may
be provided for herein.

     (d) Release. Cash Collateral (or the appropriate portion thereof) provided to reduce
Fronting Exposure or other obligations shall be released promptly (and in any event within five (5)
Business Days) following (i) the elimination of the applicable Fronting Exposure or other
obligations giving rise thereto (including by the termination of Defaulting Lender status of the
applicable Lender (or, as appropriate, its assignee following compliance with Section
10.06(b)(vi))) or (ii) the Administrative Agent’s good faith determination that there exists
excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on
behalf of a Loan Party shall not be released during the continuance of a Default or Event of
Default (and

52

 

following application as provided in this Section 2.15 may be otherwise
applied in accordance with Section 8.03), and (y) the Person providing Cash Collateral and
the L/C Issuer or Swing Line Lender, as applicable, may agree that Cash Collateral shall not be
released but instead held to support future anticipated Fronting Exposure or other obligations.

     2.16 Defaulting Lenders. Adjustments. Notwithstanding anything to the contrary
contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as
that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

     (i) Waivers and Amendments. That Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall be
restricted as set forth in Section 10.01.

     (ii) Reallocation of Payments. Any payment of principal, interest, fees or
other amounts received by the Administrative Agent for the account of that Defaulting Lender
(whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise,
and including any amounts made available to the Administrative Agent by that Defaulting
Lender pursuant to Section 10.08), shall be applied at such time or times as may be
determined by the Administrative Agent as follows: first, to the payment of any amounts
owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the
payment on a pro rata basis of any amounts owing by that Defaulting Lender to the L/C Issuer
or Swing Line Lender hereunder; third, if so determined by the Administrative Agent or
requested by the L/C Issuer or Swing Line Lender, to be held as Cash Collateral for future
funding obligations of that Defaulting Lender of any participation in any Swing Line Loan or
Letter of Credit; fourth, as the Borrower may request (so long as no Default or Event of
Default exists), to the funding of any Loan in respect of which that Defaulting Lender has
failed to fund its portion thereof as required by this Agreement, as determined by the
Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower,
to be held in a non-interest bearing deposit account and released in order to satisfy
obligations of that Defaulting Lender to fund Loans under this Agreement; sixth, to the
payment of any amounts owing to the Lenders, the L/C Issuer or Swing Line Lender as a result
of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer
or Swing Line Lender against that Defaulting Lender as a result of that Defaulting Lender’s
breach of its obligations under this Agreement; seventh, so long as no Default or Event of
Default exists, to the payment of any amounts owing to the Borrower as a result of any
judgment of a court of competent jurisdiction obtained by the Borrower against that
Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under
this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of
competent jurisdiction; provided that if (x) such payment is a payment of the
principal amount of any Loans or L/C Borrowings in respect of which that Defaulting Lender
has not fully funded its appropriate share and (y) such Loans or L/C Borrowings were made at
a time when the conditions set forth in Section 4.03 were satisfied or waived, such
payment shall be applied solely to pay the Loans of, and L/C Borrowings owed to, all
non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any
Loans of, or L/C Borrowings owed to, that Defaulting Lender. Any payments, prepayments or
other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay
amounts owed by a Defaulting Lender or to post Cash

53

 

Collateral pursuant to this Section
2.16(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender, and each
Lender irrevocably consents hereto.

     (iii) Certain Fees. That Defaulting Lender (x) shall not be entitled to
receive any commitment fee pursuant to Section 2.09(a) for any period during which
that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such
fee that otherwise would have been required to have been paid to that Defaulting Lender) and
(y) shall be limited in its right to receive Letter of Credit Fees as provided in
Section 2.03(h).

     (iv) Reallocation of Applicable Percentages to Reduce Fronting Exposure.
During any period in which there is a Defaulting Lender, for purposes of computing the
amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund
participations in Letters of Credit or Swing Line Loans pursuant to Sections 2.03
and 2.04, the “Applicable Percentage” of each non-Defaulting Lender shall be
computed without giving effect to the Commitment of that Defaulting Lender;
provided, that, (i) each such reallocation shall be given effect only if, at the
date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default
exists; and (ii) the aggregate obligation of each non-Defaulting Lender to acquire,
refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed
the positive difference, if any, of (1) the Commitment of that non-Defaulting Lender
minus (2) the aggregate Outstanding Amount of the Revolving Loans of that Lender.

     (b) Defaulting Lender Cure. If the Borrower, the Administrative Agent, Swing Line
Lender and the L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should
no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties
hereto, whereupon as of the effective date specified in such notice and subject to any conditions
set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender
will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or
take such other actions as the Administrative Agent may determine to be necessary to cause the
Revolving Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to
be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without
giving effect to Section 2.16(a)(iv)), whereupon that Lender will cease to be a Defaulting
Lender; provided that no adjustments will be made retroactively with respect to fees
accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender;
and provided, further, that except to the extent otherwise expressly agreed by the
affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or
release of any claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender.

54

 

ARTICLE III.TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

     (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. (i)
Any and all payments by or on account of any obligation of the Borrower hereunder or under any
other Loan Document shall to the extent permitted by applicable Laws be made free and clear of and
without reduction or withholding for any Taxes. If, however, applicable Laws require the Borrower
or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld or deducted
in accordance with such Laws as determined by the Borrower or the Administrative Agent, as the case
may be, upon the basis of the information and documentation to be delivered pursuant to
subsection (e) below.

     (ii) If the Borrower or the Administrative Agent shall be required by the Code to
withhold or deduct any Taxes, including both United States Federal backup withholding and
withholding taxes, from any payment, then (A) the Administrative Agent shall withhold or
make such deductions as are determined by the Administrative Agent to be required based upon
the information and documentation it has received pursuant to subsection (e) below,
(B) the Administrative Agent shall timely pay the full amount withheld or deducted to the
relevant Governmental Authority in accordance with the Code, and (C) to the extent that the
withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by the Borrower shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer,
as the case may be, receives an amount equal to the sum it would have received had no such
withholding or deduction been made.

     (iii) If the Borrower or the Administrative Agent shall be required by any applicable
Laws other than the Code to withhold or deduct any Taxes from any payment, then (A) the
Borrower or the Administrative Agent, as required by such Laws, shall withhold or make such
deductions as are determined by it to be required based upon the information and
documentation it has received pursuant to subsection (e) below, (B) such Borrower or
the Administrative Agent, to the extent required by such Laws, shall make such deductions
and (iii) such Borrower shall timely pay the full amount so withheld or deducted by it to
the relevant Governmental Authority in accordance with such Laws, and (C) to the extent that
the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by the Borrower shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer,
as the case may be, receives an amount equal to the sum it would have received had no such
withholding or deduction been made.

     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Laws.

55

 

     (c) Tax Indemnifications. (i) Without limiting the provisions of subsection
(a) or (b) above, the Borrower shall, and does hereby, indemnify the Administrative
Agent, each Lender and the L/C Issuer, and shall make payment in respect thereof within 10 days
after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) withheld or deducted by the Borrower or the Administrative Agent or paid by the
Administrative Agent, such Lender or the L/C Issuer, 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. The Borrower shall also, and does hereby, indemnify the Administrative
Agent, and shall make payment in respect thereof within 10 days after demand therefor, for any
amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly to the
Administrative Agent as required by clause (ii) of this subsection. A certificate as to
the amount of any such payment or liability delivered to the Borrower by a Lender or the L/C Issuer
(with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest error.

     (ii) Without limiting the provisions of subsection (a) or (b) above,
each Lender and the L/C Issuer shall, and does hereby, indemnify the Borrower and the
Administrative Agent, and shall make payment in respect thereof within 10 days after demand
therefor, against any and all Taxes and any and all related losses, claims, liabilities,
penalties, interest and expenses (including the fees, charges and disbursements of any
counsel for the Borrower or the Administrative Agent) incurred by or asserted against the
Borrower or the Administrative Agent by any Governmental Authority as a result of the
failure by such Lender or the L/C Issuer, as the case may be, to deliver, or as a result of
the inaccuracy, inadequacy or deficiency of, any documentation required to be delivered by
such Lender or the L/C Issuer, as the case may be, to the Borrower or the Administrative
Agent pursuant to subsection (e). Each Lender and the L/C Issuer hereby authorizes
the Administrative Agent to set off and apply any and all amounts at any time owing to such
Lender or the L/C Issuer, as the case may be, under this Agreement or any other Loan
Document against any amount due to the Administrative Agent under this clause (ii).
The agreements in this clause (ii) shall survive the resignation and/or replacement
of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender or
the L/C Issuer, the termination of the Aggregate Commitments and the repayment, satisfaction
or discharge of all other Obligations.

     (d) Evidence of Payments. Upon request by the Borrower or the Administrative Agent,
as the case may be, after any payment of Taxes by the Borrower or by the Administrative Agent to a
Governmental Authority as provided in this Section 3.01, the Borrower shall deliver
to the Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the
case may be, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to report such payment or other
evidence of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as
the case may be.

56

 

     (e) Status of Lenders; Tax Documentation. (i) Each Lender shall deliver to the
Borrower and to the Administrative Agent, at the time or times prescribed by applicable Laws or
when reasonably requested by the Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable Laws or by the taxing authorities of any
jurisdiction and such other reasonably requested information as will permit the Borrower or the
Administrative Agent, as the case may be, to determine (A) whether or not payments made hereunder
or under any other Loan Document are subject to Taxes, (B) if applicable, the required rate of
withholding or deduction, and (C) such Lender’s entitlement to any available exemption from, or
reduction of, applicable Taxes in respect of all payments to be made to such Lender by the Borrower
pursuant to this Agreement or otherwise to establish such Lender’s status for withholding tax
purposes in the applicable jurisdiction.

     (ii) Without limiting the generality of the foregoing, if the Borrower is resident for
tax purposes in the United States,

     (A) any Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the Borrower and the Administrative Agent
executed originals of Internal Revenue Service Form W-9 or such other documentation
or information prescribed by applicable Laws or reasonably requested by the Borrower
or the Administrative Agent as will enable the Borrower or the Administrative Agent,
as the case may be, to determine whether or not such Lender is subject to backup
withholding or information reporting requirements; and

     (B) each Foreign Lender that is entitled under the Code or any applicable
treaty to an exemption from or reduction of withholding tax with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

     (I) executed originals of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States
is a party,

     (II) executed originals of Internal Revenue Service Form W-8ECI,

     (III) executed originals of Internal Revenue Service Form W-8IMY and
all required supporting documentation,

     (IV) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under section 881(c) of the Code, (x) a
certificate to the effect that such Foreign Lender is not (A) a “bank”
within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent

57

 

shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) executed originals of Internal Revenue
Service Form W-8BEN, or

     (V) executed originals of any other form prescribed by applicable Laws
as a basis for claiming exemption from or a reduction in United States
Federal withholding tax together with such supplementary documentation as
may be prescribed by applicable Laws to permit the Borrower or the
Administrative Agent to determine the withholding or deduction required to
be made.

     (iii) Each Lender shall promptly (A) notify the Borrower and the Administrative Agent of
any change in circumstances which would modify or render invalid any claimed exemption or
reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws of any
jurisdiction that the Borrower or the Administrative Agent make any withholding or deduction
for taxes from amounts payable to such Lender.

     (iv) The Borrower shall promptly deliver to the Administrative Agent or any Lender, as
the Administrative Agent or such Lender shall reasonably request, on or prior to the Closing
Date, and in a timely fashion thereafter, such documents and forms required by any relevant
taxing authorities under the Laws of any jurisdiction, duly executed and completed by the
Borrower, as are required to be furnished by such Lender or the Administrative Agent under
such Laws in connection with any payment by the Administrative Agent or any Lender of Taxes
or Other Taxes, or otherwise in connection with the Loan Documents, with respect to such
jurisdiction.

     (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund
of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as
the case may be. If the Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional amounts paid, by the
Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses incurred by the Administrative Agent, such Lender or the L/C
Issuer, as the case may be, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that the Borrower, upon the
request of the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount paid
over to the Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such

58

 

Governmental Authority. This subsection shall not be construed to require the Administrative
Agent, any Lender or the L/C Issuer to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to the Borrower or any other Person.

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Loans whose interest is determined by reference to the Eurodollar
Rate, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or
to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender
to the Borrower through the Administrative Agent, (i) any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Revolving Loans to Eurodollar Rate Loans
shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or
maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar
Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender shall,
if necessary to avoid such illegality, be determined by the Administrative Agent without reference
to the Eurodollar Rate component of the Base Rate, in each case until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, (x) the Borrower shall, upon demand from such Lender
(with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender
shall, if necessary to avoid such illegality, be determined by the Administrative Agent without
reference to the Eurodollar Rate component of the Base Rate), either on the last day of the
Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans and (y) if such notice asserts the illegality of such Lender determining or
charging interest rates based upon the Eurodollar Rate, the Administrative Agent shall during the
period of such suspension compute the Base Rate applicable to such Lender without reference to the
Eurodollar Rate component thereof until the Administrative is advised in writing by such Lender
that it is no longer illegal for such Lender to determine or charge interest rates based upon the
Eurodollar Rate. Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted.

     3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market
for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed Base
Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding
such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.
Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be
suspended, and (y) in the event of a determination described in the preceding sentence with respect
to the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar Rate component
in determining the Base Rate

59

 

shall be suspended, in each case until the Administrative Agent (upon
the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the
Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a
request for a Revolving Borrowing of Base Rate Loans in the amount specified therein.

     3.04 Increased Costs; Reserves on Eurodollar Rate Loans.

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

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)) or the L/C Issuer;

     (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the L/C Issuer); or

     (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or any Letter of Credit 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 Loan the interest on which is determined by reference to the Eurodollar Rate (or of
maintaining its obligation to make any such Loan), or to increase the cost to such Lender or the
L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its
obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum
received or receivable by such Lender or the L/C Issuer hereunder (whether of principal,
interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrower
will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as
will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs
incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s

60

 

holding company with
respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this
Section and delivered to the Company shall be conclusive absent manifest error. The Borrower shall
pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies
the Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect thereof).

     (e) Reserves on Eurodollar Rate Loans. The Borrower shall pay to each Lender, as long
as such Lender shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurodollar funds or deposits (currently known as “Eurodollar
liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith, which determination shall be conclusive), which shall be due and payable
on each date on which interest is payable on such Loan, provided the Borrower shall
have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such
additional interest from such Lender. If a Lender fails to give notice 10 days prior to the
relevant Interest Payment Date, such additional interest shall be due and payable 10 days from
receipt of such notice.

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative
Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in
the amount notified by the Borrower;

61

 

     (c) any failure by the Borrower to make payment of any drawing under any Letter of Credit (or
interest due thereon) denominated in an Alternative Currency on its scheduled due date or any
payment thereof in a different currency; or

     (d) any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest
Period therefor as a result of a request by the Borrower pursuant to Section 10.13;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Revolving Loan was in fact so funded.

     3.06 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional amount to any Lender,
the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer
pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02,
then such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender or the L/C Issuer, such designation or assignment (i) would eliminate or reduce amounts
payable
pursuant to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender or the L/C Issuer, as the case may be, to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender or the L/C Issuer, as the case
may be. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender
or the L/C Issuer in connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, 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 3.01, the Borrower
may replace such Lender in accordance with Section 10.13.

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and
resignation of the Administrative Agent.

62

 

ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01 Conditions to Effectiveness and Initial Credit Extension. The effectiveness of this
Agreement and the obligation of the L/C Issuer and each Lender to make its initial Credit Extension
hereunder are subject to satisfaction of the following conditions precedent:

     (a) Unless waived by all the Lenders (or by the Administrative Agent with respect to items
specified in clause (iv) below with respect to which the Borrower has given assurances
satisfactory to the Administrative Agent that such items shall be delivered promptly following the
Closing Date), the Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in
the case of certificates of governmental officials, a recent date before the Closing Date) and each
in form and substance satisfactory to the Administrative Agent and each of the Lenders:

     (i) executed counterparts of this Agreement and the Guaranty, sufficient in number for
distribution to the Administrative Agent, each Lender and the Borrower;

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates (including specimen signatures) of Responsible Officers of each Loan
Party as the Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan Party is a
party;

     (iv) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and that each Loan
Party is validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect;

     (v) an opinion, addressed to the Administrative Agent and each Lender, of general
counsel or assistant general counsel for the Borrower and the Loan Parties, substantially in
the form of Exhibit G concerning the Loan Parties and the Loan Documents and as to
such matters as the Administrative Agent and the Required Lenders may reasonably request;

     (vi) a certificate of a Responsible Officer of each Loan Party either (A attaching
copies of all consents, licenses and approvals required in connection with the execution,
delivery and performance by such Loan Party and the validity against such Loan Party of the
Loan Documents to which it is a party, and such consents, licenses and approvals shall be in
full force and effect, or (B) stating that no such consents, licenses or approvals are so
required;

63

 

     (vii) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the conditions specified in Sections 4.03(a) and (b) have been satisfied,
(B) that there has been no event or circumstance since the date of the Audited Financial
Statements that has had or could be reasonably expected to have, either individually or in
the aggregate, a Material Adverse Effect; and (C) a calculation of the Adjusted Consolidated
Leverage Ratio as of the last day of the fiscal quarter of the Borrower most recently ended
prior to the Closing Date;

     (viii) evidence satisfactory to the Administrative Agent that no default or event of
default under the Senior Note Documents exists, or would result from the effectiveness of
this Agreement or any Credit Extension hereunder or from the application of the proceeds
thereof on the Closing Date;

     (ix) evidence satisfactory to the Administrative Agent that all Indebtedness of the
Borrower, any Guarantor and their Subsidiaries existing on the Closing Date under the
Existing Credit Agreement has been repaid or cancelled, all documentation representing such
Indebtedness shall have been terminated and all Guarantees, Liens and security interests
associated therewith have been released, or that reasonably adequate measures have been or
concurrently with the Closing Date are being taken to terminate such documentation and
release such Guarantees, Liens and security interests, except as otherwise agreed by
Administrative Agent; provided that, upon execution of this Agreement, each Lender
hereto that is a party to the Existing Credit Agreement waives the notice provision for
early termination of the Existing Credit Agreement set forth in Section 2.06
thereunder; and

     (x) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders
reasonably may require.

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

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

     Notwithstanding anything to the contrary contained in this Section 4.01, neither this
Agreement nor any of the other Loan Documents shall become effective or be binding on any party
unless the preceding conditions have been satisfied (or waived, as appropriate), on or before 5:00
p.m., on July 31, 2010.

     Without limiting the generality of the provisions of the last paragraph of Section
9.03, for purposes of determining compliance with the conditions specified in this Section
4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved
or

64

 

accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

     4.02 Conditions to Credit Extensions After the Amendment No. 1 Effective Date. The obligation
of each Lender to honor any Request for Credit Extension (other than a Revolving Loan Notice
requesting only a conversion of Revolving Loans to the other Type, or a continuation of Eurodollar
Rate Loans) after the Amendment No. 1 Effective Date is subject to the satisfaction in full (unless
waived by the Administrative Agent and all the Lenders) of the conditions set forth in Paragraph 2
and Paragraph 6 of that certain Amendment No. 1 to Credit Agreement attached as Exhibit K
hereto.

     4.03 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request
for Credit Extension (other than a Revolving Loan Notice requesting only a conversion of Revolving
Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following
conditions precedent:

     (a) The representations and warranties of the Borrower and each other Loan Party contained in
Article V or any other Loan Document, or which are contained in any document furnished at
any time under or in connection herewith or therewith, shall be true and correct on and as of the
date of such Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct as of
such earlier date, and except that for purposes of this Section 4.03, the
representations and warranties contained in subsections (a) and (b) of Section
5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses
(a) and (b), respectively, of Section 6.01.

     (b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

     (c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall
have received a Request for Credit Extension in accordance with the requirements hereof.

     (d) In the case of a Letter of Credit to be denominated in an Alternative Currency, there
shall not have occurred any change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which in the reasonable opinion of the
Administrative Agent or the L/C Issuer would make it impracticable for such Letter of Credit to be
denominated in the relevant Alternative Currency.

     Each Request for Credit Extension (other than a Revolving Loan Notice requesting only a
conversion of Revolving Loans to the other Type or a continuation of Eurodollar Rate Loans)
submitted by the Company shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.03(a) and (b) have been satisfied on and as of the date of
the applicable Credit Extension.

65

 

ARTICLE V. REPRESENTATIONS AND WARRANTIES

     The Company represents and warrants to the Administrative Agent and the Lenders that:

     5.01 Existence, Qualification and Power. The Borrower and each of its Subsidiaries (a) is a
corporation, partnership or limited liability company, duly organized or formed, validly existing
and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b)
has all requisite power and authority and all governmental licenses, authorizations, consents and
approvals (i) to own its assets, carry on its business and (ii) to execute, deliver, and perform
its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is
licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such qualification or license, and
(d) is in compliance with all Laws, except in each case referred to in subsection (b)(i),
(c) or (d) of this Section, to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a) contravene the
terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, (i) any Contractual Obligation to which such
Person is a party or (ii) any material order, injunction, writ or decree of
any Governmental Authority to which such Person or its property is subject; or (c) violate any
Law. Each Loan Party and each Subsidiary thereof is in compliance with all Contractual Obligations
referred to in clause (b)(i), except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

     5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan Document.

     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting the rights of creditors, and
subject to equitable principles of general application.

     5.05 Financial Statements; No Material Adverse Effect.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the financial condition of the Company and its Subsidiaries as of the date thereof
and their results of operations for the period covered thereby in accordance with

66

 

GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or contingent, of the Company
and its Subsidiaries as of the date thereof, including liabilities for taxes, material commitments
and Indebtedness.

     (b) The unaudited consolidated financial statements of the Company and its Subsidiaries, dated
March 31, 2010, contained in the related quarterly report on Form 10-Q filed with the SEC (i) were
prepared in accordance with GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein, and subject to ordinary, good faith year end audit
adjustments; (ii) fairly present the financial condition of the Company and its Subsidiaries as of
the date thereof and their results of operations for the period covered thereby; and (iii) show all
material indebtedness and other liabilities, direct or contingent, of the Company and its
consolidated Subsidiaries as of the date thereof, including liabilities for taxes, material
commitments and Indebtedness.

     (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

     (d) As of the Closing Date, there exists no Project Debt, other than as specifically
identified on Schedule 5.05(d).

     5.06 Litigation. Except as specifically disclosed on Schedule 5.06, there are no
actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after
due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against the Borrower or any of its Subsidiaries or against
any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any
other Loan Document, or any of the transactions contemplated hereby, or (b) if determined
adversely, could reasonably be expected to have a Material Adverse Effect, and there has been no
material adverse change in the status, or financial effect on any Loan Party or any Subsidiary
thereof, of the matters described on Schedule 5.06.

     5.07 No Default. Neither the Borrower nor any Subsidiary is in default under or with respect
to (a) any Senior Note Documents or (b) any Contractual Obligation, in each case that could be
reasonably expected to have a Material Adverse Effect. No Default or Event of Default has occurred
and is continuing or would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

     5.08 Ownership of Property; Liens. Each of the Borrower and its Subsidiaries has good record
and marketable title in fee simple to, or valid leasehold interests in, all real property necessary
or used in the ordinary conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. As of
the Closing Date, the property of the Borrower and its Subsidiaries is not subject to any Lien,
other than Liens permitted by Section 7.01.

67

 

     5.09 Environmental Compliance.

     (a) The on-going operations of the Borrower and each of its Subsidiaries, after the Closing
Date, comply in all respects with all Environmental Laws, except such non-compliance that would not
result in liability in excess of $7,500,000 in the aggregate.

     (b) Except as specifically identified on Schedule 5.09, and except to the extent that
noncompliance would not result in liability in excess of $1,000,000 in the aggregate, the Borrower
and each of its Subsidiaries have obtained all licenses, permits, authorizations and registrations
required under any Environmental Law (“Environmental Permits”) necessary for their
respective operations, and all such Environmental Permits are in good standing, and the Borrower
and each of its Subsidiaries are in compliance with all terms and conditions of such Environmental
Permits.

     (c) Except as specifically identified on Schedule 5.09, none of the Borrower or any of
its Subsidiaries or any of their present property or operations is subject to any outstanding
written order from or agreement with any Governmental Authority or other Person, nor is subject to
any judicial or docketed administrative proceeding respecting any Environmental Law, Environmental
Claim or Hazardous Material.

     (d) There are no conditions or circumstances relating to any property of the Borrower or its
Subsidiaries, or arising from operations of the Borrower or its Subsidiaries conducted prior to the
Closing Date that, together with all other such conditions and circumstances relating to all other
properties and operations, may give rise to Environmental Claims with a potential liability as to
the Borrower and its Subsidiaries together in excess of $25,000,000 in the aggregate. Schedule
5.09 contains the Borrower’s good faith estimate of clean-up costs associated with hydrocarbon
contamination at the properties described therein. Notwithstanding the foregoing, (i) neither the
Borrower nor any of its Subsidiaries has any underground storage tanks (x) that are not properly
registered or permitted under applicable Environmental Laws or (y) that are leaking or disposing of
Hazardous Materials off-site, (ii) the Borrower and its Subsidiaries have notified all of their
employees of the existence, if any, of any health hazard arising from the conditions of their
employment and have met all notification requirements under all applicable Environmental Laws, and
(iii) no Hazardous Materials have been Released at, on or under any site, facility or vessel now or
previously owned, operated or leased by the Borrower or any of its Subsidiaries that would have a
Material Adverse Effect.

     (e) Except as specifically identified on Schedule 5.09, the Borrower has no knowledge
of any oral or written notification of a Release of a Hazardous Material has been filed by or on
behalf of the Borrower or any of its Subsidiaries and no site, facility or vessel now or previously
owned, operated or leased by the Borrower or any of its Subsidiaries is listed or proposed for
listing on any federal or state list of sites requiring investigation or clean-up.

     5.10 Insurance. The properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Borrower or the
applicable Subsidiary operates.

68

 

     5.11 Taxes. The Borrower and its Subsidiaries have filed (or have obtained appropriate
extensions in respect of) all Federal, all material state and other material tax returns and
reports required to be filed, and have paid (or have obtained appropriate extensions in respect of)
all Federal, all material state and other material taxes, assessments, fees and other governmental
charges levied or imposed upon them or their properties, income or assets otherwise due and
payable, except those which are being contested in good faith by appropriate proceedings and for
which adequate reserves have been provided in accordance with GAAP. To the Borrower’s knowledge,
there is no proposed tax assessment against the Borrower or any Subsidiary that would, if made,
have a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries is party to any
tax sharing agreement.

     5.12 ERISA Compliance.

     (a) To the Borrower’s knowledge, each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state laws. To the Borrower’s
knowledge, each Pension Plan that is intended to be a qualified plan under Section 401(a) of the
Code has received a favorable determination letter from the Internal Revenue Service to the effect
that the form of such Plan is qualified under Section 401(a) of the Code and the trust related
thereto has been determined by the Internal Revenue Service to be exempt from federal income tax
under Section 501(a) of the Code, or an application for such a letter is currently being processed
by the Internal Revenue Service. To the best knowledge of the Borrower, nothing has occurred that
would prevent or cause the loss of such tax-qualified status.

     (b) There are no pending or, to the best knowledge of the Borrower, threatened claims, actions
or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred, and neither the Borrower nor any ERISA Affiliate is aware
of any fact, event or circumstance that could reasonably be expected to constitute or result in an
ERISA Event with respect to any Pension Plan; (ii) the Borrower and each ERISA Affiliate has met
all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no
waiver of the minimum funding standards under the Pension Funding Rules has been applied for or
obtained; (iii) as of the most recent valuation date for any Pension Plan, the funding target
attainment percentage (as defined in Section 430(d)(2) of the Code) is 60% or higher and neither
the Borrower nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be
expected to cause the funding target attainment percentage for any such plan to drop below 60% as
of the most recent valuation date; (iv) neither the Borrower nor any ERISA Affiliate has incurred
any liability to the PBGC other than for the payment of premiums, and there are no premium payments
which have become due that are unpaid; (v) neither the Borrower nor any ERISA Affiliate has engaged
in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and (vi) no
Pension Plan has been terminated by the plan administrator thereof nor by the PBGC, and no event or
circumstance has occurred or exists that could reasonably be expected to cause the PBGC to
institute proceedings under Title IV of ERISA to terminate any Pension Plan.

69

 

     5.13 Subsidiaries; Equity Interests.

     (a) As of the Closing Date, the Company has no Subsidiaries other than those specifically
disclosed in Part (1) of Schedule 5.13(a), and those of whom the Company has notified the
Administrative Agent in writing following the Closing Date pursuant to Section 6.14 and has
no equity investments in any other corporation or entity (including GLC Ventures and Construction
JVs) other than those specifically disclosed in Part (2) of Schedule 5.13(a).

     (b) As of the Closing Date, there exist no Senior Note Guarantors, other than as listed on
Schedule 5.13(b).

     5.14 Margin Regulations; Investment Company Act.

     (a) The Borrower is not engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.

     (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment Company Act of 1940, the
Federal Power Act, the Interstate Commerce Act, any state public utilities code or any other
federal or state statute or regulation limiting its ability to incur Indebtedness.

     5.15 Disclosure. The documents, certificates and written statements (including the Loan
Documents) furnished to the Administrative Agent and the Lenders by the Borrower or any Subsidiary
for use in connection with the transactions contemplated by this Agreement, taken as a whole, do
not contain any untrue statement of a material fact or omit to state a material fact (known to the
Borrower in the case of any document not furnished by it) necessary in order to make the statements
contained herein or therein not misleading (it being recognized by the Administrative Agent and the
Lenders that projections and forecasts provided to them by the Borrower are not to be viewed as
facts and that actual results during the period or periods covered by any such projections and
forecasts may differ from the projected or forecasted results).

     5.16 Intellectual Property; Licenses, Etc. To the Borrower’s knowledge, the Borrower and its
Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names,
copyrights, patents, patent rights, franchises, licenses and other intellectual property rights
(collectively, “IP Rights”) that are reasonably necessary for the operation of their
respective businesses, taken as a whole, except as could not reasonably be expected to have a
Material Adverse Effect. To the best knowledge of the Borrower, no slogan or other advertising
device, product, process, method, substance, part or other material employed or contemplated to be
employed by the Borrower or any Subsidiary infringes upon any rights held by any other Person,
except as could not reasonably be expected to have a Material Adverse Effect. Except as
specifically disclosed in Schedule 5.16, no claim or litigation regarding any of the
foregoing is pending or, to the best knowledge of the Borrower, threatened, and no patent,
invention, device, application, principle or any statute, law, rule, regulation, standard or code
is pending or, to the

70

 

knowledge of the Borrower, proposed, which, in either case, could reasonably
be expected to have a Material Adverse Effect.

     5.17 Swap Contracts. The Borrower and its Subsidiaries have each voluntarily entered into
each Swap Contract to which it is a party based upon its own independent assessment of its
consolidated assets, liabilities and commitments in each case as an appropriate means of mitigating
and managing risks associated with such matters.

     5.18 Labor Relations. There are no strikes, lockouts or other labor disputes against the
Borrower or any of its Subsidiaries, or, to the best of the Borrower’s knowledge, threatened
against or affecting the Borrower or any of its Subsidiaries, and no significant unfair labor
practice complaint is pending against the Borrower or any of its Subsidiaries or, to the best
knowledge of the Borrower, threatened against any of them before any Governmental Authority, which
could reasonably be expected to result in a Material Adverse Effect.

     5.19 Solvency. The Company is and shall continue to be, and shall cause each of the Loan
Parties to be, Solvent.

     5.20 Taxpayer Identification Number. Each Borrower’s true and correct taxpayer identification
number is set forth on Schedule 10.02.

     5.21 Representations as to Foreign Obligors. Each of the Borrower and each Foreign Obligor
represents and warrants to the Administrative Agent and the Lenders that:

     (a) Such Foreign Obligor is subject to civil and commercial Laws with respect to its
obligations under this Agreement and the other Loan Documents to which it is a party (collectively
as to such Foreign Obligor, the “Applicable Foreign Obligor Documents”), and the execution,
delivery and performance by such Foreign Obligor of the Applicable Foreign Obligor Documents
constitute and will constitute private and commercial acts and not public or governmental acts.
Neither such Foreign Obligor nor any of its property has any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) under the laws of the jurisdiction in which
such Foreign Obligor is organized and existing in respect of its obligations under the Applicable
Foreign Obligor Documents.

     (b) The Applicable Foreign Obligor Documents are in proper legal form under the Laws of the
jurisdiction in which such Foreign Obligor is organized and existing for the enforcement thereof
against such Foreign Obligor under the Laws of such jurisdiction, and to ensure the legality,
validity, enforceability, priority or admissibility in evidence of the Applicable Foreign Obligor
Documents. Except as disclosed to the Administrative Agent from time to time, it is not necessary
to ensure the legality, validity, enforceability, priority or admissibility in evidence of the
Applicable Foreign Obligor Documents that the Applicable Foreign Obligor Documents be filed,
registered or recorded with, or executed or notarized before, any court or other authority in the
jurisdiction in which such Foreign Obligor is organized and existing or that any registration
charge or stamp or similar tax be paid on or in respect of the Applicable Foreign Obligor Documents
or any other document, except for (i) any such filing, registration, recording, execution or
notarization as has been made or is not required to be made until the Applicable

71

 

Foreign Obligor
Document or any other document is sought to be enforced and (ii) any charge or tax as has been
timely paid.

     (c) Except as disclosed to the Administrative Agent from time to time, there is no tax, levy,
impost, duty, fee, assessment or other governmental charge, or any deduction or withholding,
imposed by any Governmental Authority in or of the jurisdiction in which such
Foreign Obligor is organized and existing either (i) on or by virtue of the execution or
delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to be made by such
Foreign Obligor pursuant to the Applicable Foreign Obligor Documents, except as has been disclosed
to the Administrative Agent.

     (d) Except as disclosed to the Administrative Agent from time to time, the execution, delivery
and performance of the Applicable Foreign Obligor Documents executed by such Foreign Obligor are,
under applicable foreign exchange control regulations of the jurisdiction in which such Foreign
Obligor is organized and existing, not subject to any notification or authorization except (i) such
as have been made or obtained or (ii) such as cannot be made or obtained until a later date
(provided that any notification or authorization described in clause (ii) shall be
made or obtained as soon as is reasonably practicable).

ARTICLE VI. AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied (other than contingent indemnification obligations and
other obligations that purport to survive termination of this Agreement), or any Letter of Credit
shall remain outstanding, the Company shall, and shall (except in the case of the covenants set
forth in Sections 6.01, 6.02, 6.03 and 6.14) cause each Subsidiary
to:

     6.01 Financial Statements. Deliver to the Administrative Agent and each Lender, in form and
detail satisfactory to the Administrative Agent and the Required Lenders:

     (a) as soon as available, but in any event within 90 days after the end of each fiscal year of
the Company (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of
such fiscal year, and the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by a report and opinion of an independent certified public accountant
of nationally recognized standing reasonably acceptable to the Required Lenders, which report and
opinion shall be prepared in accordance with GAAP and shall not be subject to any qualifications or
exceptions as to the scope of the audit nor to any qualifications or exceptions not reasonably
acceptable to the Required Lenders, or (ii) an SEC Form 10-K for the Company (excluding the
exhibits thereto) relating to such fiscal year;

     (b) as soon as available, but in any event within 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Company (i) a consolidated balance sheet of the
Company and its Subsidiaries as at the end of such fiscal quarter, the related consolidated
statements of income or operations, shareholders’ equity and cash flows for such fiscal quarter and
for the portion of the Company’s fiscal year then ended, setting forth in comparative form, as

72

 

applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the
corresponding portion of the previous fiscal year, all in reasonable detail and certified by a
Responsible Officer of the Company as fairly presenting the financial condition, results of
operations, shareholders’ equity and cash flows of the Company and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes, or (ii) an SEC Form 10-Q for the Company (excluding the exhibits thereto) relating to
such fiscal quarter; and

     (c) as soon as available, but in any event within 90 days after the end of each fiscal year of
the Company, a consolidated operating budget (to include, without limitation, a balance sheet and
the related statements of income or operations, shareholders’ equity and cash flows for such fiscal
year) for the Company and its Subsidiaries for such fiscal year, in each case prepared in
accordance with GAAP on a consistent basis.

     6.02 Certificates; Other Information. Deliver to the Administrative Agent and each Lender, in
form and detail satisfactory to the Administrative Agent and the Required Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Section
6.01(a) (unless included in the applicable SEC Form 10-K), a certificate of its independent
certified public accountants certifying such financial statements;

     (b) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Company (which delivery may, unless the Administrative Agent, or a Lender requests
executed originals, be by electronic communication including fax or email and shall be deemed to be
an original authentic counterpart thereof for all purposes);

     (c) promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of the Company, and copies of
all annual, regular, periodic and special reports and registration statements which the Company may
file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act
of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto;
and

     (d) promptly, such additional information regarding the business, financial or corporate
affairs of the Company or any Subsidiary, or compliance with the terms of the Loan Documents, as
the Administrative Agent or any Lender may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company posts such documents, or provides a link thereto on
the Company’s website on the Internet at the website address listed on Schedule 10.02; or
(ii) on which such documents are posted on the Company’s behalf on an Internet or intranet website,
if any, to which each Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided that: (i)
the

73

 

Company shall deliver paper copies of such documents to the Administrative Agent or any Lender
upon its request to the Company to deliver such paper copies until a written request to
cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the
Company shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of
the posting of any such documents and provide to the Administrative Agent by electronic mail
electronic versions (i.e., soft copies) of such documents. The Administrative Agent shall
have no obligation to request the delivery of or to maintain paper copies of the documents referred
to above, and in any event shall have no responsibility to monitor compliance by the Company with
any such request by a Lender for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the L/C Issuer materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Borrower or its Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. The Borrower hereby agrees
that so long as the Borrower is the issuer of any outstanding debt or equity securities that are
registered or issued pursuant to a private offering or is actively contemplating issuing any such
securities (w) all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer
and the Lenders to treat such Borrower Materials as not containing any material non-public
information with respect to the Borrower or its securities for purposes of United States Federal
and state securities laws (provided, however, that to the extent such Borrower
Materials constitute Information, they shall be treated as set forth in Section 10.07); (y)
all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Side Information;” and (z) the Administrative Agent and the Arranger
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Side Information.”

     6.03 Notices. Promptly notify the Administrative Agent and each Lender:

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

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or
(iii) the commencement of, or any material development in, any litigation or proceeding affecting
the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;

74

 

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary, including any determination by the Borrower referred to in Section
2.10;

     (e) if applicable, upon the request from time to time of the Administrative Agent, of the Swap
Termination Values, together with a description of the method by which such values were determined,
relating to any Swap Contracts then outstanding to which the Borrower or any of its Subsidiaries is
a party;

     (f) upon becoming aware thereof, of any labor controversy resulting in or threatening to
result in, any strike, work stoppage, boycott, shutdown or other labor disruption against or
involving the Borrower or any Subsidiary that would materially impact the operations of the
Borrower or any Subsidiary; and

     (g) upon, but in no event later than ten days after, becoming aware of (i) any and all
enforcement, cleanup, removal or other governmental or regulatory actions involving a potential
liability in excess of $15,000,000 in the aggregate instituted, completed or threatened against the
Borrower or any Subsidiary or any of their properties pursuant to any applicable Environmental
Laws, (ii) all other Environmental Claims involving the Borrower or a Subsidiary with a potential
liability in excess of $15,000,000 in the aggregate, and (iii) any environmental or similar
condition on any real property adjoining or in the vicinity of the property of the Borrower or any
Subsidiary that could reasonably be anticipated to cause such property or any part thereof to be
subject to any restrictions on the ownership, occupancy, transferability or use of such property
under any Environmental Laws and involving a potential liability in excess of $15,000,000 in the
aggregate.

     Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and
stating what action the Borrower has taken and proposes to take with respect thereto. Each notice
pursuant to Section 6.03(a) shall describe with particularity any and all provisions of
this Agreement and any other Loan Document that have been breached.

     6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable (a)
all material tax liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by appropriate proceedings
and adequate reserves in accordance with GAAP are being maintained by the Borrower or such
Subsidiary; (b) all lawful claims which, if unpaid, would by law become a Lien (other than a
Permitted Lien) upon its property; and (c) all Indebtedness (other than Indebtedness the
non-payment of which would not violate Section 8.01(e)), as and when due and payable, but
subject to any subordination provisions contained in any instrument or agreement evidencing such
Indebtedness, in the case of each of clauses (a) and (b) where the failure to pay
or discharge could reasonably be expected to have a Material Adverse Effect.

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction of its

75

 

organization
except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its
registered patents, trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

     6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals and
replacements thereof except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) use the standard of care typical in the industry in the operation
and maintenance of its facilities.

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Borrower, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons engaged in the same or
similar business, of such types and in such amounts as are customarily carried under similar
circumstances by such other Persons.

     6.08 Compliance with Laws. Comply in all material respects with the requirements of all Laws
and all orders, writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order, writ, injunction or decree
is being contested in good faith or a bona fide dispute exists with respect thereto; or (b) the
failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records.

     (a) Maintain (i) proper financial records in conformity with GAAP and presented fairly in all
material respects, and (ii) properly, all other books and records, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all transactions and matters
involving the assets and business of the Borrower or such Subsidiary, as the case may be; and

     (b) Maintain all books of record and accounts in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over the Borrower or such
Subsidiary, as the case may be.

     6.10 Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and independent public
accountants, all at the expense of the Borrower and at such reasonable times during normal
business hours and as often as may be reasonably desired, upon reasonable advance notice to the
Borrower; provided, however, that (i) the Loan Parties shall not be obligated to
reimburse the expenses associated with more than one (1) visit and inspection per calendar year
(subject to

76

 

clause (ii) below) and (ii) when an Event of Default exists the Administrative
Agent or any Lender (or any of their respective representatives or independent contractors) may do
any of the foregoing at the expense of the Borrower at any time during normal business hours and
without advance notice.

     6.11 Environmental Laws.

     (a) The Borrower shall, and shall cause each of its Subsidiaries to, conduct its operations
and keep and maintain its property in compliance in all material respects with all Environmental
Laws, except to the extent that the failure to comply therewith could not reasonably be expected to
have a Material Adverse Effect.

     (b) Upon written request of the Administrative Agent or any Lender, the Borrower shall submit
and cause each of its Subsidiaries to submit, to the Administrative Agent and such Lender, at the
Borrower’s sole cost and expense and at reasonable intervals, a report providing an update of the
status of any environmental, health or safety compliance, hazard or liability issue identified in
any notice or report required pursuant to Section 6.03(g) and any other environmental,
health or safety compliance obligation, remedial obligation or liability, that could, individually
or in the aggregate, result in liability in excess of $10,000,000.

     6.12 Use of Proceeds. Use the proceeds of the Credit Extensions (a) for working capital,
capital expenditures and other general corporate purposes of the Borrower and its Subsidiaries not
in contravention of any Law or of any Loan Document, (b) to finance acquisitions permitted
hereunder, and (c) to refinance the Indebtedness of the Borrower under the Existing Credit
Agreement.

     6.13 Tax Clearance Certificates. On or before the date that is 30 calendar days following the
Closing Date, the Borrower shall provide to the Administrative Agent all tax clearance certificates
not delivered to the Administrative Agent under Section 4.01(a)(iv) and permitted by such
section to be delivered under this Section 6.13; provided that, if the Borrower is
unable to deliver any such certificate by virtue of a delay in the ability of any applicable
Governmental Authority to provide such certificate in the ordinary course (and not by virtue of any
Loan Party not being in tax good standing) and the Borrower has provided to the Administrative
Agent reasonable evidence of such inability, then the Borrower shall have such additional time to
deliver such certificate(s) as the Administrative Agent shall reasonably determine.

     6.14 New Material Subsidiaries; Additional Guarantors.

     (a) On each Guarantor Assessment Date, the Company shall determine whether there exists any
new or additional Material Subsidiaries (whether as a result of a Person becoming a
Material Subsidiary or being designated as a Material Subsidiary for purposes of satisfying
the 80% Threshold Test), and if so, promptly notify the Administrative Agent of such fact and
promptly thereafter (and in any event, with respect to Domestic Subsidiaries, within forty-five
(45) days, and, with respect to Foreign Subsidiaries, within seventy-five (75) days), cause such
Person to deliver to the Administrative Agent, as the Administrative Agent shall deem appropriate:

77

 

     (i) a Guaranty Joinder Agreement duly executed by such Subsidiary;

     (ii) documents of the types referred to in clauses (iii) and (iv) of
Section 4.01(a) and, if requested by the Administrative Agent, favorable customary
opinions of counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in clause
(a)), all in form, content and scope reasonably satisfactory to the Administrative
Agent;

     (iii) a Security Joinder Agreement of such Subsidiary, together with such Uniform
Commercial Code financing statements naming such Subsidiary as “Debtor” and naming the
Administrative Agent for the benefit of the Administrative Agent and the Secured Parties as
“Secured Party,” in form, substance and number sufficient in the reasonable opinion of the
Administrative Agent and its special counsel to be filed in all Uniform Commercial Code
filing offices in all jurisdictions in which filing is necessary or advisable to perfect in
favor of the Administrative Agent for the benefit of the Administrative Agent and the
Secured Parties the Lien on Collateral conferred under such Security Instrument to the
extent such Lien may be perfected by Uniform Commercial Code filing;

     (iv) Mortgages, title insurance, appraisals and such other real property support
documentation with respect to all real property (and related improvements) owned by such
Subsidiary;

     (v) subject to Section 11.01, if the Subsidiary Securities issued by such
Subsidiary that are, or are required to become, Pledged Interests are owned by a Subsidiary
who has not then executed and delivered to the Administrative Agent a Pledge Agreement
granting a Lien to the Administrative Agent, for the benefit of the Administrative Agent and
the Secured Parties, in such equity interests, a Pledge Joinder Agreement executed by the
Subsidiary that directly owns such Subsidiary Securities (or, as to the Pledged Interests
issued by any Direct Foreign Subsidiary, in a form acceptable to the Administrative Agent),
and if such Subsidiary Securities shall be owned by the Borrower or a Subsidiary who has
previously executed a Pledge Agreement, a Pledge Agreement Supplement in the form required
by such Pledge Agreement pertaining to such Subsidiary Securities;

     (vi) subject to Section 11.01, if the Pledged Interests issued by such
Subsidiary constitute securities under Article 8 of the Uniform Commercial Code (a) the
certificates representing 100% of such Subsidiary Securities and (b) duly executed, undated
stock powers or other appropriate powers of assignment in blank affixed thereto;

     (vii) Uniform Commercial Code financing statements naming the pledgor as “Debtor” and
naming the Administrative Agent for the benefit of the Administrative Agent and the Secured
Parties as “Secured Party,” in form, substance and number sufficient in the reasonable
opinion of the Administrative Agent and its special counsel to be filed in all Uniform
Commercial Code filing offices and in all jurisdictions in which filing is necessary or
advisable to perfect in favor of the Administrative Agent for the

78

 

benefit of the Administrative Agent and the Secured Parties the Lien on such Subsidiary
Securities;

     (viii) a supplement to the appropriate schedule attached to the appropriate Security
Instruments listing the additional Collateral, certified as true, correct and complete by
the Responsible Officer (provided that the failure to deliver such supplement shall
not impair the rights conferred under the Security Instruments in after acquired
Collateral); and

     (ix) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent reasonably may require.

Notwithstanding anything to the contrary herein, the Company shall at all times (subject to the 45
or 90 day period noted above) cause such of its Subsidiaries necessary to meet the 80% Threshold to
be Guarantors and to be bound by the terms of a Guaranty.

     (b) If the Company shall determine on any Guarantor Assessment Date in respect of any
Subsidiary that is, at such time, a Guarantor, that such Subsidiary is no longer a Material
Subsidiary, is no longer a Senior Note Guarantor, or is no longer required to be deemed or
designated as a Material Subsidiary for purposes of satisfying the 80% Threshold Test, the Company
may deliver to the Administrative Agent a certificate to such effect, certifying also the absence
of any Default or Event of Default, whereupon the Administrative Agent and the Lenders shall
execute such documents and instruments of release as shall be reasonably satisfactory to the
parties, confirming the release of such Subsidiary from the Guaranty.

     6.15 Appraisals. The Administrative Agent and the Lenders may obtain from time to time an
appraisal of all or any part of any Collateral, prepared in accordance with written instructions
from the Administrative Agent and the Lenders, from a third-party appraiser satisfactory to, and
engaged directly by, the Administrative Agent and the Lenders. The cost of any appraisal after the
occurrence of a Default shall be borne by the Borrower and such cost shall be part of the
Indebtedness, and constitute an Obligation, hereunder and shall be payable by the Borrower to the
Administrative Agent on demand (which obligation the Borrower hereby promises to pay).

ARTICLE VII. NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied (other than contingent indemnification obligations and
other obligations that purport to survive termination of this Agreement), or any Letter of Credit
shall remain outstanding, the Company shall not, nor shall it permit any Subsidiary to, directly or
indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

79

 

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that the property covered thereby is not increased and any
renewal or extension of the obligations secured or benefited thereby is permitted by Section
7.03(b);

     (c) Liens for taxes not yet past due or which are being contested in good faith and by
appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of
the applicable Person in accordance with GAAP;

     (d) carriers’, landlords’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the Ordinary Course of Business in respect of the Borrower and its
Subsidiaries, which are not overdue for a period of more than 45 days or which are being contested
in good faith and by appropriate proceedings, if adequate reserves with respect thereto are
maintained on the books of the applicable Person;

     (e) pledges or deposits in the Ordinary Course of Business in connection with obligations of
the Borrower or its Subsidiaries arising under workers’ compensation, unemployment insurance and
other social security legislation, other than any Lien imposed by ERISA;

     (f) deposits to secure the performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature, in each case, incurred by the Borrower or its Subsidiaries in the
Ordinary Course of Business, provided that all such deposits in the aggregate could not
reasonably be expected to result in a Material Adverse Effect;

     (g) easements, rights-of-way, restrictions and other similar encumbrances affecting real
property which, in the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person;

     (h) Liens securing or arising from judgments, decrees or attachments in respect of the
Borrower and its Subsidiaries, in circumstances not constituting an Event of Default under
Section 8.01(h);

     (i) Liens securing Indebtedness of the Borrower or its Subsidiaries permitted under
Section 7.03(d), provided that (i) such Liens do not at any time encumber any
property other than the property financed by such Indebtedness; (ii) such Liens attach to the
subject property within 30 days after the acquisition thereof and (iii) the Indebtedness secured
thereby does not exceed the cost or fair market value as of the time such Indebtedness was
incurred, whichever is lower, of the property being acquired on the date of acquisition; or Liens
on assets of any Project Debt Entity securing Indebtedness of such entity permitted under
Section 7.03(i);

     (j) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods by the Borrower or its
Subsidiaries;

     (k) Liens securing reimbursement obligations of the Borrower or its Subsidiaries with respect
to commercial letters of credit obtained in the Ordinary Course of Business and not

80

 

prohibited hereby, provided that such Liens shall attach only to documents or other
property relating to such letters of credit and products and proceeds thereof;

     (l) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts or other
funds maintained with a creditor depository institution, provided that (i) such deposit
account is not a dedicated cash collateral account and is not subject to restrictions against
access by the Borrower in excess of those set forth by regulations promulgated by the FRB, and (ii)
such deposit account is not intended by the Borrower or any Subsidiary to provide collateral to the
depository institution;

     (m) Liens on insurance proceeds securing the payment of financed insurance premiums not in
excess of $15,000,000 at any time;

     (n) Liens not otherwise permitted hereunder (other than Subsidiary Securities or the proceeds
thereof) securing Indebtedness not in excess of $15,000,000 at any time; and

     (o) Liens, if any, in favor of a surety granted by the Borrower and/or its Subsidiaries
arising by operation of law or under any indemnity agreement or surety agreement entered into in
the Ordinary Course of Business in connection with construction-related performance bonds, provided
that such Lien does not at any time encumber any property other than the accounts receivables under
the applicable bonded contractual obligation.

     7.02 Investments. Make any Investments, except:

     (a) Investments, other than those permitted by subsections (b) through (i),
that are existing on the date hereof and listed on Schedule 7.02(a);

     (b) Investments held by the Borrower or any of its Subsidiaries (i) in the form of cash and
cash equivalents, and (ii) Investments permitted under the Borrower’s investment policy attached
hereto as Schedule 7.02(b), other than Investments of any type requiring any special or
further approval under such policy;

     (c) Investments consisting of extensions of credit by the Company to any of its wholly-owned
Subsidiaries, or by any of its wholly-owned Subsidiaries to the Company or to another of its
wholly-owned Subsidiaries, so long as such extensions of credit are, in each case, represented by a
written promissory note and pledged to the Administrative Agent pursuant to the Security
Instruments;

     (d) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the sale or lease of goods or services in the Ordinary Course of
Business, and Investments received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

     (e) Guarantee Obligations permitted by Section 7.03;

     (f) Investments resulting by virtue of transactions otherwise permitted by Section
7.07;

81

 

     (g) Investments (including Construction JV Investments) by any Land Development Company, or
any Subsidiary thereof, that are existing on the date hereof and listed on Schedule 7.02(g)
(“Existing Investments”), and any necessary additional Investments in such Existing
Investments only, in an aggregate amount not to exceed for all such Existing Investments together
at any time, $40,000,000;

     (h) the purchase or other acquisition of all of the equity, common stock in, or all or
substantially all of the property of, any Person (or division or other business unit of such
Person) that, upon the consummation thereof, will be wholly-owned directly by the Borrower or one
or more of its wholly-owned Subsidiaries (including as a result of a merger or consolidation);
provided that, with respect to each purchase or other acquisition made pursuant to this
Section 7.02(h): 

     (i) the lines of business of the Person to be (or the property of which is to be) so
purchased or otherwise acquired shall be similar, complementary, or ancillary to (or a
related line of) the lines of business as one or more of the principal businesses of the
Borrower and its Subsidiaries engaged in currently or subsequently in the Ordinary Course of
Businesses;

     (ii) in the case of the purchase or other acquisition of common stock of or other
equity in another Person, the board of directors (or other comparable governing body) of
such other Person shall have duly approved such purchase or acquisition;

     (iii) (A) immediately before and immediately after giving effect to any such purchase
or other acquisition, no Default shall have occurred and be continuing and (B) the Adjusted
Consolidated Leverage Ratio shall be less than or equal to 2.50 to 1.00 immediately after
giving effect to such purchase or other acquisition, such calculation to be determined on
the basis of the financial information most recently delivered to the Administrative Agent
pursuant to Section 6.01(a) or (b) (together with such pro forma expense
adjustments as are reasonably supportable by the Company) as though such purchase or other
acquisition had been consummated as of the first day of the four consecutive fiscal-quarter
period covered thereby; and

     (iv) the total consideration, including earnouts and other contingent consideration,
paid by or on behalf of the Company and its Subsidiaries for any such purchase or other
acquisition, when aggregated with the total consideration paid by or on behalf of the
Company and its Subsidiaries for all other purchases and other acquisitions made by the
Company and its Subsidiaries pursuant to this Section 7.02(h), shall not exceed
$200,000,000 in the aggregate; provided that the amount of Investments permitted by
this Section 7.02(h), when taken together with Investments permitted by Section
7.02(i), shall not exceed $250,000,000; and

     (i) Construction JV Investments arising in the Ordinary Course of Business in an aggregate
amount for all such Investments together not to exceed at any time $150,000,000; provided
that the amount of Investments permitted by this Section 7.02(i), when taken together with
Investments permitted by Section 7.02(h), shall not exceed $250,000,000.

82

 

     7.03 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness under the Loan Documents;

     (b) Indebtedness of the Borrower and its Subsidiaries outstanding on the date hereof and
listed on Schedule 7.03 and any refinancings, refundings, renewals or extensions thereof,
provided that the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or
other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such
refinancing and by an amount equal to any existing commitments unutilized thereunder;

     (c) obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or
arising under any Swap Contract entered into by such Person (or in respect of any Guarantee
Obligation of any such Person to the extent supporting obligations arising under Swap Contracts to
which the Borrower or any Subsidiary is party), provided that (i) such Swap Contract
obligations are (or were) entered into by such Person in the Ordinary Course of Business for the
purpose of directly mitigating risks associated with liabilities, commitments, investments, assets,
or property held or reasonably anticipated by such Person, or changes in the value of securities
issued by such Person and not for purposes of speculation or taking a “market view;” and (ii) such
Swap Contract does not contain any provision exonerating the non-defaulting party from its
obligation to make payments on outstanding transactions to the defaulting party;

     (d) Indebtedness in respect of capital leases, Synthetic Lease Obligations, sale-leaseback
transactions and purchase money Indebtedness for fixed or capital assets acquired by the Borrower
or any Subsidiary; provided that the aggregate principal amount of (i) all purchase money
Indebtedness for fixed or capital assets that may be incurred by the Borrower or any of its
then-existing Subsidiaries in any fiscal year of the Borrower shall not exceed $25,000,000; (ii)
all Indebtedness in respect of capital leases, Synthetic Lease Obligations and sale-leaseback
transactions to finance the acquisition of fixed or capital assets incurred by the Borrower or any
of its Subsidiaries in any fiscal year of the Borrower shall not exceed $25,000,000; and (iii) all
Indebtedness in respect of capital leases, Synthetic Lease Obligations, sale-leaseback transactions
and purchase money Indebtedness for fixed or capital assets of Persons immediately prior to such
Persons becoming Subsidiaries or being merged with or into (or otherwise becoming acquired by) the
Borrower or any of its Subsidiaries following the Closing Date shall not exceed an amount equal to
$50,000,000; provided that none of such Indebtedness was incurred in anticipation of any
such merger or acquisition;

     (e) Indebtedness arising as a consequence of Investments permitted pursuant to Section
7.02(c);

     (f) Indebtedness in respect of (i) letters of credit (other than Letters of Credit) issued
solely for the account and benefit of the Borrower or any Subsidiary in the Ordinary Course of
Business in an aggregate outstanding amount not to exceed at any time an amount equal to
$25,000,000; and (ii) the obligation of a subcontractor of the Borrower or its Subsidiaries on a
construction project, provided that the Borrower or such Subsidiary determines in good
faith that such financial arrangement best serves the Borrower’s or such Subsidiary’s financial
interests;

83

 

     (g) Indebtedness incurred in the Ordinary Course of Business in connection with (i) securing
the performance of bids, trade contracts (other than for borrowed money), and statutory
obligations, in each case, solely for the account and benefit of the Borrower, its Subsidiaries,
any GLC Venture or Construction JV, (ii) obligations on surety and appeal bonds solely for the
account and benefit of the Borrower, its Subsidiaries, any GLC Venture or Construction JV, (other
than in relation to borrowed money debt), and (iii) other obligations of a like nature incurred in
the Ordinary Course of Business solely for the account and benefit of the Borrower, its
Subsidiaries, any GLC Venture or Construction JV, (other than in relation to borrowed money debt),
in each of the foregoing cases to the extent not otherwise prohibited by the terms of any Loan
Document;

     (h) Indebtedness comprised solely of (i) the outstanding principal amount of unsecured
obligations, whether current or long-term, for borrowed money and all obligations evidenced by
bonds (other than performance, surety and appeal bonds), debentures, notes, loan agreements or
other similar instruments, (ii) Attributable Indebtedness in respect of capital leases and
Synthetic Lease Obligations, (iii) to the extent permitted by Section 7.03(d), Indebtedness
under the 2007 Note Agreement that is unsecured, or (iv) without duplication, Guarantee Obligations
with respect to Indebtedness of the types specified in the immediately preceding clauses
(i), (ii) and (iii); provided that, (x) the aggregate principal amount
of outstanding Indebtedness of the types permitted by the immediately preceding clauses (i)
through (iv) shall not exceed $50,000,000; and (y) no such Indebtedness shall be permitted
under this clause (h) if such Indebtedness represents Indebtedness of any co-joint venturer
in any Joint Venture, to which the Company or any Subsidiary is a party, that is assumed by the
Company or any Subsidiary, if such Indebtedness was not originally incurred by such co-joint
venturer in connection with (and relate solely to) the subject Joint Venture; and

     (i) Project Debt existing and outstanding as of the Amendment No. 1 Effective Date as set
forth on Schedule 7.03(i) (“Existing Project Debt”), and in addition thereto, an
additional amount of Project Debt not to exceed at any time 20% of the aggregate principal amount
of the Existing Project Debt.

     7.04 Fundamental Changes. Merge, consolidate with or into, or 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 or in favor of any
Person or enter into any Joint Venture, except that, so long as no Default or Event of Default
exists at the time or would occur as a result thereof:

     (a) any Subsidiary may merge with (i) the Borrower, provided that the Borrower shall
be the continuing or surviving Person, (ii) any one or more Subsidiaries, provided that,
when any wholly-owned Subsidiary is merging with another Subsidiary, the wholly-owned Subsidiary
shall be the continuing or surviving Person, or (iii) any other Person, provided that the
Subsidiary shall be the continuing or surviving Person or immediately upon such merger,
consolidation or combination, the surviving Person shall be a wholly-owned Subsidiary of the
Borrower;

     (b) any Subsidiary may sell all or substantially all of its assets (upon voluntary liquidation
or otherwise), to the Borrower or to another Subsidiary; provided that if the seller in

84

 

such a transaction is a wholly-owned Subsidiary, then the purchaser must either be the
Borrower or a wholly-owned Subsidiary;

     (c) the Borrower may merge, consolidate or combine with another entity if the Borrower is the
corporation surviving the merger; and

     (d) the Borrower and its Subsidiaries may enter into any GLC Venture or Construction JV in the
Ordinary Course of Business, subject to compliance with all other terms and provisions hereof.

     7.05 Dispositions. Sell, lease or make any Disposition or enter into any agreement to make
any Disposition, except:

     (a) Dispositions of obsolete, unneeded, unproductive or worn out property, whether now owned
or hereafter acquired, in the Ordinary Course of Business to Persons;

     (b) Dispositions of inventory in the Ordinary Course of Business;

     (c) Dispositions of equipment or real property to the extent that (i) such property is
exchanged for credit against the purchase price of similar replacement property for use in the
Ordinary Course of Business, (ii) the proceeds of such Disposition are reasonably promptly applied
to the purchase price of such replacement property for use in the Ordinary Course of Business or
(iii) the board of directors or senior management of the Borrower or such Subsidiary has determined
in good faith that the failure to replace such property will not be detrimental to the business of
the Borrower or such Subsidiary;

     (d) Dispositions of property by any Subsidiary to the Borrower or to a wholly-owned Subsidiary
of the Borrower;

     (e) Dispositions comprising transactions expressly permitted by Section 7.04(a)
through (d);

     (f) non-exclusive licenses of IP Rights in the Ordinary Course of Business and substantially
consistent with past practice for terms not exceeding five years;

     (g) the sale, without recourse and in the Ordinary Course or Business, of accounts receivable
due from Federal, state or other Governmental Authority arising in the Ordinary Course of Business
(and not as part of any bulk sale or financing of receivables) in an amount not to exceed
$25,000,000 in any fiscal year or $50,000,000 in the aggregate prior to the Maturity Date; and

     (h) the sale or other transfer of Granite Land Company and other non- Granite Land Company
assets pursuant to the restructuring plan disclosed to the Lenders on December 10, 2010;

provided that any Disposition pursuant to subsections (a) through (g) of
this Section 7.05 shall be for fair market value.

85

 

     7.06 Lease Obligations. Create or suffer to exist any obligations for the payment of rent for
any property under lease or agreement to lease, except:

     (a) leases in existence on the date hereof and listed on Schedule 7.06, and any
renewal, extension or refinancing thereof;

     (b) operating leases (other than those constituting Synthetic Lease Obligations) entered into
or assumed by the Borrower or any Subsidiary after the date hereof in the Ordinary Course of
Business;

     (c) leases in connection with any sale-leaseback arrangement otherwise permitted hereby; and

     (d) capital leases and Synthetic Lease Obligations to the extent permitted by Section
7.03(d).

     7.07 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment
(including, but not limited to, dividends, redemptions and repurchases of common stock), or incur
any obligation (contingent or otherwise) to do so, except that:

     (a) each Subsidiary may make Restricted Payments to the Company and to wholly-owned
Subsidiaries (and, in the case of a Restricted Payment by a non-wholly-owned Subsidiary, to the
Company and any Subsidiary and to each other owner of capital stock of such Subsidiary on a pro
rata basis based on their relative ownership interests);

     (b) the Company and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock of such Person;

     (c) so long as no Default or Event of Default exists or would result by virtue thereof, the
Company and each Subsidiary may purchase, redeem or otherwise acquire shares of its common stock or
warrants or options to acquire any such shares with the proceeds received from the substantially
concurrent issue of new shares of its common stock;

     (d) so long as no Default or Event of Default exists or would result by virtue thereof, the
Company may purchase, redeem or otherwise acquire shares of common stock for cash in order to
contribute such shares to the Company’s employee stock ownership plan, provided the
aggregate amount paid by the Company in connection with such transactions does not exceed in any
fiscal year an amount equal to 15% of plan compensation (as such term is interpreted for purposes
of Section 401(a)(17) of the Code) paid by the Company in such fiscal year, and such shares are
promptly so contributed;

     (e) so long as no Default or Event of Default exists or would result by virtue thereof, the
Company may purchase, redeem or otherwise acquire shares of its capital stock, or warrants, rights
or options to acquire any such shares for cash in an aggregate amount not to exceed $50,000,000
computed on a cumulative basis during the term of this Agreement; provided that,
immediately before and immediately after giving pro forma effect to any such purchase, redemption
or acquisition, the unencumbered cash and cash equivalents and marketable securities (both short-
and long-term) of the Company and its Subsidiaries (other than

86

 

encumbrances pursuant to the Loan Documents), on a consolidated basis, shall be at least
$150,000,000; and

     (f) so long as no Default or Event of Default exists or would result by virtue thereof, the
Company may declare and make dividend payments in cash; provided that, immediately before
and immediately after giving pro forma effect to any such dividend payments in cash, the
unencumbered cash and cash equivalents and marketable securities (both short- and long-term) of the
Company and its Subsidiaries (other than encumbrances pursuant to the Loan Documents), on a
consolidated basis, shall be at least $150,000,000.

     7.08 Change in Nature of Business.

     (a) Engage in any material line of business substantially different from those lines of
business conducted by the Borrower and its Subsidiaries on the date hereof;

     (b) Except as otherwise permitted under Section 7.04, make any change in the
Borrower’s capital structure (including in the terms of its outstanding capital stock) or amend its
certificate of incorporation or bylaws if, as a result, there would be a reasonable likelihood of
the occurrence of a Material Adverse Effect; or

     (c) Engage in any transaction not in the Ordinary Course of Business and pursuant to
arm’s-length negotiations with any Subsidiary.

     7.09 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate
of the Borrower, other than arm’s-length transactions with Affiliates that are otherwise permitted
hereunder.

     7.10 Burdensome Agreements.

     (a) Restricted Payment Prohibitions. Enter into, assume or suffer to exist any
Contractual Obligation that limits the ability of any Subsidiary to make Restricted Payments to the
Borrower or to otherwise transfer property to the Borrower;

     (b) Employment Contracts. Enter into, assume or suffer to exist any employment
contracts or other arrangements with officers, directors or employees having terms, including
salaries, benefits and other compensation, that differs in any material respect from those
previously entered into by it in the Ordinary Course of Business; or

     (c) Other Negative Pledges. Enter into, assume or otherwise become subject to any
Contractual Obligation (other than this Agreement or any other Loan Document) that directly or
indirectly (i) prohibits the Borrower or any of its Subsidiaries from granting any Lien on property
or assets of such Persons or (ii) requires the grant of a Lien to secure an obligation of such
Person if a Lien is granted to secure another obligation of such Person, provided that the
Borrower and its Subsidiaries may enter into, assume or otherwise become subject to any such
Contractual Obligation solely to the extent (A) incurred pursuant to the acquisition by such
Persons of businesses, properties or assets of other Persons otherwise permitted hereunder if such
restrictions affect only such businesses, assets and property so acquired, and are not entered into
in contemplation of such acquisition, (B) pursuant to a transaction creating Liens permitted by

87

 

Section 7.01(i), provided such restriction is limited to the assets or
properties subject to such Liens, or (C) incurred pursuant to the issuance of senior notes
otherwise permitted hereunder pursuant to the 2007 Note Agreement or any note purchase agreement
containing negative pledge provisions not more restrictive than that certain Note Purchase
Agreement dated as of May 1, 2001, by and among the Company and the purchasers named therein in
respect of $75,000,000 6.96% Senior Notes due May 1, 2013 and $200,000,000 6.11% Senior Notes due
December 11, 2019.

     7.11 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB), to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose,
or to acquire any security in any transaction that is subject to Section 13 or 14 of the Exchange
Act if, following the application of the proceeds of such Credit Extension, more than 25% of the
value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a
consolidated basis) subject to the provisions of Section 7.01 or Section 7.05 or
subject to any restriction contained in any agreement or instrument within the scope of Section
8.01(e) will be margin stock.

     7.12 Financial Covenants.

     (a) Consolidated Tangible Net Worth. Permit Consolidated Tangible Net Worth at any
time to be less than the sum of 85% of the Consolidated Net Worth as of December 31, 2010,
plus (a) an amount equal to 50% of the Consolidated Net Income earned in each fiscal
quarter ending after December 31, 2010 (with no deduction for a net loss in any such fiscal
quarter) plus (b) an amount equal to 50% of the aggregate increases in Consolidated
Stockholders’ Equity after December 31, 2010 by reason of the issuance and sale of capital stock of
the Company, provided that the calculation of Tangible Net Worth and Consolidated Net Income shall
both be adjusted to exclude one time non-cash charges incurred pursuant to the restructuring plan
disclosed to the Lenders on December 10, 2010 in an aggregate amount not to exceed $46,100,000
less any such charges recognized in the quarter ending December 31, 2010.

     (b) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio, as of the last day of any fiscal quarter, to be less than 4.00 to 1.00.

     (c) Adjusted Consolidated Leverage Ratio. Permit the Adjusted Consolidated Leverage
Ratio at any time to be greater than the ratios set forth below opposite such period:

88

 

	 	 	 	 	 
	 	 	Maximum Adjusted	 
	 	 	Consolidated Leverage	 
	Four Fiscal Quarters Ending	 	Ratio	 
	September 30, 2010
	 	 	2.75 to 1.00	 
	December 31, 2010
	 	 	4.25 to 1.00	 
	March 31, 2011 through September 30, 2011
	 	 	4.00 to 1.00	 
	December 31, 2011 and March 31, 2012
	 	 	3.75 to 1.00	 
	June 30, 2012 through and including the fiscal
quarter ending December 31, 2012
	 	 	3.50 to 1.00	 
	March 31, 2013 and each fiscal quarter
thereafter
	 	 	3.00 to 1.0	 

ARTICLE
VIII. EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower fails to pay (i) when and as required to be paid
herein, and in the currency required hereunder, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three (3) Business Days after the same becomes due, any interest on any
Loan or on any L/C Obligation, any commitment fee or other fee due hereunder, or any other amount
payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05,
6.10, 6.12, 6.13, 6.14, 6.15 or 6.16 or Article
VII, or any Guarantor fails to perform or observe any term, covenant or agreement contained in
the Guaranty; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for 30 days; or

     (d) Representations and Warranties. Any representation or warranty made or deemed
made by the Borrower or any other Loan Party herein, in any other Loan Document, or in any document
delivered in connection herewith or therewith proves to have been incorrect when made or deemed
made; or

     (e) Cross-Default. (i) The Borrower or any Material Subsidiary (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of any Indebtedness (other than Indebtedness of any Land Development Company
incurred in the Ordinary Course of Business, so long as such Indebtedness is nonrecourse to the
Borrower and each Guarantor and nonpayment thereof would not have a material adverse financial
impact on the Borrower or any Guarantor) or Guarantee Obligation (other than Indebtedness hereunder
and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than $10,000,000, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or Guarantee Obligation or contained
in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs,
the effect of which default or other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of such Guarantee Obligation (or a trustee or
agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such

89

 

Indebtedness to be demanded or to become due or to be repurchased or redeemed (automatically
or otherwise) prior to its stated maturity, or such Guarantee Obligation to become payable or cash
collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under
such Swap Contract as to which the Borrower or any Material Subsidiary is the Defaulting Party (as
defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap
Contract as to which the Borrower or any Material Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by such Person as a result thereof is greater
than $10,000,000; or

     (f) Insolvency Proceedings, Etc. The Borrower or any of Material Subsidiary
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes
an assignment for the benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any material part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application or consent of
such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or any part of its
property is instituted without the consent of such Person and continues undismissed or unstayed for
60 calendar days, or an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any of its Subsidiaries
becomes unable or admits in writing its inability or fails generally to pay its debts as they
become due (other than the failure any Land Development Company to pay Indebtedness incurred in the
Ordinary Course of Business, so long as such Indebtedness is nonrecourse to the Borrower and each
Guarantor and nonpayment thereof would not have a material adverse financial impact on the Borrower
or any Guarantor), or (ii) any writ or warrant of attachment or execution or similar process is
issued or levied against all or any material part of the property of any such Person and is not
released, vacated or fully bonded within 30 days after its issue or levy; or

     (h) Judgments. There is entered against any Loan Party (i) one or more final
judgments or orders for the payment of money in an aggregate amount (as to all such judgments or
orders) exceeding $10,000,000 (to the extent not covered by independent third-party insurance as to
which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments
that have, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon
such judgment or order, or (B) there is a period of 10 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of the Borrower
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount
in excess of $7,500,000, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after
the expiration of any applicable grace period, any installment payment with

90

 

respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in
an aggregate amount in excess of the $7,500,000; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution
and delivery and for any reason other than the agreement of all the Lenders, as permitted hereunder
or thereunder, or satisfaction in full of all the Obligations (other than contingent
indemnification obligations or other obligations that purport to survive termination of this
Agreement), ceases to be in full force and effect, or is declared by a court of competent
jurisdiction to be null and void, invalid or unenforceable in any respect; or any Loan Party denies
that it has any or further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any Loan Document; or

     (k) Loss of Material Licenses, Permits or Intellectual Property. There occurs any of
the following events the result of which has, or could reasonably be expected to have, a Material
Adverse Effect: (i) any Governmental Authority revokes or fails to renew any license, permit or
franchise of the Borrower or any of its Subsidiaries, (ii) the Borrower or any of its Subsidiaries
for any reason loses any license, permit or franchise, or (iii) the Borrower or any of its
Subsidiaries suffers the imposition of any restraining order, escrow, suspension or impound of
funds in connection with any proceeding (judicial or administrative) with respect to any license,
permit or franchise; or

     (l) Change of Control. There occurs any Change of Control; or

     (m) Material Adverse Effect. There occurs any event or circumstance that has a
Material Adverse Effect.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) upon written notice to the Borrower, declare the commitment of each Lender to make Loans
and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrower;

     (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions

91

 

shall automatically terminate, the unpaid principal amount of all outstanding Loans and all
interest and other amounts as aforesaid shall automatically become due and payable, the obligation
of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, all payment obligations under the Guaranty of each Guarantor shall automatically become
due and payable, in each case without further act of the Administrative Agent or any Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the proviso
to Section 8.02), any amounts received on account of the Obligations shall, subject to the
provisions of Sections 2.15 and 2.16, be applied by the Administrative Agent in the
following order:

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

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees and amounts payable in
respect of Secured Hedge Agreements, Secured Cash Management Agreements and Secured Card Related
Products Agreements) payable to the Lenders and the L/C Issuer (including fees, charges and
disbursements of counsel to the respective Lenders and the L/C Issuer (including fees and time
charges for attorneys who may be employees of any Lender or the L/C Issuer) and amounts payable
under Article III), ratably among them in proportion to the respective amounts described in
this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, L/C Borrowings and Obligations then owing under Secured Hedge Agreements, Secured Cash
Management Agreements and Secured Card Related Products Agreements, ratably among the Lenders, the
L/C Issuers, the Existing L/C Issuers, the Hedge Banks, the Cash Management Banks and the Card
Related Products Banks in proportion to the respective amounts described in this clause
Fourth held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections
2.03 and 2.15; and

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

92

 

Subject to Sections 2.03(c) and 2.15, amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on
deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the order set forth
above.

Notwithstanding the foregoing, Obligations arising under Secured Cash Management Agreements,
Secured Hedge Agreements and Secured Card Related Products Agreements shall be excluded from the
application described above if the Administrative Agent has not received written notice thereof,
together with such supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank, Hedge Bank or Card Related Products Bank, as the case may be.
Each Cash Management Bank, Hedge Bank or Card Related Products Bank not a party to this Agreement
that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed
to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms
of Article IX for itself and its Affiliates as if a “Lender” party hereto.

ARTICLE IX. ADMINISTRATIVE AGENT

     9.01 Appointment and Authority. Each of the Lenders and the L/C Issuer hereby irrevocably
appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents 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 or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and the Borrower shall not have rights as a third party beneficiary of any of such
provisions.

     9.02 Rights as a Lender. 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 the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder
and without any duty to account therefor to the Lenders.

     9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated

93

 

hereby or by the other Loan Documents that the Administrative Agent is required to
exercise as directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that the Administrative Agent shall not be required to take any action
that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan
Documents, have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as the 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 (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii)
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 notice describing such Default is
given to the Administrative Agent by the Borrower, a Lender or the L/C Issuer.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

     9.04 Reliance by Administrative Agent. 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 (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated 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 have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender
or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The
Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be liable for

94

 

any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

     9.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and
exercise its rights and powers hereunder or under any other Loan Document 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 of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this Article 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.

     9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such 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 and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (1) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). 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 retiring Administrative Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
10.04 shall continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

     (b) Any resignation by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of
a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer
and Swing Line Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from
all of their respective duties and obligations hereunder or under the

95

 

other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of
the retiring L/C Issuer with respect to such Letters of Credit.

     9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties 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 and the L/C Issuer also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Bookrunners, Arrangers or Co-Syndication Agents listed on the cover page hereof shall have any
powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except
in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.

     9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall
then be due and payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other amounts due the Lenders,
the L/C Issuer and the Administrative Agent under Sections 2.03(h) and (i),
2.09 and 10.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements

96

 

and advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.09 and 10.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the
L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or
the L/C Issuer in any such proceeding.

     9.10 Collateral and Guaranty Matters. Each of the Lenders (including in its capacities as a
potential Cash Management Bank, a potential Hedge Bank and a potential Card Related Products Bank),
the L/C Issuer and the Swing Line Lender irrevocably authorize the Administrative Agent, at its
option and in its discretion:

     (a) to release any Pledged Interest and any Lien on any property granted to or held by
the Administrative Agent under any Loan Document (i) upon the occurrence of the Facility
Termination Date, (ii) that is sold or to be sold or otherwise disposed of as part of or in
connection with any sale or disposition permitted hereunder or under any other Loan Document,
or (iii) subject to Section 10.01, if approved, authorized or ratified in writing by
the Required Lenders;

     (b) to subordinate any Lien on any property granted to or held by the Administrative
Agent under any Loan Document to the holder of any Lien on such property that is permitted by
Section 7.01(i);

     (c) to release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder; and

     (d) to acknowledge in writing, in form and substance satisfactory to the Administrative
Agent, the priority of any Lien granted under any indemnity agreement or surety agreement in
favor of a surety providing a bond to the Company and/or its Subsidiaries as permitted by
Section 7.01(o) of this Agreement.

     Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in particular
types or items of property, or to release any Guarantor from its obligations under the Guaranty
pursuant to this Section 9.10.

     9.11 Secured Cash Management Agreements, Secured Hedge Agreements and Secured Card Related
Products Agreements. No Cash Management Bank, Hedge Bank or Card Related Products Bank who obtains
the benefit of the provisions of Section 8.03 or any Guaranty by virtue of the provisions
hereof or of any Guaranty shall have any right to notice of any action or to consent to, direct or
object to any action hereunder or under any other Loan Document other than in its capacity as a
Lender and, in such case, only to the extent expressly provided in the Loan Documents.
Notwithstanding any other provision of this Article IX to the contrary, the Administrative
Agent shall be required to verify the payment of, or that other satisfactory arrangements have been
made with respect to, Obligations arising under Secured Cash Management Agreements, Secured Hedge
Agreements and Secured Card Related Products

97

 

Agreements only if the Administrative Agent has received written notice of such Obligations,
together with such supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank, Hedge Bank or Card Related Products Bank, as the case may be.

ARTICLE X. MISCELLANEOUS

     10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the Borrower or the
applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under
any other Loan Document without the written consent of each Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01)
any fees or other amounts payable hereunder or under any other Loan Document, or change the manner
of computation of any financial ratio (including any change in any applicable defined term) used in
determining the Applicable Rate that would result in a reduction of any interest rate on any Loan
or any fee payable hereunder without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders shall be necessary
to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest or Letter of Credit Fees at the Default Rate;

     (e) change Section 8.03 in a manner that would alter the pro rata sharing of payments
required thereby without the written consent of the L/C Issuer;

     (f) amend Section 1.06 or the definition of “Alternative Currency” without the written
consent of each Lender;

     (g) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender; or

98

 

     (h) release all or substantially all of the value of the Guaranty without the written consent
of each Lender, except to the extent the release of any Guarantor is permitted pursuant to
Section 9.10 (in which case such release may be made by the Administrative Agent acting
alone);

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the consent of all
Lenders or each affected Lender may be effected with the consent of the applicable Lenders other
than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be
increased or extended without the consent of such Lender and (y) any waiver, amendment or
modification requiring the consent of all Lenders or each affected Lender that by its terms affects
any Defaulting Lender more adversely than other affected Lenders shall require the consent of such
Defaulting Lender.

     10.02 Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b)
below), all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly permitted hereunder to be
given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to any Borrower, the Administrative Agent, the L/C Issuer or the Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire (including, as
appropriate, notices delivered solely to the Person designated by a Lender on its
Administrative Questionnaire then in effect for the delivery of notices that may contain
material non-public information relating to the Borrower).

Notices and other communications sent by hand or overnight courier service, or mailed by certified
or registered mail, shall be deemed to have been given when received; notices and other
communications sent by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have been given at

99

 

the opening of business on the next business day for the recipient). Notices and other
communications delivered through electronic communications to the extent provided in subsection
(b) below, shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified
the Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of
any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to the Borrower, any Lender, the L/C Issuer or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

100

 

     (d) Change of Address, Etc. Each of the Borrower, the Administrative Agent, the L/C
Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices
and other communications hereunder by notice to the other parties hereto. Each other Lender may
change its address, telecopier or telephone number for notices and other communications hereunder
by notice to the Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender. In
addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that
the Administrative Agent has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to
cause at least one individual at or on behalf of such Public Lender to at all times have selected
the “Private Side Information” or similar designation on the content declaration screen of the
Platform in order to enable such Public Lender or its delegate, in accordance with such Public
Lender’s compliance procedures and applicable Law, including United States Federal and state
securities Laws, to make reference to Borrower Materials that are not made available through the
“Public Side Information” portion of the Platform and that may contain material non-public
information with respect to the Borrower or its securities for purposes of United States Federal or
state securities laws.

     (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Revolving Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of
the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

     10.03 No Waiver; Cumulative Remedies; Enforcement. No failure by any Lender, the L/C Issuer
or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

     Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law
in connection with such enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and
the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies that inure to its
benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan

101

 

Documents, (b) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies
that inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case
may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights
in accordance with Section 10.08 (subject to the terms of Section 2.13), or (d) any
Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the
pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and
provided, further, that if at any time there is no Person acting as Administrative
Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the
rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in
addition to the matters set forth in clauses (b), (c) and (d) of the
preceding proviso and subject to Section 2.13, any Lender may, with the consent of the
Required Lenders, enforce any rights and remedies available to it and as authorized by the Required
Lenders.

     10.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Company 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
syndication of the credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
by the Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer and any
financial advisor for the Administrative Agent, any Lender or the L/C Issuer), in connection with
the enforcement or protection of its rights (A) in connection with this Agreement and the other
Loan Documents, including its rights under this Section, or (B) in connection with the Loans made
or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

     (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender and the L/C Issuer, 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
expenses (including the fees, charges and disbursements of any counsel for any Indemnitee),
incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower
or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective obligations hereunder
or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case
of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the
administration of this Agreement and the other Loan Documents (including in respect of any matters
addressed in Section 3.01), (ii) any Loan or Letter of Credit or the use or proposed use of
the proceeds therefrom (including any refusal by

102

 

the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by the Borrower or any of their Subsidiaries, or any Environmental
Liability related in any way to the Borrower or any of their 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, whether brought by a third party or by the
Borrower or any other Loan Party, 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 (x) 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 or (y) result from a claim brought by the
Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if the Borrower or such other Loan Party
has obtained a final and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to
be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related
Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the L/C Issuer or such Related Party, as the case may be, 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 (or any such sub-agent) or the L/C Issuer in its
capacity as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The
obligations of the Lenders under this subsection (c) are subject to the provisions of
Section 2.12(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrowers shall not assert, and hereby waives, any claim against any
Indemnitee, 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, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for
any damages arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications, electronic
or other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for direct or actual
damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined
by a final and nonappealable judgment of a court of competent jurisdiction.

     (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

103

 

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations.

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is
made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the
L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the Administrative
Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a)
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or
such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to the applicable
Overnight Rate from time to time in effect, in the applicable currency of such recovery or payment.
The obligations of the Lenders and the L/C Issuer under clause (b) of the preceding
sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

     10.06 Successors and Assigns.

     (a) Successors and Assigns Generally. 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, except that the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection
(b) of this Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) of this Section (and any other
attempted assignment or transfer by any party hereto 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, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

104

 

     (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case
of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section,
the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $5,000,000 unless the Administrative Agent otherwise consents (such consent not
to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent assignments
from members of an Assignee Group to a single Eligible Assignee (or to an Eligible
Assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met.

     (ii) Proportionate Amounts. 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 with respect to the Loans or the Commitment assigned, except that this
clause (ii) shall not apply to rights in respect of the Swing Line Lender’s rights
and obligations in respect of Swing Line Loans;

     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in
addition:

     (A) the consent of the Company (such consent not to be unreasonably withheld or
delayed) shall be required if such assignment is to a Person that is engaged in
similar lines of business of the Company (as reasonably determined by the Company);

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is to a
Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with
respect to such Lender;

     (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the obligation of
the assignee to participate in exposure under one or more Letters of Credit (whether
or not then outstanding); and

     (D) the consent of the Swing Line Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment.

105

 

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount of $3,500; provided, however,
that the Administrative Agent may, in its sole discretion, elect to waive such processing
and recordation fee in the case of any assignment. The assignee, if it is not a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire.

     (v) No Assignment to Certain Persons. No such assignment shall be made (A) to
the Borrower or any of the Borrower’s Affiliates or Subsidiaries, or (B) to any Defaulting
Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder,
would constitute any of the foregoing Persons described in this clause (B), or (C)
to a natural person.

     (vi) Certain Additional Payments. In connection with any assignment of rights
and obligations of any Defaulting Lender hereunder, no such assignment shall be effective
unless and until, in addition to the other conditions thereto set forth herein, the parties
to the assignment shall make such additional payments to the Administrative Agent in an
aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright
payment, purchases by the assignee of participations or subparticipations, or other
compensating actions, including funding, with the consent of the Borrower and the
Administrative Agent, the applicable pro rata share of Loans previously requested but not
funded by the Defaulting Lender, to each of which the applicable assignee and assignor
hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then
owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and
interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share
of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with
its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment
of rights and obligations of any Defaulting Lender hereunder shall become effective under
applicable Law without compliance with the provisions of this paragraph, then the assignee
of such interest shall be deemed to be a Defaulting Lender for all purposes of this
Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in each Assignment and
Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, 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 Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption 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 3.01, 3.04, 3.05, and
10.04 with respect to facts and circumstances occurring prior to the effective date of such
assignment. Upon request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this Agreement
as a

106

 

sale by such Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower (and such agency being solely for tax purposes), shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrower, the 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. In addition, the Administrative Agent shall maintain on the
Register information regarding the designation, and revocation of designation, of any Lender as a
Defaulting Lender. The Register shall be available for inspection by the Borrower and any Lender,
at any reasonable time and from time to time upon reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in L/C Obligations and/or Swing Line 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 Administrative Agent, the Lenders and the L/C Issuer 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, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to subsection (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section
10.08 as though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 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 3.01 unless the Borrower is notified of the participation sold to
such Participant and

107

 

such Participant agrees, for the benefit of the Borrower, to comply with Section
3.01(e) as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

     (g) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30
days’ notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice
to the Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer
or Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor
L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by
the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C
Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect
to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and
all L/C Obligations with respect thereto (including the right to require the Lenders to make Base
Rate Revolving Loans or fund risk participations in Unreimbursed Amounts pursuant to Section
2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all the rights of
the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right to require the
Lenders to make Base Rate Revolving Loans or fund risk participations in outstanding Swing Line
Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer and/or
Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be,
and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory
to Bank of America to effectively assume the obligations of Bank of America with respect to such
Letters of Credit.

     10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent,
the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and
representatives (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 purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the

108

 

enforcement of rights hereunder or thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower or (h) to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the Administrative Agent, any
Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a
source other than the Borrower. For purposes of this Section, “Information” means all information
received from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of
their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure
by the Borrower or any Subsidiary, provided that, in the case of information received from
the Borrower or any Subsidiary after the date hereof, 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.

     Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower or a Subsidiary, as
the case may be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public information in accordance
with applicable Law, including United States Federal and state securities Laws.

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Affiliate to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this Agreement or any
other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such Lender or
the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and
although such obligations of the Borrower may be contingent or unmatured or are owed to a branch or
office of such Lender or the L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness; provided, that in the event that any Defaulting Lender
shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately
to the Administrative Agent for further application in accordance with the provisions of
Section 2.16 and, pending such payment, shall be segregated by such Defaulting Lender from
its other funds and deemed held in trust for the benefit of the Administrative Agent and the
Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a
statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to
which it exercised such right of setoff. The rights of each Lender, the L/C Issuer and their
respective Affiliates under this Section are in addition to other rights and remedies (including
other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.
Each Lender and the L/C Issuer agrees to notify the Borrower and the

109

 

Administrative Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations hereunder.

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents 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 4.01, 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
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging
means shall be effective as delivery of a manually executed counterpart of this Agreement.

     10.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.

     10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to
be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable

110

 

such provision in any other jurisdiction. Without limiting the foregoing provisions of this
Section 10.12, if and to the extent that the enforceability of any provisions in this
Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in
good faith by the Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable,
then such provisions shall be deemed to be in effect only to the extent not so limited.

     10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04, 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 3.01, or if any Lender is a Defaulting
Lender, 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, and consents required by, Section
10.06), all of its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to 100% of the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents (including any amounts under
Section 3.05) 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);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable Laws.

     A Lender shall not be required to make any such assignment or 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.

     10.14 Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF CALIFORNIA.

     (b) SUBMISSION TO JURISDICTION. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF
CALIFORNIA SITTING IN THE CITY AND COUNTY OF SAN FRANCISCO AND OF THE UNITED STATES DISTRICT COURT
OF THE NORTHERN DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND

111

 

EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH CALIFORNIA STATE COURT OR, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE 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 OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT 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 APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

     10.15 Arbitration and Waiver of Jury Trial.

     (a) This Section concerns the resolution of any controversies or claims between the parties,
whether arising in contract, tort or by statute, including but not limited to controversies or
claims that arise out of or relate to: (i) this Agreement (including any renewals, extensions or
modifications); or (ii) any document related to this Agreement (collectively a “Claim”).
For the purposes of this arbitration provision only, the term “parties” shall include any parent
corporation, subsidiary or affiliate of the Lender involved in the servicing, management or
administration of the Obligations or any other obligation described in this Agreement.

     (b) At the request of any party to this Agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the
“Act”). The Act will apply even though this Agreement provides that it is governed by the
law of a specified state. The arbitration will take place on an individual basis without resort to
any form of class action.

112

 

     (c) Arbitration proceedings will be determined in accordance with the Act, the then-current
rules and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this Section. In the event
of any inconsistency, the terms of this Section shall control. If AAA is unwilling or unable to
(i) serve as the provider of arbitration or (ii) enforce any provision of this arbitration clause,
the Lender may designate another arbitration organization with similar procedures to serve as the
provider of arbitration.

     (d) The arbitration shall be administered by AAA and conducted, unless otherwise required by
law, in the State of California. All Claims shall be determined by one arbitrator; however, if
Claims exceed $5,000,000, upon the request of any party, the Claims shall be decided by three
arbitrators. All arbitration hearings shall commence within ninety (90) days of the demand for
arbitration and close within ninety (90) days of commencement and the award of the arbitrator(s)
shall be issued within thirty (30) days of the close of the hearing. However, the arbitrator(s),
upon a showing of good cause, may extend the commencement of the hearing for up to an additional
sixty (60) days. The arbitrator(s) shall provide a concise written statement of reasons for the
award. The arbitration award may be submitted to any court having jurisdiction to be confirmed,
judgment entered and enforced.

     (e) The arbitrator(s) will give effect to statutes of limitation in determining any Claim and
may dismiss the arbitration on the basis that the Claim is barred. For purposes of the application
of the statute of limitations, the service on AAA under applicable AAA rules of a notice of Claim
is the equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or
whether a Claim is arbitrable shall be determined by the arbitrator(s). The arbitrator(s) shall
have the power to award legal fees pursuant to the terms of this Agreement.

     (f) This Section does not limit the right of any party to: (i) exercise self-help remedies,
such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against any
real or personal property collateral; (iii) exercise any judicial or power of sale rights, or (iv)
act in a court of law to obtain an interim remedy, such as but not limited to, injunctive relief,
writ of possession or appointment of a receiver, or additional or supplementary remedies.

     (g) The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.

     (h) BY AGREEING TO BINDING ARBITRATION, THE PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY
RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM. FURTHERMORE, WITHOUT INTENDING IN
ANY WAY TO LIMIT THIS AGREEMENT TO ARBITRATE, TO THE EXTENT ANY CLAIM IS NOT ARBITRATED, THE
PARTIES IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
SUCH CLAIM. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT.

     10.16 California Judicial Reference. If any action or proceeding is filed in a court of the
State of California by or against any party hereto in connection with any of the transactions

113

 

contemplated by this Agreement or any other Loan Document, (a) the court shall, and is hereby
directed to, make a general reference pursuant to California Code of Civil Procedure Section 638 to
a referee (who shall be a single active or retired judge) to hear and determine all of the issues
in such action or proceeding (whether of fact or of law) and to report a statement of decision,
provided that at the option of any party to such proceeding, any such issues pertaining to
a “provisional remedy” as defined in California Code of Civil Procedure Section 1281.8 shall be
heard and determined by the court, and (b) without limiting the generality of Section
10.04, the Borrower shall be solely responsible to pay all fees and expenses of any referee
appointed in such action or proceeding.

     10.17 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services
regarding this Agreement provided by the Administrative Agent and the Arranger are arm’s-length
commercial transactions between the Borrower and its Affiliates, on the one hand, and the
Administrative Agent and the Arranger, on the other hand, (B) the Borrower has consulted its own
legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the
Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of
the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative
Agent and the Arranger each is and has been acting solely as a principal and, except as expressly
agreed in writing by the relevant parties, has not been, is not, and will not be acting as an
advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B)
neither the Administrative Agent nor the Arranger has any obligation to the Borrower or any of its
Affiliates with respect to the transactions contemplated hereby except those obligations expressly
set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the
Arranger and their respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Borrower and its Affiliates, and neither the
Administrative Agent nor the Arranger has any obligation to disclose any of such interests to the
Borrower or its Affiliates. To the fullest extent permitted by law, the Borrower hereby waives and
releases any claims that it may have against the Administrative Agent and the Arranger with respect
to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby; provided that the foregoing shall not be deemed to release
Bank of America from any obligations expressly set forth herein.

     10.18 Electronic Execution of Assignments and Certain Other Documents. The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and Assumption or in any
amendment or other modification hereof (including waivers and consents) shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

114

 

     10.19 USA PATRIOT Act. Each Lender that is subject to the Act (as hereinafter defined) and
the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower
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 Borrower, which information includes the name and address of the Borrower and
other information that will allow such Lender or the Administrative Agent, as applicable, to
identify the Borrower in accordance with the Act. The Borrower shall, promptly following a request
by the Administrative Agent or any Lender, provide all documentation and other information that the
Administrative Agent or such Lender requests in order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

     10.20 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such other currency on
the Business Day preceding that on which final judgment is given. The obligation of the Borrower
in respect of any such sum due from it to the Administrative Agent or the L/C Issuer hereunder or
under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by the Administrative Agent or the L/C Issuer, as the
case may be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or
the L/C Issuer, as the case may be, may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent or the L/C Issuer from
the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or the L/C Issuer, as the
case may be, against such loss. If the amount of the Agreement Currency so purchased is greater
than the sum originally due to the Administrative Agent or the L/C Issuer in such currency, the
Administrative Agent or the L/C Issuer, as the case may be, agrees to return the amount of any
excess to the Borrower (or to any other Person who may be entitled thereto under applicable law).

ARTICLE XI. SECURITY

     11.01 Security. As security for the full and timely payment and performance of all
Obligations, the Company shall, and shall cause all other Loan Parties to, on or before the
Amendment No. 1 Effective Date, do or cause to be done all things necessary in the opinion of the
Administrative Agent and its counsel to grant to the Administrative Agent for the benefit of the
Administrative Agent and the Secured Parties a duly perfected first priority security interest in
all Collateral subject to no prior Lien or other encumbrance or restriction on transfer (other than
restrictions on transfer imposed by applicable securities laws), except as expressly permitted
hereunder. Without limiting the foregoing, on the Amendment No. 1 Effective Date, each Borrower
shall deliver, and shall cause each Guarantor to deliver, or shall have previously delivered and
caused each Guarantor to deliver, to the Administrative Agent, in form and substance reasonably
acceptable to the Administrative Agent, (a) if such party has rights in any

115

 

Subsidiary Securities (i) a Pledge Agreement which shall pledge to the Administrative Agent
for the benefit of the Administrative Agent and the Secured Parties (1) 65% of the Voting
Securities of each Direct Foreign Subsidiary (or if any Borrower and its Subsidiaries shall own
less than 65%, then all of the Voting Securities owned by them) and 100% of the other Subsidiary
Securities of such Direct Foreign Subsidiary that are owned by any Borrower or its Subsidiaries,
and (2) all of the Subsidiary Securities owned by each Borrower or its Subsidiaries in each
Domestic Subsidiary, (ii) if such Subsidiary Securities are in the form of certificated securities,
such certificated securities, together with undated stock powers or other appropriate transfer
documents endorsed in blank pertaining thereto, (b) the Security Agreement, which shall pledge to
the Administrative Agent for the benefit of the Secured Parties certain personal property of the
Borrowers and the Guarantors more particularly described therein, and (c) Uniform Commercial Code
financing statements in form, substance and number as requested by the Administrative Agent,
reflecting the Lien in favor of the Administrative Agent for the benefit of the Secured Parties on
the Subsidiary Securities and all other Collateral, and shall take such further action and deliver
or cause to be delivered such further documents as required by the Security Instruments or
otherwise as the Administrative Agent may request to effect the transactions contemplated by this
Article XI. Each Borrower shall, and shall cause each Subsidiary to, pledge to the
Administrative Agent for the benefit of the Administrative Agent and the Secured Parties (and as
appropriate to reaffirm its prior pledge of) all of the Pledged Interests of any Subsidiary
acquired or created after the Amendment No. 1 Effective Date and to deliver to the Administrative
Agent all of the documents and instruments in connection therewith as are required pursuant to the
terms of Section 6.14 hereunder and of the Security Instruments. Notwithstanding anything
herein to the contrary, in the event any Domestic Subsidiary is a “disregarded entity” for United
States federal income tax purposes (a “Domestic Disregarded Subsidiary”), and such Domestic
Disregarded Subsidiary owns stock in a Direct Foreign Subsidiary, then the Subsidiary Securities of
such Domestic Disregarded Subsidiary shall not be pledged or provide any guaranty or serve as
collateral in connection herewith; provided, however, that only the assets of such
Domestic Disregarded Subsidiary (other than the stock in the Direct Foreign Subsidiary) shall be
pledged or provide any guaranty or serve as collateral in connection herewith, as well as up to
sixty-five percent (65%) in the aggregate of the Voting Securities and 100% of any other Subsidiary
Securities of such Direct Foreign Subsidiary of such Domestic Disregarded Subsidiary, subject to
such further limitations as otherwise provided herein.

     11.02 Further Assurances. At the request of the Administrative Agent, the Borrowers will or
will cause all other Loan Parties, as the case may be, to execute, by its duly authorized officers,
alone or with the Administrative Agent, any certificate, instrument, financing statement, control
agreement, mortgage, deed of trust, statement or document, or to procure any such certificate,
instrument, statement or document, or to take such other action (and pay all connected costs) which
the Administrative Agent reasonably deems necessary from time to time to create, continue or
preserve the liens and security interests in Collateral (and the perfection and priority thereof)
of the Administrative Agent contemplated hereby and by the other Loan Documents and specifically
including all Collateral acquired by the Borrowers or other Loan Parties after the Amendment No. 1
Effective Date. The Administrative Agent is hereby irrevocably authorized to execute (if
necessary) and file or cause to be filed, with or if permitted by applicable law without the
signature of any Borrower or any Loan Party appearing thereon, all Uniform Commercial Code
financing statements reflecting any Borrower or any other Loan

116

 

Party as “debtor” and the Administrative Agent as “secured party”, and continuations thereof
and amendments thereto, as the Administrative Agent reasonably deems necessary or advisable to give
effect to the transactions contemplated hereby and by the other Loan Documents.

     11.03 Mortgages. Without limiting the generality of Section 11.01, the Borrowers
shall cause to be delivered to the Administrative Agent upon the Administrative Agent’s reasonable
request, as soon as practicable and in any event within thirty (30) days of the acquisition
thereof, a Mortgage on any real property (and related improvements) acquired by any Loan Party
after the Amendment No. 1 Effective Date as security for each Guarantor’s Obligations (as defined
in the Guaranty).

117

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	GRANITE CONSTRUCTION INCOPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GRANITE CONSTRUCTION COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GILC INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as

Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, Swing Line Lender and L/C Issuer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	BANK OF THE WEST

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	COMPASS BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	UNION BANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

	 	 	 	 	 
	 	

U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Granite Construction Incorporated

Credit Agreement

Signature Page

 

 

Exhibit B

to Amendment No. 1 to Credit Agreement

Post-Effectiveness Obligations

For any fee-owned U.S. real property of any Loan Party, which fee-owned U.S. real property is or is
intended under the terms hereof to be subject to a Lien in favor of the Administrative Agent for
the benefit of the Secured Parties (each a “Mortgaged Property”):

     (a) a mortgage, deed of trust, trust deed or other equivalent document (a
“Mortgage”), duly executed and delivered by the applicable Loan Parties in
recordable form (in such number of copies as the Administrative Agent shall have requested)
and, to the extent necessary under applicable law, for filing in the appropriate county land
office(s), Uniform Commercial Code financing statements covering fixtures, if required, in
each case appropriately completed;

     (b) mortgage policies of title insurance (which, if satisfactory to the Administrative
Agent, may be in the form of a mark-up of pro forma mortgage policies which are satisfactory
to the Administrative Agent subsequently to be followed by mortgage policies) relating to
each Mortgage of the Mortgaged Property referred to above, issued by a title insurer
reasonably satisfactory to the Administrative Agent (the “Title Company”), in an
insured amount satisfactory to the Administrative Agent and insuring the Administrative
Agent that the Mortgage on each such Mortgaged Property is a valid and enforceable first
priority mortgage lien on such Mortgaged Property, free and clear of all defects and
encumbrances except Liens permitted by Section 7.01 of the Credit Agreement, with
each such mortgage policy (i) to be in form and substance satisfactory to the Administrative
Agent, (ii) to include a reference to the relevant survey with no survey exceptions except
those theretofore approved by the Administrative Agent (such approval not to be unreasonably
withheld or delayed), (iii) not to include any exception(s) for mechanic’s liens, and (iv)
to provide for affirmative insurance and endorsements (to the extent applicable and
available in the relevant jurisdiction) as the Administrative Agent may reasonably request;

     (c) (i) surveys for each Mortgaged Property sufficient for the Title Company to remove
the standard survey exceptions from the title insurance policies and issue the endorsements
required in clause (b)(iv) above, or (ii) affidavits delivered to the title insurer
sufficient for the Title Company to remove the standard survey exceptions from the title
policies and issue the endorsements referenced in clause (b)(iv) above;

     (d) evidence (which may be satisfied by appropriate instructions in the funds flow
memorandum) of payment to the title insurer of all expenses and premiums of the title
insurer in connection with the issuance of such policies and endorsements and payment to the
Title Company of an amount equal to any fees or taxes, including recording, mortgage,
intangible and stamp taxes payable in connection with recording the Mortgages and Uniform
Commercial Code financing statements covering fixtures, if applicable, in the appropriate
county or state land office(s);

 

 

     (e) in connection with any Mortgage, opinions of counsel in the jurisdiction where each
Mortgaged Property is located; and

     (f) evidence of flood insurance coverage satisfactory to the Administrative Agent for
each Mortgaged Property located in a specified flood hazard zone pursuant to a Standard
Flood Hazard Determination.

For any motor vehicles constituting Equipment (as defined in the Security Agreement) owned by any
Loan Party that are titled or registered in any State in the U.S., which motor vehicles are or are
intended under the terms hereof to be subject to a Lien in favor of the Administrative Agent for
the benefit of the Secured Parties, instruments furnished in connection with the creation,
enforcement, protection, perfection or priority of the Administrative Agent’s security interest in
such motor vehicles as appropriate, the filing or recordation of perfection or other related
documents, and the taking of such other actions as may be necessary or advisable in the
determination of the Administrative Agent to create, enforce, protect, perfect, or establish or
maintain the priority of, the security interest of the Administrative Agent for the benefit of the
Secured Parties in such motor vehicles.

Except with the express prior written consent of the Administrative Agent in each instance, with
respect to the Investment Property (as defined in the Security Agreement) listed on Schedule
9(e) of the Security Agreement, Qualifying Control Agreements (as defined in the Security
Agreement) from the applicable securities intermediary.

Except with the express prior written consent of the Administrative Agent in each instance, with
respect to the Deposit Accounts (as defined in the Security Agreement) listed on Schedule
9(f) of the Security Agreement, Qualifying Control Agreements (as defined in the Security
Agreement) from the applicable depositary institutions.exv10w2

Exhibit 10.2

SECURITY AGREEMENT

     THIS SECURITY AGREEMENT dated as of December 23, 2010 (this “Security Agreement”) is
being entered into among GRANITE CONSTRUCTION INCORPORATED, a Delaware corporation (the
“Company” and a “Borrower”), GRANITE CONSTRUCTION COMPANY, a California corporation
(“GCC” and a “Borrower”), GILC INCORPORATED, a California corporation
(“GILC” and a “Borrower”, and together with the Company and GCC, collectively, the
“Borrower”), EACH OF THE UNDERSIGNED SUBSIDIARIES OF THE COMPANY AND EACH OTHER PERSON WHO
SHALL BECOME A PARTY HERETO BY EXECUTION OF A SECURITY JOINDER AGREEMENT (each a
“Guarantor” and, together with the Borrowers, collectively, the “Grantors”), and
BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative
Agent”) for each of the Secured Parties (as defined in the Credit Agreement referenced) below.

RECITALS:

     A. Pursuant to a Credit Agreement dated as of June 22, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among the
Borrowers, the Administrative Agent, Bank of America, N.A., as L/C Issuer, and the lenders now or
hereafter party thereto (the “Lenders”), the Lenders have agreed to provide to the
Borrowers a revolving credit facility with a letter of credit sublimit and swing line facility.

     B. Certain additional extensions of credit may be made from time to time for the benefit of
the Grantors pursuant to certain Secured Cash Management Agreements, Secured Hedge Agreements and
Secured Card Related Products Agreements (each as defined in Section1 below).

     C. It is a condition precedent to the Secured Parties’ obligations to make and maintain
such extensions of credit that the Grantors shall have executed and delivered this Security
Agreement to the Administrative Agent.

     In order to induce the Secured Parties to from time to time make and maintain extensions of
credit under the Credit Agreement and such Secured Cash Management Agreements, Secured Hedge
Agreements and Secured Card Related Products Agreements, the parties hereto agree as follows:

     1. Certain Definitions. All capitalized terms used but not otherwise defined
herein shall have the meanings assigned thereto in the Credit Agreement. Terms used in this
Security Agreement that are not otherwise expressly defined herein or in the Credit Agreement, and
for which meanings are provided in the Uniform Commercial Code of the State of California (the
“UCC”), shall have such meanings unless the context requires otherwise. In addition, for
purposes of this Security Agreement, the following terms have the following definitions:

     “Card Related Products Agreement” means any agreement to provide credit, purchasing,
debit and other credit related card arrangements.

1

 

     “Card Related Products Bank” means any Person that, (a) at the time it enters into a
Card Related Products Agreement, is a Lender or an Affiliate of a Lender, or (b) is party to a Card
Related Products Agreement on the date that such Person or its Affiliate becomes a Lender, in each
case in its capacity as a party to such Card Related Products Agreement.

     “Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, electronic funds transfer and other cash management
arrangements.

     “Cash Management Bank” means any Person that, (a) at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, or (b) is party to a Cash Management
Agreement on the date that such Person or its Affiliate becomes a Lender, in each case in its
capacity as a party to such Cash Management Agreement.

     “Excluded Property” means, with respect to any Grantor, (b) any owned or leased real
property subject to a Mortgage or (a) any property that would otherwise constitute a General
Intangible to the extent that the grant of a security interest in such property is prohibited by
any requirement of law of a Governmental Authority, requires a consent not obtained from any
Governmental Authority pursuant to such requirement of law or is prohibited by, or constitutes a
breach or default under or results in the termination of or requires any consent not obtained
under, any contract, license, permit, agreement, instrument or other document evidencing or giving
rise to such property or, in the case of any Investment Property, any applicable shareholder, joint
venture or similar agreement, except in each case to the extent that such requirement of
law or the term in such contract, license, agreement, instrument or other document or shareholder,
joint venture or similar agreement providing for such prohibition, breach, default or termination
or requiring such consent is ineffective under applicable law; provided, however,
the exclusion in this clause (b) shall not apply to Subsidiary Securities in joint venture
investments or Subsidiaries acquired or created after the Amendment No. 1 Effective Date unless
after reasonable best efforts the relevant Grantor is unable either to avoid the conditions set
forth in this clause (b) or to obtain consents, waivers or approvals thereof.

     “Facility Termination Date” means the date as of which all of the following shall have
occurred: (a) the Aggregate Commitments have been terminated, (b) all Obligations have been paid
in full, other than (i) contingent indemnification obligations, (ii) the undrawn portion of Letters
of Credit and (iii) all fees relating to any Letters of Credit accruing after such date (which fees
shall be payable solely for the account of the L/C Issuer and shall be computed (based on interest
rates and the Applicable Rate then in effect) on such undrawn amounts to the respective expiry
dates of the Letters of Credit), in each case as have been fully Cash Collateralized or as to which
other arrangements with respect thereto satisfactory to the Administrative Agent and the L/C Issuer
shall have been made, (b) the Commitments of all Lenders, if any, shall have terminated or expired,
(c) the obligations and liabilities of the Borrowers and each other Loan Party under all Secured
Hedge Agreements and Secured Cash Management Agreements shall have been fully, finally and
irrevocably paid and satisfied in full and the Secured Hedge Agreements and Secured Cash Management
Agreements shall have expired or been terminated, or other arrangements satisfactory to the
applicable Cash Management Bank or Hedge Bank shall have been made with respect thereto, (d) the
obligations and liabilities of the Borrowers and each other Loan Party under all Secured Cash
Related Products Agreements shall have been fully, finally and irrevocably paid and satisfied in
full and the Secured Card Related Products

2

 

Agreements shall have expired or been terminated, or other arrangements satisfactory to the
Applicable Card Related Agreements Banks shall have been made with respect thereto, and (e) each
Guarantor shall have fully, finally and irrevocably paid and satisfied in full its respective
obligations and liabilities arising under the Loan Documents (except for future obligations
consisting of continuing indemnities and other contingent Obligations of the Borrowers or any Loan
Party that may be owing to any Related Party of the Administrative Agent or any Lender pursuant to
the Loan Documents and expressly survive termination of the Credit Agreement).

     “Hedge Bank” means any Person that (a) at the time that it enters into any Swap
Contract, is a Lender or an Affiliate of a Lender, or (b) is party to an interest rate Swap
Contract on the date that such Person or its Affiliate becomes a Lender, in each case in such
Person’s capacity as a party to such Swap Contract.

     “Qualifying Control Agreement” means any such agreement in form and substance
reasonably acceptable to the Administrative Agent.

     “Secured Card Related Products Agreement” means any Card Related Products Agreement
permitted by Article VII of the Credit Agreement that is entered into by and between any
Loan Party and any Card Related Products Bank.

     “Secured Cash Management Agreement” means any Cash Management Agreement permitted by
Article VII of the Credit Agreement that is entered into by and between any Loan Party and
any Cash Management Bank.

     “Secured Hedge Agreement” means any Swap Contract permitted by Article VII of
the Credit Agreement that is entered into by and between any Loan Party and any Hedge Bank.

     “Secured Obligations” means (a) as to the Borrowers, all of the Obligations, including
the payment and performance of its obligations and liabilities (whether now existing or hereafter
arising) (i) under Credit Agreement and each of the other Loan Documents (including this Security
Agreement) to which it is now or hereafter becomes a party, and (ii) any Secured Cash Management
Agreements, Secured Hedge Agreements and Secured Card Related Products Agreements to which any Loan
Party is now or hereafter becomes a party, and (b) as to each Guarantor, the payment and
performance of its obligations and liabilities (whether now existing or hereafter arising) (i)
under the Guaranty and each of the other Loan Documents (including this Security Agreement) to
which it is now or hereafter becomes a party, and (ii) any Secured Cash Management Agreements,
Secured Hedge Agreements and Secured Card Related Products Agreements to which it is now or
hereafter becomes a party.

     “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C
Issuer, the Hedge Banks, the Cash Management Banks, the Card Related Products Banks, each co-agent
or sub-agent appointed by the Administrative Agent from time to time pursuant to Section
9.05 of the Credit Agreement and the other Persons the Obligations owing to which are or are
purported to be secured by the Collateral under the terms hereof.

     2. Grant of Security Interest. Each Grantor grants as collateral security for the
payment, performance and satisfaction of the Secured Obligations, to the Administrative Agent

3

 

for the benefit of the Secured Parties a continuing first priority security interest (subject to
Permitted Liens) in and to, and collaterally assigns to the Administrative Agent for the benefit of
the Secured Parties, all of the assets of such Grantor or in which such Grantor has or may have or
acquire an interest or the power to transfer rights therein, whether now owned or existing or
hereafter created, acquired or arising and wheresoever located, including the following:

     (a) All accounts, and including accounts receivable, contracts, bills, acceptances,
choses in action, and other forms of monetary obligations at any time owing to such Grantor
arising out of property sold, leased, licensed, assigned or otherwise disposed of or for
services rendered or to be rendered by such Grantor and all of such Grantor’s rights with
respect to any property represented thereby, whether or not delivered, property returned by
customers and all rights as an unpaid vendor or lienor, including rights of stoppage in
transit and of recovering possession by proceedings including replevin and reclamation
(collectively referred to hereinafter as “Accounts”);

     (b) All inventory, including all goods manufactured or acquired for sale or lease,
and any piece goods, raw materials, work in process and finished merchandise, component
materials, and all supplies, goods, incidentals, office supplies, packaging materials and
any and all items used or consumed in the operation of the business of such Grantor or which
may contribute to the finished product or to the sale, promotion and shipment thereof, in
which such Grantor now or at any time hereafter may have an interest, whether or not the
same is in transit or in the constructive, actual or exclusive occupancy or possession of
such Grantor or is held by such Grantor or by others for such Grantor’s account
(collectively referred to hereinafter as “Inventory”);

     (c) All goods, including all machinery, equipment, motor vehicles, parts, supplies,
apparatus, appliances, tools, patterns, molds, dies, blueprints, fittings, furniture,
furnishings, fixtures and articles of tangible personal property of every description, and
all computer programs embedded in any of the foregoing and all supporting information
relating to such computer programs (collectively referred to hereinafter as
“Equipment”);

     (d) All general intangibles, including all rights now or hereafter accruing to such
Grantor under contracts, leases, agreements or other instruments, including all contracts or
contract rights to perform or receive services, to purchase or sell goods, or to hold or use
land or facilities, and to enforce all rights thereunder, all causes of action, corporate or
business records, inventions, patents and patent rights, rights in mask works, designs,
trade names and trademarks and all goodwill associated therewith, trade secrets, trade
processes, copyrights, licenses, permits, franchises, customer lists, computer programs and
software, all internet domain names and registration rights thereto, all internet websites
and the content thereof, all payment intangibles, all claims under guaranties, tax refund
claims, all rights and claims against carriers and shippers, leases, all claims under
insurance policies, all interests in general and limited partnerships, limited liability
companies, and other Persons not constituting Investment Property (as defined below), all
rights to indemnification and all other intangible personal property and intellectual
property of every kind and nature (collectively referred to hereinafter as “General
Intangibles”);

4

 

     (e) All deposit accounts, including demand, time, savings, passbook, or other
similar accounts maintained with any bank by or for the benefit of such Grantor, but
excluding any escrow retention accounts (collectively referred to hereinafter as
“Deposit Accounts”);

     (f) All chattel paper, including tangible chattel paper, electronic chattel paper,
or any hybrid thereof (collectively referred to hereinafter as “Chattel Paper”);

     (g) All investment property, including all securities, security entitlements,
securities accounts, commodity contracts and commodity accounts of or maintained for the
benefit of such Grantor, but excluding Pledged Interests subject to any Pledge Agreement
(collectively referred to hereinafter as “Investment Property”);

     (h) All instruments, including all promissory notes (collectively referred to
hereinafter as “Instruments”);

     (i) All documents, including warehouse receipts, bills of lading and other documents
of title (collectively referred to hereinafter as “Documents”);

     (j) All rights to payment or performance under letters of credit including rights to
proceeds of letters of credit (“Letter-of-Credit Rights”), and all guaranties,
endorsements, Liens, other Guarantee obligations or supporting obligations of any Person
securing or supporting the payment, performance, value or liquidation of any of the
foregoing (collectively, with Letter-of-Credit Rights, referred to hereinafter as
“Supporting Obligations”);

     (k) All books and records relating to any of the forgoing (including customer data,
credit files, ledgers, computer programs, printouts, and other computer materials and
records (and all media on which such data, files, programs, materials and records are or may
be stored)); and

     (l) All proceeds, products and replacements of, accessions to, and substitutions
for, any of the foregoing, including without limitation proceeds of insurance policies
insuring any of the foregoing.

     All of the property and interests in property described in subsections (a) through
(l) are herein collectively referred to as the “Collateral.” Notwithstanding the
foregoing, the Collateral shall not include any Excluded Property.

     3. Perfection. As of the date of execution of this Security Agreement or Security
Joinder Agreement by each Grantor, as applicable (with respect to each Grantor, its “Applicable
Date”), such Grantor shall have:

     (a) furnished the Administrative Agent with duly authorized financing statements in
form, number and substance suitable for filing, sufficient under applicable

5

 

law, and satisfactory to the Administrative Agent in order that upon the filing of the same
the Administrative Agent, for the benefit of the Secured Parties, shall have a duly
perfected security interest in all Collateral in which a security interest can be perfected
by the filing of financing statements;

     (b) to the extent expressly required by the terms hereof or of the Credit Agreement,
or otherwise as the Administrative Agent may request, furnished the Administrative Agent
with properly executed Qualifying Control Agreements, issuer acknowledgments of the
Administrative Agent’s interest in Letter-of-Credit Rights, and evidence of the placement of
a restrictive legend on tangible chattel paper (and the tangible components of electronic
Chattel Paper), and taken appropriate action acceptable to the Administrative Agent
sufficient to establish the Administrative Agent’s control of electronic Chattel Paper (and
the electronic components of hybrid Chattel Paper), as appropriate, with respect to
Collateral in which either (i) a security interest can be perfected only by control or such
restrictive legending, or (ii) a security interest perfected by control or accompanied by
such restrictive legending shall have priority as against a lien creditor, a purchaser of
such Collateral from the applicable Grantor, or a security interest perfected by Persons not
having control or not accompanied by such restrictive legending, in each case in form and
substance acceptable to the Administrative Agent and sufficient under applicable law so that
the Administrative Agent, for the benefit of the Secured Parties, shall have a security
interest in all such Collateral perfected by control; and

     (c) to the extent expressly required by the terms hereof or of the Credit Agreement,
or otherwise as the Administrative Agent may request, delivered to the Administrative Agent
possession of all Collateral with respect to which either a security interest can be
perfected only by possession or a security interest perfected by possession shall have
priority as against Persons not having possession, and including in the case of Instruments,
Documents, and Investment Property in the form of certificated securities, duly executed
endorsements or stock powers in blank, as the case may be, affixed thereto in form and
substance acceptable to the Administrative Agent and sufficient under applicable law so that
the Administrative Agent, for the benefit of the Secured Parties, shall have a security
interest in all such Collateral perfected by possession;

with the effect that the Liens conferred in favor of the Administrative Agent shall be and remain
duly perfected and of first priority subject only, to the extent applicable, to Liens allowed to
exist under Section 7.01 of the Credit Agreement (“Permitted Liens”). All financing
statements (including all amendments thereto and continuations thereof), control agreements,
certificates, acknowledgments, stock powers and other documents, electronic identification,
restrictive legends, and instruments furnished in connection with the creation, enforcement,
protection, perfection or priority of the Administrative Agent’s security interest in Collateral,
including such items as are described above in this Section 3, are sometimes referred to
herein as “Perfection Documents”. The delivery of possession of items of or evidencing
Collateral, causing other Persons to execute and deliver Perfection Documents as appropriate, the
filing or recordation of Perfection Documents, the establishment of control over items of
Collateral, and the taking of such other actions as may be necessary or advisable in the
determination of the Administrative

6

 

Agent to create, enforce, protect, perfect, or establish or maintain the priority of, the security
interest of the Administrative Agent for the benefit of the Secured Parties in the Collateral is
sometimes referred to herein as “Perfection Action”.

     4. Maintenance of Security Interest; Further Assurances.

     (a) Each Grantor will from time to time at its own expense, deliver specific
assignments of Collateral or such other Perfection Documents, and take such other or
additional Perfection Action, as may be required by the terms of the Loan Documents or as
the Administrative Agent may reasonably request in connection with the administration or
enforcement of this Security Agreement or related to the Collateral or any part thereof in
order to carry out the terms of this Security Agreement, to perfect, protect, maintain the
priority of or enforce the Administrative Agent’s security interest in the Collateral,
subject only to Permitted Liens, or otherwise to better assure and confirm unto the
Administrative Agent its rights, powers and remedies for the benefit of the Secured Parties
hereunder. Without limiting the foregoing, each Grantor hereby irrevocably authorizes the
Administrative Agent to file (with, or to the extent permitted by applicable law, without
the signature of the Grantor appearing thereon) financing statements approved by such
Grantor (including amendments thereto and initial financing statements in lieu of
continuation statements) or other Perfection Documents (including copies thereof) showing
such Grantor as “debtor” at such time or times and in all filing offices as the
Administrative Agent may from time to time reasonably determine to be necessary or advisable
to perfect or protect the rights of the Administrative Agent and the Secured Parties
hereunder, or otherwise to give effect to the transactions herein contemplated, any of which
Perfection Documents, at the Administrative Agent’s election, may describe the Collateral as
or including all assets of the Grantor. Each Grantor hereby irrevocably ratifies and
acknowledges the Administrative Agent’s authority to have effected filings of Perfection
Documents made by the Administrative Agent prior to its Applicable Date.

     (b) With respect to any and all Collateral, each Grantor agrees to do and cause to
be done all things necessary to perfect, maintain the priority of and keep in full force the
security interest granted in favor of the Administrative Agent for the benefit of the
Secured Parties, including, but not limited to, the prompt payment upon demand therefor by
the Administrative Agent of all fees and expenses (including documentary stamp, excise or
intangibles taxes) incurred in connection with the preparation, delivery, or filing of any
Perfection Document or the taking of any Perfection Action to perfect, protect or enforce a
security interest in Collateral in favor of the Administrative Agent for the benefit of the
Secured Parties, subject only to Permitted Liens. All amounts not so paid when due shall
constitute additional Secured Obligations and (in addition to other rights and remedies
resulting from such nonpayment) shall bear interest from the date of demand until paid in
full at the Default Rate.

     (c) Each Grantor agrees to maintain among its books and records appropriate
notations or evidence of, and to make or cause to be made appropriate disclosure upon its

7

 

financial statements of, the security interest granted hereunder to the Administrative
Agent for the benefit of the Secured Parties.

     (d) Each Grantor agrees that, in the event any proceeds (other than goods) of
Collateral shall be or become commingled with other property not constituting Collateral,
then such proceeds may, to the extent permitted by law, be identified by application of the
lowest intermediate balance rule to such commingled property.

     (e) Each Grantor agrees to provide to the Administrative Agent notices which shall
be delivered to the appropriate Governmental Authority or, if necessary, each Account Debtor
(as defined herein) that is a department, agency or authority of the United States
government and is party to any contract that could reasonably be expected to give rise to
Payment Collateral (as defined herein) in excess of $1,000,000 in any given year of such
contract that such Payment Collateral has been assigned to the Administrative Agent for the
benefit of the Secured Parties and that Administrative Agent has a security interest therein
for the benefit of the Secured Parties, and otherwise do all acts and things and execute all
documents necessary, in Administrative Agent’s sole discretion, to collect such Payment
Collateral; provided, that such notices shall only be delivered by the
Administrative Agent to such Governmental Authority or Account Debtors if an Event of
Default has occurred and is continuing.

     5. Receipt of Payment. In the event an Event of Default shall occur and be
continuing and a Grantor (or any of its Affiliates, subsidiaries, stockholders, directors,
officers, employees or agents) shall receive any proceeds of Collateral, including without
limitation monies, checks, notes, drafts or any other items of payment, each Grantor shall hold all
such items of payment in trust for the Administrative Agent for the benefit of the Secured Parties,
and as the property of the Administrative Agent for the benefit of the Secured Parties, separate
from the funds and other property of such Grantor, and no later than the first Business Day
following the receipt thereof, at the election of the Administrative Agent, such Grantor shall
cause such Collateral to be forwarded to the Administrative Agent for its custody, possession and
disposition on behalf of the Secured Parties in accordance with the terms hereof and of the other
Loan Documents.

     6. Preservation and Protection of Collateral.

     (a) The Administrative Agent shall be under no duty or liability with respect to the
collection, protection or preservation of the Collateral, or otherwise. Each Grantor shall
be responsible for the safekeeping of its Collateral, and in no event shall the
Administrative Agent have any responsibility for (i) any loss or damage thereto or
destruction thereof occurring or arising in any manner or fashion from any cause, (ii) any
diminution in the value thereof, or (iii) any act or default of any carrier, warehouseman,
bailee or forwarding agency thereof or other Person in any way dealing with or handling such
Collateral.

     (b) Each Grantor shall keep and maintain its tangible personal property Collateral
in good operating condition and repair, ordinary wear and tear excepted. No

8

 

Grantor shall permit any such items to become a fixture to real property (unless such
Grantor has granted the Administrative Agent for the benefit of the Secured Parties a Lien
on such real property having a priority acceptable to the Administrative Agent) or
accessions to other personal property.

     (c) Each Grantor agrees (i) to pay when due all taxes, charges and assessments
against the Collateral in which it has any interest, unless being contested in good faith by
appropriate proceedings diligently conducted and against which adequate reserves have been
established in accordance with GAAP applied on a basis consistent with the application of
GAAP in the Audited Financial Statements and evidenced to the satisfaction of the
Administrative Agent and provided that all enforcement proceedings in the nature of levy or
foreclosure are effectively stayed, and (ii) to cause to be terminated and released all
Liens (other than Permitted Liens) on the Collateral. Upon the failure of any Grantor to so
pay or contest such taxes, charges, or assessments, or cause such Liens to be terminated,
the Administrative Agent at its option may pay or contest any of them or amounts relating
thereto (the Administrative Agent having the sole right to determine the legality or
validity and the amount necessary to discharge such taxes, charges, Liens or assessments)
but shall not have any obligation to make any such payment or contest. All sums so
disbursed by the Administrative Agent, including all reasonable fees and expenses of counsel
(collectively, “Attorneys’ Costs”), court costs, expenses and other charges related
thereto, shall be payable on demand by the applicable Grantor to the Administrative Agent
and shall be additional Secured Obligations secured by the Collateral, and any amounts not
so paid on demand (in addition to other rights and remedies resulting from such nonpayment)
shall bear interest from the date of demand until paid in full at the Default Rate.

     7. Status of Grantors and Collateral Generally. Each Grantor represents and
warrants to, and covenants with, the Administrative Agent for the benefit of the Secured Parties,
with respect to itself and the Collateral as to which it has or acquires any interest, that:

     (a) It is at its Applicable Date (or as to Collateral acquired after its Applicable
Date will be upon the acquisition of the same) and, except as permitted by the Credit
Agreement and subsection (b) of this Section 7, will continue to be, the
owner of the Collateral, free and clear of all Liens, other than the security interest
hereunder in favor of the Administrative Agent for the benefit of the Secured Parties and
Permitted Liens, and that it will at its own cost and expense defend such Collateral and any
products and proceeds thereof against all claims and demands of all Persons (other than
holders of Permitted Liens) to the extent of their claims permitted under the Credit
Agreement at any time claiming the same or any interest therein adverse to the Secured
Parties. Upon the failure of any Grantor to so defend, the Administrative Agent may do so at
its option but shall not have any obligation to do so. All sums so disbursed by the
Administrative Agent, including reasonable Attorneys’ Costs, court costs, expenses and other
charges related thereto, shall be payable on demand by the applicable Grantor to the
Administrative Agent and shall be additional Secured Obligations secured by the Collateral,
and any amounts not so paid on demand (in addition to other rights and

9

 

remedies resulting from such nonpayment) shall bear interest from the date of demand
until paid in full at the Default Rate.

     (b) It shall not (i) sell, assign, transfer, lease, license or otherwise dispose of
any of, or grant any option with respect to, the Collateral, except for Dispositions
permitted under the Credit Agreement, (ii) create or suffer to exist any Lien upon or with
respect to any of the Collateral except for the security interests created by this Security
Agreement and Permitted Liens, or (iii) take any other action in connection with any of the
Collateral that would materially impair the value of the interest or rights of such Grantor
in the Collateral taken as a whole or that would materially impair the interest or rights of
the Administrative Agent for the benefit of the Secured Parties.

     (c) It has full power, legal right and lawful authority to enter into this Security
Agreement (and any Security Joinder Agreement applicable to it) and to perform its terms,
including the grant of the security interests in the Collateral herein provided for.

     (d) No authorization, consent, approval or other action by, and no notice to or
filing with, any Governmental Authority or any other Person which has not been given or
obtained, as the case may be, is required either (i) for the grant by such Grantor of the
security interests granted hereby or for the execution, delivery or performance of this
Security Agreement (or any Security Joinder Agreement) by such Grantor, or (ii) for the
perfection of or the exercise by the Administrative Agent, on behalf of the Secured Parties,
of its rights and remedies hereunder, except for action required by the Uniform Commercial
Code to perfect and exercise remedies with respect to the security interest conferred
hereunder.

     (e) No effective financing statement or other Perfection Document similar in effect,
nor any other Perfection Action, covering all or any part of the Collateral purported to be
granted or taken by or on behalf of such Grantor (or by or on behalf of any other Person and
which remains effective as against all or any part of the Collateral) has been filed in any
recording office, delivered to another Person for filing (whether upon the occurrence of a
contingency or otherwise), or otherwise taken, as the case may be, except such as pertain to
Permitted Liens and such as may have been filed for the benefit of, delivered to, or taken
in favor of, the Administrative Agent for the benefit of the Secured Parties in connection
with the security interests conferred hereunder.

     (f) Schedule 7(f) attached hereto contains true and complete information as
to each of the following: (i) the exact legal name of each Grantor as it appears in its
Organization Documents as of its Applicable Date and at any time during the five (5) year
period ending as of its Applicable Date (the “Covered Period”), (ii) the
jurisdiction of formation and form of organization of each Grantor, and the identification
number of such Grantor in its jurisdiction of formation (if any), (iii) each address of the
chief executive office of each Grantor as of its Applicable Date and at any time during the
Covered Period, (iv) all trade names or trade styles used by such Grantor as of its
Applicable Date and at any time during the Covered Period, (v) the address of each location
of such Grantor at which any tangible personal property Collateral (including

10

 

Account Records and Account Documents) is located at its Applicable Date or has been
located at any time during the Covered Period, (vi) with respect to each location described
in clause (v) that is not owned beneficially and of record by such Grantor, the name and
address of the owner thereof; and (vii) the name of each Person other than such Grantor and
the address of such Person at which any tangible personal property Collateral of such
Grantor is held under any warehouse, consignment, bailment or other arrangement as of its
Applicable Date. No Grantor shall change its name, change its jurisdiction of formation
(whether by reincorporation, merger or otherwise), change the location of its chief
executive office, or utilize any additional location where tangible personal property
Collateral (including Account Records and Account Documents) may be located, except in each
case upon giving not less than thirty (30) days’ prior written notice to the Administrative
Agent and taking or causing to be taken at such Grantor’s expense all such Perfection
Action, including the delivery of such Perfection Documents, as may be reasonably requested
by the Administrative Agent to perfect or protect, or maintain the perfection and priority
of, the Lien of the Administrative Agent for the benefit of the Secured Parties in
Collateral contemplated hereunder.

     (g) No Grantor shall engage in any consignment transaction in respect of any of the
Collateral, whether as consignee or consignor, other than consignments by such Grantor as
consignor of Inventory at no time having an aggregate value in excess of $5,000,000.

     (h) No Grantor shall cause, suffer or permit any of the tangible personal property
Collateral (i) to be evidenced by any document of title (except for shipping documents as
necessary or customary to effect the receipt of raw materials or components or the delivery
of inventory to customers, in each case in the ordinary course of business) or (ii) to be in
the possession, custody or control of any warehouseman or other bailee without the prior
written consent of the Administrative Agent in each instance.

     (i) No tangible personal property Collateral is or shall be located at any location
that is leased by such Grantor from any other Person other than Inventory the value of
which, when aggregated with all other Inventory kept at any location which is leased by all
Grantors, is less than $5,000,000, unless (x) such location and lessor is set forth on
Schedule 7(f) attached hereto or such Grantor provides not less than thirty (30)
days’ prior written notice thereof to the Administrative Agent, (y) such lessor acknowledges
the Lien in favor of the Administrative Agent for the benefit of the Secured Parties
conferred hereunder and waives its statutory and consensual liens and rights with respect to
such Collateral in form and substance acceptable to the Administrative Agent and delivered
in writing to the Administrative Agent prior to any Collateral being located at any such
location, and (z) the Grantor shall have caused at its expense to be prepared and executed
such additional Perfection Documents and to be taken such other Perfection Action as the
Administrative Agent may deem necessary or advisable to carry out the transactions
contemplated by this Security Agreement.

     8. Inspection. The Administrative Agent (by any of its officers, employees and
agents), on behalf of the Secured Parties, shall have the right upon prior notice to an executive

11

 

officer of any Grantor, and at any reasonable times during such Grantor’s usual business hours, to
inspect the Collateral, all records related thereto (and to make extracts or copies from such
records), and the premises upon which any of the Collateral is located, to discuss such Grantor’s
affairs and finances with any Person (other than Persons obligated on any Accounts (“Account
Debtors”) except as expressly otherwise permitted in the Loan Documents) and to verify with any
Person other than (except as expressly otherwise permitted in the Loan Documents) Account Debtors
the amount, quality, quantity, value and condition of, or any other matter relating to, the
Collateral and, if an Event of Default has occurred and is continuing, to discuss such Grantor’s
affairs and finances with such Grantor’s Account Debtors and to verify the amount, quality, value
and condition of, or any other matter relating to, the Collateral with such Account Debtors;
provided, however, that (i) the Grantors shall not be obligated to reimburse the
expenses associated with more than one (1) visit and inspection per calendar year (subject to
clause (ii) below) and (ii) when an Event of Default exists the Administrative Agent or any
Lender (or any of their respective representatives or independent contractors) may do any of the
foregoing at the expense of the Company at any time during normal business hours and without
advance notice. Upon or after the occurrence and during the continuation of an Event of Default,
the Administrative Agent may at any time and from time to time employ and maintain on such
Grantor’s premises a custodian selected by the Administrative Agent who shall have full authority
to do all acts necessary to protect the Administrative Agent’s (for the benefit of the Secured
Parties) interest. All expenses incurred by the Administrative Agent, on behalf of the Secured
Parties, by reason of the employment of such custodian shall be paid by such Grantor on demand from
time to time and shall be added to the Secured Obligations secured by the Collateral, and any
amounts not so paid on demand (in addition to other rights and remedies resulting from such
nonpayment) shall bear interest from the date of demand until paid in full at the Default Rate.

     9. Specific Collateral.

     (a) Accounts. With respect to its Accounts whether now existing or
hereafter created or acquired and wheresoever located, each Grantor represents, warrants and
covenants to the Administrative Agent for the benefit of the Secured Parties that:

     (i) Each Grantor shall keep accurate and complete records of its Accounts
(“Account Records”) and, upon the occurrence and during the continuance of
an Event of Default, from time to time at reasonable intervals designated by the
Administrative Agent such Grantor shall provide the Administrative Agent with a
schedule of Accounts in form and substance acceptable to the Administrative Agent
describing all Accounts created or acquired by such Grantor (“Schedule of
Accounts”); provided, however, that such Grantor’s failure to
execute and deliver any such Schedule of Accounts shall not affect or limit the
Administrative Agent’s security interest or other rights in and to any Accounts for
the benefit of the Secured Parties. If requested by the Administrative Agent, upon
the occurrence and during the continuance of an Event of Default each Grantor shall
furnish the Administrative Agent with copies of proof of delivery and other
documents relating to the Accounts so scheduled, including without limitation
repayment histories and present status reports

12

 

(collectively, “Account Documents”) and such other matter and information
relating to the status of then existing Accounts as the Administrative Agent shall
reasonably request.

     (ii) All Account Records and Account Documents are and shall at all times
be located only at such Grantor’s current chief executive office as set forth on
Schedule 7(f) attached hereto, such other locations as are specifically
identified on Schedule 7(f) attached hereto as an “Account Documents
location,” or as to which the Grantor has complied with Section 7(f)
hereof.

     (iii) The Accounts are genuine, are in all respects what they purport to be,
are not evidenced by an instrument or document or, if evidenced by an instrument or
document, are only evidenced by one original instrument or document.

     (iv) The Accounts cover bona fide sales, leases, licenses or other
dispositions of property usually dealt in by such Grantor, or the rendition by such
Grantor of services, to an Account Debtor in the ordinary course of business.

     (v) The amounts of the face value of any Account shown or reflected on any
Schedule of Accounts, invoice statement, or certificate delivered to the
Administrative Agent, are actually owing to such Grantor and are not contingent for
any reason; and there are no setoffs, discounts, allowances, claims, counterclaims
or disputes of any kind or description in an amount greater than $2,000,000
individually, existing or asserted with respect thereto and such Grantor has not
made any agreement with any Account Debtor thereunder for any deduction therefrom,
except as may be stated in the Schedule of Accounts and reflected in the calculation
of the face value of each respective invoice related thereto.

     (vi) Except for conditions generally applicable to such Grantor’s industry
and markets, there are no facts, events, or occurrences known to such Grantor
pertaining particularly to any Accounts which are reasonably expected to materially
impair in any way the validity, collectibility or enforcement of Accounts that would
reasonably be likely, in the aggregate, to be of material economic value, or in the
aggregate materially reduce the amount payable thereunder from the amount of the
invoice face value shown on any Schedule of Accounts, or on any certificate,
contract, invoice or statement delivered to the Administrative Agent with respect
thereto.

     (vii) The property or services giving rise thereto are not, and were not at
the time of the sale or performance thereof, subject to any Lien, claim, encumbrance
or security interest, except those of the Administrative Agent for the benefit of
Secured Parties and Permitted Liens.

13

 

     (viii) In the event any amounts due and owing in excess of $2,000,000 are in
dispute between any Account Debtor and a Grantor (which shall include without
limitation any dispute in which an offset claim or counterclaim may result), such
Grantor shall provide the Administrative Agent with written notice thereof as soon
as practicable, explaining in detail the reason for the dispute, all claims related
thereto and the amount in controversy.

     (b) Inventory. With respect to its Inventory whether now existing or
hereafter created or acquired and wheresoever located, each Grantor represents, warrants and
covenants to the Administrative Agent for the benefit of the Secured Parties that:

     (i) Each Grantor shall keep accurate and complete records itemizing and
describing the kind, type, location and quantity of Inventory, its cost therefor and
the selling price of Inventory held for sale, and the daily withdrawals therefrom
and additions thereto, and, upon the occurrence and during the continuance of an
Event of Default, shall furnish to the Administrative Agent from time to time at
reasonable intervals designated by the Administrative Agent, a current schedule of
Inventory (“Schedule of Inventory”) based upon its most recent physical
inventory and its daily inventory records. Upon the occurrence and during the
continuance of an Event of Default, each Grantor shall conduct a physical inventory
no less frequently than annually, and shall furnish to the Administrative Agent such
other documents and reports thereof as the Administrative Agent shall reasonably
request with respect to the Inventory.

     (ii) All Inventory, other than Inventory having a value of less than
$5,000,000 in the aggregate for all locations, is and shall at all times be located
only at such Grantor’s locations as set forth on Schedule 7(f) attached
hereto or at such other locations as to which such Grantor has complied with
Section 7(f) hereof. No Grantor shall, other than in the ordinary course of
business in connection with its sale, lease, license or other permitted Disposition,
remove any Inventory having an aggregate value in excess of that stated in the
preceding sentence from such locations.

     (c) Equipment. With respect to its Equipment whether now existing or
hereafter created or acquired and wheresoever located, each Grantor represents, warrants and
covenants to the Administrative Agent for the benefit of the Secured Parties that:

     (i) The Grantors, upon the occurrence and during the continuance of an Event
of Default, as soon as practicable following a request therefor by the
Administrative Agent, shall deliver to the Administrative Agent any and all evidence
of ownership of any of the Equipment (including without limitation certificates of
title and applications for title).

     (ii) The Grantors shall maintain accurate, itemized records describing the
kind, type, quality, quantity and value of its Equipment and, upon the occurrence
and during the continuance of an Event of Default, shall furnish the

14

 

Administrative Agent upon request with a current schedule containing the foregoing
information.

     (iii) All Equipment, other than Equipment having a value of less than
$5,000,000 in the aggregate for all locations, is and shall at all times be located
only at such Grantor’s locations as set forth on Schedule 7(f) attached
hereto or at such other locations as to which such Grantor has complied with
Section 7(f) hereof. No Grantor shall, other than as expressly permitted
under the Credit Agreement, sell, lease, transfer, dispose of or remove any
Equipment having an aggregate value in excess of that stated in the preceding
sentence from such locations.

     (d) Supporting Obligations. With respect to its Supporting Obligations
whether now existing or hereafter created or acquired and wheresoever located, each Grantor
represents, warrants and covenants to the Administrative Agent for the benefit of the
Secured Parties that:

     (i) Each Grantor shall upon the request of the Administrative Agent from
time to time following the occurrence and during the continuance of any Event of
Default, deliver to the Administrative Agent the originals of all documents
evidencing or constituting Supporting Obligations, together with such other
documentation (executed as appropriate by the Grantor) and information as may be
necessary to enable the Administrative Agent to realize upon the Supporting
Obligations in accordance with their respective terms or transfer the Supporting
Obligations as may be permitted under the Loan Documents or by applicable law.

     (ii) With respect to each letter of credit giving rise to Letter-of-Credit
Rights that has an aggregate stated amount available to be drawn in excess of
$100,000, each Grantor shall, at the request of the Administrative Agent, use its
best efforts to cause the issuer thereof to execute and deliver to the
Administrative Agent a Qualifying Control Agreement.

     (e) Investment Property. With respect to its Investment Property whether
now existing or hereafter created or acquired and wheresoever located, each Grantor
represents, warrants and covenants to the Administrative Agent for the benefit of the
Secured Parties that:

     (i) Schedule 9(e) attached hereto contains a true and complete
description of (x) the name and address of each securities intermediary with which
such Grantor maintains a securities account in which Investment Property is or may
at any time be credited or maintained, and (y) all other Investment Property of such
Grantor other than interests in Subsidiaries in which such Grantor has granted a
Lien to the Administrative Agent for the benefit of the Secured Parties pursuant to
a Pledge Agreement.

15

 

     (ii) Except with the express prior written consent of the Administrative
Agent in each instance, all Investment Property other than Excluded Property or
interests in Subsidiaries in which such Grantor has granted a Lien to the
Administrative Agent for the benefit of the Secured Parties pursuant to a Pledge
Agreement shall be maintained at all times in the form of (a) certificated
securities, which certificates shall have been delivered to the Administrative Agent
together with duly executed undated stock powers endorsed in blank pertaining
thereto, or (b) security entitlements credited to one or more securities accounts as
to each of which the Administrative Agent has received (1) copies of the account
agreement between the applicable securities intermediary and the Grantor and the
most recent statement of account pertaining to such securities account (each
certified to be true and correct by an officer of the Grantor) and (2) a Qualifying
Control Agreement from the applicable securities intermediary which remains in full
force and effect and as to which the Administrative Agent has not received any
notice of termination. Without limiting the generality of the foregoing, no Grantor
shall cause, suffer or permit any Investment Property to be credited to or
maintained in any securities account not listed on Schedule 9(e) attached
hereto except in each case upon giving not less than thirty (30) days’ prior written
notice to the Administrative Agent and taking or causing to be taken at such
Grantor’s expense all such Perfection Action, including the delivery of such
Perfection Documents, as may be reasonably requested by the Administrative Agent to
perfect or protect, or maintain the perfection and priority of, the Lien of the
Administrative Agent for the benefit of the Secured Parties in Collateral
contemplated hereunder.

     (iii) All dividends and other distributions with respect to any of the
Investment Property shall be subject to the security interest conferred hereunder,
provided, however, that cash dividends paid to a Grantor as record
owner of the Investment Property may be disbursed to and retained by such Grantor so
long as no Event of Default shall have occurred and be continuing, free from any
Lien hereunder.

     (iv) So long as no Event of Default shall have occurred and be continuing,
the registration of Investment Property in the name of a Grantor as record and
beneficial owner shall not be changed and such Grantor shall be entitled to exercise
all voting and other rights and powers pertaining to Investment Property for all
purposes not inconsistent with the terms hereof or of any Qualifying Control
Agreement relating thereto.

     (v) Upon the occurrence and during the continuance of any Event of Default,
at the option of the Administrative Agent, all rights of the Grantors to exercise
the voting or consensual rights and powers which it is authorized to exercise
pursuant to clause (iv) immediately above shall cease and the Administrative
Agent may thereupon (but shall not be obligated to), at its request, cause such
Collateral to be registered in the name of the Administrative Agent or its nominee
or agent for the benefit of the Secured Parties and/or exercise such

16

 

voting or consensual rights and powers as appertain to ownership of such Collateral,
and to that end each Grantor hereby appoints the Administrative Agent as its proxy,
with full power of substitution, to vote and exercise all other rights as a
shareholder with respect to such Investment Property upon the occurrence and during
the continuance of any Event of Default, which proxy is coupled with an interest and
is irrevocable until the Facility Termination Date, and each Grantor hereby agrees
to provide such further proxies as the Administrative Agent may request;
provided, however, that the Administrative Agent in its discretion
may from time to time refrain from exercising, and shall not be obligated to
exercise, any such voting or consensual rights or such proxy.

     (vi) Upon the occurrence and during the continuance of any Event of Default,
all rights of the Grantors to receive and retain cash dividends and other
distributions upon or in respect to Investment Property pursuant to clause
(iii) above shall cease and shall thereupon be vested in the Administrative
Agent for the benefit of the Secured Parties, and each Grantor shall, or shall
cause, all such cash dividends and other distributions with respect to the
Investment Property to be promptly delivered to the Administrative Agent (together,
if the Administrative Agent shall request, with any documents related thereto) to be
held, released or disposed of by it hereunder or, at the option of the
Administrative Agent, to be applied to the Secured Obligations.

     (f) Deposit Accounts. With respect to its Deposit Accounts whether now
existing or hereafter created or acquired and wheresoever located, each Grantor represents,
warrants and covenants to the Administrative Agent for the benefit of the Secured Parties
that:

     (i) Schedule 9(f) attached hereto contains a true and complete
description of the name and address of each depositary institution with which such
Grantor maintains a Deposit Account in which collected balances or deposits in
excess of $100,000 are or may at any time be credited or maintained.

     (ii) Except with the express prior written consent of the Administrative
Agent in each instance, all Deposit Accounts in which collected balances or deposits
in excess of $100,000 are or may at any time be credited or maintained shall be
maintained at all times with depositary institutions as to which the Administrative
Agent shall have received a Qualifying Control Agreement. Without limiting the
generality of the foregoing, no Grantor shall cause, suffer or permit (x) any
deposit in excess of $100,000 to be evidenced by a certificate of deposit unless
such certificate of deposit is a negotiable instrument and immediately upon receipt
thereof such certificate shall have been delivered to the Administrative Agent,
together with a duly executed undated assignment in blank affixed thereto, or (y)
any Deposit Account not listed on Schedule 9(f) attached hereto in which
collected balances or deposits in excess of $100,000 are or may at any time be
credited or maintained to be opened or maintained except in each case upon giving
not less than thirty (30) days’ prior written notice to the

17

 

Administrative Agent and taking or causing to be taken at such Grantor’s expense all
such Perfection Action, including the delivery of such Perfection Documents, as may
be reasonably requested by the Administrative Agent to perfect or protect, or
maintain the perfection and priority of, the Lien of the Administrative Agent for
the benefit of the Secured Parties in Collateral contemplated hereunder.

     (g) Chattel Paper. With respect to its Chattel Paper whether now existing
or hereafter created or acquired and wheresoever located, each Grantor represents, warrants
and covenants to the Administrative Agent for the benefit of the Secured Parties that:

     (i) Each Grantor shall at all times retain sole physical possession of the
originals of all Chattel Paper having an aggregate value in excess of $1,000,000
(other than electronic Chattel Paper and the electronic components of hybrid Chattel
Paper); provided, however, that (x) upon the request of the
Administrative Agent upon the occurrence and during the continuance of any Event of
Default, such Grantor shall immediately deliver physical possession of such Chattel
Paper to the Administrative Agent or its designee, and (y) in the event that there
shall be created more than one original counterpart of any physical document that
alone or in conjunction with any other physical or electronic document constitutes
Chattel Paper, then such counterparts shall be numbered consecutively starting with
“1” and such Grantor shall retain the counterpart numbered “1”.

     (ii) All counterparts of all tangible Chattel Paper having an aggregate
value in excess of $1,000,000 (and the tangible components of hybrid Chattel Paper)
shall immediately upon the creation or acquisition thereof by any Grantor be
conspicuously legended as follows: “A FIRST PRIORITY SECURITY INTEREST (SUBJECT TO
PERMITTED LIENS) IN THIS CHATTEL PAPER HAS BEEN GRANTED TO BANK OF AMERICA, N.A.,
FOR ITSELF AND AS ADMINISTRATIVE AGENT FOR CERTAIN SECURED PARTIES PURSUANT TO A
SECURITY AGREEMENT DATED AS OF DECEMBER 23, 2010, AS AMENDED FROM TIME TO TIME. NO
SECURITY INTEREST OR OTHER INTEREST IN FAVOR OF ANY OTHER PERSON MAY BE CREATED BY
THE TRANSFER OF PHYSICAL POSSESSION OF THIS CHATTEL PAPER OR OF ANY COUNTERPART
HEREOF EXCEPT BY OR WITH THE CONSENT OF THE AFORESAID ADMINISTRATIVE AGENT AS
PROVIDED IN SUCH SECURITY AGREEMENT.” In the case of electronic Chattel Paper
(including the electronic components of hybrid Chattel Paper), no Grantor shall
create or acquire any such Chattel Paper unless, prior to such acquisition or
creation, it shall have taken such Perfection Action as the Administrative Agent may
require to perfect by control the security interest of the Administrative Agent for
the benefit of the Secured Parties in such Collateral.

     (iii) Other than in the ordinary course of business and in keeping with
reasonable and customary practice, no Grantor shall amend, modify, waive or
terminate any provision of, or fail to exercise promptly and diligently each

18

 

material right or remedy conferred under or in connection with, any Chattel Paper,
in any case in such a manner as could reasonably be expected to materially adversely
affect the value of affected Chattel Paper as collateral.

     (h) Instruments. With respect to its Instruments whether now existing or
hereafter created or acquired and wheresoever located, each Grantor represents, warrants and
covenants to the Administrative Agent for the benefit of the Secured Parties that:

     (i) Each Grantor shall upon the request of the Administrative Agent from
time to time, deliver to the Administrative Agent the originals of all Instruments
of which such Grantor is the payee or holder and having a face amount payable in
excess of $1,000,000, provided, however, that each Grantor shall
deliver to the Administrative Agent all Instruments issued in connection with
Indebtedness permitted by Section 7.03(e) of the Credit Agreement, together
with duly executed undated endorsements in blank affixed thereto and such other
documentation and information as may be necessary to enable the Administrative Agent
to realize upon the Instruments in accordance with their respective terms or
transfer the Instruments as may be permitted under the Loan Documents or by
applicable law.

     (ii) Other than in the ordinary course of business and in keeping with
reasonable and customary practice, no Grantor shall amend, modify, waive or
terminate any provision of, or fail to exercise promptly and diligently each
material right or remedy conferred under or in connection with, any Instrument, in
any case in such a manner as could reasonably be expected to materially adversely
affect the value of affected Instrument as collateral.

     10. Casualty and Liability Insurance Required.

     (a) Each Grantor will keep the Collateral continuously insured against such risks as
are customarily insured against by businesses of like size and type engaged in the same or
similar operations including:

     (i) casualty insurance on the Inventory and the Equipment in an amount not
less than the full insurable value thereof, against loss or damage by theft, fire,
lightning and other hazards ordinarily included under uniform broad form standard
extended coverage policies, limited only as may be provided in the standard broad
form of extended coverage endorsement at the time in use in the states in which the
Collateral is located;

     (ii) comprehensive general liability insurance against claims for bodily
injury, death or property damage occurring with or about such Collateral (such
coverage to include provisions waiving subrogation against the Secured Parties),
with the Administrative Agent and the Lenders as additional insureds thereunder, in
amounts as shall be reasonably satisfactory to Administrative Agent; and

19

 

     (iii) liability insurance with respect to the operation of its facilities
under the workers’ compensation laws of the states in which such Collateral is
located, in amounts as shall be reasonably satisfactory to Administrative Agent.

     (b) Each insurance policy obtained in satisfaction of the requirements of
Section 10(a):

     (i) may be provided by blanket policies now or hereafter maintained by each
or any Grantor or by the Company;

     (ii) shall be issued by such insurer (or insurers) as shall be financially
responsible, of recognized standing and reasonably acceptable to the Administrative
Agent;

     (iii) shall be in such form and have such provisions (including without
limitation the loss payable clause, the waiver of subrogation clause, the deductible
amount, if any, and the standard mortgagee endorsement clause) as are generally
considered standard provisions for the type of insurance involved and are reasonably
acceptable in all respects to the Administrative Agent;

     (iv) shall prohibit cancellation or substantial modification, termination or
lapse in coverage by the insurer without at least thirty (30) days’ prior written
notice to the Administrative Agent, except for non-payment of premium, as to which
such policies shall provide for at least ten (10) days’ prior written notice to the
Administrative Agent;

     (v) without limiting the generality of the foregoing, all insurance policies
where applicable under Section 10(a)(i) carried on the Collateral shall name
the Administrative Agent, for the benefit of the Secured Parties, as loss payee and
the Administrative Agent and Lenders as parties insured thereunder in respect of any
claim for payment.

     (c) Prior to expiration of any such policy, such Grantor shall furnish the
Administrative Agent with evidence satisfactory to the Administrative Agent that the policy
or certificate has been renewed or replaced or is no longer required by this Security
Agreement.

     (d) Each Grantor hereby makes, constitutes and appoints the Administrative Agent
(and all officers, employees or agents designated by the Administrative Agent), for the
benefit of the Secured Parties, as such Grantor’s true and lawful attorney (and
agent-in-fact) for the purpose of making, settling and adjusting claims under such policies
of insurance, endorsing the name of such Grantor on any check, draft, instrument or other
item or payment for the proceeds of such policies of insurance and for making all
determinations and decisions with respect to such policies of insurance, which appointment
is coupled with an interest and is irrevocable; provided, however, that the

20

 

powers pursuant to such appointment shall be exercisable only upon the occurrence and during
the continuation of an Event of Default.

     (e) In the event such Grantor shall fail to maintain, or fail to cause to be
maintained, the full insurance coverage required hereunder or shall fail to keep any of its
Collateral in good repair and good operating condition, the Administrative Agent may (but
shall be under no obligation to), without waiving or releasing any Secured Obligation or
Default or Event of Default by such Grantor hereunder, contract for the required policies of
insurance and pay the premiums on the same or make any required repairs, renewals and
replacements; and all sums so disbursed by Administrative Agent, including reasonable
Attorneys’ Costs, court costs, expenses and other charges related thereto, shall be payable
on demand by such Grantor to the Administrative Agent, shall be additional Secured
Obligations secured by the Collateral, and (in addition to other rights and remedies
resulting from such nonpayment) shall bear interest from the date of demand until paid in
full at the Default Rate.

     (f) Each Grantor agrees that to the extent that it shall fail to maintain, or fail
to cause to be maintained, the full insurance coverage required by Section 10(a), it
shall in the event of any loss or casualty pay promptly to the Administrative Agent, for the
benefit of the Secured Parties, to be held in a separate account for application in
accordance with the provisions of Section 10(h), such amount as would have been
received as Net Proceeds (as hereinafter defined) by the Administrative Agent, for the
benefit of the Secured Parties, under the provisions of Section 10(h) had such
insurance been carried to the extent required.

     (g) The Net Proceeds of the insurance carried pursuant to the provisions of
Sections 10(a)(ii) and 10(a)(iii) shall be applied by such Grantor toward
satisfaction of the claim or liability with respect to which such insurance proceeds may be
paid.

     (h) The Net Proceeds of the insurance carried with respect to the Collateral
pursuant to the provisions of Section 10(a)(i) hereof shall be paid to such Grantor
and held by such Grantor in a separate account and applied, as long as no Event of Default
shall have occurred and be continuing, as follows: after any loss under any such insurance
and payment of the proceeds of such insurance, each Grantor shall have a period of thirty
(30) days after payment of the insurance proceeds with respect to such loss to elect to
either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the
Administrative Agent, for the benefit of the Secured Parties, as additional Collateral or
(z) apply such Net Proceeds to the acquisition of tangible assets constituting Collateral
used or useful in the conduct of the business of such Grantor, subject to the provisions of
this Security Agreement. If such Grantor elects to repair or replace the Collateral so
damaged, such Grantor agrees the Collateral shall be repaired to a condition substantially
similar to or of better quality or higher value than its condition prior to damage or
replaced with Collateral in a condition substantially similar to or of better quality or
higher value than the condition of the Collateral so replaced prior to damage. At all times
during which an Event of Default shall have occurred and be continuing, the Administrative
Agent shall be entitled to receive direct and immediate payment of the

21

 

proceeds of such insurance and such Grantor shall take all action as the Administrative
Agent may reasonably request to accomplish such payment. Notwithstanding the foregoing, in
the event such Grantor shall receive any such proceeds, such Grantor shall immediately
deliver such proceeds to such Administrative Agent for the benefit of the Secured Parties as
additional Collateral, and pending such delivery shall hold such proceeds in trust for the
benefit of the Secured Parties and keep the same segregated from its other funds.

     (i) “Net Proceeds” when used with respect to any insurance proceeds shall
mean the gross proceeds from such proceeds, award or other amount, less all taxes, fees and
expenses (including Attorneys’ Costs) incurred in the realization thereof.

     (j) In case of any material damage to, destruction or loss of, or claim or
proceeding against, all or any material part of the Collateral pledged hereunder by a
Grantor, such Grantor shall give prompt notice thereof to the Administrative Agent. Each
such notice shall describe generally the nature and extent of such damage, destruction,
loss, claim or proceeding. Subject to Section 10(d), each Grantor is hereby
authorized and empowered to adjust or compromise any loss under any such insurance other
than losses relating to claims made directly against any Secured Party as to which the
insurance described in Section 10(a)(ii) or (iii) is applicable.

     (k) The provisions contained in this Security Agreement pertaining to insurance
shall be cumulative with any additional provisions imposing additional insurance
requirements with respect to the Collateral or any other property on which a Lien is
conferred under any Security Instrument.

     11. Rights and Remedies Upon Event of Default. Upon and after an Event of Default,
the Administrative Agent shall have the following rights and remedies on behalf of the Secured
Parties in addition to any rights and remedies set forth elsewhere in this Security Agreement or
the other Loan Documents, all of which may be exercised with or, if allowed by law, without notice
to a Grantor:

     (a) All of the rights and remedies of a secured party under the UCC or under other
applicable law, all of which rights and remedies shall be cumulative, and none of which
shall be exclusive, to the extent permitted by law, in addition to any other rights and
remedies contained in this Security Agreement or any other Loan Document;

     (b) The right to foreclose the Liens and security interests created under this
Security Agreement by any available judicial procedure or without judicial process;

     (c) The right to (i) enter upon the premises of a Grantor through self-help and
without judicial process, without first obtaining a final judgment or giving such Grantor
notice or opportunity for a hearing on the validity of the Administrative Agent’s claim and
without any obligation to pay rent to such Grantor, or any other place or places where any
Collateral is located and kept, and remove the Collateral therefrom to the premises of the
Administrative Agent or any agent of the Administrative Agent, for such time as the

22

 

Administrative Agent may desire, in order effectively to collect or liquidate the
Collateral, (ii) require such Grantor or any bailee or other agent of such Grantor to
assemble the Collateral and make it available to the Administrative Agent at a place to be
designated by the Administrative Agent that is reasonably convenient to both parties, and
(iii) notify any or all Persons party to a Qualifying Control Agreement or who otherwise
have possession of or control over any Collateral of the occurrence of an Event of Default
and other appropriate circumstances, and exercise control over and take possession or
custody of any or all Collateral in the possession, custody or control of such other
Persons;

     (d) The right to (i) exercise all of a Grantor’s rights and remedies with respect to
the collection of Accounts, Chattel Paper, Instruments, Supporting Obligations and General
Intangibles (collectively, “Payment Collateral”), including the right to demand
payment thereof and enforce payment, by legal proceedings or otherwise; (ii) settle, adjust,
compromise, extend or renew all or any Payment Collateral or any legal proceedings
pertaining thereto; (iii) discharge and release all or any Payment Collateral; (iv) take
control, in any manner, of any item of payment or proceeds referred to in Section 5
above; (v) prepare, file and sign a Grantor’s name on any Proof of Claim in bankruptcy,
notice of Lien, assignment or satisfaction of Lien or similar document in any action or
proceeding adverse to any obligor under any Payment Collateral or otherwise in connection
with any Payment Collateral; (vi) endorse the name of a Grantor upon any chattel paper,
document, instrument, invoice, freight bill, bill of lading or similar document or agreement
relating to any Collateral; (vii) use the information recorded on or contained on a
Grantor’s internet website or otherwise in any data processing equipment and computer
hardware and software relating to any Collateral to which a Grantor has access; (viii) open
such Grantor’s mail and collect any and all amounts due to such Grantor from any Account
Debtors or other obligor in respect of Payment Collateral; (ix) take over such Grantor’s
post office boxes or make other arrangements as the Administrative Agent, on behalf of the
Secured Parties, deems necessary to receive such Grantor’s mail, including notifying the
post office authorities to change the address for delivery of such Grantor’s mail to such
address as the Administrative Agent, on behalf of the Secured Parties, may designate; (x)
notify any or all Account Debtors or other obligor on any Payment Collateral that such
Payment Collateral has been assigned to the Administrative Agent for the benefit of the
Secured Parties and that Administrative Agent has a security interest therein for the
benefit of the Secured Parties (provided that the Administrative Agent may at any time give
such notice to an Account Debtor that is a department, agency or authority of the United
States government); each Grantor hereby agrees that any such notice, in the Administrative
Agent’s sole discretion, may (but need not) be sent on such Grantor’s stationery, in which
event such Grantor shall co-sign such notice with the Administrative Agent if requested to
do so by the Administrative Agent; and (xi) do all acts and things and execute all documents
necessary, in Administrative Agent’s sole discretion, to collect the Payment Collateral; and

     (e) The right to sell all or any Collateral in its then existing condition, or after
any further manufacturing or processing thereof, at such time or times, at public or private
sale or sales, with such notice as may be required by law, in lots or in bulk, for

23

 

cash or on credit, with or without representations and warranties, all as the Administrative
Agent, in its sole discretion, may deem advisable. The Administrative Agent shall have the
right to conduct such sales on a Grantor’s premises or elsewhere and shall have the right to
use a Grantor’s premises without charge for such sales for such time or times as the
Administrative Agent may see fit. The Administrative Agent may, if it deems it reasonable,
postpone or adjourn any sale of the Collateral from time to time by an announcement at the
time and place of such postponed or adjourned sale, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. Each Grantor agrees
that the Administrative Agent has no obligation to preserve rights to the Collateral against
prior parties or to marshal any Collateral for the benefit of any Person. The
Administrative Agent for the benefit of the Secured Parties is hereby granted an irrevocable
fully paid license or other right (including each Grantor’s rights under any license or any
franchise agreement), each of which shall remain in full force and effect until the Facility
Termination Date, to use, without charge, each of the labels, patents, copyrights, names,
trade secrets, trade names, trademarks and advertising matter, or any property of a similar
nature owned or licensed by any Grantor, as it pertains to the Collateral, in completing
production of, advertising for sale and selling any Collateral. If any of the Collateral
shall require repairs, maintenance, preparation or the like, or is in process or other
unfinished state, the Administrative Agent shall have the right, but shall not be obligated,
to perform such repairs, maintenance, preparation, processing or completion of manufacturing
for the purpose of putting the same in such saleable form as the Administrative Agent shall
deem appropriate, but the Administrative Agent shall have the right to sell or dispose of
the Collateral without such processing and no Grantor shall have any claim against the
Administrative Agent for the value that may have been added to such Collateral with such
processing. In addition, each Grantor agrees that in the event notice is necessary under
applicable law, written notice mailed to such Grantor in the manner specified herein ten
(10) days prior to the date of public sale of any of the Collateral or prior to the date
after which any private sale or other disposition of the Collateral will be made shall
constitute commercially reasonable notice to such Grantor. All notice is hereby waived with
respect to any of the Collateral which threatens to decline speedily in value or is of a
type customarily sold on a recognized market. The Administrative Agent may purchase all or
any part of the Collateral at public or, if permitted by law, private sale, free from any
right of redemption which is hereby expressly waived by such Grantor and, in lieu of actual
payment of such purchase price, may set off the amount of such price against the Secured
Obligations.

     The net cash proceeds resulting from the collection, liquidation, sale, or other disposition
of the Collateral shall be applied first to the expenses (including all Attorneys’ Costs) of
retaking, holding, storing, processing and preparing for sale, selling, collecting, liquidating and
the like, and then to the satisfaction of all Secured Obligations in accordance with the terms of
Section 8.03 of the Credit Agreement. Each Grantor shall be liable to the Administrative
Agent, for the benefit of the Secured Parties, and shall pay to the Administrative Agent, for the
benefit of the Secured Parties, on demand any deficiency which may remain after such sale,
disposition, collection or liquidation of the Collateral.

24

 

     12. Attorney-in-Fact. Each Grantor hereby appoints the Administrative Agent as the
Grantor’s attorney-in-fact for the purposes of carrying out the provisions of this Security
Agreement and taking any action and executing any instrument which the Administrative Agent may
deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and
coupled with an interest; provided, that the Administrative Agent shall have and may
exercise rights under this power of attorney only upon the occurrence and during the continuance of
an Event of Default. Without limiting the generality of the foregoing, upon the occurrence and
during the continuance of an Event of Default, the Administrative Agent shall have the right and
power

     (a) to ask, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the
Collateral;

     (b) to receive, endorse and collect any drafts or other instruments, documents and
chattel paper in connection with clause (a) above;

     (c) to endorse such Grantor’s name on any checks, notes, drafts or any other payment
relating to or constituting proceeds of the Collateral which comes into the Administrative
Agent’s possession or the Administrative Agent’s control, and deposit the same to the
account of the Administrative Agent, for the benefit of the Secured Parties, on account and
for payment of the Secured Obligations.

     (d) to file any claims or take any action or institute any proceedings that the
Administrative Agent may deem necessary or desirable for the collection of any of the
Collateral or otherwise to enforce the rights of the Administrative Agent, for the benefit
of the Secured Parties, with respect to any of the Collateral; and

     (e) to execute, in connection with any sale or other disposition of Collateral
provided for herein, any endorsement, assignments, or other instruments of conveyance or
transfer with respect thereto.

     13. Reinstatement. The granting of a security interest in the Collateral and the
other provisions hereof shall continue to be effective or be reinstated, as the case may be, if at
any time any payment of any of the Secured Obligations is rescinded or must otherwise be returned
by any Secured Party or is repaid by any Secured Party in whole or in part in good faith settlement
of a pending or threatened avoidance claim, whether upon the insolvency, bankruptcy or
reorganization of any Grantor or any other Loan Party or otherwise, all as though such payment had
not been made. The provisions of this Section 13 shall survive repayment of all of the
Secured Obligations and the termination or expiration of this Security Agreement in any manner,
including but not limited to termination upon occurrence of the Facility Termination Date.

     14. Certain Waivers by the Grantors. Each Grantor waives to the extent permitted
by applicable law (a) any right to require any Secured Party or any other obligee of the Secured
Obligations to (x) proceed against any Person or entity, including without limitation any Loan
Party, (y) proceed against or exhaust any Collateral or other collateral for the Secured

25

 

Obligations, or (z) pursue any other remedy in its power; (b) any defense arising by reason of any
disability or other defense of any other Person, or by reason of the cessation from any cause
whatsoever of the liability of any other Person or entity, (c) any right of subrogation, and (d)
any right to enforce any remedy which any Secured Party or any other obligee of the Secured
Obligations now has or may hereafter have against any other Person and any benefit of and any right
to participate in any collateral or security whatsoever now or hereafter held by the Administrative
Agent for the benefit of the Secured Parties. Each Grantor authorizes each Secured Party and each
other obligee of the Secured Obligations without notice (except notice required by applicable law)
or demand and without affecting its liability hereunder or under the Loan Documents from time to
time to: (i) take and hold security, other than the Collateral herein described, for the payment of
such Secured Obligations or any part thereof, and exchange, enforce, waive and release the
Collateral herein described or any part thereof or any such other security; and (ii) apply such
Collateral or other security and direct the order or manner of sale thereof as such Secured Party
or obligee in its discretion may determine.

     The Administrative Agent may at any time deliver (without representation, recourse or
warranty) the Collateral or any part thereof to a Grantor and the receipt thereof by such Grantor
shall be a complete and full acquittance for the Collateral so delivered, and the Administrative
Agent shall thereafter be discharged from any liability or responsibility therefor.

     15. Continued Powers. Until the Facility Termination Date shall have occurred, the
power of sale and other rights, powers and remedies granted to the Administrative Agent for the
benefit of the Secured Parties hereunder shall continue to exist and may be exercised by the
Administrative Agent at any time and from time to time irrespective of the fact that any of the
Secured Obligations or any part thereof may have become barred by any statute of limitations or
that any part of the liability of any Grantor may have ceased.

     16. Other Rights. The rights, powers and remedies given to the Administrative
Agent for the benefit of the Secured Parties by this Security Agreement shall be in addition to all
rights, powers and remedies given to the Administrative Agent or any Secured Party under any other
Loan Document or by virtue of any statute or rule of law. Any forbearance or failure or delay by
the Administrative Agent in exercising any right, power or remedy hereunder shall not be deemed to
be a waiver of such right, power or remedy, and any single or partial exercise of any right, power
or remedy hereunder shall not preclude the further exercise thereof; and every right, power and
remedy of the Secured Parties shall continue in full force and effect until such right, power or
remedy is specifically waived in accordance with the terms of the Credit Agreement.

     17. Anti-Marshaling Provisions. The right is hereby given by each Grantor to the
Administrative Agent, for the benefit of the Secured Parties, to make releases (whether in whole or
in part) of all or any part of the Collateral agreeable to the Administrative Agent without notice
to, or the consent, approval or agreement of other parties and interests, including junior lienors,
which releases shall not impair in any manner the validity of or priority of the Liens and security
interests in the remaining Collateral conferred hereunder, nor release any Grantor from personal
liability for the Secured Obligations. Notwithstanding the existence of any other security
interest in the Collateral held by the Administrative Agent, for the benefit of the Secured

26

 

Parties, the Administrative Agent shall have the right to determine the order in which any or all
of the Collateral shall be subjected to the remedies provided in this Security Agreement. Each
Grantor hereby waives any and all right to require the marshaling of assets in connection with the
exercise of any of the remedies permitted by applicable law or provided herein or in any other Loan
Document.

     18. Entire Agreement. This Security Agreement and each Security Joinder Agreement,
together with the Credit Agreement and other Loan Documents, constitutes and expresses the entire
understanding between the parties hereto with respect to the subject matter hereof, and supersedes
all prior negotiations, agreements and understandings, inducements, commitments or conditions,
express or implied, oral or written, except as contained in the Loan Documents. The express terms
hereof and of the Security Joinder Agreements control and supersede any course of performance or
usage of the trade inconsistent with any of the terms hereof or thereof. Neither this Security
Agreement nor any Security Joinder Agreement nor any portion or provision hereof or thereof may be
changed, altered, modified, supplemented, discharged, canceled, terminated, or amended orally or in
any manner other than as provided in the Credit Agreement.

     19. Third Party Reliance. Each Grantor hereby consents and agrees that all issuers
of or obligors in respect of any Collateral, and all securities intermediaries, warehousemen,
bailees, public officials and other Persons having any interest in, possession of, control over or
right, privilege, duty or discretion in respect of, any Collateral shall be entitled to accept the
provisions hereof and of the Security Joinder Agreements as conclusive evidence of the right of the
Administrative Agent, on behalf of the Secured Parties, to exercise its rights hereunder or
thereunder with respect to the Collateral, notwithstanding any other notice or direction to the
contrary heretofore or hereafter given by any Grantor or any other Person to any of such Persons.

     20. Binding Agreement; Assignment. This Security Agreement and each Security
Joinder Agreement, and the terms, covenants and conditions hereof and thereof, shall be binding
upon and inure to the benefit of the parties hereto, and to their respective successors and
assigns, except that no Grantor shall be permitted to assign this Security Agreement, any Security
Joinder Agreement or any interest herein or therein or, except as expressly permitted herein or in
the Credit Agreement, in the Collateral or any part thereof or interest therein. Without limiting
the generality of the foregoing sentence of this Section 20, any Lender may assign to one
or more Persons, or grant to one or more Persons participations in or to, all or any part of its
rights and obligations under the Credit Agreement (to the extent permitted by the Credit
Agreement); and to the extent of any such assignment or participation such other Person shall, to
the fullest extent permitted by law, thereupon become vested with all the benefits in respect
thereof granted to such Lender herein or otherwise, subject however, to the provisions of the
Credit Agreement, including Article IX thereof (concerning the Administrative Agent) and
Section 10.06 thereof (concerning assignments and participations). All references herein
to the Administrative Agent and to the Secured Parties shall include any successor thereof or
permitted assignee, and any other obligees from time to time of the Secured Obligations.

     21. Secured Cash Management Agreements, Secured Hedging Agreements and Secured Card
Related Products Agreements. No Secured Party (other than the Administrative

27

 

Agent) that obtains the benefit of this Security Agreement shall have any right to notice of
any action or to consent to, direct or object to any action hereunder or otherwise in respect of
the Collateral (including the release or impairment of any Collateral) other than in its capacity
as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.
Notwithstanding any other provision of this Security Agreement to the contrary, the Administrative
Agent shall only be required to verify the payment of, or that other satisfactory arrangement have
been made with respect to, the Secured Obligations arising under Secured Cash Management
Agreements, Secured Hedge Agreements and Secured Card Related Products Agreements to the extent the
Administrative Agent has received written notice of such Obligations, together with such supporting
documentation as it may request, from the applicable Cash Management Bank, Hedge Bank or Card
Related Products Bank, as the case may be. Each Secured Party not a party to the Credit Agreement
that obtains the benefit of this Security Agreement shall be deemed to have acknowledged and
accepted the appointment of the Administrative Agent pursuant to the terms of the Credit Agreement,
and that with respect to the actions and omissions of the Administrative Agent hereunder or
otherwise relating hereto that do or may affect such Secured Party, the Administrative Agent and
each of its Related Parties shall be entitled to all the rights, benefits and immunities conferred
under Article IX of the Credit Agreement.

     22. Severability. The provisions of this Security Agreement are independent of and
separable from each other. If any provision hereof shall for any reason be held invalid or
unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability
of any other provision hereof, but this Security Agreement shall be construed as if such invalid or
unenforceable provision had never been contained herein.

     23. Counterparts. This Security Agreement may be executed in any number of
counterparts each of which when so executed and delivered shall be deemed an original, and it shall
not be necessary in making proof of this Security Agreement to produce or account for more than one
such counterpart executed by the Grantor against whom enforcement is sought. Without limiting the
foregoing provisions of this Section 23, the provisions of Section 10.10 of the
Credit Agreement shall be applicable to this Security Agreement.

     24. Termination. Subject to the provisions of Section 13, this Security
Agreement and each Security Joinder Agreement, and all obligations of the Grantors hereunder
(excluding those obligations and liabilities that expressly survive such termination) shall
terminate without delivery of any instrument or performance of any act by any party on the Facility
Termination Date. Upon such termination of this Security Agreement, the Administrative Agent
shall, at the request and sole expense of the Grantors, promptly deliver to the Grantors such
termination statements and take such further actions as the Grantors may reasonably request to
terminate of record, or otherwise to give appropriate notice of the termination of, any Lien
conferred hereunder.

     25. Notices. Any notice required or permitted hereunder shall be given (a) with
respect to any Borrower, at the address for the giving of notice then in effect under the Credit
Agreement, (b) with respect to any Grantor other than any Borrower, at the address then in effect
for the giving of notices to such Grantor under the Guaranty to which it is a party, and (c) with

28

 

respect to the Administrative Agent or a Lender, at the Administrative Agent’s address indicated in
Schedule 10.02 of the Credit Agreement. All such addresses may be modified, and all such
notices shall be given and shall be effective, as provided in Schedule 10.02 of the Credit
Agreement for the giving and effectiveness of notices and modifications of addresses thereunder.

     26. Joinder. Each Person that shall at any time execute and deliver to the
Administrative Agent a Security Joinder Agreement substantially in the form attached as Exhibit
A hereto shall thereupon irrevocably, absolutely and unconditionally become a party hereto and
obligated hereunder as a Grantor and shall have thereupon pursuant to Section 2 hereof
granted a security interest in and collaterally assigned to the Administrative Agent for the
benefit of the Secured Parties all Collateral in which it has at its Applicable Date or thereafter
acquires any interest or the power to transfer, and all references herein and in the other Loan
Documents to the Grantors or to the parties to this Security Agreement shall be deemed to include
such Person as a Grantor hereunder. Each Security Joinder Agreement shall be accompanied by the
Supplemental Schedules referred to therein, appropriately completed with information relating to
the Grantor executing such Security Joinder Agreement and its property. Each of the applicable
Schedules attached hereto shall be deemed amended and supplemented without further action by such
information reflected on the Supplemental Schedules.

     27. Rules of Interpretation. The rules of interpretation contained in Section
1.02 of the Credit Agreement shall be applicable to this Security Agreement and each Security
Joinder Agreement and are hereby incorporated by reference. All representations and warranties
contained herein shall survive the delivery of documents and any Credit Extensions referred to
herein or secured hereby.

     28. Governing Law; Waivers.

     (a) THIS SECURITY AGREEMENT AND EACH SECURITY JOINDER AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.

     (b) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA SITTING
IN THE CITY AND COUNTY OF SAN FRANCISCO AND OF THE UNITED STATES DISTRICT COURT OF THE
NORTHERN DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY SECURITY JOINDER
AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH CALIFORNIA STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE 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

29

 

OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
NOTHING IN THIS SECURITY AGREEMENT OR ANY SECURITY JOINDER AGREEMENT SHALL AFFECT ANY RIGHT
THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT OR ANY SECURITY JOINDER AGREEMENT
AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT
OR ANY SECURITY JOINDER 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 APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER
PROVIDED FOR NOTICES IN SECTION 25. NOTHING IN THIS SECURITY AGREEMENT OR ANY
SECURITY JOINDER AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY APPLICABLE LAW.

     (e) IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER OR
RELATED TO THIS SECURITY AGREEMENT OR ANY SECURITY JOINDER AGREEMENT OR ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN
CONNECTION WITH THE FOREGOING, EACH PARTY HEREBY AGREES, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THAT ANY SUCH ACTION OR PROCEEDING SHALL BE ARBITRATED IN ACCORDANCE WITH
SECTION 10.15 OF THE CREDIT AGREEMENT.

[Signature pages follow]

30

 

     IN WITNESS WHEREOF, the parties have duly executed this Security Agreement on the day and year
first written above.

	 	 	 	 	 
	 	GRANTORS:

GRANITE CONSTRUCTION INCORPORATED

 	 
	 	By:  	/s/ Jigisha Desai
 	 
	 	 	Name:  	Jigisha Desai 	 
	 	 	Title:  	V.P. Treasurer 	 
	 
	 	GRANITE CONSTRUCTION COMPANY

 	 
	 	By:  	/s/ Jigisha Desai
 	 
	 	 	Name:  	Jigisha Desai 	 
	 	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	 	By:  	                      /s/ Laurel J. Krzeminski
 	 
	 	 	Name:  	Laurel J. Krzeminski 	 
	 	 	Title:  	V.P. CFO 	 
	 
	 	GILC INCORPORATED

 	 
	 	By:  	/s/ Jigisha Desai
 	 
	 	 	Name:  	Jigisha Desai 	 
	 	 	Title:  	V.P. and CFO 	 
	 
	 	 	 
	 	By:  	                      /s/ Laurel J. Krzeminski
 	 
	 	 	Name:  	Laurel J. Krzeminski 	 
	 	 	Title:  	President and CEO 	 
	 

SECURITY AGREEMENT

Signature Page

 

 

	 	 	 	 	 
	 	GRANITE CONSTRUCTION NORTHEAST, INC.

 	 
	 	By:  	/s/ Jigisha Desai
 	 
	 	 	Name:  	Jigisha Desai 	 
	 	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	 	By:  	                      /s/ Laurel J. Krzeminski
 	 
	 	 	Name:  	Laurel J. Krzeminski 	 
	 	 	Title:  	VP and CFO 	 
	 
	 	GRANITE NORTHWEST, INC.

 	 
	 	By:  	/s/ Kathleen Schreckengost
 	 
	 	 	Name:  	Kathleen Schreckengost 	 
	 	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	 	By:  	                      /s/ Cynthia Johnson
 	 
	 	 	Name:  	Cynthia Johnson 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	GRANITE LAND COMPANY

 	 
	 	By:  	/s/ Jigisha Desai
 	 
	 	 	Name:  	Jigisha Desai 	 
	 	 	Title:  	V.P. Treasurer 	 
	 
	 	 	 
	 	By:  	                      /s/ Laurel J. Krzeminski
 	 
	 	 	Name:  	Laurel J. Krzeminski 	 
	 	 	Title:  	V.P. 	 
	 

SECURITY AGREEMENT

Signature Page

 

 

	 	 	 	 	 
	 	INTERMOUNTAIN SLURRY SEAL, INC.

 	 
	 	By:  	/s/ Kathleen Schreckengost
 	 
	 	 	Name:  	Kathleen Schreckengost 	 
	 	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	 	By:  	                      /s/ Cynthia Johnson
 	 
	 	 	Name:  	Cynthia Johnson 	 
	 	 	Title:  	Authorized Officer 	 
	 
	 	POZZOLAN PRODUCTS COMPANY (P.P.C.)

 	 
	 	By:  	/s/ Kathleen Schreckengost
 	 
	 	 	Name:  	Kathleen Schreckengost 	 
	 	 	Title:  	V.P., Treasurer and Asst. Secretary 	 
	 
	 	 	 
	 	By:  	                      /s/ Cynthia Johnson
 	 
	 	 	Name:  	Cynthia Johnson 	 
	 	 	Title:  	Authorized Officer 	 
	 

SECURITY AGREEMENT

Signature Page

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

 	 
	 	By:  	/s/ Aamir Saleem
 	 
	 	 	Name:  	Aamir Saleem 	 
	 	 	Title:  	Vice President 	 
	 

SECURITY AGREEMENT

Signature Page

 

 

SCHEDULE 7(f)

Grantor Information

S-6

 

SCHEDULE 9(e)

Investment Property

	 	 	 	 	 	 	 	 	 
	Securities Accounts	 	 	 	 	 	 
	Name and Address of Securities Intermediary	 	Account	 	 	 	 
	Grantor	 	Address	 	Number1	 	Security Name	 	Security Type
	BBVA/Compass

	 	71 South Wacker Dr., Ste. 500 Chicago, IL 60606
	 	 	 	GS FST Money Market Fund — Select
	 	MMFUND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FIDELITY PRIME MON MAR-I
	 	MMFUND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERATED INV PRIME OBLIG-I
	 	MMFUND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERATED INV PRM CSH OBL-I
	 	MMFUND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	American Electric Power Company,
Inc.
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	CA CLG-TRANS-B
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	CA ST-RANS-A1
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	CA ST-RANS-A2
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	CA WTR
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	Cargill, Incorporated
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL FARM CREDIT BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL FARM CREDIT BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL FARM CREDIT BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL FARM CREDIT BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL HOME LOAN BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL HOME LOAN BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL HOME LOAN BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL HOME LOAN BANK
	 	AGCY BOND

 

			
	1	 	On file with the Administrative Agent. 

 

 

	 	 	 	 	 	 	 	 	 
	Securities Accounts	 	 	 	 	 	 
	Name and Address of Securities Intermediary	 	Account	 	 	 	 
	Grantor	 	Address	 	Number1	 	Security Name	 	Security Type
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	FEDERAL HOME LOAN BANK
	 	AGCY BOND
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	IRVINE USD-CFD 86-1
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	Nestle Capital Corporation
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	NYC SER K
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	SAN ANTONIO-TAX NTS-A
	 	MUNI
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	Shell International Finance B.V.
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	TOTAL CAPITAL CANADA LTD
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	TOYOTA MOTOR CREDIT CORP
	 	CORP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	UnionBanCal Corporation
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	UnionBanCal Corporation
	 	CP
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	US TREASURY N/B
	 	US GOV
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	US TREASURY N/B
	 	US GOV
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	US TREASURY N/B
	 	US GOV
	Union Bank, N.A.

	 	350 California St., 6th Floor, San Francisco, CA 94104
	 	 	 	WELLS FARGO BANK NA
	 	CORP

S-8

 

SCHEDULE 9(f)

Deposit Accounts

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Address of	 	 	 	Certificate of
	 	 	Name of Depository	 	Depository	 	 	 	Deposit No. (If
	Grantor	 	Institution	 	Institution	 	Account No.2	 	applicable)
	Granite Construction Company

	 	Bank of America
Merrill Lynch
	 	Building A, 10th
Floor, 1655
 Grant
Street, Concord, 

CA
94520
	 	 	 	N/A
	Granite Construction
Incorporated

	 	Bank of America
Merrill Lynch
	 	Building A, 10th
Floor, 1655
 Grant
Street, Concord, 

CA
94520
	 	 	 	N/A
	Granite Northwest, Inc.

	 	Bank of America
Merrill Lynch
	 	Building A, 10th
Floor, 1655
 Grant
Street, Concord, 

CA
94520
	 	 	 	N/A
	Granite Construction
Incorporated

	 	Bank of the West
	 	1450 Treat Blvd.,
Walnut Creek, 

CA
94597
	 	 	 	N/A
	Granite Construction
Northeast, Inc.

	 	JP Morgan Chase
Bank, N.A.
	 	333 South Grand
Ave,
36th
Floor,
 Los
Angeles, 

CA
90071-1504
	 	 	 	N/A
	Granite Construction
Northeast, Inc.

	 	JP Morgan Chase
Bank, N.A.
	 	333 South Grand
Ave,
36th
Floor,
 Los
Angeles, 

CA
90071-1504
	 	 	 	N/A
	Granite Construction
Incorporated

	 	U.S. Bank National
Association
	 	2424 Santa Clara
Ave., Alameda, 

CA
94501
	 	 	 	N/A
	Granite Construction
Incorporated

	 	U.S. Bank National
Association
	 	2424 Santa Clara
Ave., Alameda, 

CA
94501
	 	 	 	N/A
	Granite Construction Company

	 	Wells Fargo, N.A.
	 	301 W. Northern
Lights Blvd.,
 Ste.
212, Anchorage, AK
99503
	 	 	 	N/A

 

			
	2	 	On file with the Administrative Agent

 

 

EXHIBIT A

Form of Security Joinder Agreement

SECURITY JOINDER AGREEMENT

     THIS SECURITY JOINDER AGREEMENT dated as of _____________, 20__ (this “Security Joinder
Agreement”), is made by _______________________________, a ________________ (the “Joining
Grantor”), in favor of BANK OF AMERICA, N.A., in its capacity as Administrative Agent (the
“ Administrative Agent”) for the Secured Parties.

RECITALS:

     A. Granite Construction Incorporated, a Delaware corporation (the “Company” and a
“Borrower”), Granite Construction Company, a California corporation (“GCC” and a
“Borrower”), GILC Incorporated, a California corporation (“GILC” and a
“Borrower”, and together with the Company and GCC, collectively, the “Borrower”),
certain Subsidiaries of the Company and the Administrative Agent, are party to a Security Agreement
dated as of December 23, 2010 (as in effect on the date hereof, the “Security Agreement”;
all capitalized terms used but not defined herein shall have the meanings provided therefor in such
Security Agreement).

     B. The Joining Grantor is a Subsidiary of the Company and is required by the terms of the
Credit Agreement to become a Guarantor and be joined as a party to the Security Agreement as a
Grantor.

     C. The Joining Grantor will materially benefit directly and indirectly from the making and
maintenance of the extensions of credit made from time to time under the Credit Agreement, Secured
Cash Management Agreements, Secured Hedge Agreements and Secured Card Related Products Agreements.

     In order to induce the Secured Parties to from time to time make and maintain extensions of
credit under the Credit Agreement, Secured Cash Management Agreements, Secured Hedge Agreements and
Secured Card Related Products Agreements, the Joining Grantor hereby agrees as follows:

     1. Joinder. The Joining Grantor hereby irrevocably, absolutely and unconditionally
becomes a party to the Security Agreement as a Grantor and bound by all the terms, conditions,
obligations, liabilities and undertakings of each Grantor or to which each Grantor is subject
thereunder, including without limitation the grant pursuant to Section 2 of the Security
Agreement of a security interest to the Administrative Agent for the benefit of the Secured Parties
in the property and property rights constituting Collateral (as defined in Section 2 of the
Security Agreement) of such Grantor or in which such Grantor has or may have or acquire an interest
or the power to transfer rights therein, whether now owned or existing or hereafter created,
acquired or arising and wheresoever located, as security for the payment and performance of the
Secured Obligations (as defined in the Security Agreement), all with the same force and effect as
if the Joining Grantor were a signatory to the Security Agreement.

 

 

     2. Affirmations. The Joining Grantor hereby acknowledges and reaffirms as of the date
hereof with respect to itself, its properties and its affairs each of the waivers, representations,
warranties, acknowledgements and certifications applicable to any Grantor contained in the Security
Agreement.

     3. Supplemental Schedules. Attached to this Security Joinder Agreement are duly
completed schedules (the “Supplemental Schedules”) supplementing as thereon indicated the
respective Schedules to the Security Agreement. The Joining Grantor represents and warrants that
the information contained on each of the Supplemental Schedules with respect to such Joining
Grantor and its properties and affairs is true, complete and accurate as of the date hereof.

     4. Severability. The provisions of this Security Joinder Agreement are independent of
and separable from each other. If any provision hereof shall for any reason be held invalid or
unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability
of any other provision hereof, but this Security Joinder Agreement shall be construed as if such
invalid or unenforceable provision had never been contained herein.

     5. Counterparts. This Security Joinder Agreement may be executed in any number of
counterparts each of which when so executed and delivered shall be deemed an original, and it shall
not be necessary in making proof of this Security Joinder Agreement to produce or account for more
than one such counterpart executed by the Joining Grantor. Without limiting the foregoing
provisions of this Section 5, the provisions of Section 10.10 of the Credit
Agreement shall be applicable to this Security Joinder Agreement.

     6. Delivery. Joining Grantor hereby irrevocably waives notice of acceptance of this
Security Joinder Agreement and acknowledges that the Secured Obligations are and shall be deemed to
be incurred, and credit extensions under the Loan Documents, Secured Cash Management Agreements,
Secured Hedge Agreements and Secured Card Related Products Agreements made and maintained, in
reliance on this Security Joinder Agreement and the Grantor’s joinder as a party to the Security
Agreement as herein provided.

     7. Governing Law; Venue; Waiver of Jury Trial. The provisions of Section 28
of the Security Agreement are hereby incorporated by reference as if fully set forth herein.

[Signature page follows.]

S-2

 

     IN WITNESS WHEREOF, the Joining Grantor has duly executed and delivered this Security Joinder
Agreement as of the day and year first written above.

	 	 	 	 	 
	 	JOINING GRANTOR:

 	 
	 
	 	By:  	

 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-3

 

	 	 	 	 	 

SUPPLEMENTAL

SCHEDULE 7(f)

Grantor Information

	 	 	 	 	 	 	 	 	 	 	 	 	 
	I.	 	II.	 	III.	 	IV.	 	V.	 	VI.	 	VII.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Name and address	 	Relationship of
	 	 	 	 	Jurisdiction of	 	 	 	 	 	 	 	 	 	Collateral	 	of Owner of	 	Persons listed in VI
	 	 	 	 	Formation/	 	 	 	 	 	 	 	Locations	 	Collateral Location	 	to
	 	 	Form of Equity/I.D.	 	Address of Chief	 	 	 	(and Type	 	(If other than	 	Grantor (e.g., lessor,
	Name	 	Number	 	Executive Office	 	Trade Styles	 	of Collateral)	 	Grantor)	 	warehousemen)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Delivered pursuant to Security Joinder Agreement of _______________________________.

Applicable Date: __________, 20__

 

 

SUPPLEMENTAL

SCHEDULE 9(e)

Investment Property

	 	 	 	 	 	 	 	 	 
	Securities Accounts	 	 	 	 	 	Other Investment Property
	Name and Address of	 	 	 	 	 	 	 	 	 	 
	Securities	 	Account	 	Name and Type	 	Quantity of Shares	 	Certificate
	Intermediary	 	Number	 	of Issuer	 	or Other Interest	 	Number(s)
	Grantor	 	 	 	 	 	 	 	 

Delivered pursuant to Security Joinder Agreement of _______________________________.

Applicable Date: __________, 20__

 

 

SUPPLEMENTAL

SCHEDULE 9(f)

Deposit Accounts

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name and Address of	 	 	 	 	 	Certificate of Deposit No.
	Grantor	 	Depository Institution	 	Account No.	 	(If applicable)

Delivered pursuant to Security Joinder Agreement of _______________________________.

Applicable Date: __________, 20__

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]