Document:

exv10w1

 

Exhibit 10.1

 

Stericycle, Inc.

$100,000,000 5.64% Senior Notes

due April 15, 2015

 

Note Purchase Agreement

 

Dated as of April 15, 2008

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 1.
	 	Authorization of Notes 	 	 	1	 
	Section 1.1.
	 	Description of Notes 	 	 	1	 
	Section 1.2.
	 	Interest Rate 	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2. Sale and Purchase of Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2.1.
	 	Notes 	 	 	1	 
	Section 2.2.
	 	Subsidiary Guaranty 	 	 	2	 
	 
	 	 	 	 	 	 
	Section 3. Closing	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4. Conditions to Closing	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.1.
	 	Representations and Warranties 	 	 	3	 
	Section 4.2.
	 	Performance; No Default 	 	 	3	 
	Section 4.3.
	 	Compliance Certificates 	 	 	3	 
	Section 4.4.
	 	Opinions of Counsel 	 	 	3	 
	Section 4.5.
	 	Purchase Permitted By Applicable
Law, Etc. 	 	 	4	 
	Section 4.6.
	 	Sale of Other Notes 	 	 	4	 
	Section 4.7.
	 	Payment of Special Counsel Fees 	 	 	4	 
	Section 4.8.
	 	Private Placement Number 	 	 	4	 
	Section 4.9.
	 	Changes in Corporate Structure 	 	 	4	 
	Section 4.10.
	 	Subsidiary Guaranty 	 	 	4	 
	Section 4.11.
	 	Consents and Approvals 	 	 	4	 
	Section 4.12.
	 	Funding Instructions 	 	 	5	 
	Section 4.13.
	 	Proceedings and Documents 	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5. Representations and Warranties of the Company	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.1.
	 	Organization; Power and Authority 	 	 	5	 
	Section 5.2.
	 	Authorization, Etc. 	 	 	5	 
	Section 5.3.
	 	Disclosure 	 	 	5	 
	Section 5.4.
	 	Organization and Ownership of Shares of Subsidiaries; Affiliates 	 	 	6	 
	Section 5.5.
	 	Financial Statements; Material Liabilities 	 	 	6	 
	Section 5.6.
	 	Compliance with Laws, Other
Instruments, Etc. 	 	 	7	 
	Section 5.7.
	 	Governmental Authorizations, Etc. 	 	 	7	 
	Section 5.8.
	 	Litigation; Observance of Agreements, Statutes and Orders 	 	 	7	 
	Section 5.9.
	 	Taxes 	 	 	7	 
	Section 5.10.
	 	Title to Property; Leases 	 	 	8	 
	Section 5.11.
	 	Licenses, Permits, Etc. 	 	 	8	 
	Section 5.12.
	 	Compliance with ERISA 	 	 	8	 
	Section 5.13.
	 	Private Offering by the Company 	 	 	9	 
	Section 5.14
	 	Use of Proceeds; Margin Regulations 	 	 	9	 
	Section 5.15.
	 	Existing Debt; Future Liens 	 	 	10	 
	Section 5.16.
	 	Foreign Assets Control Regulations,
Etc. 	 	 	10	 

 -i-

 

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Section 5.17.
	 	Status under Certain Statutes 	 	 	10	 
	Section 5.18.
	 	Environmental Matters 	 	 	11	 
	Section 5.19.
	 	Notes Rank Pari Passu 	 	 	11	 
	 
	 	 	 	 	 	 
	Section 6. Representations of the Purchaser	 	 	11	 
	 
	 	 	 	 	 	 
	Section 6.1.
	 	Purchase for Investment 	 	 	11	 
	Section 6.2.
	 	Accredited Investor 	 	 	12	 
	Section 6.3.
	 	Source of Funds 	 	 	12	 
	 
	 	 	 	 	 	 
	Section 7. Information as to Company	 	 	13	 
	 
	 	 	 	 	 	 
	Section 7.1.
	 	Financial and Business Information 	 	 	13	 
	Section 7.2.
	 	Officer's Certificate 	 	 	16	 
	Section 7.3.
	 	Visitation 	 	 	16	 
	 
	 	 	 	 	 	 
	Section 8. Payment of the Notes	 	 	17	 
	 
	 	 	 	 	 	 
	Section 8.1.
	 	Required Prepayments 	 	 	17	 
	Section 8.2.
	 	Optional Prepayments with Make-Whole Amount 	 	 	17	 
	Section 8.3.
	 	Allocation of Partial Prepayments 	 	 	17	 
	Section 8.4.
	 	Maturity; Surrender, Etc.	 	 	17	 
	Section 8.5.
	 	Purchase of Notes 	 	 	17	 
	Section 8.6.
	 	Make-Whole Amount 	 	 	18	 
	Section 8.7.
	 	Change in Control 	 	 	19	 
	 
	 	 	 	 	 	 
	Section 9. Affirmative Covenants	 	 	21	 
	 
	 	 	 	 	 	 
	Section 9.1.
	 	Compliance with Law 	 	 	21	 
	Section 9.2.
	 	Insurance 	 	 	21	 
	Section 9.3.
	 	Maintenance of Properties 	 	 	21	 
	Section 9.4.
	 	Payment of Taxes and Claims 	 	 	21	 
	Section 9.5.
	 	Existence, Etc. 	 	 	22	 
	Section 9.6.
	 	Notes to Rank Pari Passu 	 	 	22	 
	Section 9.7.
	 	Additional Subsidiary Guarantors 	 	 	22	 
	Section 9.8.
	 	Books and Records 	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10. Negative Covenants	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.1.
	 	Consolidated Leverage Ratio 	 	 	23	 
	Section 10.2.
	 	Interest Coverage Ratio 	 	 	23	 
	Section 10.3.
	 	Limitation on Liens 	 	 	23	 
	Section 10.4.
	 	Sales of Asset 	 	 	25	 
	Section 10.5.
	 	Merger and Consolidation 	 	 	26	 
	Section 10.6.
	 	Line of Business 	 	 	26	 
	Section 10.7.
	 	Transactions with Affiliates 	 	 	27	 
	Section 10.8.
	 	Terrorism Sanctions Regulations 	 	 	27	 
	 
	 	 	 	 	 	 
	Section 11. Events of Default	 	 	27	 

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	Section	 	Heading	 	Page
	Section 12. Remedies on Default, Etc.	 	 	 29	 
	 
	 	 	 	 	 	 
	Section 12.1.

	 	Acceleration
	 	 	29	 
	Section 12.2.

	 	Other Remedies
	 	 	30	 
	Section 12.3.

	 	Rescission
	 	 	30	 
	Section 12.4.

	 	No Waivers or Election of Remedies, Expenses, Etc.
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 13. Registration; Exchange; Substitution of Notes	 	 	 31	 
	 
	 	 	 	 	 	 
	Section 13.1.

	 	Registration of Notes
	 	 	31	 
	Section 13.2.

	 	Transfer and Exchange of Notes
	 	 	31	 
	Section 13.3.

	 	Replacement of Notes
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 14. Payments on Notes	 	 	 32	 
	 
	 	 	 	 	 	 
	Section 14.1.

	 	Place of Payment
	 	 	32	 
	Section 14.2.

	 	Home Office Payment
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 15. Expenses, Etc.	 	 	 33	 
	 
	 	 	 	 	 	 
	Section 15.1.

	 	Transaction Expenses
	 	 	33	 
	Section 15.2.

	 	Survival
	 	 	33	 
	 
	 	 	 	 	 	 
	Section 16. Survival of Representations and Warranties; Entire Agreement	 	 	 33	 
	 
	 	 	 	 	 	 
	Section 17. Amendment and Waiver	 	 	 33	 
	 
	 	 	 	 	 	 
	Section 17.1.

	 	Requirements
	 	 	33	 
	Section 17.2.

	 	Solicitation of Holders of Notes
	 	 	34	 
	Section 17.3.

	 	Binding Effect, Etc.
	 	 	34	 
	Section 17.4.

	 	Notes Held by Company, Etc.
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 18. Notices	 	 	 35	 
	 
	 	 	 	 	 	 
	Section 19. Reproduction of Documents	 	 	 35	 
	 
	 	 	 	 	 	 
	Section 20. Confidential Information	 	 	 36	 
	 
	 	 	 	 	 	 
	Section 21. Substitution of Purchaser	 	 	 37	 
	 
	 	 	 	 	 	 
	Section 22. Miscellaneous	 	 	 37	 
	 
	 	 	 	 	 	 
	Section 22.1.

	 	Successors and Assigns
	 	 	37	 
	Section 22.2.

	 	Payments Due on Non-Business Days
	 	 	37	 
	Section 22.3.

	 	Accounting Terms
	 	 	37	 
	Section 22.4.

	 	Severability
	 	 	38	 
	Section 22.5.

	 	Construction
	 	 	38	 
	Section 22.6.

	 	Counterparts
	 	 	38	 
	Section 22.7.

	 	Governing Law
	 	 	38	 
	Section 22.8.

	 	Jurisdiction and Process; Waiver of Jury Trial
	 	 	38	 

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	Schedule A

	 	—
	 	Information Relating to Purchasers [partially omitted]
	 
	 	 	 	 
	Schedule B

	 	—
	 	Defined Terms
	 
	 	 	 	 
	Schedule 4.9

	 	—
	 	Changes in Corporate Structure [omitted]
	 
	 	 	 	 
	Schedule 5.4

	 	—
	 	Subsidiaries of the Company, Ownership of Subsidiary Stock, Investments,
Affiliates, Directors and Officers [omitted]
	 
	 	 	 	 
	Schedule 5.5

	 	—
	 	Financial Statements [omitted]
	 
	 	 	 	 
	Schedule 5.11

	 	—
	 	Licenses, Permits, Etc. [omitted]
	 
	 	 	 	 
	Schedule 5.15

	 	—
	 	Existing Debt [omitted]
	 
	 	 	 	 
	Schedule 10.3

	 	—
	 	Existing Liens [omitted]
	 
	 	 	 	 
	Exhibit 1

	 	—
	 	Form of 5.64% Senior Notes due April 15, 2015
	 
	 	 	 	 
	Exhibit 2.2

	 	—
	 	Form of Subsidiary Guaranty [omitted]
	 
	 	 	 	 
	Exhibit 4.4(a)

	 	—
	 	Form of Opinion of Special Counsel to the Company [omitted]
	 
	 	 	 	 
	Exhibit 4.4(b)

	 	—
	 	Form of Opinion of Special Counsel to the Purchasers [omitted]

 -iv-

 

 

Stericycle, Inc.

28161 North Keith Drive

Lake Forest, Illinois 60045

$100,000,000 5.64% Senior Notes 

due April 15, 2015

Dated as of

April 15, 2008

To the Purchasers listed in

          the attached Schedule A:

Ladies and Gentlemen:

     Stericycle, Inc., a Delaware corporation (the “Company”), agrees with the Purchasers
listed in the attached Schedule A (the “Purchasers”) to this Note Purchase Agreement (this
“Agreement”) as follows:

Section 1. Authorization of Notes.

     Section 1.1. Description of Notes. The Company will authorize the issue and sale of
$100,000,000 aggregate principal amount of its 5.64% Senior Notes due April 15, 2015 (the “Notes,”
such term to include any such notes issued in substitution therefor pursuant to Section 13 of this
Agreement). The Notes shall be substantially in the form set out in Exhibit 1 with such changes
therefrom, if any, as may be approved by each Purchaser and the Company. Certain capitalized terms
used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are,
unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

     Section 1.2. Interest Rate. The Notes shall bear interest (computed on the basis of a 360-day
year of twelve 30-day months) on the unpaid principal thereof from the date of issuance at their
stated rate of interest payable semiannually in arrears on the fifteenth day of April and October
in each year and at maturity commencing on October 15, 2008, until such principal sum shall have
become due and payable (whether at maturity, upon notice of prepayment or otherwise) and interest
(so computed) on any overdue principal, interest or Make-Whole Amount from the due date thereof
(whether by acceleration or otherwise) and, during the continuance of an Event of Default, on the
unpaid balance hereof, at the Default Rate until paid.

Section 2. Sale and Purchase of Notes.

     Section 2.1. Notes. Subject to the terms and conditions of this Agreement, the Company will
issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing
provided for in Section 3, the Notes in the principal amount specified opposite such

 

 

Purchaser’s
name in Schedule A at the purchase price of 100% of the principal amount thereof. The obligations
of each Purchaser hereunder are several and not joint obligations, and each Purchaser shall have no
obligation and no liability to any Person for the performance or nonperformance by any other
Purchaser hereunder.

     Section 2.2. Subsidiary Guaranty. (a) The payment by the Company of all amounts due with
respect to the Notes and the performance by the Company of its obligations under this Agreement
will be absolutely and unconditionally guaranteed by a Subsidiary Guarantor pursuant to the
Subsidiary Guaranty Agreement dated as of even date herewith, which shall be substantially in the
form of Exhibit 2.2 attached hereto, and otherwise in accordance with the provisions of Section 9.7
hereof (the “Subsidiary Guaranty”).

          (b) If the Company sells, leases or otherwise disposes of all or substantially all of the
assets or capital stock of a Subsidiary Guarantor to any Person (other than an Affiliate), the
holders of the Notes agree to discharge and release such Subsidiary Guarantor from the Subsidiary
Guaranty upon the written request of the Company, provided that at the time of such release and
discharge, the Company shall deliver a certificate of a Responsible Officer to the holders of the
Notes stating that no Default or Event of Default exists.

Section 3. Closing.

     The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the
offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603 at 10:00 a.m.
Central time, at a closing (the “Closing”) on April 15, 2008 or on such other Business Day
thereafter on or prior to April 30, 2008 as may be agreed upon by the Company and the Purchasers.
On the Closing Date, the Company will deliver to each Purchaser the Notes to be purchased by such
Purchaser in the form of a single Note (or such greater number of Notes in denominations of at
least $100,000 as such Purchaser may request) dated the date of the Closing Date and registered in
such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such
Purchaser to the Company or its order of immediately available funds in the amount of the purchase
price therefor by wire transfer of immediately available funds for the account of the Company to
Account Number 8666712553, at Bank of America, Chicago, Illinois, ABA Number 026009593, in
the Account Name of “Stericycle, Inc.”. If, on the Closing Date, the Company shall fail to tender
such Notes to any Purchaser as provided above in this Section 3, or any of the conditions specified
in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall,
at such Purchaser’s election, be relieved of all further obligations under this Agreement, without
thereby waiving any rights such Purchaser may have by reason of such failure or such
nonfulfillment.

Section 4. Conditions to Closing.

     Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at
the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the
Closing, of the following conditions applicable to the Closing Date:

-2-

 

     Section 4.1. Representations and Warranties.

          (a) Representations and Warranties of the Company. The representations and warranties of the
Company in this Agreement shall be correct when made and at the time of the Closing.

          (b) Representations and Warranties of the Subsidiary Guarantor. The representations and
warranties of the Subsidiary Guarantor in the Subsidiary Guaranty shall be correct when made and at
the time of the Closing.

     Section 4.2. Performance; No Default.  The Company and the Subsidiary Guarantor shall
have performed and complied with all agreements and conditions contained in this Agreement and the
Subsidiary Guaranty required to be performed or complied with by the Company and the Subsidiary
Guarantor prior to or at the Closing, and after giving effect to the issue and sale of the Notes
(and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event
of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall
have entered into any transaction since the date of the Memorandum that would have been prohibited
by Section 10 hereof had such Section applied since such date.

     Section 4.3. Compliance Certificates.

          (a) Officer’s Certificate of the Company. The Company shall have delivered to such Purchaser
an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in
Sections 4.1, 4.2 and 4.9 have been fulfilled.

          (b) Secretary’s Certificate of the Company. The Company shall have delivered to such
Purchaser a certificate, dated the Closing Date, certifying as to the resolutions attached thereto
and other corporate proceedings relating to the authorization, execution and delivery of the Notes
and this Agreement.

          (c) Officer’s Certificate of the Subsidiary Guarantor. The Subsidiary Guarantor shall have
delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the
conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.

          (d) Secretary’s Certificate of the Subsidiary Guarantor. The Subsidiary Guarantor shall have
delivered to such Purchaser a certificate, dated the Closing Date, certifying as to the resolutions
attached thereto and other corporate proceedings relating to the authorization, execution and
delivery of the Subsidiary Guaranty.

     Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in
form and substance satisfactory to such Purchaser, dated the Closing Date (a) from Johnson and
Colmar, special counsel for the Company, covering the matters set forth in Exhibit 4.4(a) and
covering such other matters incident to the transactions contemplated hereby as such Purchaser or
its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such
opinion to the Purchasers), and (b) from Chapman and Cutler, LLP, the Purchasers’ special

-3-

 

counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(b) and
covering such other matters incident to such transactions as such Purchaser may reasonably request.

     Section 4.5. Purchase Permitted By Applicable Law, Etc. On the date of the Closing
such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section
1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies
without restriction as to the character of the particular investment, (b) not violate any
applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of
Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or regulation was not in
effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an
Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably
specify to enable such Purchaser to determine whether such purchase is so permitted.

     Section 4.6. Sale of Other Notes.  Contemporaneously with the Closing the Company
shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be
purchased by it at the Closing as specified in Schedule A.

     Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of Section
15.1, the Company shall have paid on or before the Closing Date, the reasonable fees, reasonable
charges and reasonable disbursements of the Purchasers’ special counsel referred to in Section 4.4
to the extent reflected in a statement of such counsel rendered to the Company at least one
Business Day prior to the Closing Date.

     Section 4.8. Private Placement Number. A Private Placement Number issued by Standard
& Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained for the Notes.

     Section 4.9. Changes in Corporate Structure.  Neither the Company nor the Subsidiary
Guarantor shall have changed its jurisdiction of organization or, except as reflected in Schedule
4.9, been a party to any merger or consolidation, or shall have succeeded to all or any substantial
part of the liabilities of any other entity, at any time following the date of the most recent
financial statements referred to in Schedule 5.5.

     Section 4.10. Subsidiary Guaranty. The Subsidiary Guaranty shall have been duly authorized,
executed and delivered by the Subsidiary Guarantor, shall constitute the legal, valid and binding
contract and agreement of the Subsidiary Guarantor and such Purchaser shall have received a true,
correct and complete copy thereof.

     Section 4.11. Consents and Approvals. The Company shall have obtained any consents or
approvals required to be obtained from any holder or holders of any outstanding security of the
Company and any amendments of agreements pursuant to which any security may have been issued which
shall be necessary to permit the consummation of the transactions contemplated by this Agreement.

-4-

 

     Section 4.12. Funding Instructions. At least three Business Days prior to the date
of the Closing, each Purchaser shall have received written instructions signed by a Responsible
Officer on letterhead of the Company confirming the information specified in Section 3 including
(i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii)
the account name and number into which the purchase price for the Notes is to be deposited.

     Section 4.13. Proceedings and Documents. All corporate and other organizational
proceedings in connection with the transactions contemplated by this Agreement and all documents
and instruments incident to such transactions shall be satisfactory to such Purchaser and its
special counsel, and such Purchaser and its special counsel shall have received all such
counterpart originals or certified or other copies of such documents as such Purchaser or such
special counsel may reasonably request.

Section 5. Representations and Warranties of the Company.

          The Company represents and warrants to each Purchaser that:

     Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to
perform the provisions hereof and thereof.

     Section 5.2. Authorization, Etc. This Agreement and the Notes have been duly
authorized by all necessary corporate action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid and
binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be limited by (i)
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     Section 5.3. Disclosure. The Company, through its agent, Banc of America Securities
LLC, has delivered to each Purchaser a copy of a Private Placement Memorandum, dated March, 2008
(the “Memorandum"), relating to the transactions contemplated hereby. The Memorandum fairly
describes, in all material respects, the general nature of the business and principal properties of
the Company and its Subsidiaries. This Agreement, the Memorandum, the documents, certificates or
other writings delivered to the Purchasers by or on behalf of the Company in connection with the
transactions contemplated hereby and the financial statements listed in Schedule 5.5, in each case,
delivered to the Purchasers prior to March 25, 2008 (this Agreement, the Memorandum and such
documents, certificates or other writings and such financial statements being referred to,
collectively, as the “Disclosure Documents”), taken as a

-5-

 

whole, do not contain any untrue statement
of a material fact or omit to state any material fact necessary to make the statements therein not
misleading in light of the circumstances under which they were made. Except as disclosed in the
Disclosure Documents, since December 31, 2007, there has been no change in the financial condition,
operations, business or properties of the Company or any of its Subsidiaries except changes that
individually or in the aggregate would not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that would reasonably be expected to have a Material
Adverse Effect that has not been set forth herein or in the Disclosure Documents.

     Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates. (a)
Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s
Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its
organization, and the percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, and all other Investments of
the Company and its Subsidiaries, (ii) of the Company’s Affiliates, other than Subsidiaries, and
(iii) of the Company’s directors and senior officers.

          (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary
free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

          (c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly
organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease and to transact the business it transacts and
proposes to transact.

          (d) No Subsidiary is a party to, or otherwise subject to, any legal, regulatory, contractual
or other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and
customary limitations imposed by corporate law or similar statutes) restricting the ability of such
Subsidiary to pay dividends out of profits or make any other similar distributions of profits to
the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar
equity interests of such Subsidiary.

     Section 5.5. Financial Statements; Material Liabilities. The Company has delivered
to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on
Schedule 5.5. All of said financial statements (including in each case the related schedules and
notes) fairly present in all material respects the consolidated financial position of the Company
and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated
results of their operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial statements, to normal

-6-

 

year-end adjustments). The Company and its Subsidiaries do not have any Material liabilities that
are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

     Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery
and performance by the Company of this Agreement and the Notes will not (a) contravene, result in
any breach of, or constitute a default under, or result in the creation of any Lien in respect of
any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or
instrument to which the Company or any Subsidiary is bound or by which the Company or any
Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to the Company or any
Subsidiary, or (c) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary.

     Section 5.7. Governmental Authorizations, Etc. No consent, approval or authorization
of, or registration, filing or declaration with, any Governmental Authority is required in
connection with the execution, delivery or performance by the Company of this Agreement or the
Notes.

     Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There
are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company,
threatened against or affecting the Company or any Subsidiary or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, would reasonably be expected to have a Material
Adverse Effect.

          (b) Neither the Company nor any Subsidiary is in default under any term of any agreement or
instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling
of any court, arbitrator or Governmental Authority or is in violation of any applicable law,
ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot
Act) of any Governmental Authority, which default or violation, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect.

     Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that
are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent, except for any taxes and assessments (a) the amount of
which is not individually or in the aggregate Material or (b) the amount, applicability or validity
of which is currently being contested in good faith by appropriate proceedings and with respect to
which the Company or a Subsidiary, as the case may be, has established adequate reserves in
accordance with GAAP. The Company knows of no basis for any other tax or assessment that would
reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on
the books of the Company and its Subsidiaries in respect of federal,

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state or other taxes for all
fiscal periods are adequate. The federal income tax liabilities of the Company and its
Subsidiaries have been finally determined (whether by reason of completed audits or the statute of
limitations having run) for all fiscal years up to and including the fiscal year ended December 31,
2004.

     Section 5.10. Title to Property; Leases. The Company and its Subsidiaries have good
and sufficient title to their respective properties which the Company and its Subsidiaries own or
purport to own that individually or in the aggregate are Material, including all such properties
reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have
been acquired by the Company or any Subsidiary after said date (except as sold or otherwise
disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by
this Agreement. All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects.

     Section 5.11. Licenses, Permits, Etc. Except as disclosed in Schedule 5.11,

          (a) the Company and its Subsidiaries own or possess all licenses, permits, franchises,
authorizations, patents, copyrights, proprietary software, service marks, trademarks and
trade names, or rights thereto, that individually or in the aggregate are Material, without
known conflict with the rights of others;

          (b) to the best knowledge of the Company, no product of the Company or any of its
Subsidiaries infringes in any Material respect any license, permit, franchise,
authorization, patent, copyright, proprietary software, service mark, trademark, trade name
or other right owned by any other Person; and

          (c) to the best knowledge of the Company, there is no Material violation by any Person
of any right of the Company or any of its Subsidiaries with respect to any patent,
copyright, proprietary software, service mark, trademark, trade name or other right owned or
used by the Company or any of its Subsidiaries.

     Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have
operated and administered each Plan in compliance with all applicable laws except for such
instances of noncompliance as have not resulted in and would not reasonably be expected to result
in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or
condition has occurred or exists that would reasonably be expected to result in the incurrence of
any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any
of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant
to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or
412 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be
individually or in the aggregate Material.

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          (b) Neither the Company nor any ERISA Affiliate maintains or has maintained a Plan that is or
was subject to the “minimum funding standards” under section 302 of ERISA or that is or was subject
to Title IV of ERISA.

          (c) The Company and its ERISA Affiliates have not incurred any withdrawal liabilities (and are
not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.

          (d) The expected post-retirement benefit obligation (determined as of the last day of the
Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
section 4980B of the Code) of the Company and its Subsidiaries is not Material.

          (e) The execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of
ERISA or in connection with which a tax would be imposed pursuant to Section 4975(c)(1)(A)-(D) of
the Code. The representation by the Company in the first sentence of this Section 5.12(e) is made
in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.3 as
to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by
such Purchaser.

     Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting
on the Company’s behalf has offered the Notes or any similar securities for sale to, or solicited
any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof
with, any Person other than the Purchasers and not more than 75 other Institutional Investors, each
of which has been offered the Notes in connection with a private sale for investment. Neither the
Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of
the Notes to the registration requirements of Section 5 of the Securities Act or to the
registration requirements of any securities or blue sky laws of any applicable jurisdiction.

     Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the
proceeds of the sale of the Notes to refinance existing Debt and for general corporate purposes of
the Company. No part of the proceeds from the sale of the Notes hereunder will be used, directly
or indirectly, for the purpose of buying or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the
purpose of buying or carrying or trading in any securities under such circumstances as to involve
the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or
dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute
more than 5% of the value of the consolidated assets of the Company and its Subsidiaries and the
Company does not have any present intention that margin stock will constitute more than 5% of the
value of such assets. As used in this Section, the terms “margin stock” and “purpose of buying or
carrying” shall have the meanings assigned to them in said Regulation U.

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     Section 5.15. Existing Debt; Future Liens. (a) Except as described therein, Schedule 5.15
sets forth a complete and correct list of all outstanding Debt of the Company and its Subsidiaries
as of December 31, 2007 (including a description of the obligors and obligees, principal amount
outstanding and collateral therefor, if any, and Guaranty thereof, if any), since which date there
has been no Material change in the amounts, interest rates, sinking funds, installment payments or
maturities of the Debt of the Company or its Subsidiaries. Neither the Company nor any Subsidiary
is in default and no waiver of default is currently in effect, in the payment of any principal or
interest on any Debt of the Company or such Subsidiary, and no event or condition exists with
respect to any Debt of the Company or any Subsidiary, that would permit (or that with notice or the
lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and
payable before its stated maturity or before its regularly scheduled dates of payment.

          (b) Except as disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed or
consented to cause or permit in the future (upon the happening of a contingency or otherwise) any
of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by
Section 10.3.

          (c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Debt of the Company or such Subsidiary, any
agreement relating thereto or any other agreement (including, but not limited to, its charter or
other organizational document) which limits the amount of, or otherwise imposes restrictions on the
incurring of, Debt of the Company, except as specifically indicated in Schedule 5.15.

          Section 5.16. Foreign Assets Control Regulations, Etc. (a) Neither the sale of the
Notes by the Company hereunder nor its use of the proceeds thereof will violate the Trading with
the Enemy Act, as amended, or any of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto.

          (b) Neither the Company nor any Subsidiary is a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or
in Section 1 of the Anti-Terrorism Order or, to the knowledge of the Company, engages in any
dealings or transactions with any such Person. The Company and its Subsidiaries are in compliance,
in all material respects, with the USA Patriot Act.

          (c) No part of the proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such
Act applies to the Company.

     Section 5.17. Status under Certain Statutes. Neither the Company nor any Subsidiary
is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility

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Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended.

     Section 5.18. Environmental Matters. (a) Neither the Company nor any Subsidiary has knowledge
of any liability or has received any notice of any liability, and no proceeding has been instituted
raising any liability against the Company or any of its Subsidiaries or any of their respective
real properties now or formerly owned, leased or operated by any of them, or other assets, alleging
any damage to the environment or violation of any Environmental Laws, except, in each case, such as
would not reasonably be expected to result in a Material Adverse Effect.

          (b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to
any liability, public or private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now or formerly owned, leased
or operated by any of them or to other assets or their use, except, in each case, such as would not
reasonably be expected to result in a Material Adverse Effect.

          (c) Neither the Company nor any of its Subsidiaries has stored any Hazardous Materials on real
properties now or formerly owned, leased or operated by any of them and has not disposed of any
Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that
would reasonably be expected to result in a Material Adverse Effect.

          (d) All buildings on all real properties now owned, leased or operated by the Company or any
of its Subsidiaries are in compliance with applicable Environmental Laws, except where failure to
comply would not reasonably be expected to result in a Material Adverse Effect.

     Section 5.19. Notes Rank Pari Passu. The obligations of the Company under this Agreement and
the Notes rank pari passu in right of payment with all other senior unsecured Debt (actual or
contingent) of the Company, including, without limitation, all senior unsecured Debt of the Company
described in Schedule 5.15 hereto.

Section 6. Representations of the Purchaser.

     Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is
purchasing the Notes for its own account or for one or more separate accounts maintained by it or
for the account of one or more pension or trust funds and not with a view to the distribution
thereof (other than any Notes purchased by Banc of America Securities LLC on the Closing Date which
are intended to be resold to a “qualified institutional buyer” pursuant to Rule 144A of the
Securities Act), provided that the disposition of such Purchaser’s or such pension or trust funds’
property shall at all times be within such Purchaser’s or such pension or trust funds’ control.
Each Purchaser understands that the Notes have not been registered under the Securities Act and may
be resold only if registered pursuant to the provisions of the Securities Act or if an exemption
from registration is available, except under circumstances where neither such registration nor such
an exemption is required by law, and that the Company is not required to register the Notes.

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     Section 6.2. Accredited Investor. Each Purchaser represents that it is an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act
acting for its own account (and not for the account of others) or as a fiduciary or agent for
others (which others are also “accredited investors”). Each Purchaser further represents that
such Purchaser has had the opportunity to ask questions of the Company and received answers
concerning the terms and conditions of the sale of the Notes.

     Section 6.3. Source of Funds. Each Purchaser severally represents that at least one of the
following statements is an accurate representation as to each source of funds (a “Source”) to be
used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser
hereunder:

          (a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in
respect of which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance Commissioners (the
“NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any
employee benefit plan together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the
same employee organization in the general account do not exceed 10% of the total reserves
and liabilities of the general account (exclusive of separate account liabilities) plus
surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of
domicile; or

          (b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or

          (c) the Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE
91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or
employee organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or

          (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s
assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by

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such QPAM, exceed 20% of the total client assets
managed by
such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, as of the last day of its most recent calendar quarter, the QPAM does not own a
10% or more interest in the Company and no person controlling or controlled by the QPAM
(applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 20% or
more interest in the Company (or less than 20% but greater than 10%, if such person
exercises control over the management or policies of the Company by reason of its ownership
interest) and (i) the identity of such QPAM and (ii) the names of all employee benefit plans
whose assets are included in such investment fund have been disclosed to the Company in
writing pursuant to this clause (d); or

          (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled
by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption)
owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the
name(s) of the employee benefit plan(s) whose assets constitute the Source have been
disclosed to the Company in writing pursuant to this clause (e); or

          (f) the Source is a governmental plan; or

          (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this clause (g); or

          (h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.

As used in this Section 6.3, the terms “employee benefit plan,” “governmental plan,” and “separate
account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

Section 7. Information as to Company.

     Section 7.1. Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

          (a) Quarterly Statements — within 45 days after the end of each quarterly fiscal
period in each fiscal year of the Company (other than the last quarterly fiscal period of
each such fiscal year),

          (i) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such quarter, and

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          (ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with such
quarter,

setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from year-end adjustments, provided that filing with the Securities and
Exchange Commission within the time period specified above the Company’s Quarterly Report on
Form 10-Q prepared in compliance with the requirements therefor shall be deemed to satisfy
the requirements of this Section 7.1(a);

          (b) Annual Statements — within 105 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 year, and

          (ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent certified public accountants of recognized national standing, which
opinion shall state that such financial statements present fairly, in all material respects,
the financial position of the companies being reported upon and their results of operations
and cash flows and have been prepared in conformity with GAAP, and that the examination of
such accountants in connection with such financial statements has been made in accordance
with generally accepted auditing standards, and that such audit provides a reasonable basis
for such opinion in the circumstances, provided that filing with the Securities and Exchange
Commission within the time period specified above of the Company’s Annual Report on Form
10-K for such fiscal year (together with the Company’s annual report to shareholders, if
any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor shall be deemed to satisfy the requirements of this Section 7.1(b);

          (c) SEC and Other Reports — except for filings referred to in Section 7.1(a) and (b)
above, promptly upon their becoming available and, to the extent applicable, one copy of (i)
each financial statement, report, notice or proxy statement sent by the Company or any
Subsidiary to public securities holders generally, and (ii) each regular or periodic report,
each registration statement (without exhibits except as expressly requested by such holder),
and each prospectus and all amendments thereto filed by the Company or any Subsidiary with
the Securities and Exchange Commission, if any and

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(iii) all press releases and other
statements made available generally by the Company or any Subsidiary to the public
concerning developments that are Material;

     (d) Notice of Default or Event of Default — promptly, and in any event within five
Business Days after a Responsible Officer becomes aware of the existence of any Default or
Event of Default or that any Person has given any notice or taken any action with respect to
a claimed default hereunder or that any Person has given any notice or taken any action with
respect to a claimed default of the type referred to in Section 11(f), a written notice
specifying the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

     (e) ERISA Matters — promptly, and in any event within five Business Days after a
Responsible Officer becomes aware of any of the following, a written notice setting forth
the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes
to take with respect thereto:

          (i) with respect to any Plan, any reportable event, as defined in Section
4043(c) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date thereof; or

          (ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

          (iii) any event, transaction or condition that would result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the imposition of a penalty or excise tax under the provisions of the Code
relating to employee benefit plans, or the imposition of any Lien on any of the
rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title
I or IV of ERISA or such penalty or excise tax provisions, if such liability or
Lien, taken together with any other such liabilities or Liens then existing, would
reasonably be expected to have a Material Adverse Effect;

     (f) Notices from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or
state Governmental Authority relating to any order, ruling, statute or other law or
regulation that would reasonably be expected to have a Material Adverse Effect; and

     (g) Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or

-15-

 

properties of the Company or any of its Subsidiaries or relating to the ability of the
Company to perform its obligations hereunder and under the Notes as from time to time may be
reasonably requested by any such holder of Notes or such information regarding the Company
required to satisfy the requirements of 17 C.F.R. §230.144A, as amended from time to time,
in connection with any contemplated transfer of the Notes.

     Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of
a Senior Financial Officer setting forth:

          (a) Covenant Compliance — the information required in order to establish whether the
Company was in compliance with the requirements of Section 10.1 through Section 10.3 hereof,
inclusive, and Section 10.4 during the quarterly or annual period covered by the statements
then being furnished (including with respect to each such Section, where applicable, the
calculations of the maximum or minimum amount, ratio or percentage, as the case may be,
permissible under the terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and

          (b) Event of Default — a statement that such officer has reviewed the relevant terms
hereof and that such review shall not have disclosed the existence during the quarterly or
annual period covered by the statements then being furnished of any
condition or event that constitutes a Default or an Event of Default or, if any such
condition or event existed or exists, specifying the nature and period of existence thereof
and what action the Company shall have taken or proposes to take with respect thereto.

     Section 7.3. Visitation. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

          (a) No Default — if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company, which
consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each Subsidiary, all at such reasonable times and
as often as may be reasonably requested in writing; and

          (b) Default — if a Default or Event of Default then exists, at the expense of the
Company, to visit and inspect any of the offices or properties of the Company or any
Subsidiary, to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective officers and independent public accountants (and
by this provision the Company authorizes said accountants to discuss the affairs, finances
and accounts of the Company and its Subsidiaries), all at such times and as often as may be
requested.

-16-

 

Section 8. Payment of the Notes.

     Section 8.1. Required Prepayments. The entire unpaid principal amount of the Notes shall
become due and payable on April 15, 2015.

     Section 8.2.
Optional Prepayments with Make-Whole Amount. The Company may, at its option,
upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes,
in an amount not less than 10% of the original aggregate principal amount of the Notes to be
prepaid in the case of a partial prepayment, at 100% of the principal amount so prepaid, together
with interest accrued thereon to the date of such prepayment, plus the Make-Whole Amount, if any,
determined for the prepayment date with respect to such principal amount of each Note then
outstanding to be prepaid. The Company will give each holder of Notes written notice of each
optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to
the date fixed for such prepayment. Each such notice shall specify such date (which shall be a
Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the
principal amount of each Note held by such holder to be prepaid (determined in accordance with
Section 8.3), and the interest to be paid on the prepayment date with respect to such principal
amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as
to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the
date of such notice were the date of the prepayment), setting forth the details of such
computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder
of Notes to be prepaid a certificate of a Senior Financial Officer specifying the calculation of
each such Make-Whole Amount as of the specified prepayment date.

     Section 8.3. Allocation of Partial Prepayments. In the case of each partial prepayment of the
Notes pursuant to the provisions of Section 8.2, the principal amount of the Notes to be prepaid
shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as
practicable, to the respective unpaid principal amounts thereof.

     Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment (which shall be a Business Day), together with
interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if
any. From and after such date, unless the Company shall fail to pay such principal amount when so
due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be
surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in
lieu of any prepaid principal amount of any Note.

     Section 8.5. Purchase of Notes. The Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
except (a) upon the payment or prepayment of the Notes in accordance with the terms of this
Agreement and the Notes or (b) pursuant to a written offer to purchase any outstanding Notes made
by the Company or an Affiliate pro rata to the holders of the Notes upon the same terms and
conditions. The Company will promptly cancel all Notes acquired by it or any

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Affiliate pursuant to
any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no
Notes may be issued in substitution or exchange for any such Notes.

     Section 8.6. Make-Whole Amount. The term “Make-Whole Amount” means with respect to any Note
an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments
with respect to the Called Principal of such Note, minus the amount of such Called Principal,
provided that the Make-Whole Amount may in no event be less than zero. For the purposes of
determining the Make-Whole Amount, the following terms have the following meanings with respect to
the Called Principal of such Note:

          “Called Principal” means, the principal of any Note that is to be prepaid pursuant to
Section 8.2 or has become or is declared to be immediately due and payable pursuant to
Section 12.1, as the context requires.

          “Discounted Value” means, the amount obtained by discounting all Remaining Scheduled
Payments from their respective scheduled due dates to the Settlement Date with respect to
such Called Principal, in accordance with accepted financial practice and at a discount
factor (applied on the same periodic basis as that on which interest on such Note is
payable) equal to the Reinvestment Yield.

          “Reinvestment Yield” means, 0.50% plus the yield to maturity calculated by using (i)
the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day
preceding the Settlement Date on screen “PX-1” on the Bloomberg Financial Market Service (or
such other display as may replace Page PX1) on Bloomberg for the most recently issued
actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining
Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are
not reported as of such time or the yields reported as of such time are not ascertainable
(including by way of interpolation), the Treasury Constant Maturity Series Yields reported,
for the latest day for which such yields have been so reported as of the second Business Day
preceding the Settlement Date, in Federal Reserve Statistical Release H.15 (519) (or any
comparable successor publication) for actively traded U.S. Treasury securities having a
constant maturity equal to the Remaining Average Life of such Called Principal as of such
Settlement Date.

          In the case of each determination under clause (i) or clause (ii), as the case may be,
of the preceding paragraph, such implied yield will be determined, if necessary, by (a)
converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with
accepted financial practice and (b) interpolating linearly between (1) the applicable U.S.
Treasury security with the maturity closest to and greater than such Remaining Average Life
and (2) the applicable U.S. Treasury security with the maturity closest to and less than
such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of
decimal places as appears in the interest rate of the applicable Note.

          “Remaining Average Life” means, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the
products obtained by multiplying (a) the principal component of each Remaining

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Scheduled
Payment by (b) the number of years (calculated to the nearest one-twelfth year) that will
elapse between the Settlement Date and the scheduled due date of such Remaining Scheduled
Payment.

     “Remaining Scheduled Payments” means, all payments of such Called Principal and
interest thereon that would be due after the Settlement Date if no payment of such Called
Principal were made prior to its scheduled due date, provided that if such Settlement Date
is not a date on which interest payments are due to be made under the terms of such Note,
then the amount of the next succeeding scheduled interest payment will be reduced by the
amount of interest accrued to such Settlement Date and required to be paid on such
Settlement Date pursuant to Section 8.2 or Section 12.1.

     “Settlement Date” means, the date on which such Called Principal is to be prepaid
pursuant to Section 8.2 or has become or is declared to be immediately due and payable
pursuant to Section 12.1, as the context requires.

     Section 8.7. Change in Control. (a) Notice of Change in Control or Control Event. The Company
will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any
Change in Control or Control Event, give written notice of such Change in Control or Control Event
to each holder of the Notes unless notice in respect of such Change in Control (or the Change in
Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of
this Section 8.7. If a Change in Control has occurred, such notice shall contain and constitute an
offer to prepay the Notes as described in subparagraph (c) of this Section 8.7 and shall be
accompanied by the certificate described in subparagraph (g) of this Section 8.7.

          (b) Condition to Company Action. The Company will not take any action that consummates or
finalizes a Change in Control unless (i) at least 15 Business Days prior to such action it shall
have given to each holder of Notes written notice containing and constituting an offer to prepay
Notes as described in subparagraph (c) of this Section 8.7, accompanied by the certificate
described in subparagraph (g) of this Section 8.7, and (ii) contemporaneously with such action, it
prepays all Notes required to be prepaid in accordance with this Section 8.7.

          (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by subparagraphs (a) and
(b) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section
8.7, all, but not less than all, the Notes held by each holder (in this case only, “holder” in
respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean
such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date"). If such
Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this
Section 8.7, such date shall be not less than 20 days and not more than 30 days after the date of
such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed
Prepayment Date shall be the 20th day after the date of such offer).

     (d) Acceptance; Rejection. A holder of the Notes may accept the offer to prepay made pursuant
to this Section 8.7 by causing a notice of such acceptance to be delivered to the Company at least
5 Business Days prior to the Proposed Prepayment Date. A failure by a holder

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of the Notes to
respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to constitute a
rejection of such offer by such holder.

          (e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be
at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the
date of prepayment. The prepayment shall be made on the Proposed Prepayment Date except as
provided in subparagraph (f) of this Section 8.7.

          (f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes
pursuant to the offers required by subparagraph (b) and accepted in accordance with subparagraph
(d) of this Section 8.7 is subject to the occurrence of the Change in Control in respect of which
such offers and acceptances shall have been made. In the event that such
Change in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment
shall be deferred until and shall be made on the date on which such Change in Control occurs. The
Company shall keep each holder of Notes reasonably and timely informed of (i) any such deferral of
the date of prepayment, (ii) the date on which such Change in Control and the prepayment are
expected to occur, and (iii) any determination by the Company that efforts to effect such Change in
Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to
this Section 8.7 in respect of such Change in Control shall be deemed rescinded).

          (g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7 shall
be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated
the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made
pursuant to this Section 8.7; (iii) the principal amount of each Note offered to be prepaid; (iv)
the interest that would be due on each Note offered to be prepaid, accrued to the Proposed
Prepayment Date; (v) that the conditions of this Section 8.7 have been fulfilled; and (vi) in
reasonable detail, the nature and date or proposed date of the Change in Control.

          (h) “Change in Control” Defined. “Change in Control” means any of the following events or
circumstances:

if any Person or Persons acting in concert (other than the Persons
who own voting stock of the Company on the date hereof), together
with Affiliates thereof, shall in the aggregate, directly or
indirectly, control or own (beneficially or otherwise) more than 50%
(by number of shares) of the issued and outstanding voting stock of
the Company; or

          (i) “Control Event” Defined. “Control Event” means:

          (i) the execution by the Company or any of its Subsidiaries or Affiliates of any
agreement or letter of intent with respect to any proposed transaction or event or series of
transactions or events which, individually or in the aggregate, may reasonably be expected
to result in a Change in Control,

-20-

 

          (ii) the execution of any written agreement which, when fully performed by the parties
thereto, would result in a Change in Control, or

          (iii) the making of any written offer by any person (as such term is used in section
13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or
related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange
Act as in effect on the date of the Closing) to the holders of the common stock of the
Company, which offer, if accepted by the requisite number of holders, would result in a
Change in Control.

Section 9. Affirmative Covenants.

          The Company covenants that so long as any of the Notes are outstanding:

     Section 9.1. Compliance with Law. Without limiting Section 10.7, the Company will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot
Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the ownership of their
respective properties or to the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     Section 9.2. Insurance. The Company will, and will cause each of its Subsidiaries to,
maintain, with financially sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such types, on such terms
and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves
are maintained with respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated except for any
non-maintenance that would not reasonably be expected to have a Material Adverse Effect.

     Section 9.3. Maintenance of Properties. The Company will, and will cause each of its
Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties
in good repair, working order and condition (other than ordinary wear and tear), so that the
business carried on in connection therewith may be properly conducted at all times, provided that
this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and
the maintenance of any of its properties if such discontinuance is desirable in the conduct of its
business and the Company has concluded that such discontinuance would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,
governmental charges, or levies imposed on them or any of their properties, assets, income or

-21-

 

franchises, to the extent such taxes and assessments have become due and payable and before they
have become delinquent and all claims for which sums have become due and payable that have or might
become a Lien on properties or assets of the Company or any Subsidiary not permitted by Section
10.3, provided that neither the Company nor any Subsidiary need pay any such tax or assessment or
claims if (i) the amount, applicability or validity thereof is contested by the Company or such
Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a
Subsidiary has
established adequate reserves therefor in accordance with GAAP on the books of the Company or such
Subsidiary or (ii) the non-filing or nonpayment, as the case may be, of all such taxes and
assessments in the aggregate would not reasonably be expected to have a Material Adverse Effect.

     Section 9.5. Existence, Etc. Subject to Sections 10.4 and 10.5, the Company will at all times
preserve and keep in full force and effect its existence, and will at all times preserve and keep
in full force and effect the existence of each of its Subsidiaries (unless merged into the Company
or a Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the
good faith judgment of the Company, the termination of or failure to preserve and keep in full
force and effect such existence, right or franchise would not, individually or in the aggregate, to
have a Material Adverse Effect.

     Section 9.6. Notes to Rank Pari Passu. The Notes and all other obligations under this
Agreement of the Company are and at all times shall remain direct and unsecured obligations of the
Company ranking pari passu as against the assets of the Company with all other Notes from time to
time issued and outstanding hereunder without any preference among themselves and pari passu with
all Debt outstanding under the Bank Credit Agreement and all other present and future unsecured
Debt (actual or contingent) of the Company which is not expressed to be subordinate or junior in
rank to any other unsecured Debt of the Company.

     Section 9.7. Additional Subsidiary Guarantors. The Company will cause (i) each Material
Subsidiary and (ii) any other Subsidiary which is required by the terms of the Bank Credit
Agreement to become a party to, or otherwise guarantee, Debt in respect of the Bank Credit
Agreement (other than, in each case, any Foreign Subsidiary that is a borrower, or a guarantor of
Debt of any other Foreign Subsidiary, under the Bank Credit Agreement), to enter into the
Subsidiary Guaranty and deliver to each of the holders of the Notes the following items:

          (a) a joinder agreement in respect of the Subsidiary Guaranty;

          (b) a certificate signed by an authorized Responsible Officer of the Company making
representations and warranties to the effect of those contained in Sections 5.4, 5.6 and
5.7, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and

          (c) an opinion of counsel (who may be in-house counsel for the Company) addressed to
each of the holders of the Notes satisfactory to the Required Holders, to the effect that
the Subsidiary Guaranty by such Person has been duly authorized, executed and delivered and
that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement
of such Person enforceable in accordance with its terms, except

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as an enforcement of such
terms may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws
affecting the enforcement of creditors’ rights generally and by general equitable
principles.

     Section 9.8. Books and Records. The Company will, and will cause each of its Subsidiaries to,
maintain proper books of record and account in conformity with GAAP and all applicable requirements
of any Governmental Authority having legal or regulatory jurisdiction over the Company or such
Subsidiary, as the case may be.

Section 10. Negative Covenants.

          The Company covenants that so long as any of the Notes are outstanding:

     Section 10.1. Consolidated Leverage Ratio. The Company will not at any time permit the
Consolidated Leverage Ratio to exceed 3.75 to 1.00.

     Section 10.2. Interest Coverage Ratio. The Company will not permit the ratio of Consolidated
EBITDA to Consolidated Interest Charges for each period of four consecutive fiscal quarters
(calculated as at the end of each fiscal quarter for the four consecutive fiscal quarters then
ended) to be less than 3.00 to 1.00.

     Section 10.3. Limitation on Liens. The Company will not, and will not permit any of its
Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the
happening of a contingency or otherwise) any Lien on or with respect to any property or asset
(including, without limitation, any document or instrument in respect of goods or accounts
receivable) of the Company or any such Subsidiary, whether now owned or held or hereafter acquired,
or any income or profits therefrom, or assign or otherwise convey any right to receive income or
profits (unless it makes, or causes to be made, effective provision whereby the Notes will be
equally and ratably secured with any and all other obligations thereby secured, such security to be
pursuant to an agreement reasonably satisfactory to the Required Holders and, in any such case, the
Notes shall have the benefit, to the fullest extent that, and with such priority as, the holders of
the Notes may be entitled under applicable law, of an equitable Lien on such property), except:

          (a) Liens for taxes, assessments or other governmental charges that are not yet due and
payable or the payment of which is not at the time required by Section 9.4;

          (b) any attachment or judgment Lien, unless the judgment it secures shall not, within
60 days after the entry thereof, have been discharged or execution thereof stayed pending
appeal, or shall not have been discharged within 60 days after the expiration of any such
stay;

          (c) Liens incidental to the conduct of business or the ownership of properties and
assets (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other
similar Liens for sums not yet due and payable) and Liens to secure the performance of bids,
tenders, leases, or trade contracts, or to secure statutory obligations

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(including
obligations under workers compensation, unemployment insurance and other
social security legislation), surety or appeal bonds or other Liens incurred in the ordinary
course of business and not in connection with the borrowing of money;

          (d) leases or subleases granted to others, easements, rights-of-way, restrictions and
other similar charges or encumbrances, in each case incidental to the ownership of property
or assets or the ordinary conduct of the business of the Company or any of its Subsidiaries,
or Liens incidental to minor survey exceptions and the like, provided that such Liens do
not, in the aggregate, materially detract from the value of such property;

          (e) Liens securing Debt of a Subsidiary to the Company or to a Subsidiary;

          (f) Liens existing as of the Closing Date and reflected in Schedule 10.3;

          (g) Liens incurred after the Closing Date given to secure the payment of the purchase
price incurred in connection with the acquisition, construction or improvement of property
(other than accounts receivable or inventory) useful and intended to be used in carrying on
the business of the Company or a Subsidiary, including Liens existing on such property at
the time of acquisition or construction thereof or Liens incurred within 365 days of such
acquisition or completion of such construction or improvement, provided that (i) the Lien
shall attach solely to the property acquired, purchased, constructed or improved; (ii) at
the time of acquisition, construction or improvement of such property (or, in the case of
any Lien incurred within 365 days of such acquisition or completion of such construction or
improvement, at the time of the incurrence of the Debt secured by such Lien), the aggregate
amount remaining unpaid on all Debt secured by Liens on such property, whether or not
assumed by the Company or a Subsidiary, shall not exceed the lesser of (y) the cost of such
acquisition, construction or improvement or (z) the Fair Market Value of such property (as
determined in good faith by one or more officers of the Company to whom authority to enter
into the transaction has been delegated by the board of directors of the Company); and (iii)
at the time of such incurrence and after giving effect thereto, no Default or Event of
Default would exist;

          (h) any Lien existing on property of a Person immediately prior to its being
consolidated with or merged into the Company or a Subsidiary or its becoming a Subsidiary,
or any Lien existing on any property acquired by the Company or any Subsidiary at the time
such property is so acquired (whether or not the Debt secured thereby shall have been
assumed), provided that (i) no such Lien shall have been created or assumed in contemplation
of such consolidation or merger or such Person’s becoming a Subsidiary or such acquisition
of property, (ii) each such Lien shall extend solely to the item or items of property so
acquired and, if required by the terms of the instrument originally creating such Lien,
other property which is an improvement to or is acquired for specific use in connection with
such acquired property, and (iii) at the time of such incurrence and after giving effect
thereto, no Default or Event of Default would exist;

          (i) any extensions, renewals or replacements of any Lien permitted by the preceding
subparagraphs (f), (g) and (h) of this Section 10.3, provided that (i) no

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additional
property shall be encumbered by such Liens, (ii) the unpaid principal amount
of the Debt or other obligations secured thereby shall not be increased on or after the date
of any extension, renewal or replacement, and (iii) at such time and immediately after
giving effect thereto, no Default or Event of Default shall have occurred and be continuing;
and

          (j) Liens securing Debt of the Company or any Subsidiary, excluding Debt otherwise
described in clauses (a) — (i) of this Section 10.3, not to exceed the greater of
$50,000,000 or 10% of Consolidated Net Worth, determined as of the end of the then most
recently ended fiscal quarter of the Company.

     Section 10.4. Sales of Assets. The Company will not, and will not permit any Subsidiary to,
sell, lease or otherwise dispose of any substantial part (as defined below) of the assets of the
Company and its Subsidiaries; provided, however, that the Company or any Subsidiary may sell, lease
or otherwise dispose of assets constituting a substantial part of the assets of the Company and its
Subsidiaries if such assets are sold in an arms length transaction and, at such time and after
giving effect thereto, no Default or Event of Default shall have occurred and be continuing and an
amount equal to the net proceeds received from such sale, lease or other disposition (but only with
respect to that portion of such assets that exceeds the definition of “substantial part” set forth
below) shall be used within 365 days of such sale, lease or disposition, in any combination:

          (1) to acquire productive assets used or useful in carrying on the business of the
Company and its Subsidiaries and having a value at least equal to the value of such assets
sold, leased or otherwise disposed of; and/or

          (2) to prepay or retire Senior Debt of the Company and/or its Subsidiaries, provided
that, to the extent any such proceeds are used to prepay the outstanding principal amount of
the Notes, such prepayment shall be made in accordance with the terms of Section 8.2;

provided further, that neither clause (1) nor clause (2) of this Section 10.4 shall be used to
permit the transfer of assets from the Company to any Subsidiary.

     As used in this Section 10.4, a sale, lease or other disposition of assets shall be deemed to
be a “substantial part” of the assets of the Company and its Subsidiaries if the book value of such
assets, when added to the book value of all other assets sold, leased or otherwise disposed of by
the Company and its Subsidiaries during the period of 12 consecutive months ending on the date of
such sale, lease or other disposition, exceeds 10% of the book value of Consolidated Total Assets,
determined as of the end of the fiscal quarter immediately preceding such sale, lease or other
disposition; provided that there shall be excluded from any determination of a “substantial part”
any (i) sale or disposition of assets in the ordinary course of business of the Company and its
Subsidiaries, (ii) any transfer of assets from (x) the Company to a Subsidiary Guarantor or (y) any
Subsidiary to the Company or a wholly-owned Subsidiary of the Company; provided that any transfer
of assets from a Subsidiary Guarantor must be to the Company or another Subsidiary Guarantor and
(iii) any sale or transfer of property acquired by the Company or any Subsidiary after the date of
this Agreement to any Person within 365 days following the

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acquisition or construction of such property by the Company or any Subsidiary if the Company
or a Subsidiary shall concurrently with such sale or transfer, lease such property, as lessee.

     Section 10.5. Merger and Consolidation. The Company will not, and will not permit any of its
Subsidiaries to, consolidate with or merge with any other Person or convey, transfer or lease
substantially all of its assets in a single transaction or series of transactions to any Person;
provided that:

     (1) any Subsidiary of the Company may (x) consolidate with or merge with, or convey,
transfer or lease substantially all of its assets in a single transaction or series of
transactions to, (i) the Company or a Subsidiary so long as in any merger or consolidation
involving the Company, the Company shall be the surviving or continuing corporation or (ii)
any other Person so long as the survivor is the Subsidiary, or (y) convey, transfer or lease
all of its assets in compliance with the provisions of Section 10.4; and

     (2) the foregoing restriction does not apply to the consolidation or merger of the
Company with, or the conveyance, transfer or lease of substantially all of the assets of the
Company in a single transaction or series of transactions to, any Person so long as:

          (a) the successor formed by such consolidation or the survivor of such merger
or the Person that acquires by conveyance, transfer or lease substantially all of
the assets of the Company as an entirety, as the case may be (the “Successor
Corporation”), shall be a solvent entity organized and existing under the laws of
the United States of America, any State thereof or the District of Columbia;

          (b) if the Company is not the Successor Corporation, such Successor Corporation
shall have executed and delivered to each holder of Notes its assumption of the due
and punctual performance and observance of each covenant and condition of this
Agreement and the Notes (pursuant to such agreements and instruments as shall be
reasonably satisfactory to the Required Holders), and the Successor Corporation
shall have caused to be delivered to each holder of Notes (A) an opinion of
nationally recognized independent counsel, to the effect that all agreements or
instruments effecting such assumption are enforceable in accordance with their terms
and (B) an acknowledgment from each Subsidiary Guarantor that the Subsidiary
Guaranty continues in full force and effect; and

          (c) immediately after giving effect to such transaction no Default or Event of
Default would exist (or would have existed on the last day of the fiscal quarter
immediately preceding such consolidation or merger and after giving effect thereto).

     Section 10.6. Line of Business. The Company will not and will not permit any Subsidiary to
engage in any business if, as a result, the general nature of the business in which the Company and
its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the
general nature of the business in
which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement
as described in the Memorandum.

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     Section 10.7. Transactions with Affiliates. The Company will not and will not permit any
Subsidiary to enter into directly or indirectly any Material transaction or Material group of
related transactions (including without limitation the purchase, lease, sale or exchange of
properties of any kind or the rendering of any service) with any Affiliate (other than the Company
or another Subsidiary), except in the ordinary course and upon fair and reasonable terms that are
not materially less favorable to the Company or such Subsidiary, taken as a whole, than would be
obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.

     Section 10.8. Terrorism Sanctions Regulations. The Company will not and will not permit any
Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and
Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism
Order or (b) engage in any dealings or transactions with any such Person.

Section 11. Events of Default.

          An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

          (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or

          (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

          (c) the Company defaults in the performance of or compliance with any term contained in
Section 10 or any Subsidiary Guarantor defaults in the performance of or compliance with any
term of the Subsidiary Guaranty beyond any period of grace or cure period provided with
respect thereto; or

          (d) the Company defaults in the performance of or compliance with any term contained
herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and
such default is not remedied within 30 days after the earlier of (i) a Responsible Officer
obtaining actual knowledge of such default or (ii) the Company receiving written notice of
such default from any holder of a Note (any such written notice to be identified as a
“notice of default” and to refer specifically to this paragraph (d) of Section 11); or

          (e) any Subsidiary Guaranty ceases to be a legally valid, binding and enforceable
obligation or contract of a Subsidiary Guarantor (other than upon a release of any
Subsidiary Guarantor from a Subsidiary Guaranty in accordance with the terms of Section
2.2(b) hereof), or any Subsidiary Guarantor or any party by, through or on
account of any such Person, challenges the validity, binding nature or enforceability of any
such Subsidiary Guaranty; or

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          (f) any representation or warranty made in writing by or on behalf of the Company or
Subsidiary Guarantor in this Agreement or any Subsidiary Guaranty or by any officer of the
Company or any Subsidiary Guarantor in any writing furnished in connection with the
transactions contemplated hereby or by any Subsidiary Guaranty proves to have been false or
incorrect in any material respect on the date as of which made; or

          (g) (i) the Company or any Subsidiary is in default (as principal or as guarantor or
other surety) in the payment of any principal of or premium or make-whole amount or interest
(in the payment amount of at least $100,000) on any Debt other than the Notes that is
outstanding in an aggregate principal amount of at least $25,000,000 beyond any period of
grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in
the performance of or compliance with any term of any instrument, mortgage, indenture or
other agreement relating to any Debt other than the Notes in an aggregate principal amount
of at least $25,000,000 or any other condition exists, and as a consequence of such default
or condition such Debt has become, or has been declared, due and payable or one or more
Persons has the right to declare such Debt to be due and payable before its stated maturity
or before its regularly scheduled dates of payment, or (iii) as a consequence of the
occurrence or continuation of any event or condition (other than the passage of time or the
right of the holder of Debt to convert such Debt into equity interests), (x) the Company or
any Subsidiary has become obligated to purchase or repay Debt other than the Notes before
its regular maturity or before its regularly scheduled dates of payment in an aggregate
outstanding principal amount of at least $25,000,000 or (y) one or more Persons have the
right to require the Company or any Subsidiary to purchase or repay such Debt; or

          (h) the Company, any Material Subsidiary or any Subsidiary Guarantor (i) is generally
not paying, or admits in writing its inability to pay, its debts as they become due, (ii)
files, or consents by answer or otherwise to the filing against it of, a petition for relief
or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar
law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv)
consents to the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its property, (v) is
adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose
of any of the foregoing; or

          (i) a court or governmental authority of competent jurisdiction enters an order
appointing, without consent by the Company, any of its Material Subsidiaries or any
Subsidiary Guarantor, a custodian, receiver, trustee or other officer with similar powers
with respect to it or with respect to any substantial part of its property, or constituting
an order for relief or approving a petition for relief or reorganization or any other
petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or
insolvency law of
any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, any
of its Material Subsidiaries or any Subsidiary Guarantor, or any such petition shall be

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filed against the Company, any of its Material Subsidiaries or any Subsidiary Guarantor and
such petition shall not be dismissed within 60 days; or

          (j) a final judgment or judgments at any one time outstanding for the payment of money
aggregating in excess of $25,000,000 are rendered against one or more of the Company, its
Subsidiaries or any Subsidiary Guarantor and which judgments are not, within 60 days after
entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60
days after the expiration of such stay; or

          (k) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under Section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under Section 4042 of ERISA to terminate
or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or
any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of Section
4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
shall exceed $25,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty
or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that could increase the liability of the
Company or any Subsidiary thereunder; and any such event or events described in clauses (i)
through (vi) above, either individually or together with any other such event or events,
could reasonably be expected to have a Material Adverse Effect.

As used in Section 11(k), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in Section 3 of ERISA.

Section 12. Remedies on Default, Etc.

     Section 12.1. Acceleration. (a) If an Event of Default with respect to the Company described
in paragraph (h) or (i) of Section 11 (other than an Event of Default described in clause (i) of
paragraph (h) or described in clause (vi) of paragraph (h) by virtue of the fact that such clause
encompasses clause (i) of paragraph (h)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable.

          (b) If any other Event of Default has occurred and is continuing, any holder or holders of
more than 50% in aggregate principal amount of the Notes at the time outstanding may at any
time at its or their option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable.

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          (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and
is continuing with respect to any Notes, any holder or holders of Notes at the time outstanding
affected by such Event of Default may at any time, at its or their option, by notice or notices to
the Company, declare all the Notes held by such holder or holders to be immediately due and
payable.

          Upon any Note’s becoming due and payable under this Section 12.1 or whether automatically or
by declaration, such Note will forthwith mature and the entire unpaid principal amount of such
Note, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest
accrued thereon at the Default Rate) and (ii) the Make-Whole Amount, if any, determined in respect
of such principal amount (to the full extent permitted by applicable law), shall all be immediately
due and payable, in each and every case without presentment, demand, protest or further notice, all
of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each
holder of a Note has the right to maintain its investment in the Notes free from repayment by the
Company (except as herein specifically provided for) and that the provision for payment of a
Make-Whole Amount, if any, by the Company in the event that the Notes are prepaid or are
accelerated as a result of an Event of Default, is intended to provide compensation for the
deprivation of such right under such circumstances.

     Section 12.2. Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or otherwise.

     Section 12.3. Rescission. At any time after the Notes have been declared due and payable
pursuant to clause (b) or (c) of Section 12.1, the holders of not less than 51% in aggregate
principal amount of the Notes then outstanding, by written notice to the Company, may rescind and
annul any such declaration and its consequences if (a) the Company has paid all overdue interest on
the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due and payable
and are unpaid other than by reason of such declaration, and all interest on such overdue principal
and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest
in respect of the Notes, at the Default Rate, (b) neither the Company nor any other Person shall
have paid any amounts which have become due solely by reason of such declaration, (c) all Events of
Default and Defaults, other than non-payment of amounts that have become due solely by reason of
such declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment
or decree has been entered for the payment of any monies due pursuant hereto or to any Notes. No
rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of
Default or Default or impair any right consequent thereon.

     Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No

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right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the obligations of the
Company under Section 15, the Company will pay to the holder of each Note on demand such further
amount as shall be sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this Section 12, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements.

Section 13. Registration; Exchange; Substitution of Notes.

     Section 13.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered holders of Notes.

     Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at
the address and to the attention of the designated officer (all as specified in Section 18(iii)),
for registration of transfer or exchange (and in the case of a surrender for registration of
transfer accompanied by a written instrument of transfer duly executed by the registered holder of
such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant
name, address and other information for notices of each transferee of such Note or part thereof),
within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s
expense (except as provided below), one or more new Notes (as requested by the holder thereof) in
exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such holder may request
and shall be substantially in the form of the Note originally issued hereunder. Each such new Note
shall be dated and bear interest from the date to which interest shall have been paid on the
surrendered Note or dated the date of the surrendered Note if no interest shall have been paid
thereon. The Company may require payment of a sum sufficient to cover any stamp tax or
governmental charge imposed in respect of any such transfer of Notes. Notes shall not be
transferred in denominations of less than $100,000, provided that if necessary to enable the
registration of transfer by a holder of its entire holding of Notes, one Note may be in a
denomination of less than $100,000. Any transferee, by its acceptance of a Note registered in its
name (or the name of its nominee), shall be deemed to have made the representation set forth in
Section 6.3, provided,
that in lieu thereof such holder may (in reliance upon information provided by the Company, which
shall not be unreasonably withheld) make a representation to the effect that the purchase by any
holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of
ERISA.

          The Notes have not been registered under the Securities Act or under the securities laws of
any state and may not be transferred or resold unless registered under the Securities Act and

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all
applicable state securities laws or unless an exemption from the requirement for such registration
is available.

     Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

          (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to
be satisfactory), or

          (b) in the case of mutilation, upon surrender and cancellation thereof,

the Company at its own expense shall execute and deliver not more than five Business Days following
satisfaction of such conditions, in lieu thereof, a new Note, dated and bearing interest from the
date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or
dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been
paid thereon.

Section 14. Payments on Notes.

     Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole
Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New
York at the principal office of Banc of America, N.A. in such jurisdiction. The Company may at any
time, by notice to each holder of a Note, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of the Company in such jurisdiction or the
principal office of a bank or trust company in such jurisdiction.

     Section 14.2. Home Office Payment. So long as any Purchaser or such Purchaser’s nominee shall
be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note
to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole
Amount, if any, and interest by the method and at the address specified for such purpose for such
Purchaser on
Schedule A hereto or by such other method or at such other address as such Purchaser shall have
from time to time specified to the Company in writing for such purpose, without the presentation or
surrender of such Note or the making of any notation thereon, except that upon written request of
the Company made concurrently with or reasonably promptly after payment or prepayment in full of
any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any
such request, to the Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 14.1. Prior to any sale or other
disposition of any Note held by any Purchaser or such Person’s nominee, such Person will, at its
election, either endorse thereon the amount of principal paid thereon and the last date to which
interest has been paid thereon or

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surrender such Note to the Company in exchange for a new Note or
Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2 to any
Institutional Investor that is the direct or indirect transferee of any Note.

Section 15. Expenses, Etc.

     Section 15.1. Transaction Expenses. Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable attorneys’ fees of a
special counsel for the Purchasers and, if reasonably required by the Required Holders, local or
other counsel) incurred by each Purchaser and each other holder of a Note in connection with such
transactions and in connection with any amendments, waivers or consents under or in respect of this
Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective),
including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or
determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in
responding to any subpoena or other legal process or informal investigative demand issued in
connection with this Agreement or the Notes, or by reason of being a holder of any Note; and (b)
the costs and expenses, including financial advisors’ fees, incurred in connection with the
insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or
restructuring of the transactions contemplated hereby and by the Notes. The Company will pay, and
will save each Purchaser and each other holder of a Note harmless from, all claims in respect of
any fees, costs or expenses if any, of brokers and finders (other than those, if any, retained by a
Purchaser or other holder in connection with its purchase of the Notes).

     Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement or the Notes, and the termination of this Agreement.

Section 16. Survival of Representations and Warranties; Entire Agreement. 

          All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any Purchaser of any such Note or
portion thereof or interest therein and the payment of any Note may be relied upon by any
subsequent holder of any such Note, regardless of any investigation made at any time by or
on behalf of any Purchaser or any other holder of any such Note. All statements contained in
any certificate or other instrument delivered by or on behalf of the Company pursuant to this
Agreement shall be deemed representations and warranties of the Company under this Agreement.
Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and
understanding between the Purchasers and the Company and supersede all prior agreements and
understandings relating to the subject matter hereof.

Section 17. Amendment and Waiver.

     Section 17.1. Requirements. (a) This Agreement and the Notes may be amended, and the
observance of any term hereof or of the Notes may be waived (either retroactively or
prospectively), with (and only with) the written consent of the Company and the Required

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Holders,
except that (i) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21
hereof, or any defined term (as it is used in any such Section), will be effective as to any holder
of Notes unless consented to by such holder of Notes in writing, and (ii) no such amendment or
waiver may, without the written consent of all of the holders of Notes at the time outstanding
affected thereby, (A) subject to the provisions of Section 12 relating to acceleration or
rescission, change the amount or time of any prepayment or payment of principal of, or reduce the
rate or change the time of payment or method of computation of interest (if such change results in
a decrease in the interest rate) or of the Make-Whole Amount on, the Notes, (B) change the
percentage of the principal amount of the Notes the holders of which are required to consent to any
such amendment or waiver, or (C) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.

     Section 17.2. Solicitation of Holders of Notes.

          (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and considered decision with
respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or
of the Notes. The Company will deliver executed or true and correct copies of each amendment,
waiver or consent effected pursuant to the provisions of this Section 17 to each holder of
outstanding Notes promptly following the date on which it is executed and delivered by, or receives
the consent or approval of, the requisite holders of Notes.

          (b) Payment. The Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of the
terms and provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted or other credit support is concurrently provided, on the same terms, ratably
to each holder of Notes then outstanding even if such holder did not consent to such waiver or
amendment.

          (c) Consent in Contemplation of Transfer. Any consent made pursuant to this Section 17 by a
holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any
Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written
consent as a condition to such transfer shall be void and of no force or effect except solely as to
such holder, and any amendments effected or waivers granted or to be effected or granted that would
not have been or would not be so effected or granted but for such consent (and the consents of all
other holders of Notes that were acquired under the same or similar conditions) shall be void and
of no force or effect except solely as to such holder.

     Section 17.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company

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and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall
operate as a waiver of any rights of any holder of such Note. As used herein, the term “this
Agreement” and references thereto shall mean this Agreement as it may from time to time be amended
or supplemented.

     Section 17.4. Notes Held by Company, Etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall
be deemed not to be outstanding.

Section 18. Notices.

          All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), (b) by a recognized overnight delivery service
(charges prepaid) or (c) by posting to IntraLinks®, or a similar service reasonably acceptable to
the Required Holders, if the sender on the same day sends or causes to be sent notice of such
posting by electronic mail. Any such notice must be sent:

          (i) if to any Purchaser or its nominee, to such Purchaser or its nominee at the address
or, in the case of clause (c) above, the e-mail address specified for such communications in
Schedule A to this Agreement, or at such other address or e-mail address as such Purchaser
or nominee shall have specified to the Company in writing pursuant to this Section 18;

          (ii) if to any other holder of any Note, to such holder at such address or, in the case
of clause (c) above, such e-mail address as such other holder shall have specified to the
Company in writing pursuant to this Section 18; or

          (iii) if to the Company, to the Company at its address set forth at the beginning
hereof to the attention of Chief Financial Officer, with a copy to the General Counsel, or
at such other address as the Company shall have specified to the holder of each Note in
writing.

Notices under this Section 18 will be deemed given only when actually received.

Section 19. Reproduction of Documents.

          This Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b) documents received by
any Purchaser at the Closing (except the Notes themselves), and (c) financial statements,
certificates and other information previously or hereafter furnished to any Purchaser, may be
reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other

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similar process and such Purchaser may destroy any original document so reproduced. The Company
agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall
be admissible in evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such reproduction was made by such
Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction
of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit
the Company or any other holder of Notes from contesting any such reproduction to the same extent
that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of
any such reproduction.

Section 20. Confidential Information.

          For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions
contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was
clearly marked or labeled or otherwise adequately identified when received by such Purchaser as
being either confidential information or material non-public information of the Company or such
Subsidiary, provided that such term does not include information that (a) was publicly known or
otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes
publicly known through no act or omission by such Purchaser or any Person acting on such
Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by
the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser
under Section 7.1 that are otherwise publicly available. Each Purchaser will maintain the
confidentiality of such Confidential Information in accordance with procedures adopted by such
Purchaser in good faith to protect confidential information of third parties delivered to such
Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i)
such Purchaser’s directors, trustees, officers, employees, agents, attorneys and affiliates (to the
extent such disclosure reasonably relates to the administration of the investment represented by
such Purchaser’s Notes), (ii) such Purchaser’s financial advisors and other professional advisors
who agree to hold confidential the Confidential Information substantially in accordance with the
terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to
which such Purchaser sells or offers to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such Confidential Information
to be bound by the provisions of this Section 20), (v) any Person from which such Purchaser offers
to purchase any security of the Company (if such Person has agreed in writing prior to its receipt
of such Confidential Information to be bound by the provisions of this Section 20), (vi) any
federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the National
Association of Insurance Commissioners or any similar organization, or any nationally recognized
rating agency that requires access to information about such Purchaser’s investment portfolio, or
(viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to
effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in
response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) if an
Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably
determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under such Purchaser’s Notes, the Subsidiary Guaranty

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and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed
to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to
this Agreement. On reasonable request by the Company in connection with the delivery to any holder
of a Note of information required to be delivered to such holder under this Agreement or requested
by such holder (other than a holder that is a party to this Agreement or its nominee), such holder
will enter into an agreement with the Company embodying the provisions of this Section 20.

Section 21. Substitution of Purchaser.

          Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser
of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which
notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s
agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the
accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such
notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be
deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such
Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to
such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company
of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement
(other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall
refer to such original Purchaser, and such original Purchaser shall again have all the rights of an
original holder of the Notes under this Agreement.

Section 22. Miscellaneous.

     Section 22.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

     Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice
of any optional prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other
than a Business Day shall be made on the next succeeding Business Day without including the
additional days elapsed in the computation of the interest payable on such next succeeding Business
Day; provided that if the maturity date of any Note is a date other than a Business Day, the
payment otherwise due on such maturity date shall be made on the next succeeding Business
Day and shall include the additional days elapsed in the computation of interest payable on such
next succeeding Business Day.

     Section 22.3. Accounting Terms. All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (i) all computations made

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pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be
prepared in accordance with GAAP.

     Section 22.4. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 22.5. Construction. Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained herein, so that
compliance with any one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to action to be taken
by any Person, or which such Person is prohibited from taking, such provision shall be applicable
whether such action is taken directly or indirectly by such Person.

          For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

     Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

     Section 22.7. Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would permit the application of
the laws of a jurisdiction other than such State.

     Section 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or
relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the
Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in
any such court and any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum.

          (b) The Company consents to process being served by or on behalf of any holder of Notes in any
suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address specified in Section 18 or at such other address of
which such holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it
in any such suit, action or proceeding and (ii) shall, to the fullest extent

-38-

 

permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.
Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt
furnished by the United States Postal Service or any reputable commercial delivery service.

          (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve
process in any manner permitted by law, or limit any right that the holders of any of the Notes may
have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to
enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

          (d) The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Agreement, the Notes or any other document executed in connection herewith or
therewith.

* * * * *

-39-

 

          The execution hereof by the Purchasers shall constitute a contract among the Company and the
Purchasers for the uses and purposes hereinabove set forth. This Agreement may be executed in any
number of counterparts, each executed counterpart constituting an original but all together only
one agreement.

	 	 	 	 	 
	 	Very truly yours,

Stericycle, Inc.

 	 
	 	By  	/s/ Frank J.M. ten Brink
 	 
	 	 	Name:  	Frank J.M. ten Brink 	 
	 	 	Title:  	Executive Vice President and Chief
Financial Officer 	 

-40-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	The Northwestern Mutual Life Insurance

Company

 	 
	 	By  	/s/ Howard Stern
 	 
	 	 	Name:  	Howard Stern 	 
	 	 	Its Authorized Representative 	 

-41-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	American United Life Insurance Company

 	 
	 	By  	/s/ Kent R. Adams
 	 
	 	 	Name:  	Kent R. Adams 	 
	 	 	Title:  	V.P. Fixed Income Securities 	 
	 

	 	 	 	 	 
	 	The State Life Insurance Company

 	 
	 	By:  	American United Life Insurance Company
 	 
	 	 	Its Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By  	/s/ Kent R. Adams
 	 
	 	 	Name:  	Kent R. Adams 	 
	 	 	Title:  	V.P. Fixed Income Securities 	 
	 

	 	 	 	 	 
	 	Pioneer Mutual Life Insurance Company

 	 
	 	By:  	American United Life Insurance Company
 	 
	 	 	Its Agent 	 
	 	 	 	 
	 
	 	 	 
	 	By  	/s/ Kent R. Adams
 	 
	 	 	Name:  	Kent R. Adams 	 
	 	 	Title:  	V.P. Fixed Income Securities 	 

-42-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	Knights of Columbus

 	 
	 	By  	/s/ Donald R. Kehoe
 	 
	 	 	Name:  	Donald R. Kehoe 	 
	 	 	Title:  	Supreme Secretary 	 

-43-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	Principal Life Insurance Company

 	 
	 	By:  	Principal Global Investors, LLC,
 	 
	 	 	a Delaware limited liability company, its 	 
	 	 	Authorized Signatory 	 
	 
	 	 	 
	 	By  	       /s/ JoEllen J. Watts
 	 
	 	 	Name:  	JoEllen J. Watts 	 
	 	 	Title:  	Counsel 	 
	 
	 	 	 
	 	By  	       /s/ Colin Pennycooke
 	 
	 	 	Name:  	Colin Pennycooke 	 
	 	 	Title:  	Counsel 	 

-44-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	Cuna Mutual Insurance Society

CUMIS Insurance Society, Inc.

 	 
	 	By:  	Members Capital Advisors, Inc.,
 	 
	 	 	acting as Investment Advisor 	 
	 	 	 	 
	 
	 	 	 
	 	By  	       /s/ James E. McDonald, Jr.
 	 
	 	 	Name:  	James E. McDonald, Jr. 	 
	 	 	Title:  	Director, Private Placements 	 

-45-

 

	 	 	 	 	 

Accepted as of the date first written above.

	 	 	 	 	 
	 	Modern Woodmen of America

 	 
	 	By  	/s/ Nick S. Coin
 	 
	 	 	Name:  	Nick S. Coin 	 
	 	 	Title:  	Treasurer & Investment Manager 	 

-46-

 

	 	 	 	 	 

Information Relating to Purchasers

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	The Northwestern Mutual Life Insurance Company
	 	$[omitted]
	720 East Wisconsin Avenue
	 	 	 	 
	Milwaukee, Wisconsin 53202
	 	 	 	 
	Attention: Securities Department
	 	 	 	 
	Fax Number: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments
	 	 	 	 
	 
	 	 	 	 
	[omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices
	 	 	 	 
	 
	 	 	 	 
	[omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

Schedule A

(to Note Purchase Agreement)

 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	American United Life Insurance Company
	 	$[omitted]
	One American Square
	 	 	 	 
	Post Office Box 368
	 	 	 	 
	Indianapolis, Indiana 46206-0368
	 	 	 	 
	Attention: [omitted]
	 	 	 	 
	Overnight mailing address:
	 	 	 	 
	One American Square
	 	 	 	 
	Indianapolis, Indiana 46282
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-2 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	The State Life Insurance Company
	 	$[omitted]
	c/o American United Life Insurance Company
	 	 	 	 
	Post Office Box 368
	 	 	 	 
	Indianapolis, Indiana 46206-0368
	 	 	 	 
	Attention: [omitted]
	 	 	 	 
	Overnight Mailing Address:
	 	 	 	 
	One American Square
	 	 	 	 
	Indianapolis, Indiana 46282
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-3 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Pioneer Mutual Life Insurance Company
	 	$[omitted]
	c/o American United Life Insurance Company
	 	 	 	 
	Post Office Box 368
	 	 	 	 
	Indianapolis, Indiana 46206-0368
	 	 	 	 
	Attention: [omitted]
	 	 	 	 
	Overnight Mailing Address:
	 	 	 	 
	One American Square
	 	 	 	 
	Indianapolis, Indiana 46282
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-4 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Knights of Columbus
	 	$[omitted]
	One Columbus Plaza
	 	 	 	 
	New Haven, Connecticut 06510-3326
	 	 	 	 
	Attention: Investment Department
	 	 	 	 
	Fax Number: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-5 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Knights of Columbus
	 	$[omitted]
	One Columbus Plaza
	 	 	 	 
	New Haven, Connecticut 06510-3326
	 	 	 	 
	Attention: Investment Department
	 	 	 	 
	Fax Number: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-6 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Knights of Columbus
	 	$[omitted]
	One Columbus Plaza
	 	 	 	 
	New Haven, Connecticut 06510-3326
	 	 	 	 
	Attention: Investment Department
	 	 	 	 
	Fax Number: (203) 772-0037
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-7 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Principal Life Insurance Company
	 	$[omitted]
	c/o Principal Global Investors, LLC
	 	$[omitted]
	711 High Street
	 	$[omitted]
	Des Moines, Iowa 50392-0800
	 	$[omitted]
	 
	 	$[omitted]
	 
	 	$[omitted]
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-8 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	CUNA Mutual Insurance Society
	 	$[omitted]
	5910 Mineral Point Road
	 	 	 	 
	Madison, Wisconsin 53705-4456
	 	 	 	 
	Attention: Managing Director — Investments
	 	 	 	 
	Telephone: [omitted]
	 	 	 	 
	Fax Number: [omitted]
	 	 	 	 
	E-mail: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Purchaser’s Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-9 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	CUMIS Insurance Society, Inc.
	 	$[omitted]
	c/o CUNA Mutual Insurance Society
	 	 	 	 
	5910 Mineral Point Road
	 	 	 	 
	Madison, Wisconsin 53705-4456
	 	 	 	 
	Attention: Managing Director — Investments
	 	 	 	 
	Telephone: [omitted]
	 	 	 	 
	Fax Number: [omitted]
	 	 	 	 
	E-mail: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Purchaser’s Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-10 

 

	 	 	 	 	 
	 	 	Principal Amount	 
	Names and Address	 	of Notes to Be	 
	of Purchaser	 	Purchased	 
	Modern Woodmen of America
	 	$[omitted]
	1701 First Avenue
	 	 	 	 
	Rock Island, Illinois 61201
	 	 	 	 
	Attention: Investment Department
	 	 	 	 
	investments@modern-woodmen.org
	 	 	 	 
	Fax: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Payments: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Notices: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Name of Nominee in which Notes are to be issued: [omitted]
	 	 	 	 
	 
	 	 	 	 
	Purchaser’s Taxpayer I.D. Number: [omitted]
	 	 	 	 

A-11 

 

Defined Terms

          As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

          “Acquisition” means the acquisition, by purchase or otherwise, of all or substantially all of
the assets (or any part of the assets constituting all or substantially all of a business or line
of business) of any Person, whether such acquisition is direct or indirect, including through the
acquisition of the business of, or more than 50% of the outstanding voting stock of, such Person,
and whether such acquisition is effected in a single transaction or in a series of related
transactions, and the acquisition, by purchase or otherwise, of additional shares of the
outstanding voting stock of any Subsidiary of the Company which is not then a wholly-owned
Subsidiary of the Company.

          “Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at
such time directly or indirectly through one or more intermediaries Controls, or is Controlled by,
or is under common Control with, such first Person, and (b) any Person beneficially owning or
holding, directly or indirectly, 10% or more of any class of voting or equity interests of the
Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own
or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity
interests. As used in this definition, “Control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise. Unless the context otherwise
clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

          “Anti-Terrorism Order” means Executive Order No. 13,224 of September 24, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

          “Bank Credit Agreement” means the Credit Agreement dated as of August 24, 2007 by and among
the Company, certain Subsidiaries of the Company named therein, Bank of America, N.A., as
administrative agent, and the other financial institutions party thereto, as amended, restated,
joined, supplemented or otherwise modified from time to time, and any renewals, extensions or
replacements thereof, which constitute the primary bank credit facility of the Company and its
Subsidiaries.

          “Bank Lenders” means the banks and financial institutions party to the Bank Credit Agreement.

          “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial
banks in New York, New York are required or authorized to be closed.

          “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

Schedule B

(to Note Purchase Agreement)

 

 

          “Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount
of the obligation of such Person as the lessee under such Capital Lease which would, in accordance
with GAAP, appear as a liability on a balance sheet of such Person.

          “Cash Equivalent Investment” means Investments held by the Company or any Subsidiary in the
form of cash equivalents or short-term marketable debt securities.

          “Closing” is defined in Section 3.

          “Closing Date” means the date of the Closing.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

          “Company” means Stericycle, Inc., a Delaware corporation.

          “Confidential Information” is defined in Section 20.

          “Consolidated Debt” means as of any date of determination the total amount of all Debt of the
Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

          “Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a
Consolidated basis, an amount equal to Consolidated Net Income for such period, plus, (a) to the
extent deducted in calculating such Consolidated Net Income and without duplication, (i)
Consolidated Interest Charges for such period, (ii) the provision for Federal, state, local and
foreign income taxes payable by the Company and its Subsidiaries for such period, (iii)
depreciation and amortization expense, and (iv) other non-recurring expenses of the Company and its
Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such
period or any future period and minus (b) the following to the extent included in calculating such
Consolidated Net Income (i) Federal, state, local and foreign income tax credits of the Company and
its Subsidiaries for such period, and (ii) all non-cash items increasing Consolidated Net Income
for such period, provided that Consolidated EBITDA shall be increased by the amount of Transaction
Costs incurred during such period to the extent such amount was deducted in determining
Consolidated Net Income for such period. For purposes of calculating Consolidated EBITDA for any
period of four consecutive quarters, if during such period the Company or any Subsidiary shall have
made any Acquisition or disposed of any Person or of all or substantially all of the operating
assets of any Person, Consolidated EBITDA for such period shall be calculated after giving pro
forma effect thereto as if such transaction occurred on the first day of such period.

          “Consolidated Interest Charges” means, for any period, for the Company and its Subsidiaries on
a consolidated basis, the sum of (a) all interest, premium payments, debt discount, 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, and (b) the

B-2 

 

portion of rent expense of the Company and its Subsidiaries with respect to such period under
capital leases and Synthetic Lease Obligations that is treated as interest in accordance with GAAP.

          “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)(i)
Consolidated Debt as of such date minus (ii) Unrestricted Cash as of such date to (b) Consolidated
EBITDA for the period of the four consecutive fiscal quarters most recently ended.

          “Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a
consolidated basis, the net income of the Company and its Subsidiaries (including extraordinary
losses, but excluding, except to the extent of extraordinary losses during such period,
extraordinary gains) for that period.

          “Consolidated Net Worth” means the consolidated stockholder’s equity of the Company and its
Subsidiaries, as defined according to GAAP (but excluding minority interests).

          “Consolidated Total Assets” means, as of any date of determination, the total amount of all
assets of the Company and its Subsidiaries, determined on a consolidated basis in accordance with
GAAP.

          “Debt” means, with respect to any Person, without duplication,

          (a) its liabilities for borrowed money;

          (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable and other accrued liabilities arising in the ordinary course of
business but including, without limitation, all liabilities created or arising under any
conditional sale or other title retention agreement with respect to any such property);

          (c) its Capital Lease Obligations;

          (d) its liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities); and

          (e) Guaranties by such Person with respect to liabilities of a type described in any of
clauses (a) through (d) hereof.

          Debt of any Person shall include all obligations of such Person of the character described in
clauses (a) through (e) to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is deemed to be extinguished under GAAP.

          “Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

B-3 

 

          “Default Rate” means with respect to the Notes that rate of interest that is the greater of
(i) 2% per annum above the rate of interest stated in clause (a) of the first paragraph of the
Notes or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York,
New York as its “base” or “prime” rate.

          “Disclosure Documents” is defined in Section 5.3.

          “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 but
not limited to those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

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

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as
a single employer together with the Company under section 414 of the Code.

          “Event of Default” is defined in Section 11.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder from time to time in effect.

          “Fair Market Value” means, at any time and with respect to any property, the sale value of
such property that would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell),
as reasonably determined in the good faith opinion of the Company’s board of directors.

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

          “GAAP” means those generally accepted accounting principles as in effect from time to time in
the United States of America; provided that, if the Company notifies the Required Holders that the
Company wishes to amend any negative covenants (or any definition hereof) to eliminate the effect
of any change in generally accepted accounting principles on the operation of such covenant or
definition, then the Company’s compliance with such covenant or the meaning of such definition
shall be determined on the basis of generally accepted accounting principles in effect immediately
before the relevant change in generally accepted accounting principles became effective, until
either such notice is withdrawn or such covenant is amended in a manner satisfactory to the
Company and the Required Holders.

          “Governmental Authority” means

B-4 

 

          (a) the government of

          (i) the United States of America or any state or other political subdivision
thereof, or

          (ii) any other jurisdiction in which the Company or any Subsidiary conducts all
or any part of its business, or which asserts jurisdiction over any properties of
the Company or any Subsidiary, or

          (b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

          “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

          (a) to purchase such Debt or obligation or any property constituting security therefor
primarily for the purpose of assuring the owner of such Debt or obligation of the ability of
any other Person to make payment of the Debt or obligation;

          (b) to advance or supply funds (i) for the purchase or payment of such Debt or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Debt or obligation;

          (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such Debt or obligation of the ability of any other Person to make
payment of the Debt or obligation; or

          (d) otherwise to assure the owner of such Debt or obligation against loss in respect
thereof.

          In any computation of the Debt or other liabilities of the obligor under any Guaranty, the
Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct
obligations of such obligor.

          “Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other
substances that might pose a hazard to health and safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law including, but not
limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized
substances.

B-5 

 

     “holder” means, with respect to any Note, the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.

     “Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding
(together with one or more of its affiliates) more than $2,000,000 of the aggregate principal
amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association
or other financial institution, any pension plan, any investment company, any insurance company,
any broker or dealer, or any other similar financial institution or entity, regardless of legal
form.

     “Investments” means all investments, in cash or by delivery of property made, directly or
indirectly in any Person, whether by acquisition of shares of capital stock, Debt or other
obligations or securities or by loan, advance, capital contribution or otherwise.

     “Lease Rentals” means, for any period, the aggregate amount of fixed rental or operating lease
expense payable by the Company and its Subsidiaries with respect to leases of real and personal
property (excluding Capital Lease Obligations) determined in accordance with GAAP.

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement
(other than an operating lease) or Capital Lease, upon or with respect to any property or asset of
such Person (including, in the case of stock, shareholder agreements, voting trust agreements and
all similar arrangements).

     “Make-Whole Amount” is defined in Section 8.6.

     “Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Subsidiaries taken as a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a
whole, or (b) the ability of the Company to perform its obligations under this Agreement and the
Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under the Subsidiary
Guaranty or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary
Guaranty.

     “Material Subsidiary” means, at any time, any Subsidiary of the Company (i) which, as of the
end of the then most recently ended fiscal quarter of the Company for the period of four
consecutive fiscal quarters then ended, contributes greater than 5% of Consolidated EBITDA
(adjusted to eliminate the effect of intercompany transactions) for such period, (ii) the
consolidated total assets reflected on the balance sheet of such Subsidiary as of the end of such
fiscal quarter were greater than 5% of Consolidated Total Assets (adjusted to eliminate
intercompany transactions) as of such date or the intellectual property rights of which are
material to the operation of the business of the Company and its Subsidiaries taken as a whole or
(iii) which, as of the end of such fiscal quarter for the period of four consecutive fiscal
quarters

B-6

 

then ended, contributes greater than 5% of consolidated revenue (adjusted to eliminate the
effect of intercompany transactions) for such period.

     “Memorandum” is defined in Section 5.3.

     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
Section 4001(a)(3) of ERISA).

     “Notes” is defined in Section 1.

     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, or a government or agency or political subdivision
thereof.

     “Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to
Title I of ERISA that is or, within the preceding five years, has been established or maintained,
or to which contributions are or, within the preceding five years, have been made or required to be
made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA
Affiliate may have any liability.

     “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Purchasers” means the purchasers of the Notes named in Schedule A hereto.

     “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United
States Department of Labor.

     “Qualified Institutional Buyer” means any Person who is a qualified institutional buyer within
the meaning of such term as set forth in Rule 144(a)(1) under the Securities Act.

     “Required Holders” means, at any time, the holders of not less than 51% in principal amount of
the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates and any Notes held by parties who are contractually required to abstain from voting with
respect to matters affecting the holders of the Notes).

     “Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.

B-7

 

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

     “Senior Debt” means, as of the date of any determination thereof, all Consolidated Debt, other
than Subordinated Debt.

     “Senior Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or comptroller of the Company.

     “Subordinated Debt” means all unsecured Debt of the Company which shall contain or have
applicable thereto subordination provisions providing for the subordination thereof to other Debt
of the Company (including, without limitation, the obligations of the Company under this Agreement
or the Notes).

     “Subsidiary” means, as to any Person, any corporation, association or other business entity in
which such Person or one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons
performing similar functions) of such entity, and any partnership or joint venture if more than a
50% interest in the profits or capital thereof is owned by such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such Person or one or
more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Company.

     “Subsidiary Guarantor” means each Subsidiary which is party to the Subsidiary Guaranty.

     “Subsidiary Guaranty” is defined in Section 2.2 of this Agreement.

     “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).

     “Transaction Costs” means extraordinary and non-recurring costs incurred by the Company or any
Subsidiary (including fees of any consultant engaged by the Company or such Subsidiary to assist
with due diligence matters) in effecting any Acquisition.

     “Unrestricted Cash” means, at any time, cash and Cash Equivalent Investments of the Company
and its Subsidiaries to the extent such cash and Cash Equivalent Investments are not subject to any
Lien (other than a banker’s Lien or right of setoff pursuant to customary deposit arrangements) or
any restriction as to its use and is included in “cash and cash equivalents” and not “restricted
cash” on the consolidated balance sheet of the Company.

B-8

 

     “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time in effect.

B-9

 

Changes in Corporate Structure

[omitted]

Schedule 4.9

(to Note Purchase Agreement)

 

 

Subsidiaries of the Company, Ownership of Subsidiary Stock, 

Investments, Affiliates, Directors and Officers

[omitted]

Schedule 5.4

(to Note Purchase Agreement)

 

 

Financial Statements

[omitted]

Schedule 5.5

(to Note Purchase Agreement)

 

 

Licenses, Permits, Etc.

[omitted]

Schedule 5.11

(to Note Purchase Agreement)

 

 

Existing Debt; Future Liens

[omitted]

Schedule 5.15

(to Note Purchase Agreement)

 

 

Existing Liens

[omitted]

Schedule 10.3

(to Note Purchase Agreement)

 

 

[Form of Note]

Stericycle, Inc.

5.64% Senior Note due April 15, 2015

			
	No. [                    ]

$[                    ]
	 	[Date]

PPN 85915# AC5

     For Value Received, the undersigned, Stericycle, Inc. (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay to [                                        ] or registered assigns, the principal sum of
[                    ] Dollars (or so much thereof as shall not have been prepaid) on April 15,
2015 with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the
unpaid balance hereof at the rate of 5.64% per annum from the date hereof, payable semiannually, on
the fifteenth day of April and October in each year and at maturity, commencing on October 15,
2008, until the principal hereof shall have become due and payable, and (b) to the extent permitted
by law, at a rate per annum from time to time equal to the Default Rate, on any overdue payment of
interest and, during the continuance of an Event of Default, on the unpaid balance hereof and on
any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option
of the registered holder hereof, on demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of Bank of
America, N.A. in New York, New York or at such other place as the Company shall have designated by
written notice to the holder of this Note as provided in the Note Purchase Agreement referred to
below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of April 15, 2008 (as from time to time amended, supplemented
or modified, the “Note Purchase Agreement”), between the Company and the respective Purchasers
named therein and is entitled to the benefits thereof. Each holder of this Note will be deemed, by
its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20
of the Note Purchase Agreement and (ii) made the representations set forth in Section 6 of the Note
Purchase Agreement, provided, that in lieu thereof such holder may (in reliance upon information
provided by the Company, which shall not be unreasonably withheld) make a representation to the
effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited
transaction under section 406(a) of ERISA. Unless otherwise indicated, capitalized terms used in
this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

     This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the

Exhibit  1

(to Note Purchase Agreement)

 

 

Company may treat the person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     Pursuant to the Subsidiary Guaranty Agreement dated as of April 15, 2008 (as amended, restated
or otherwise modified from time to time, the “Subsidiary Guaranty”), one or more Subsidiaries of
the Company have absolutely and unconditionally guaranteed payment in full of the principal of,
Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its
obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary
Guaranty.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing,
the principal of this Note may be declared or otherwise become due and payable in the manner, at
the price (including any applicable Make-Whole Amount) and with the effect provided in the Note
Purchase Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the issuer and
holder hereof shall be governed by, the law of the State of New York excluding choice-of-law
principles of the law of such State that would require the application of the laws of a
jurisdiction other than such State.

	 	 	 	 	 
	 	Stericycle, Inc.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-1-2

 

Form of Subsidiary Guaranty

[omitted]

Exhibit  2.2

(to Note Purchase Agreement)

 

 

Form of Opinion of Special Counsel

to the Company

[omitted]

Exhibit  4.4(a)

(to Note Purchase Agreement)

 

 

Form of Opinion of Special Counsel

to the Purchasers

[omitted]

Exhibit 4.4(b)

(to Note Purchase Agreement)exv10w23

 

Exhibit 10.23

CARDIOVASCULAR SYSTEMS, INC.

SUMMARY OF CALENDAR 2008

EXECUTIVE OFFICER ANNUAL CASH INCENTIVE COMPENSATION

For calendar 2008, our executive officers are eligible to receive annual cash incentive
compensation with target bonus levels ranging from 20% to 50% of their yearly base salary.
Participants are eligible to earn 50% to 150% of their target bonus amount depending upon the
company’s performance relative to the bonus plan criteria. The annual cash incentive plan is
designed to reward the executive officers for achieving and surpassing company financial goals,
including revenues and gross margin, set by the compensation committee and board of directors.

	 	 	 	 	 	 	 	 	 
	Name	 	Target %	 	Target Bonus
	David L. Martin
	 	 	50	%	 	$	197,500	 
	President, Chief Executive Officer,
Interim Chief Financial Officer and
Director
	 	 	 	 	 	 	 	 
	James E. Flaherty
	 	 	40	%	 	$	87,200	 
	Chief Administrative Officer
	 	 	 	 	 	 	 	 
	Robert J. Thatcher
	 	 	40	%	 	$	87,200	 
	Executive Vice President
	 	 	 	 	 	 	 	 
	Paul Koehn
	 	 	40	%	 	$	70,620	 
	Vice President of Manufacturing
	 	 	 	 	 	 	 	 
	Brian Doughty
	 	 	20	%	 	$	38,520	 
	Vice President of Marketing
	 	 	 	 	 	 	 	 
	Paul Tyska(1)
	 	 	40	%	 	$	80,000	 
	Vice President of Business Development
	 	 	 	 	 	 	 	 
	Michael J. Kallok, Ph.D.
	 	 	40	%	 	$	102,000	 
	Chief Scientific Officer and Director
	 	 	 	 	 	 	 	 
	John Borrell(1)
	 	 	40	%	 	$	80,000	 
	Vice President of Sales
	 	 	 	 	 	 	 	 

 

			
	(1)	 	The Vice President of Business Development and Vice President of Sales will also be
paid sales commissions on a monthly basis according to a formula based on sales levels.

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