Document:

exhibit_10-1.htm

    
      

    

    EXHIBIT
10.1

     

    

      ACQUISITION
AGREEMENT

      

      THIS
ACQUISITION AGREEMENT is entered into as of this  25th day of
March, 2008, by and between RENEWABLE ENERGY RESOURCES, INC. (hereafter "RENW"),
a Florida Corporation, whose address is 334 S. Hyde Park Ave. Tampa, Florida
33606 and World Environmental Services, Inc.  (hereafter WESCO), a
subsidiary of EarthFirst Technologies, Inc., a Florida Corporation, whose
address is 3000 Bayport Drive Ste., 910 , Tampa, Florida 33607. The Parties
hereby agree to the following, and those matters in the attached
Schedules:

      

      RECITALS

      

              Whereas
RENW is a publicly traded corporation dealing in alternative energy areas. that
is seeking other technologies and opportunities to expand its energy market,
produce revenue, bring assets for development and for shareholder return, makes
the following Agreement, for the production of  energy, openly
solicited for the acquisition of new technologies to other WESCO,
and

      

              Whereas
WESCO, is the owner of certain technologies, hereby referred to as the CAVD
technology, related assets to those technologies, assets and property related to
CAVD, its uses, intellectual property, except those related to tires,
and

      

              Whereas
RENW seeks to purchase all technologies, interest, assets, patents, and other
intellectual property related to CAVD, and other processes related to pyrolisis
developed by WESCO.  RENW makes the related transaction,
and

      

              Whereas
WESCO seeks to achieve the sale of the described CAVD technologies, assets,
patents, and other intellectual property related to CAVD, and other processes
related to pyrolisis developed by WESCO.  WESCO accepts these
conditions, in order to receive an issuance of common shares from RENW in
exchange for this sale of CAVD related assets, and

      

              NOW
THEREFORE in consideration of the foregoing recitals, the mutual
representations, warranties and covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

      

      

      
        	
                I.

              	
                BASIC
      TRANSACTION.

              

      

      

      
        	
                1.1

              	
                Consideration to be
      Exchanged.

              

      

      

      
        	
                 
      

              	
                a.

              	
                On
      the Closing Date RENW shall deliver to WESCO, in the name of EarthFirst
      Technologies, Inc., an amount of shares which shall be equal to three
      million five hundred thousand (3,500,000) shares or approximately thirty
      three and one third (33 and 1/3%) percent of the then outstanding shares
      of common stock, then outstanding at the time of the closing, whichever is
      numerically equivalent of one third of the outstanding shares after
      issuance for this acquisition after
closing.

              

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                b.

              	
                WESCO
      shall deliver, or assign through this Agreement, all matters related to
      the CAVD or pyrolitic technology, which shall be set forth in Schedule A
      of this Agreement. Said items shall include the following types of
      matters: all patents, patents pending, work product on improvements, all
      uses for the CAVD, all laboratory and engineering work, all client
      materials, all potential client list, sales lists, pro-formas, business
      plans, etc. such uses, plans, patents, improvements, and all business
      opportunities shall include Distiller’s Dry Grain (DDG), carpet waste,
      municipal waste, algae use, and all other uses for CAVD, subject to the
      exclusions set forth herein.

              

      

      

      
        	
                 
      

              	
                c.

              	
                WESCO
      shall assign all interest for all intellectual property for all uses of
      the CAVD and pyrolisis systems, exclusive of only those that are contained
      at the time of closing in RCT, LLC, to
RENW.

              

      

      

      
        	
                 
      

              	
                d.

              	
                WESCO
      shall deliver an indemnification or some form of release or assurance that
      there shall be no claim now pending, or which could exist as to any claim
      against WESCO from Laurus Funds, or the now existing lawsuit in the middle
      district of Florida. Such release, indemnification, and assurance shall be
      attached as Schedule B at time of closing, to the satisfaction of
      RENW.

              

      

      

      
        	
                 
      

              	
                e.

              	
                Both
      Parties hereby acknowledge that RENW had previously paid an amount of one
      hundred thousand dollars ($100,000.00) for the licensing of rights to the
      CAVD technology to WESCO, and a later payment of two hundred thousand
      dollars ($200,000.00) to a related party, for similar licensing of use of
      the CAVD process which is subject to a civil suit by RENW in the
      Thirteenth Judicial Circuit in and for Hillsborough County, Florida at
      this time. RENW acknowledges that it will relieve and dismiss any claim
      against that third party if all rights to such technologies are delivered
      under this agreement. WESCO shall assist RENW in any claim by any third
      party for the two hundred thousand dollars ($200,000) under the earlier
      agreement by RENW and such third
party.

              

      

      

      
        	
                1.2 

              	
                Secondary
      Consideration

              

      

      

      RENW shall make an additional payment
to WESCO in common shares after one year, and no later than two years after
closing, which shall consist of ten percent (10%) of then outstanding shares at
the time of closing of this acquisition if the following achievements are
made.

      

      
        	
                 
      

              	
                a.

              	
                There
      are two (2) plant sales made or two equivalent plant build outs which
      cause revenue to RENW, which are not for tire use of the CAVD or excluded
      related process, if realized within twelve months of closing,
      or

              

      

      

      
        	
                 
      

              	
                b.

              	
                There
      are revenues over $1 million dollars ($1,000,000.00) realized by RENW
      related to the acquired technologies, within twelve months of closing,
      or

              

      

      

      
        	
                 
      

              	
                c.

              	
                Any  combination
      of revenue from 1.2 a. and 1.2 b. above during the first twelve months
      after
      closing which totals in the aggregate one million dollars
      ($1,000,000.00).

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
 

      
        1.3          
Closing.   The
closing of the Acquisition and exchange contemplated and provided for in
this Agreement (the "Closing") shall take place at a time and place to be
mutually agreed upon by the Parties, following the satisfaction or waiver of all
conditions to the obligations of the Parties to consummate the subject
acquisition and exchange (other than the conditions with respect to actions the
respective Parties will take at the Closing itself) or such other date as the
Parties may mutually determine (the "Closing Date"). It is the Parties intention
to close this transaction as soon as practicable; however, the Closing Date
shall occur no later than February 28, 2008, absent regulatory delays, consent
or breach.

      

      

      1.4            Restrictions on Transferred
Stock.

      

      
        	
                 
      

              	
                a.

              	
                The
      Common Stock of RENW which shall initially be issued shall be held by
      WESCO under a “lock up” Agreement, whereby the stock shall be held by
      WESCO for a period of twelve months from the date of issuance or closing,
      whichever is later. Such stock shall be held regardless of regulatory
      changes to the transferability of such shares. Such stock shall not be
      alienated, transferred, leined, or otherwise hypothecated during such a
      period, without the approval of the Board of Directors of RENW upon
      written request made to the Board which decision shall be rendered by the
      Board within three (3) working days of receipt of the request from
      WESCO.

              

      

      

      
        	
                 
      

              	
                b.

              	
                The
      Common Stock of RENW which is issued under this Agreement shall have all
      voting rights assigned to the Board of Directors of RENW for a period of
      six (6) months from the date or issuance or closing, whichever is later.
      Such voting proxy shall be automatically alienable and cancellable based
      upon paragraph 1.4 a. above if such stock is approved for transfer based
      upon those conditions and approval.

              

      

      

      
        	
                II.

              	
                REPRESENTATIONS AND
      WARRANTIES.

              

      

       

      2.1          
Representations and Warranties of both Parties.   Both
Parties hereby represents and warrants
to the other that the statements contained in this Agreement are correct and
complete as of the date of this Agreement and will be correct and complete as of
the Closing Date.

      

      
        
          	
                	
                  a.

                	
                  Due
      Authority. The execution, delivery and performance under this Agreement
      and the documents provided for herein by both Parties have been authorized
      by all necessary corporate
action.

                

        

      

      

      
        
          	
                	
                  b.

                	
                  Outstanding
      Options, Warrants or Other Rights.   RENW has or will have
      no outstanding warrants, options or similar rights whereby any person may
      subscribe for or purchase shares of its common stock, nor are there any
      other securities outstanding which are convertible into or exchangeable
      for its common stock, and there are no contracts or commitments pursuant
      to which any person may acquire or RENW may become bound to issue any
      shares of such common stock which are related to this transaction which
      would affect the structure of the issuance to be achieved for the
      technology.

                

        

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
              	
                c.

              	
                Copies
      of Documents Genuine.    All copies of all documents
      submitted by either party in this transaction or in any part of due
      diligence or negotiation are true, complete, correct and unmodified copies
      of such documents.

              

      

      

      
        	
              	
                d.

              	
                Noncontravention.   The
      execution of this Agreement by the Parties means that they do not intend,
      nor will any of their officers, directors, or agents, knowingly transgress
      within the area of operations of the other Party regarding the use of the
      technologies exchanged under this Agreement or existing technologies or
      operations, whether consummated or pursued under the following specific
      exclusions. In particular, WESCO will not pursue, support, or enhance,
      except on behalf and with the knowledge and assent of RENW, any
      opportunity, project or technology dealing with pyrolitic technology, and
      the CAVD uses and potential uses. As well WESCO shall not pursue any low
      hydro projects which would compete or impede any of the technologies held
      by RENW, or pursued by them under those lines. Neither would RENW pursue
      any business opportunity which WESCO has pursued within their knowledge.
      Both parties may waive such matters in writing upon fourteen days notice
      to the other.

              

      

      

      
        	
              	
                e.

              	
                Litigation.   There
      are no suits, actions or proceedings at law or in equity, pending or
      threatened against or affecting this transaction, except those set forth
      in the agreement or schedules, or disclosed in filings, that can be
      expected to result in any materially adverse change in the business,
      properties, operations, prospects, or assets which are being conveyed from
      WESCO to RENW.

              

      

      

      
        	
              	
                f.

              	
                Laws
      and Regulations.   Both Parties have complied with all
      laws, rules, regulations and ordinances relating to or affecting the
      conduct of this Agreement, and further, WESCO has represented compliance
      with all laws, rules and regulations as to it’s entitlement to, ownership
      of, operation of, and ability to transact the CAVD business and
      operations. WESCO further asserts that they are compliant and possess all
      necessary licenses and permits required in its business by federal, state
      or local authorities for the intent and transaction of this Agreement to
      occur.

              

      

      

      
        	
              	
                g.

              	
                Full
      Disclosure.   Neither this Agreement nor any other
      instrument furnished to WESCO or RENW by or on behalf of either party
      contains any untrue statement of a material fact or omits to state a
      material fact necessary to make any statements made not misleading, and
      there is no fact that materially and adversely affects, or foreseeably may
      materially and adversely affect, the intent or subjects of this
      Agreement.

              

      

      

      
        	
              	
                h.

              	
                Representations
      and Warranties True at Closing.   Except as expressly
      herein otherwise provided, all of the representations and warranties by
      RENW and WESCO as set forth herein shall be true as of the Closing Date as
      though such representations and warranties were made on and as of such
      date.

              

      

      

      
        	
              	
                i. 

              	
                No
      Material Adverse Change, Etc.

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	
              	
                1) 

              	
                By
      RENW: At the time of the execution of this Agreement and at the time of
      closing (if different), there has not been, other than as contemplated or
      caused by this Agreement any (i)  material adverse change in the
      business, condition(financial or otherwise), operations, or prospects
      of  RENW which would affect business operations with the CAVD
      technology; (ii) any damage, destruction, or loss, whether covered by
      insurance or not, having a material adverse effect on the business,
      condition (financial or otherwise), operations or prospects of RENW for
      the use of such technology or assets, (iii) any entry into or termination
      of any material commitment, contract, Agreement, or transaction(including,
      without limitation, any material borrowing or capital expenditure or sale
      or other disposition of any material asset or assets) of, or involving
      RENW, other than this Agreement and Agreements executed in the ordinary
      course of business;(iv) nor promise or payment of any increase to or for
      any executive or principal's executive bonus, or other compensation,
      (viii) any default or breach of any material respect pursuant to any
      covenant or Agreement, or (ix) any other change in the manner which the
      company has conducted its business in the past which would impede the
      operations concerning the CAVD and related technology
      acquisition.

              

      

      

      
        	
                 
      

              	
                2)

              	
                By
      WESCO:  At the time of the execution of this Agreement and at
      the time of closing (if different), there has not been, other than as
      contemplated or caused by this Agreement any (i)  material
      adverse the rights of WESCO to any of the intellectual properties, assets,
      or other materials being purchased, pursuant to Schedule A, being
      purchased from WESCO, which would impede such operations or business for
      any of the operations of the CAVD and related technologies being acquired;
      (ii) any damage, destruction, or loss, whether covered by insurance or
      not, having a material adverse effect on the business, condition
      (financial or otherwise), operations or prospects of WESCO for the use of
      such technology or assets, (iii) any entry into or termination of any
      material commitment, contract, Agreement, or transaction(including,
      without limitation, any material borrowing or capital expenditure or sale
      or other disposition of any material asset or assets) of, or involving
      WESCO, other than this Agreement and Agreements executed in the ordinary
      course of business;(iv) nor promise or payment of any increase to or for
      any executive or principal's executive bonus, or other compensation,
      (viii) any default or breach of any material respect pursuant to any
      covenant or Agreement, or (ix) any other change in the manner which the
      company has conducted its business in the past which would impede the
      operations concerning the CAVD and related technology interests
      acquisition.

              

      

      

      III.           
COVENANTS.

      

      From the
date of this Agreement until the Closing Date, the Parties agree as
follows:

      

      3.1          
General.   Each of the Parties hereto will use its best
efforts to take all actions and to do all things necessary in order to
consummate and make effective the transaction contemplated by this Agreement
(including satisfaction of the closing conditions set forth in Article IV
below).

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      3.2          
Notices and Consents.   Each of the Parties hereto will
give any notices to third Parties, and will use its best efforts to obtain any
third party consents, that the other party reasonably may request in connection
with any matter referred to in this Agreement.

      

      3.3          
Access.   Both Parties each agree that they will permit
the others directors, officers, accountants, attorneys and other representatives
full access, during reasonable business hours throughout the term or
applicability of this Agreement, to all premises, properties, personnel, books,
records, contracts and documents of or pertaining to the others business
affairs, operations, properties and financial affairs as the other party may
reasonably request. All information provided shall be furnished strictly subject
to the confidentiality provision of this Agreement.

      

      3.4          
Confidentiality.   All information and documents furnished
by a party pursuant to this Agreement shall be deemed and treated as proprietary
in nature. Each party agrees that it shall hold all information received from
another party pursuant to or in connection with this Agreement in the highest
and strictest confidence and shall not reveal any such information to any
individual who is not one of its directors, officers, key employee, attorney or
accountant, and that it will not use any such information obtained for any
purpose whatsoever other than assisting in its due diligence inquiry precedent
to the Closing and, if this Agreement is terminated for any reason whatsoever,
agrees to return to the other party any all tangible embodiments (and all
copies) thereof which are in its possession.

        This
covenant shall survive the consummation or termination of this
Agreement.

      

      3.5          
Publicity and Filings.   All press releases, shareholder
communications, filings with the Securities and Exchange Commission or other
governmental agency or body and other information and publicity generated the
Parties, separately or jointly, regarding the exchange contemplated in this
Agreement shall be reviewed and approved by the other Party before release or
dissemination to the public or filing with any governmental agency or body
whatever.   Post-Closing, the Parties will provide each other
with such documents, information, assistance and cooperation as may be
reasonably required to complete in a timely fashion, all required filings with
any state, Federal or other agency, or outside party.

      

      3.6          
Notice of Developments.   Each party hereto will give
prompt written notice to the other of any material adverse development causing a
breach of any of its own representations and warranties in this
Agreement.

      

      3.7          
Stand-Still Agreement.   Neither Party will solicit,
initiate, or encourage the submission of any proposal or offer from any person
or entity relating to any other transaction related to the matters being
acquired under this Agreement pending the closing of the transaction
contemplated herein.

      
 

      3.8.         
Patent and Asset Verification.   RENW shall have verified
that the assets and patents, patents pending and other proprietary assets are
duly and legally in the name of WESCO or a subsidiary and represent those
products including the CAVD, B.O.R.S Lift, and Plasma technologies formerly
owned by WESCO.  RENW acknowledges that part of the CAVD rights for
tire refuse is held by RCT, LLC, which are tied to the use of the technology for
tires, is excluded from this acquisition, only to the limit that such agreement
pertains. All other uses of the CAVD, pyrolisis applications before explored by
WESCO or any related party shall be owned by RENW, and shall be part of the
acquired technologies under this agreement. As well, any right and title to any
interest in the other technologies shall be delivered to RENW as part of this
agreement.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      3.9          
Indemnification, and Hold Harmless.   The Parties mutually
agree to indemnify, defend and hold the other harmless from any claim, debt,
cause of action or other demand made by any party whatsoever, for any reason
whatsoever, for, from or as a result of any negligent action, negligent
omission,  negligent breach, ensuing injury from such actions or
inactions caused to be or claimed by any third party. Should either party desire
to enact this provision, it must provide notice of a demand for defense and
indemnification to the other Party in writing, within a reasonable amount
of  time after discovery of any potential claim. The method of
defense, choice of counsel and indemnification shall be chosen by the party
accepting indemnification. Should a Party deny liability under this section, the
dispute shall be referred to a Court of Competent jurisdiction pursuant to this
Agreement.  Specifically, WESCO is indemnifying RENW from any claim
from the Laurus funding, the current or any lawsuit in any jurisdiction
regarding any of the technologies related in this agreement. Such
indemnification shall include legal representation, at the expense of WESCO, or
continued with WESCO in any current, or potential lawsuit now known in any such
case. Such cases are listed in Schedule D attached hereto, which are now filed
and existing at the time of this agreement.

      

      4.            
CONDITIONS PRECEDENT TO THE EXCHANGE.

      

      4.1          Conditions
Precedent upon the Parties. The obligation of both Parties to consummate
this Agreement is contingent upon both Parties being able to deliver those
matters disclosed in Section 1.1 and the following conditions at or before the
Closing Date:

      

      
        	
              	
                (a) 

              	
                Representations
      and Warranties True.   The representations and warranties
      by both Parties in the Agreement shall have been correct on and as of the
      Closing Date with the same force and
effect.

              

      

      

      
        	
              	
                (b) 

              	
                Legal
      Opinions. Both shall be responsible to receive any necessary favorable
      written opinion of counsel for those matters to be accomplished
      herein.

              

      

      

      
        	
              	
                (c) 

              	
                No
      Restraint.   No injunction, filing in a jurisdiction,
      judgment, decree or restraining order shall be in effect to forbid or
      enjoin the consummation of this
Agreement.

              

      

      

      
        	
              	
                (d) 

              	
                Execution
      of Agreement.   Each Party shall have the authorized
      officer or director execute this Agreement, and the consent of their Board
      of Directors, if deemed necessary for completion of any or all actions
      called for under this
Agreement.

              

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
              	
                (e) 

              	
                Transference
      of all Title, Leases and other Matters.  Each Party shall cause
      to be transferred, all rights, title and interest to all matters to be
      exchanged under Section 1.1 of this Agreement, and that in Schedule
      A.

              

      

      

      V.            
ACTIONS AT CLOSING.

      

      5.1           Exchange.   All
items within Section 1.1 and Schedule A shall be tendered to the other Party
before or at the time of closing.

      

      
        	
              	
                (a) 

              	
                RENW
      Stock Certificate.  Stock certificates representing the
      necessary stock certificate for payment of consideration for the items
      being purchased herein. All of the issued shares of RENW common stock
      properly issued to WESCO.

              

      

      

      
        	
              	
                (b) 

              	
                Certified
      Corporate Resolutions.   Certified copy of the resolutions
      duly adopted by the Board of Directors, as necessary, authorizing and
      approving the execution and delivery of this Agreement and the performance
      of its obligations hereunder.

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Other
      Documents.   All such matters necessary to fulfill the
      consideration necessary
      under Section 1.1 and to transfer title, right and interest in Schedule
      A.

              

      

      
      

      

      VI.          
TERMINATION.

      

      6.1          
Termination of Agreement.   This Agreement may be
terminated as provided below:

      

      
        	
              	
                (a) 

              	
                The
      Parties hereto may terminate this Agreement by mutual consent at any time
      prior to the Closing Date;

              

      

      

      
        	
              	
                (b) 

              	
                RENW
      may terminate this Agreement by giving written notice to the Shareholders
      at any time prior to the Closing
Date;

              

      

      

      
        	
                 
      

              	
                (
      c)

              	
                RENW  may
      terminate this Agreement by giving written notice to WESCO at any time
      prior to the Closing Date;

              

      

       

      
        	
              	
                (d) 

              	
                It
      is the Parties intention to close this transaction as soon as practicable,
      however, the Closing Date shall occur no later than March 15, 2008, absent
      regulatory or consent delays.

              

      

      

      6.2          
Effect of Termination.   If any party hereto terminates this
Agreement pursuant to Section 6.1(a) above, all rights and obligations of the
Parties hereunder shall terminate without any liability of any party to the
other party (except for any liability of any Party then in breach).

      
 

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      VII.         
GENERAL PROVISIONS.

       

      7.1          
Entire Agreement.   This Agreement embodies the entire
Agreement and understanding between the Parties concerning the subject matter
hereof and supersedes any and all prior negotiations, understandings or
Agreements in regard thereto.

      

      7.2          
Choice of  Law.   The Parties stipulate that
regardless of the location of the execution of this Agreement or the location of
the closing, they agree that the choice of law governing this contract shall be
the Laws of the State of Florida.

      

      7.3          
Notices.   Unless otherwise changed by notice given in
accordance with this provision, any notice or other communications required or
permitted herein shall be deemed given if delivered personally or sent by
certified mail, postage prepaid, return receipt requested, addressed to the
other Parties at the addresses set forth above or, in the case of the
Shareholders, at the address set forth their signature.

      

      7.4         
Waiver.   All rights and remedies under this Agreement are
cumulative and are not exclusive of any other rights and remedies provided by
law. No delay or failure in the exercise of any right or remedy arising under
this Agreement shall operate as a waiver of any subsequent right or remedy
subsequently arising under this Agreement.

      

      7.5          
Survival of Provisions.   All Agreements, representations,
covenants and warranties on the part of the Parties contained herein or in any
instrument executed and delivered in connection herewith shall survive closing
of this Agreement and any investigation at any time made with respect thereto.
The terms, conditions and obligations of the Parties contained in this Agreement
shall survive and remain enforceable after the closing upon any other party
holding such rights, or entity which gains such rights. All such matters shall
be transferred and obligatory upon RENW after any name change, if any before or
after closing.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      7.6          
Attorney's Fees.   In the event of litigation for
enforcement of the terms of this Agreement or to enforce any remedy hereunder,
the prevailing party shall be entitled to recover from the other party any and
all costs and expenses, including reasonable attorney's fees, as may be
incurred.

      

      7.7          
Binding Effect.   This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective personal
representatives, successors and assigns.

      

      7.8          
Headings.   The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

      

      7.9          
Execution by Facsimile.   Facsimile execution of this
Agreement by any party is authorized and shall be binding upon all
Parties.

      

      7.10        
Counterparts.   This Agreement may be executed in any
number of counterparts, each of which shall be considered an original
hereof.

      

      7.11       
Venue.   For resolution of any dispute hereunder, shall be
the courts of competent jurisdiction in Hillsborough County, Tampa Florida
only.

      

      7.12       
Survivability.   Should any term, condition, section or
subpart of this Agreement be deemed null, void, voidable or unenforceable, the
remaining terms, obligations, parts, sections and conditions shall remain in
force and binding on the Parties.

      

      7.13        
Recitals.  The Parties expressly acknowledge that the Recitals
in the second preamble section contain covenants that shall be enforced and
relied upon and do not constitute merely descriptive recitals.

      

      IN
WITNESS WHEREOF, this Agreement has been executed on the date first above
written.

       

      
        
          	Renewable
      Energy Resources, Inc. 	 	 	World
      Environmental Services, Inc.	 
	 	 	 	 	 
	 	 	 	 	 
	
                  /s/ 
      Craig A. Huffman

                	 	 	
                  /s/  
      John Stanton

                	 
	
                  Craig
      A. Huffman, Chairman

                	 	 	
                  

                    John
      Stanton, President

                  

                	 
	
                  and
      Acting Chief Executive Officer

                	 	 	
                   

                	 
	Renewable
      Energy Resources, Inc.	 	 	 	 

        

      

       

       

       

       

       10exv4w16

 

EXHIBIT 4.16

 

 

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

Made as of September 28, 2007

Between

4411986 CANADA INC.

as a Borrower

(subject to Section 7.4)

and

OSPREY MEDIA LP,

by its General Partner, Osprey Media GP Inc.

as a Borrower

and

OSPREY MEDIA INCOME FUND

as a Borrower

and

EACH OF THE FINANCIAL INSTITUTIONS

FROM TIME TO TIME PARTIES HERETO

as Credit Facility Lenders

and

CANADIAN IMPERIAL BANK OF COMMERCE

as Syndication Agent

and

BANK OF MONTREAL

as Documentation Agent

and

THE BANK OF NOVA SCOTIA

as Administrative Agent

 

 

FOURTH AMENDED AND RESTATED 
CREDIT AGREEMENT

 

 

EXECUTION COPY

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	RECITALS
	 	 	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 1 — INTERPRETATION	 	 	3	 
	1.1
	 	Certain Defined Terms	 	 	3	 
	1.2
	 	Business Day	 	 	30	 
	1.3
	 	Conflict	 	 	30	 
	1.4
	 	Currency	 	 	30	 
	1.5
	 	Time	 	 	30	 
	1.6
	 	GAAP	 	 	30	 
	1.7
	 	Headings and Table of Contents	 	 	31	 
	1.8
	 	Number and Gender	 	 	31	 
	1.9
	 	References	 	 	31	 
	1.10
	 	Statutory References	 	 	31	 
	1.11
	 	Time of Day	 	 	31	 
	1.12
	 	Governing Law	 	 	31	 
	1.13
	 	Entire Agreement	 	 	31	 
	1.14
	 	Severability	 	 	32	 
	1.15
	 	Action by Osprey LP	 	 	32	 
	1.16
	 	Schedules	 	 	32	 
	 
	 	 	 	 	 	 
	SECTION 2 — THE CREDIT FACILITIES	 	 	33	 
	2.1
	 	Establishment of Revolving Facility	 	 	33	 
	2.2
	 	Establishment of Term Facility	 	 	33	 
	2.3
	 	Obligations of the Lenders and the Administrative Agent	 	 	33	 
	2.4
	 	Revolving Nature of Revolving Facility	 	 	34	 
	2.5
	 	Purpose	 	 	34	 
	2.6
	 	Borrowing Procedures — General	 	 	34	 
	2.7
	 	Minimum Advances	 	 	35	 
	2.8
	 	Bankers’ Acceptances	 	 	35	 
	2.9
	 	Swing Line Loans	 	 	38	 
	2.10
	 	Letters of Credit and Letters of Guarantee	 	 	40	 
	2.11
	 	Hedge Contracts	 	 	43	 
	2.12
	 	Conversion Option	 	 	44	 
	2.13
	 	Conversion and Rollover Not Repayment	 	 	44	 
	2.14
	 	Determination Final	 	 	44	 
	2.15
	 	Mandatory Conversion of Bankers’ Acceptances	 	 	44	 
	2.16
	 	Reliance on Oral Instructions	 	 	45	 
	2.17
	 	Deposit of Proceeds of Loans and Discount Proceeds	 	 	45	 
	2.18
	 	Evidence of Obligations	 	 	45	 
	2.19
	 	Single Obligation of Borrowers	 	 	45	 
	 
	 	 	 	 	 	 
	SECTION 3 — INTEREST, FEES AND EXPENSES	 	 	46	 
	3.1
	 	Interest on Prime Loans	 	 	46	 
	3.2
	 	Fees on Bankers’ Acceptances	 	 	46	 

(i)

 

	 	 	 	 	 	 	 
	3.3
	 	Letter of Credit and Letter of Guarantee Fees	 	 	46	 
	3.4
	 	Pricing Matrix	 	 	46	 
	3.5
	 	Fees	 	 	48	 
	3.6
	 	Commitment Fees	 	 	48	 
	3.7
	 	Interest on Overdue Amounts	 	 	48	 
	3.8
	 	Interest Act	 	 	48	 
	3.9
	 	Limit on Rate of Interest	 	 	48	 
	3.10
	 	Change in Circumstances	 	 	49	 
	3.11
	 	Payment of Portion	 	 	51	 
	3.12
	 	Illegality	 	 	51	 
	3.13
	 	Indemnity	 	 	51	 
	 
	 	 	 	 	 	 
	SECTION 4 — REDUCTION AND REPAYMENT	 	 	53	 
	4.1
	 	Term and Maturity of Revolving Facility	 	 	53	 
	4.2
	 	Term and Maturity of Term Facility	 	 	53	 
	4.3
	 	Repayment of Revolving Facility	 	 	53	 
	4.4
	 	Repayment of Term Facility	 	 	53	 
	4.5
	 	Mandatory Repayment	 	 	53	 
	4.6
	 	Permanent Prepayment	 	 	54	 
	4.7
	 	Cancellation	 	 	54	 
	 
	 	 	 	 	 	 
	SECTION 5 — PAYMENTS AND TAXES	 	 	54	 
	5.1
	 	Payments Generally	 	 	54	 
	5.2
	 	Taxes	 	 	55	 
	5.3
	 	No Set-Off	 	 	56	 
	5.4
	 	Application of Payments Before Exercise of Rights	 	 	56	 
	5.5
	 	Application of Payments After Exercise of Rights Under Section 11.2	 	 	57	 
	 
	 	 	 	 	 	 
	SECTION 6 — SECURITY DOCUMENTS	 	 	58	 
	6.1
	 	Security Documents	 	 	58	 
	6.2
	 	Additional Material Subsidiaries	 	 	58	 
	6.3
	 	Additional Subsidiaries	 	 	59	 
	6.4
	 	Credit Facility Obligations and Other Secured Obligations	 	 	59	 
	 
	 	 	 	 	 	 
	SECTION 7 — CONDITIONS PRECEDENT	 	 	60	 
	7.1
	 	Conditions Precedent to Effectiveness	 	 	60	 
	7.2
	 	Conditions Precedent to All Advances	 	 	61	 
	7.3
	 	Waiver of a Condition Precedent	 	 	62	 
	7.4
	 	Conditions Precedent to Bidco Effective Date	 	 	62	 
	 
	 	 	 	 	 	 
	SECTION 8 — REPRESENTATIONS AND WARRANTIES	 	 	63	 
	8.1
	 	Representations and Warranties	 	 	63	 
	8.2
	 	Deemed Repetition	 	 	67	 
	 
	 	 	 	 	 	 
	SECTION 9 — COVENANTS	 	 	68	 
	9.1
	 	Affirmative Covenants	 	 	68	 
	9.2
	 	Negative Covenants	 	 	71	 
	9.3
	 	Financial Covenants	 	 	74	 

(ii)

 

	 	 	 	 	 	 	 
	9.4
	 	Accounting, Financial Statements and Other Information	 	 	75	 
	9.5
	 	Reorganization	 	 	77	 
	 
	 	 	 	 	 	 
	SECTION 10 — ENVIRONMENTAL PROVISIONS	 	 	77	 
	10.1
	 	Compliance with Environmental Laws	 	 	77	 
	10.2
	 	Environmental Notices	 	 	77	 
	10.3
	 	Environmental Conditions	 	 	78	 
	10.4
	 	Environmental Consultant	 	 	78	 
	10.5
	 	Environmental Audit	 	 	78	 
	10.6
	 	Indemnity	 	 	78	 
	10.7
	 	Environmental Approvals	 	 	79	 
	 
	 	 	 	 	 	 
	SECTION 11 — DEFAULT AND ENFORCEMENT	 	 	79	 
	11.1
	 	Events of Default	 	 	79	 
	11.2
	 	Rights upon Default and Event of Default	 	 	82	 
	11.3
	 	Hedge Contracts	 	 	83	 
	11.4
	 	Waiver of Default	 	 	83	 
	 
	 	 	 	 	 	 
	SECTION 12 — REMEDIES	 	 	84	 
	12.1
	 	Remedies Cumulative	 	 	84	 
	12.2
	 	Sharing of Information	 	 	84	 
	12.3
	 	Remedies Not Limited	 	 	84	 
	12.4
	 	Sharing of Proceeds Among the Lenders	 	 	84	 
	12.5
	 	Set-Off, etc.	 	 	85	 
	12.6
	 	Administrative Agent or Lender May Perform Covenants	 	 	85	 
	12.7
	 	Determination of Exposure	 	 	85	 
	12.8
	 	Decision to Enforce Security Documents	 	 	86	 
	12.9
	 	Enforcement	 	 	86	 
	12.10
	 	Application of Cash Proceeds of Realization	 	 	86	 
	 
	 	 	 	 	 	 
	SECTION 13 — THE ADMINISTRATIVE AGENT AND THE LENDERS	 	 	87	 
	13.1
	 	Authorization of Administrative Agent	 	 	87	 
	13.2
	 	Arrangements for Advances	 	 	87	 
	13.3
	 	Arrangements for Repayment of Advances	 	 	88	 
	13.4
	 	Lenders Bound by Decision to Exercise Remedies	 	 	89	 
	13.5
	 	Deemed Repayment and Funding	 	 	89	 
	13.6
	 	Responsibility of Administrative Agent	 	 	90	 
	13.7
	 	Acknowledgement of Lenders	 	 	90	 
	13.8
	 	Successor Administrative Agent	 	 	91	 
	13.9
	 	Notices between the Lenders and the Administrative Agent	 	 	91	 
	13.10
	 	Relations with the Borrowers	 	 	91	 
	13.11
	 	Reliance by Administrative Agent	 	 	92	 
	13.12
	 	Reimbursement of Administrative Agent’s Expenses and Indemnity	 	 	92	 
	13.13
	 	Action by Administrative Agent	 	 	92	 
	13.14
	 	Borrowers’ Right to Rely on Administrative Agent	 	 	92	 
	13.15
	 	Amendments, Waivers, etc.	 	 	93	 
	13.16
	 	Administrative Agent’s Duty to Deliver Documents	 	 	95	 

(iii)

 

	 	 	 	 	 	 	 
	13.17
	 	No Partnership	 	 	95	 
	13.18
	 	Adjustments Among Lenders	 	 	95	 
	13.19
	 	Indemnity of Administrative Agent	 	 	95	 
	13.20
	 	Administrative Agent May Debit Accounts	 	 	96	 
	13.21
	 	Consultation with Counsel	 	 	96	 
	13.22
	 	Administrative Agent as Lender	 	 	96	 
	13.23
	 	Delegation by Administrative Agent	 	 	96	 
	 
	 	 	 	 	 	 
	SECTION 14 — ASSIGNS AND PARTICIPANTS	 	 	96	 
	14.1
	 	Assignment and Participation	 	 	96	 
	14.2
	 	Assignment After Default	 	 	98	 
	 
	 	 	 	 	 	 
	SECTION 15 — MISCELLANEOUS	 	 	98	 
	15.1
	 	Amendments	 	 	98	 
	15.2
	 	Notice	 	 	99	 
	15.3
	 	Disruption of Postal Service	 	 	99	 
	15.4
	 	Further Assurances	 	 	99	 
	15.5
	 	Judgment Currency	 	 	99	 
	15.6
	 	Waivers	 	 	100	 
	15.7
	 	Reimbursement of Expenses	 	 	100	 
	15.8
	 	Submission to Jurisdiction	 	 	100	 
	15.9
	 	Counterparts	 	 	100	 
	15.10
	 	Confidentiality	 	 	100	 
	15.11
	 	Acknowledgement re Liability of Fund	 	 	101	 
	15.12
	 	No Novation	 	 	102	 

     Schedule 1.1(26)  —  Form of Subordination Agreement

     Schedule 1.1(37)  —  Branches of Account

     Schedule 1.1(57)  —  Compliance Certificate

     Schedule 1.1(69)  —  Discount Note

     Schedule 1.1(120)  —  Material Contracts

     Schedule 1.1(147)  —  Permitted Liens

     Schedule 1.1(167)  —  Revolving Commitment

     Schedule 1.1(192)  —  Term Commitment

     Schedule 2.6(1)  —  Notice of Requested Advance

     Schedule 2.8(8)  —  Notice of Rollover or Payment of Bankers’ Acceptances

     Schedule 2.10(7)  —  Notice of Rollover of Letter of Credit or Letter of Guarantee

     Schedule 2.12  —  Conversion Option Notice

     Schedule 4.6  —  Notice of Prepayment

     Schedule 4.7  —  Notice of Cancellation of Credit Facilities

(iv)

 

     Schedule 8.1(15)  —  Canadian Benefit Plans and Pension Plans

     Schedule 8.1(17)  —  Corporate Organization Chart

     Schedule 8.1(18)  —  Environmental Matters

     Schedule 8.1(19)  —  Intellectual Property

     Schedule 8.1(21)  —  Real Property

     Schedule 8.1(22)  —  Leased Property

     Schedule 9.3(4)(a)  —  Example of Synergy Credit

     Schedule 14.1(3)(b)  —  Assignee’s Undertaking

(v)

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

Fourth Amended and Restated Credit Agreement made as of September 28, 2007 between:

4411986 CANADA INC.

as a Borrower

(subject to Section 7.4)

and

OSPREY MEDIA LP,

by its General Partner, Osprey Media GP Inc.

as a Borrower

and

OSPREY MEDIA INCOME FUND

as a Borrower

and

EACH OF THE FINANCIAL INSTITUTIONS FROM

TIME TO TIME PARTIES HERETO

as Credit Facility Lenders

and

CANADIAN IMPERIAL BANK OF COMMERCE

as Syndication Agent

and

BANK OF MONTREAL

as Documentation Agent

and

THE BANK OF NOVA SCOTIA

as Administrative Agent

RECITALS

A. Pursuant to the Credit Agreement made as of July 31, 2001 (the “Original Credit Agreement”)
between 3057249 Nova Scotia Company (the “Original Borrower”), 3057250 Nova Scotia Company (the
“Original Guarantor”), each of the financial institutions and other entities party thereto, as
lenders (the “Original Lenders”), The Bank of Nova Scotia, Bank of Montreal and Canadian Imperial
Bank of Commerce, as Co-Arrangers (the “Original

 

-2-

Co-Arrangers”) and the Administrative Agent, the Original Lenders agreed to make Credit Facilities
available to the Original Borrower.

B. The Original Borrower and the Original Guarantor each (i) converted from an unlimited liability
company to a limited liability company under the laws of the Province of Nova Scotia, at which time
the Original Borrower changed its name to “Osprey Media Group Inc.”, (ii) continued under the
Business Corporations Act (Ontario) (the “OBCA”), and (iii) amalgamated under the OBCA to carry on
business as “Osprey Media Group Inc.”.

C. Osprey Media Group Inc. (“Old Osprey”) agreed to become the borrower under the Original Credit
Agreement and to assume all of the obligations of the Original Borrower and the Original Guarantor
under the Original Credit Agreement and the other documents to which the Original Borrower and the
Original Guarantor, as the case may be, was a party under the Assumption Agreement (the “Assumption
Agreement”) between Old Osprey, the Administrative Agent and the Original Lenders executed as of
the 8th day of August 2001.

D. The Original Credit Agreement was amended and restated by the Amended and Restated Credit
Agreement made as of February 14, 2003, between Old Osprey, as borrower, Osprey Media Holdings Inc.
(as “Holdco”), each of the financial institutions from time to time party thereto, as lenders (the
“Original Credit Facility Lenders”), the Original Co-Arrangers and The Toronto-Dominion Bank, as
Co-Arrangers, Bank of Montreal, Canadian Imperial Bank of Commerce and The Toronto-Dominion Bank,
as Co-Syndication Agents, and the Administrative Agent, as amended by Amendment No. 1 to Amended
and Restated Credit Agreement made as of September 18, 2003 (the “Amended and Restated Credit
Agreement”).

E. In connection with the creation of the Fund and the offering of units in the Fund to the public
under the Prospectus, (i) the Fund incorporated a subsidiary corporation (“Acquireco”) under the
OBCA; (ii) the capital of Old Osprey and Holdco were reorganized; (iii) Old Osprey amalgamated with
Acquireco to continue as Osprey Media Group Inc. (“Osprey”); and (iv) Osprey made a repayment of
the Term Facility in the amount of $61,046,299 (collectively, the “IPO Transaction”).

F. The Amended and Restated Credit Agreement was amended and restated by the Second Amended and
Restated Credit Agreement made as of April 15, 2004 between Osprey, as borrower, Holdco, each of
the financial institutions from time to time party thereto, as credit facility lenders (the “Credit
Facility Lenders”), Canadian Imperial Bank of Commerce, as Syndication Agent, Bank of Montreal, as
Documentation Agent, National Bank of Canada, as Managing Agent, and the Administrative Agent, to
reflect the IPO Transaction and the Second Amended and Restated Credit Agreement was amended by
Amendment No. 1 to Second Amended and Restated Credit Agreement made as of August 23, 2004 to
increase the Revolving Facility to $65,000,000 and decrease the Term Facility to $133,300,000 (the
“Second Amended and Restated Credit Agreement”).

G. The Second Amended and Restated Credit Agreement was amended and restated by the Third Amended
and Restated Credit Agreement made as of January 1, 2006 between Osprey Media LP (“Osprey LP”) and
the Fund, as borrowers (the “Existing Borrowers”), the Credit Facility Lenders, Canadian Imperial
Bank of Commerce, as Syndication Agent, and The Bank of

 

-3-

Nova Scotia, as Administration Agent, to reflect: (A) a reorganization comprising of among other
things, (i) the amalgamation of Osprey with Holdco to form Amalco I (“Amalco I”); (ii) the creation
of Osprey LP to carry on the business formerly carried on by Osprey, and the assignment of assets
and certain liabilities of Amalco I, to the Fund and Osprey LP under the Assignment and Assumption
Agreement made as of January 1, 2006 pursuant to which the Fund assumed the obligations of Osprey
in respect of the Term Facility and the Hedge Contracts, and Osprey LP assumed the obligations of
Osprey in respect of the Revolving Facility; (B) the transfer of all title to Real Property held by
Osprey to 1576626 Ontario Inc. (the “Nominee”); and (C) the extension to the Maturity Date and
certain other amendments (the “Third Amended and Restated Credit Agreement”).

H. At a date to be determined by 4411986 Canada Inc. (“Bidco”), the Existing Borrowers and Bidco
propose to effect a reorganization (the “Reorganization”) of the Fund and its Subsidiaries whereby
Bidco will acquire all of the assets of the Fund to become the sole shareholder of Osprey LP and
Osprey GP.

I. The Borrowers and Bidco have requested, and the Administrative Agent and the Credit Facility
Lenders have agreed, to amend and restate the Third Amended and Restated Credit Agreement to, among
other things, (i) add Bidco as a co-borrower under the Credit Facilities, as and from the Bidco
Effective Date; (ii) amend certain definitions, covenants and other provisions; and (ii) consent to
and reflect the Reorganization, subject to the terms and conditions of this Agreement.

FOR VALUE RECEIVED, the parties agree as follows:

SECTION 1 — INTERPRETATION

1.1 Certain Defined Terms

     The terms defined below shall have the indicated meanings unless the context expressly or by
necessary implication requires otherwise:

(1) Acceptance Fee means a fee payable by a Borrower with respect to the acceptance of a Bankers’
Acceptance by a Credit Facility Lender under this Agreement, as set forth in Section 3.4.

(2) Acquireco means 1606348 Ontario Inc., a corporation incorporated under the laws of Ontario.

(3) Acquisition Target has the meaning given to it in Section 1.1(144).

(4) Additional Compensation has the meaning given to it in Section 3.10(3).

(5) Administrative Agent means The Bank of Nova Scotia when acting as administrative agent and any
successor administrative agent appointed under Section 13.8.

(6) Administrative Agent’s Accounts for Payments means for all payments under this Agreement for
and by the Borrowers in Canadian Dollars, the following account maintained by

 

-4-

the Administrative Agent at its main Toronto branch, to which payments and transfers are to be
effected as follows:

The Bank of Nova Scotia

Global Wholesale Services

Loan Operations

720 King Street West, 2nd Floor

Toronto, Ontario M5V 2T3

Account #52712-23902-64

Attention: Loan Administration and Agency Services

Reference: Osprey Media LP

or any other account of the Administrative Agent for the Borrowers as the Administrative Agent may
from time to time advise the Borrowers and the Credit Facility Lenders by not less than fifteen
(15) days prior written notice.

(7) Administrative Agent’s Branch of Account means The Bank of Nova Scotia, Global Wholesale
Services — Loan Operations, 720 King Street West, 2nd Floor, Toronto, Ontario, M5V 2T3
or other office or branch of the Administrative Agent in Canada as the Administrative Agent may
from time to time advise the Borrowers and the Credit Facility Lenders by not less than fifteen
(15) days prior written notice.

(8) Advance means an extension of credit under the Credit Facilities by a Credit Facility Lender to
a Borrower by way of the advance of a Prime Loan, the acceptance of Bankers’ Acceptances or the
issuance of a Letter of Credit or Letter of Guarantee.

(9) Affected Borrowing has the meaning given to it in Section 3.11.

(10) Affiliate shall have the meaning given to it in the OBCA as of the date hereof; provided that
all references to a “body corporate” in such definition and in each definition referred to therein
shall be deemed to be a reference to a “Person”; provided further, however, that the term
“Affiliate” shall specifically exclude the Administrative Agent and each Lender.

(11) Agency Fee Letter means the fee letter dated April 15, 2004 relating to the Credit Facilities.

(12) Agreed Currency has the meaning given to it in Section 15.5.

(13) Agreement means this Fourth Amended and Restated Credit Agreement, including the Schedules
hereto, as amended, varied, supplemented, restated, renewed or replaced at any time and from time
to time.

(14) Amalco I has the meaning given to it in Recital G, and includes, for greater certainty, any
successor entity into which Amalco I may be further amalgamated or combined.

(15) Amalgamation means the amalgamation of Old Osprey and Acquireco to continue as Osprey.

 

-5-

(16) Amended and Restated Credit Agreement has the meaning given to it in Recital D.

(17) Applicable Law means, in respect of any Person, property, transaction or event, all present
and future laws, statutes, regulations, treaties, judgments and decrees applicable to that Person,
property, transaction or event (whether or not having the force of law when used in reference to
regulatory matters applicable to the Administrative Agent and the Credit Facility Lenders) and all
applicable requirements, requests, official directives, consents, approvals, authorizations,
guidelines, rules, orders and policies having the force of law of any Governmental Authority having
authority over that Person property, transaction or event.

(18) Applicable Margin means the number of basis points applicable to a type of Advance as
determined in accordance with Section 3.4.

(19) Asset Sale Proceeds has the meaning given to it in Section 4.5.

(20) Assignee has the meaning given to it in Section 14.1(3)(b).

(21) Assigning Lender has the meaning given to it in Section 14.1(3)(b).

(22) Assumption Agreement has the meaning given to it in Recital C.

(23) Associate has the meaning given to it in the OBCA as of the date hereof.

(24) Auditors means an independent chartered accounting firm of national standing or otherwise
acceptable to the Administrative Agent appointed by either the shareholders or the board of
directors of a Borrower to provide audit services from time to time.

(25) Authorized Signatory means, in respect of the Fund, the Person or Persons authorized in
accordance with the Fund Declaration of Trust or by the Board of Trustees to sign on behalf of the
Board of Trustees of the Fund; in respect of Osprey LP, the Person or Person authorized by the
board of directors of Osprey GP to sign on behalf of Osprey LP in accordance with the Limited
Partnership Agreement; and in respect of Osprey GP and Bidco, the Person or Persons authorized by
the respective board of directors of Osprey GP and Bidco, as applicable, to sign on each of their
behalf.

(26) Back-to-Back Debt means any loans made or debt instruments issued as part of a Back-to-Back
Transaction and in which each party to such Back-to-Back Transaction, other than a Loan Party,
executes a subordination agreement in favour of the Administrative Agent in substantially the form
attached hereto as Schedule 1.1(26).

(27) Back-to-Back Preferred Shares means preferred shares issued:

	 	(a)	 	to a Loan Party by an Affiliate of such Loan Party in circumstances where,
immediately prior to the issuance of such preferred shares, an Affiliate of such Loan
Party has loaned on an unsecured basis to such Loan Party, or an Affiliate of such Loan
Party has subscribed for preferred shares of such Loan Party in an amount equal to, the
requisite subscription price for such preferred shares;

 

-6-

	 	(b)	 	by a Loan Party to one of its Affiliates in circumstances where, immediately
prior to or immediately after, as the case may be, the issuance of such preferred
shares, such Loan Party has loaned an amount equal to the proceeds of such issuance to
an Affiliate on an unsecured basis; or
	 
	 	(c)	 	by a Loan Party to one of its Affiliates in circumstances where, immediately
after the issuance of such preferred shares, such Loan Party has used all of the
proceeds of such issuance to subscribe for preferred shares issued by such Affiliate;
	 
	 	 	 	in each case on terms where:

	 	(i)	 	the aggregate redemption amount applicable to the preferred
shares issued to or by such Loan Party is identical:

	 	(A)	 	in the case of (a) above, to the principal
amount of the loan made or the aggregate redemption amount of the
preferred shares subscribed for by such Affiliate prior to the issuance
thereof;
	 
	 	(B)	 	in the case of (b) above, to the principal
amount of the loan made to such Affiliate with the proceeds of the
issuance thereof; or
	 
	 	(C)	 	in the case of (c) above, to the aggregate
redemption amount of the preferred shares issued by such Affiliate with
the proceeds of the issuance thereof;

	 	(ii)	 	the dividend payment date applicable to the preferred shares
issued to or by such Loan Party will:

	 	(A)	 	in the case of (a) above, be immediately prior
to the interest payment date relevant to the loan made or the dividend
payment date on the preferred shares subscribed for by such Affiliate
immediately prior to the issuance thereof;
	 
	 	(B)	 	in the case of (b) above, be immediately after
the interest payment date relevant to the loan made to such Affiliate
with the proceeds of the issuance thereof; or
	 
	 	(C)	 	in the case of (c) above, be immediately after
the dividend payment date on the preferred shares issued by such
Affiliate with the proceeds of the issuance thereof;

	 	(iii)	 	the amount of dividends provided for on any payment date in
the share conditions attaching to the preferred shares issued:

	 	(A)	 	to a Loan Party in the case of (a) above, will
be equal to or in excess of the amount of interest payable in respect
of the loan made or the amount of dividends provided for in respect of the

 

-7-

	 	 	 	preferred shares subscribed for by such Affiliate prior to the
issuance thereof;
	 	 	 	 
	 	(B)	 	by a Loan Party in the case of (b) above, will
be equal to or less than the amount of interest payable in respect of
the loan made to such Affiliate with the proceeds of the issuance
thereof; or
	 
	 	(C)	 	by a Loan Party in the case of (c) above, will
be equal to the amount of dividends in respect of the preferred shares
issued by such Affiliate with the proceeds of the issuance thereof.

	 	 	 	Provided, for greater certainty, that in all cases, (I) the redemption of any
preferred shares by a Loan Party; (II) the repayment of any Back-to-Back Debt by a
Loan Party; (III) the payment of any dividends by a Loan Party in respect of its
preferred shares; and (IV) the payment of any interest on Back-to-Back Debt of a
Loan Party, may, in each case, be made by a Loan Party solely by delivering the
relevant Back-to-Back Securities to the Affiliate in question, or by paying to the
Affiliate an amount in cash not in excess of the amount already received in cash
from such Affiliate. Notwithstanding the foregoing, the requirement set out above
with respect to the timing and order of events or to the effect that certain amounts
stipulated in (ii) and (iii) above must be equal to or not in excess of or not less
than certain other amounts stipulated thereunder shall not apply to Back-to-Back
Transactions between QMI Entities provided the exchange of payments relating to such
transactions are completed on the same day absent administrative, technical or
technological constraints.

(28) Back-to-Back Securities means the Back-to-Back Preferred Shares or the Back-to-Back Debt or
both, as the context requires.

(29) Back-to-Back Transactions means any of the transactions described under the definition of
Back-to-Back Preferred Shares.

(30) BA Equivalent Loan means an Advance made by a Non BA Lender evidenced by a Discount Note.

(31) Bankers’ Acceptance and B/A each means a bill of exchange within the meaning of the Bills of
Exchange Act (Canada), and each a depository bill issued in accordance with the Depository Bills
and Notes Act (Canada), denominated in Canadian Dollars, drawn by a Borrower and accepted by a
Credit Facility Lender and includes a Discount Note.

(32) Bidco means 4411986 Canada Inc.

(33) Bidco Effective Date means the date on which Bidco becomes a Borrower under this Agreement
further to the fulfillment of all conditions set forth in Section 7.4.

(34) Board of Trustees means the members of the board of trustees of the Fund from time to time not
in their individual capacity but only in their capacity as trustees of the Fund.

 

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(35) Borrowers means the Term Facility Borrowers and the Revolving Facility Borrowers and their
respective permitted successors and assigns, and “Borrower” means any one of them (which for
greater certainty, shall include Bidco only as and from the Bidco Effective Date).

(36) Borrower’s Account means an account of a Borrower maintained at the Administrative Agent’s
Branch of Account in Canada, or such other accounts maintained at the Branch of Account of a Credit
Facility Lender in Canada, the particulars of which a Borrower shall advise the Administrative
Agent and the Credit Facility Lenders by not less than fifteen (15) days prior written notice.

(37) Branch of Account means, with respect to each Credit Facility Lender, the branch of the Credit
Facility Lender at the address set out opposite the Credit Facility Lender’s name on Schedule
1.1(37) or other branch as the Credit Facility Lender may advise the Borrowers and the
Administrative Agent in writing.

(38) Business Day means a day on which chartered banks are open for over-the-counter business in
Toronto and excludes Saturday, Sunday and any other day which is a statutory holiday in Toronto.

(39) Business means the business of owning, operating and publishing daily and non-daily
newspapers, magazines and other publications and any business ancillary thereto carried on by the
Borrowers and their Subsidiaries.

(40) Canadian Benefit Plans means all material employee benefit plans or arrangements maintained or
contributed to by a Borrower or any Subsidiary that are not Canadian Pension Plans, including all
profit sharing, savings, supplemental retirement, retiring allowance, severance, pension, deferred
compensation, welfare, bonus, incentive compensation, phantom stock, legal services, supplementary
unemployment benefit plans or arrangements and all life, health, dental and disability plans and
arrangements in which the employees or former employees of a Borrower or any Subsidiary, as the
case may be, participate or are eligible to participate but excluding all stock option or stock
purchase plans.

(41) Canadian Dollars and the symbol “Cdn$” each means lawful money of Canada.

(42) Canadian Pension Plans means all plans or arrangements which are considered to be pension
plans for the purposes of any applicable pension benefits standards statute or regulation in Canada
established, maintained or contributed to by a Borrower or any Subsidiary for its employees or
former employees.

(43) Capital Expenditures means, for any period, the aggregate amount of all expenditures of the
Borrowers and the Material Subsidiaries for fixed or capital assets made during such period which,
in accordance with GAAP are classified as capital expenditures excluding capital expenditures made
when making Permitted Acquisitions.

(44) Capital Lease means, with respect to a Person, any lease or other arrangement relating to
property or assets that would be required to be accounted for as a capital lease on a balance sheet
of that Person in accordance with GAAP. The amount of any Capital Lease at any date shall be

 

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the amount of the obligation in respect thereof which would be included on the balance sheet as at
such date.

(45) Cash Interest means with respect to any fiscal period of the Borrowers and the Material
Subsidiaries on a consolidated basis, the aggregate amount of interest accrued during such period,
calculated in accordance with GAAP for the Borrowers and the Material Subsidiaries, but does not
include (i) any non-cash foreign exchange gains or losses, (ii) any interest paid in respect of the
Back-to-Back Transactions, (iii) any amortization of deferred financing costs and (iv) any non-cash
interest paid in respect of the QMI Sub Debt.

(46) Cash Interest Coverage Ratio means, for any fiscal period of the Borrowers, the ratio obtained
by dividing EBITDA of the Borrowers and the Material Subsidiaries, for such fiscal period, by the
aggregate Cash Interest for such fiscal period.

(47) CBCA means the Canada Business Corporations Act.

(48) CDOR Rate means, on any day, the annual rate of interest which is the arithmetic average of
the “BA 1 month” rates applicable to Canadian Dollar bankers’ acceptances identified as such on the
Reuters Screen CDOR Page at approximately 10:00 a.m. on such day (as adjusted by the Administrative
Agent after 10:00 a.m. to reflect any error in any posted rate or in the posted average annual
rate). If the rate does not appear on the Reuters Screen CDOR Page as contemplated above, then the
CDOR Rate on any day shall be calculated as the arithmetic average of the discount rates applicable
to one month Canadian Dollar Bankers’ Acceptances), and as quoted by, any two of the Schedule I
Lenders, chosen by the Administrative Agent in its discretion, as of 10:00 a.m. on the day, or if
the day is not a Business Day, then on the immediately preceding Business Day. If less than two
Credit Facility Lenders quote the aforementioned rate, the CDOR Rate shall be the rate quoted by
the Administrative Agent.

(49) Certificate means, in respect of a Borrower, a written certificate signed in the name of an
Authorized Signatory thereof and, in respect of any Material Subsidiary, a certificate signed in
the name of such Material Subsidiary by an appropriate officer under the constating documents of
such Material Subsidiary.

(50) Change of Control means the occurrence of one or more of the following events (whether or not
approved by the board of directors of any such Person): (i) any Person or related group of Persons
acting in concert shall at any time be, directly or indirectly, the beneficial owner of a greater
percentage of the votes attaching to any Borrower’s Securities entitled to vote generally in an
election of such Borrower’s directors or trustees (as applicable) than the percentage of such votes
beneficially owned by Quebecor or the Péladeau Group at such time; or (ii) the designees of
Quebecor or the Péladeau Group shall cease to represent the largest group of designees of any
Person or group of Persons acting in concert on the board of directors or trustees (as applicable)
of any Borrower or the said board is or becomes controlled by any other shareholder.

(51) Claim has the meaning given to it in Section 3.13(1).

 

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(52) Closing Date means September 28, 2007 or such earlier date upon which the conditions precedent
in Section 7.1 have been satisfied or waived.

(53) Collateral means the undertaking, property and assets covered by the Security Documents and
any other property, real or personal, tangible or intangible, now existing or hereafter acquired by
the Borrowers or any Material Subsidiary, that may at any time be or become subject to a Lien in
favour of the Administrative Agent on behalf of the Lenders to secure any or all of the Obligations
or any guarantee thereof.

(54) Commitment means, with respect to any Credit Facility Lender, the aggregate of the Revolving
Commitment and Term Commitment of such Credit Facility Lender.

(55) Commitment Fee has the meaning given to it in Section 3.6(1).

(56) Commitment Fee Payment Date has the meaning given to it in Section 3.6(1).

(57) Compliance Certificate means a Compliance Certificate substantially in the form attached as
Schedule 1.1(57) signed by the President and the Chief Executive Officer or the Vice President,
Finance of Bidco or other officer acceptable to the Administrative Agent.

(58) Contaminant means any pollutant, dangerous, toxic or hazardous substance, waste of any
description whatsoever, hazardous material or contaminant, including any of the foregoing as
defined in any Environmental Laws.

(59) Contract Period means the period selected by a Borrower in accordance with Section 2.8(1) or,
as regards Hedge Facilities, agreed with the Lender, commencing on the Drawdown Date, Rollover Date
or Conversion Date, as applicable, and expiring on a Business Day, subject to the terms of:

	 	(a)	 	Section 2.8 with respect to Banker’s Acceptances;
	 
	 	(b)	 	Section 2.10 with respect to Letters of Credit; and
	 
	 	(c)	 	Section 2.11 with respect to Hedge Facilities.

(60) Conversion means the conversion of an outstanding Advance, or a portion of an outstanding
Advance, into an alternative type of Advance under Section 2.12.

(61) Conversion Date means the Business Day that a Borrower elects as the date on which a
Conversion is to occur.

(62) Credit Facility Lenders means, at any time, all of the banks and other financial institutions
to which Credit Facility Obligations are outstanding or which have existing Commitments under this
Agreement and their permitted successors and assigns, including the Swing Line Lenders and “Credit
Facility Lender” means any one of them.

(63) Credit Facility Obligations means all Obligations other than Other Secured Obligations.

 

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(64) Credit Facilities means the Revolving Facility and the Term Facility.

(65) Debt of a Person means without duplication:

	 	(a)	 	all debts and liabilities of the Person for borrowed money, including all debts
and liabilities denominated in a foreign currency; for the purposes of calculating the
amount of debt denominated in US$, the Borrowers shall use the exchange rate
contemplated in the hedging agreements entered into by it to the extent to which such
US$ denominated debt is covered by such hedging agreements;
	 
	 	(b)	 	any obligation, contingent or other, which is required to be classified in
accordance with GAAP upon the Person’s balance sheet as a liability;
	 
	 	(c)	 	any obligation secured by any Lien existing on property owned or acquired by
the Person subject to the Lien whether or not the obligation secured thereby shall have
been assumed;
	 
	 	(d)	 	any debt or liability of the Person representing the deferred acquisition cost
(other than such obligations incurred in the ordinary course of the Person’s business
and payable within a period not exceeding 120 days from the date of its incurrence) of
property, assets or services created or arising under any conditional sale agreement or
other title retention agreement even though the rights and remedies of the seller under
that agreement in the event of default are limited to repossession or sale of property
or assets covered thereby;
	 
	 	(e)	 	any liabilities, contingent, unmatured or other, under indemnities given in
respect of any bankers’ acceptance, letter of credit or letter of guarantee;
	 
	 	(f)	 	all obligations of such Person under any Capital Lease by which the Person is
bound;
	 
	 	(g)	 	any obligation in respect of any share, ownership interest or other security of
such Person that are redeemable at the option of its holder;
	 
	 	(h)	 	without duplication of the Debt in respect of any hedging agreement under
clause (a) above, the out of the money mark-to-market exposure of the Person to any
counterparty arising under Hedge Contracts entered into with such counterparty; and
	 
	 	(i)	 	Financial Assistance provided by such Person in respect of the Debt of another
Person of the type referred to in clause (a) to (h) above.

but “Debt” does not include deferred taxes, minority interests or the Back-to-Back Securities.

(66) Default means an event, circumstance or omission which constitutes an Event of Default or
which, with any or all of the giving of notice, lapse of time, or a failure to remedy the event,
circumstance or omission within a lapse of time, would constitute an Event of Default.

 

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(67) Disbursement has the meaning given to it in Section 2.10(8).

(68) Disbursement Date has the meaning given to it in Section 2.10(8).

(69) Discount Note means a non-interest bearing promissory note denominated in Canadian Dollars,
substantially in the form of Schedule 1.1(69), issued by a Borrower to a Non BA Lender to evidence
a BA Equivalent Loan.

(70) Discount Proceeds means, for any Bankers’ Acceptance issued hereunder, an amount calculated on
the applicable Drawdown Date, Rollover Date or Conversion Date by multiplying:

	 	(a)	 	the face amount of the Bankers’ Acceptance
	 	 	 	 
	 	by	 	 

	 	(b)	 	the quotient obtained by dividing:

	 	(i)	 	one
	 
	 	by 	 	 

	 	(ii)	 	the sum of one plus the product of:

	 	(A)	 	the Discount Rate applicable to the Bankers’
Acceptance
	 
	 	and	 	 
	 
	 	(B)	 	a fraction, the numerator of which is the
applicable Contract Period and the denominator of which is 365

with the quotient being rounded up or down to the fifth decimal place and .00005 being rounded up.

(71) Discount Rate means with respect to an issue of Bankers’ Acceptances in Canadian Dollars with
the same maturity date, (a) for a Credit Facility Lender which is a Schedule I Lender or a Non BA
Lender, (i) the simple average of the B/A discount rate for the appropriate term as quoted on
Reuters Screen CDOR Page for Schedule I Reference Banks (rounded upwards to the nearest
1/100th of one percent) determined at or about 10:00 a.m. (Toronto time) on
that day or, (ii) if the discount rate for a particular term is not quoted on Reuters Screen CDOR
Page, the arithmetic average of the actual discount rates for B/As for such term accepted by the
Schedule I Reference Banks and (b) for a Credit Facility Lender which is a Schedule II/III Lender,
the arithmetic average of the actual discount rates for B/As for such term accepted by the Schedule
II/III Reference Banks but not to exceed the discount rate set out in (a) by more than 10 basis
point.

(72) Distribution shall mean, with respect to any Person, (a) the declaration or payment of any
dividend or any other payment or distribution of cash or other property or assets in respect of a
Security issued by such Person; (b) any payment on account of the purchase, redemption,

 

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defeasance, sinking fund or other retirement of a Security issued by such Person or any other
payment or distribution made in respect thereof, either directly or indirectly; (c) any payment or
prepayment of principal of, premium, if any, or interest, fees or other charges on or with respect
to, and any redemption, purchase, retirement, defeasance, sinking fund or similar payment and any
claim for rescission with respect to, any subordinated debt; (d) any payment made to redeem,
purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants, options or
other rights to acquire any Security issued by such Person now or hereafter outstanding; (e) any
payment of a claim for the rescission of the purchase or sale of, or for material damages arising
from the purchase or sale of, any Securities issued by such Person or of a claim for reimbursement,
indemnification or contribution arising out of or related to any such claim for damages or
rescission; and (f) any payment, loan, contribution, or other transfer of funds or other property
to any Security holder of such Person, other than payment of compensation and management fees to
Security holders who are employees or managers of such Person and payment of the purchase price for
goods and services supplied by such Security holder, in each case in the ordinary course of
business and on terms no less favourable than such Person could obtain from an arm’s length third
party in ordinary market conditions.

(73) Documents means this Agreement, the Bankers’ Acceptances, the Security Documents, and all
certificates, instruments, agreements and other documents delivered, or to be delivered, to the
Administrative Agent, for itself or for the benefit of any of the Lenders, and the Credit Facility
Lenders under this Agreement or any other Document and, when used in relation to any Person, the
term Documents means the Documents executed and delivered by the Person; provided, that for greater
certainty, the term “Documents” does not include any agreement or other document under which any
Other Secured Obligations arise.

(74) Drawdown Date means a Business Day on which an Advance is made or is deemed to be made.

(75) EBITDA means for any Person, on a 12-month rolling basis, earnings of such Person on a
consolidated basis, before interest, taxes, depreciation, amortization, non-controlling interest,
earnings from equity accounted investments, extraordinary and non-recurring items (including gains
or losses on asset sales or refinancings or restructuring charges, impairment of assets and
goodwill), non-cash foreign exchange gains or losses, dividends on preferred shares, amortization
of deferred financing costs, and non-cash interest with respect to QMI Sub Debt calculated on a
consolidated basis, and otherwise calculated in accordance with GAAP, but excluding (i) EBITDA from
investments or (ii) EBITDA from Subsidiaries that are not Material Subsidiaries if such EBITDA
exceeds 15% of consolidated EBITDA of Bidco; provided that EBITDA is to be determined without any
reduction on account of any Permitted Distributions, other than any Permitted Distributions which
have been deducted in the calculation of consolidated net income in accordance with GAAP. For
greater certainty, there shall be excluded from the calculation of “EBITDA” to the extent included
in such calculation, the amount of any income or expense relating to Back-to-Back Securities.

(76) Environmental Activity means any activity, event or circumstance in respect of a Contaminant
including its storage, use, holding, collection, purchase, accumulation, assessment, generation,
manufacture, construction, processing, treatment, stabilization, disposition, handling

 

-14-

or transportation or its Release into the natural environment including movement through or in the
air, soil, subsoil, surface water or groundwater.

(77) Environmental Laws means any and all federal, provincial, state, municipal and local statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, grants, licences,
agreements or other governmental restrictions of, as applicable, Canada, its provinces and all
applicable municipalities thereof relating to the environment, occupational health and safety,
health protection or any Environmental Activity.

(78) Equivalent Amount in one currency on any day means the amount of that currency into which a
specified amount of another currency can be converted at the Bank of Canada’s noon spot rate (or at
any other rate to which the parties agree) on such day and if that day is not a Business Day, on
the immediately preceding Business Day.

(79) Excluded Taxes has the meaning given to it in Section 5.2(4).

(80) Existing Borrowers has the meaning given to it in Recital G.

(81) Event of Default means any of the events or circumstances specified in Section 11.1.

(82) Financial Assistance means, with respect to any Person and without duplication, any loan to or
Investment in or other form of direct or indirect financial support of any other Person or any
obligation (contingent or other) intended by such Person to enable another Person to incur or pay
any Debt or to comply with agreements relating thereto or otherwise to assure or protect creditors
of the other Person against loss in respect of Debt of the other Person and includes any guarantee
of the Debt of the other Person and any absolute or contingent obligation:

	 	(a)	 	to advance or supply funds for the purpose of the payment or purchase of any
Debt of any other Person;
	 
	 	(b)	 	to purchase, sell or lease (as lessee or lessor) any property, assets, goods,
services, materials or supplies primarily for the purpose of enabling any Person to
make payment of Debt or to assure the holder thereof against loss in respect of any
Debt; or
	 
	 	(c)	 	to indemnify or hold harmless any creditor of any other Person from or against
any losses, liabilities or damages in respect of any Debt;

but excluding endorsements of negotiable instruments payable to such Person for collection or
deposit in the ordinary course of business.

The amount of any Financial Assistance is the amount of any loan or Investment or direct or
indirect financial support, without duplication, made or given, or all Debt of the obligor to which
the Financial Assistance relates, unless the Financial Assistance is limited to a determinable
amount, in which case the amount of the Financial Assistance is the determinable amount.

(83) Fiscal Quarter means the fiscal quarters of each Borrower, which end on March 31, June 30,
September 30 and December 31 in each Fiscal Year.

 

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(84) Fiscal Year means the fiscal year of each Borrower which currently ends on December 31.

(85) Fund means the Board of Trustees, solely in their capacity as trustees of Osprey Media Income
Fund, an open-ended limited purpose trust established under the laws of the Province of Ontario.

(86) Fund Declaration of Trust means the amended and restated declaration of trust of the Fund
dated January 1, 2006, as amended, restated, supplemented or otherwise modified from time to time.

(87) GAAP means generally accepted accounting principles in effect from time to time in Canada
applied in a consistent manner from period to period, including, without limitation, the accounting
recommendations published in the Handbook of the Canadian Institute of Chartered Accountants
(except for changes approved by the Borrowers’ independent auditors in accordance with
promulgations of the Canadian Institute of Chartered Accountants).

(88) Government Approvals means, with respect to any Person, all licences, permits, consents,
authorizations and approvals from any and all Governmental Authorities required for the conduct of
that Person’s business as presently conducted.

(89) Governmental Authority means, with respect to any Person, any domestic or foreign government
including any federal, provincial, state, territorial or municipal government and any government
agency, tribunal, commission or other authority exercising or purporting to exercise executive,
legislative, judicial, regulatory or administrative functions of, or pertaining to, government.

(90) Granting Lender has the meaning given to it to it in Section 14.1(3)(a).

(91) Gross-Up has the meaning given to it in Section 5.2(6).

(92) Gross-Up Payment has the meaning given to it in Section 5.2(6).

(93) Hedge Contract means (i) a contract for the purchase of any currency with any other currency
at an agreed rate of exchange on a specified date; (ii) an interest rate or currency swap or any
other interest or exchange rate exposure management arrangements; or (iii) any arrangement
evidencing any commodities hedge.

(94) Hedging Facilities means interest rate, foreign exchange and commodities hedging facilities
permitted by the terms of this Agreement provided by one or more of the Credit Facility Lenders on
a senior secured pari passu basis with the Credit Facilities.

(95) Holdco has the meaning given to it in Recital D.

(96) including means including without limitation and includes means includes without limitation.

(97) Indemnified Person has the meaning given to it in Section 3.13(1).

 

-16-

(98) Insurance Proceeds has the meaning given to it in Section 4.5.

(99) Interest Payment Date means the first Business Day of each month.

(100) Intellectual Property has the meaning given to it in Section 8.1(19).

(101) Investment means, for any Person, the acquisition (whether for cash, property, services,
securities or otherwise) of shares, bonds, notes, debentures, partnership or other ownership
interests or other securities of any other Person or any agreement to make that acquisition but,
for greater certainty, does not include Permitted Debt.

(102) ISDA means the International Swap and Derivatives Association, Inc. and any successor
thereto.

(103) Issuance Date means the date on which a Letter of Credit or Letter of Guarantee is issued by
the L/C Issuer in favour of a third party at the request of a Revolving Facility Borrower.

(104) ITA means the Income Tax Act (Canada), as amended, and any successor thereto, and any
regulations promulgated thereunder.

(105) Judgment Currency has the meaning given to it in Section 15.5.

(106) L/C Agreement has the meaning given to it in Section 2.10(3).

(107) L/C Issuer means the Swing Line Lender at the time a Letter of Credit or Letter of Guarantee
is issued.

(108) Leased Property has the meaning given to it in Section 8.1(22).

(109) Lenders means all of the Credit Facility Lenders; in respect of any Hedging Facilities,
“Lenders” shall also include any Affiliate of any Credit Facility Lender that is providing Hedging
Facilities to a Borrower and, in respect of any Other Secured Obligations, “Lenders” shall also
include any Credit Facility Lender, or Affiliate thereof in respect of Hedging Facilities, that was
a Credit Facility Lender at the time any agreement under which the Other Secured Obligations arise
was entered into.

(110) Letter of Credit means a commercial or standby letter of credit issued by the Swing Line
Lender at the request and for the account of a Revolving Facility Borrower.

(111) Letter of Guarantee means a guarantee or other documentary credit issued by the Swing Line
Lender on behalf of a Revolving Facility Borrower under this Agreement for the purpose of providing
security to a third party that such Revolving Facility Borrower or such Revolving Facility
Borrower’s designee will perform a contractual obligation owed to that party.

(112) Lien means any mortgage, charge, lien, hypothec or encumbrance, whether fixed or floating on,
or any security interest in, any property, whether real, personal or mixed, tangible or intangible,
any pledge or hypothecation of any property, any deposit arrangement, priority,

 

-17-

conditional sale agreement, other title retention agreement or equipment trust, Capital Lease or
other security arrangement of any kind.

(113) Limited Partnership Agreement means the amended and restated limited partnership agreement
establishing Osprey LP dated January 1, 2006, as amended, restated, supplemented or otherwise
modified from time to time.

(114) Loan means a Prime Loan.

(115) Loan Party means any Borrower or any Material Subsidiary.

(116) Long Term Incentive Plan means the employee benefit plan established April 15, 2004 by Old
Osprey and maintained by Osprey LP.

(117) Majority Lenders means, at the time of determination, those Credit Facility Lenders whose
Commitments, in the aggregate, exceed 50% of the Total Commitment.

(118) Material Adverse Change means, where used in relation to the affairs of the Borrowers, a
change in the business, operations or financial condition of the Borrowers that would have a
Material Adverse Effect and, where used in relation to any other entity, has a similar meaning.

(119) Material Adverse Effect means a material adverse effect on (a) the business, operations,
property or financial or other condition of the Borrowers and the Material Subsidiaries considered
as a whole which would materially adversely affect the ability of the Borrowers or the Material
Subsidiaries to perform and discharge their obligations under this Agreement or any of the other
material Documents to which it is a party, (b) the Collateral, the Administrative Agent’s or the
Lenders’ Liens on the Collateral or the priority of those Liens except as contemplated hereby, or
(c) the Administrative Agent’s or the Lenders’ ability to enforce their rights or remedies under
this Agreement or any of the other Documents; and, where used in relation to any other entity, has
a similar meaning.

(120) Material Contract means any contract or agreement to which a Borrower or a Subsidiary is a
party or by which it is bound, the termination or cancellation of which (prior to its scheduled
termination date) would have a Material Adverse Effect including, without limitation, the
agreements listed on Schedule 1.1(120).

(121) Material Default means a Default in respect of any of Sections 9.1(1), 9.1(3), 9.1(6),
9.1(9), 9.2 (other than Sections 9.2(1), 9.2(2), 9.2(3), 9.2(8), 9.2(9), 9.2(10), 9.2(14) and
9.2(16)), 9.3, 9.4(2), 9.4(3), 10.1, 11.1(2) and 11.1(12) and any event, circumstance or omission
which with the giving of notice by the Administrative Agent to the Borrowers declaring such event,
circumstance or omission an Event of Default, would constitute an Event of Default without, for
greater certainty, any requirement that the Administrative Agent deliver such notice to the
Borrowers.

(122) Material Subsidiary means each Subsidiary of a Borrower, established or acquired by a
Borrower or a Subsidiary of a Borrower, that is each wholly owned, directly or indirectly;
provided, that a Subsidiary established or acquired with the proceeds of equity or Permitted
Subordinated Debt may not, at the option of a Borrower, be a Material Subsidiary so long as

 

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(i) the aggregate Net Asset Value of all Subsidiaries which are not Material Subsidiaries (determined
in accordance with GAAP and calculated as at the end of the Fiscal Quarter immediately preceding
the date of determination) shall not at any time exceed an amount equal to $25,000,000; and (ii)
the aggregate annual EBITDA of all Subsidiaries which are not Material Subsidiaries shall not
exceed $3,000,000 for the 12-month period ending on the last day of the Fiscal Quarter immediately
preceding the date of determination.

(123) Maturity Date means January 1, 2011.

(124) Net Asset Value means, at any time, the amount by which the assets of a Person and its
subsidiaries on a consolidated basis exceed the liabilities of such Person and its subsidiaries on
a consolidated basis as reflected on the consolidated balance sheet of such Person as at such time.

(125) Nominee has the meaning given to it in Recital G.

(126) Non BA Lender means a Credit Facility Lender that cannot or does not as a matter of policy
issue bankers’ acceptances.

(127) Non-Swing Line Advances has the meaning given it in Section 2.9(4).

(128) OBCA has the meaning given to it in Recital B.

(129) Obligations means the Other Secured Obligations and all loans, advances, debts, liabilities
and obligations for the performance of covenants, tasks or duties or for the payment of monetary
amounts (whether or not performance is then required or contingent, or those amounts are liquidated
or determinable) owing by the Borrowers or either of them to the Administrative Agent or any Lender
under any or all of the Documents and all covenants and duties regarding those amounts, of any kind
or nature, present or future, whether or not evidenced by any agreement or other instrument, owing
under any or all of the Documents, including, without limitation, all obligations owed by the
Borrowers under the Credit Facilities.

(130) Old Osprey has the meaning given to it in Recital C.

(131) Original Closing Date means July 31, 2001.

(132) Original Co-Arrangers has the meaning given to it in Recital A.

(133) Original Credit Facility Lenders has the meaning given to it in Recital D.

(134) Original Credit Agreement has the meaning given to it in Recital A.

(135) Original Lenders has the meaning given to it in Recital A.

(136) Osprey has the meaning given to it in Recital E.

(137) Osprey GP means Osprey Media GP Inc.

(138) Osprey LP means Osprey Media LP, a limited partnership constituted under the laws of
Manitoba.

 

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(139) Other Secured Obligations has the meaning given to it in Section 6.4.

(140) OTPPB means the Ontario Teachers’ Pension Plan Board.

(141) Overdraft means a Swing Line Loan advanced by the Swing Line Lender pursuant to Section
2.9(1)(b).

(142) Participant has the meaning given to it in Section 14.1(3)(a).

(143) Péladeau Group means any (i) individual who is related by blood, adoption or marriage to the
Late Pierre Péladeau; (ii) any trust (whether testamentary or otherwise) the beneficiaries of which
are all individuals described in (i); or (iii) any corporation or partnership which is controlled,
directly or indirectly, by one or more individual referred to in (i) or a trust referred to in
(ii), or any combination thereof.

(144) Permitted Acquisitions means acquisitions by a Borrower or a Material Subsidiary of a
business or operation, whether the purchase of assets or shares (in any case, the “Acquisition
Target”), that comply with the following conditions precedent:

	 	(a)	 	the Acquisition Target shall be in, or used for, substantially the same line of
business as the Business;
	 
	 	(b)	 	the Acquisition Target and all assets and operations ancillary thereto shall be
located in Canada; provided that at any time assets or operations of an Acquisition
Target may be located in any of the northern States of the United States of America, so
long as the acquisition costs for all such non-Canadian assets (including all
Transaction Costs) do not exceed in aggregate in respect of all Permitted Acquisitions,
an amount greater than $10,000,000;
	 
	 	(c)	 	pro forma compliance, based on the Borrowers’ reasonable projections, with all
covenants in Section 9.3 for a period of one year following the closing date of such
acquisition;
	 
	 	(d)	 	the Acquisition Target shall be free and clear of all Liens other than
Permitted Liens and the Administrative Agent, for itself and the benefit of the
Lenders, shall have obtained a first priority perfected Lien (subject to Permitted
Liens) in the Acquisition Target; under such documents, agreements and instruments and
with such legal opinions in respect thereof as reasonably requested by the
Administrative Agent; and
	 
	 	(e)	 	in respect of each Permitted Acquisition where all or a portion of the purchase
price for the business or assets acquired (including all Transactions Costs) is funded
from advances under the Revolving Facility, the sum of all amounts payable (including
the purchase price and all Transaction Costs) of such acquisition or series of related
acquisitions permitted hereunder shall not exceed Cdn$50,000,000 or the Equivalent
Amount in any other currency;

 

-20-

provided that, for greater certainty, Capital Expenditures shall not be considered to be an
acquisition by this definition.

(145) Permitted Debt of any Person means the following Debt of such Person:

	 	(a)	 	the Obligations;
	 
	 	(b)	 	trade payables and other Debt to customers or suppliers of such Person
(including obligations under carrier bonds) incurred in the ordinary course of business
as part of or related to the purchase of goods and services provided to or by such
Person;
	 
	 	(c)	 	Permitted Subordinated Debt;
	 
	 	(d)	 	Debt in respect of any Hedging Facilities and other Debt to any of the Lenders
referred to in Section 6.4(b) whether or not it constitutes Other Secured Obligations;
	 
	 	(e)	 	Debt of a Borrower to any of its Material Subsidiaries or of any Material
Subsidiary to a Borrower or any other Material Subsidiary;
	 
	 	(f)	 	Debt in respect of Taxes, assessments or other governmental charges or levies
incurred in the ordinary course of business and which are not at the time due or
delinquent or the validity of which are being contested in good faith by proper legal
proceedings and as to which appropriate reserves are being maintained in accordance
with GAAP and any Lien in connection therewith has been stayed or enforcement has not
commenced;
	 
	 	(g)	 	Debt of any corporation which shall be acquired as a Permitted Acquisition or
Debt of any vendor of assets which are purchased by a Borrower or any Material
Subsidiary as a Permitted Acquisition which Debt is assumed as part of such purchase
transaction, provided that (i) the recourse of such Debt is limited to the assets being
acquired; (ii) any Lien in respect of such Debt does not extend to any assets other
than such assets which are acquired; (iii) such Debt was not created as a result of or
in contemplation of such acquisition; and (iv) the aggregate of all such Debt for all
acquisitions which is not otherwise Permitted Debt shall not exceed in the aggregate
$5,000,000;
	 
	 	(h)	 	Debt under Capital Leases;
	 
	 	(i)	 	Debt which is represented by a Permitted Lien;
	 
	 	(j)	 	any Financial Assistance provided by such Person in respect of any Debt (in the
case of a Borrower, only in respect to Debt of its Material Subsidiaries, and in the
case of a Material Subsidiary, only in respect to Debt of a Borrower or another
Material Subsidiary) referred to in clauses (a) to (i) of this definition;
	 
	 	(k)	 	net employee pension liabilities and post-retirement liabilities of the
Borrowers and the Material Subsidiaries for up to a maximum amount of $10,000,000 in
the

 

-21-

	 	 	 	aggregate, so long as the Borrowers and each Material Subsidiary is at all times in
compliance with its obligations under Section 9.1(12);
	 
	 	(l)	 	month-end accruals for taxes, benefits, salaries and other accruals including,
without limitation, accruals on the amount set out in (k) above, all arising in the
ordinary course of business and not yet due;
	 
	 	(m)	 	Debt under any Back-to-Back Securities; and
	 
	 	(n)	 	unsecured Debt having a maturity in excess of the Maturity Date and having
covenants or restrictions which are less onerous than the Credit Facilities except in
respect of pricing.

(146) Permitted Distributions means:

	 	(a)	 	any Distribution paid or made in shares or other ownership interests, provided
that such shares, or other ownership interests comply with Section 9.2(14);
	 
	 	(b)	 	any Distribution by a Borrower to its unitholders or shareholders, as
applicable;
	 
	 	(c)	 	any Distribution in accordance with the Long Term Incentive Plan;
	 
	 	(d)	 	subject to clause (e) below, any Distribution paid in interest or the
prepayment or repayment of principal on account of any Permitted Subordinated Debt;
	 
	 	(e)	 	any Distribution in respect of the Back-to-Back Securities; provided, however,
that to the extent such payments are made to any Affiliates of the Borrowers other than
QMI Entities, all corresponding payments required to be paid by such Affiliates
pursuant to the related Back-to-Back Securities are received, immediately prior to,
concurrently with or immediately subsequent to, any such payments by the Borrowers and
the Material Subsidiaries, and each such payment by the Borrowers and the Material
Subsidiaries shall be conditional upon receipt of an equal or greater amount from such
Affiliate;
	 
	 	(f)	 	any Distributions between or among the Borrowers and any Material Subsidiary;
and
	 
	 	(g)	 	any Distribution in respect of any Tax Benefit Transaction;

	 	 	 	provided, in the case of each of clauses (a) to (d) inclusive and clause (g), that no
Material Default or Event of Default has occurred and is continuing and that no Material
Default or Event of Default will result from the making of any such Distribution and, in the
case of clauses (e) and (f), that no Event of Default has occurred and is continuing and
that no Event of Default will result from the making of such Distribution.

 

-22-

(147) Permitted Liens means:

	 	(a)	 	any Lien created by, or arising under any statute or regulation or common law
(in contrast with Liens voluntarily granted) in connection with, without limiting the
foregoing, workers’ compensation, unemployment insurance, employers’ health tax or
other social security or statutory obligations that secure amounts that are not yet due
or which are being contested in good faith by proper proceedings diligently pursued and
as to which adequate reserves have been established on a Borrower’s or a Subsidiary’s
books and records and so long as no proceedings to enforce such Lien have been
commenced;
	 
	 	(b)	 	Liens made or incurred in the ordinary course of business to secure the
performance of bids, tenders, contracts (other than for the borrowing of money),
leases, statutory obligations or surety and performance bonds;
	 
	 	(c)	 	any construction, workers’, materialmens’ or other like Lien created by law (in
contrast with Liens voluntarily granted), arising in connection with construction or
maintenance in the ordinary course of business, in respect of obligations which are not
due or which are being contested in good faith by proper proceedings diligently pursued
and as to which adequate reserves have been established on a Borrower’s or a
Subsidiary’s books and records and so long as no proceedings to enforce such Liens have
been commenced and, in respect only of Liens claiming in excess of $20,000, such Lien
has not been registered against any real property or has been removed from any assets
by way of lien bond or other manner acceptable to the Credit Facility Lenders;
	 
	 	(d)	 	any Lien for Taxes not due or being contested in good faith by appropriate
proceedings diligently pursued and as to which adequate reserves have been established
on a Borrower’s or a Subsidiary’s books and records and so long as no proceedings to
enforce such Lien have been commenced;
	 
	 	(e)	 	minor imperfections in title on real property that do not materially detract
from the value of the real property subject thereto and do not materially impair a
Borrower’s or a Subsidiary’s, as the case may be, ability to carry on its business or
the Administrative Agent’s or the Lenders’ rights and remedies under the Documents;
	 
	 	(f)	 	any purchase money Lien on specific assets (including Capital Leases) to secure
indebtedness incurred to finance the acquisition of those assets where the amount of
the obligations secured does not exceed 100% of the lesser of the cost or fair market
value of the assets and the amount secured by all such Liens does not exceed $5,000,000
in the aggregate in any one Fiscal Year; and extensions, renewals or replacements
thereof upon the assets if the amount of the obligations secured thereby is not
increased;
	 
	 	(g)	 	restrictions, licenses, easements, rights-of-way, servitudes or other similar
rights in land (including rights-of-way and servitudes for railways, sewers, drains,
gas

 

-23-

	 	 	 	and oil pipelines, gas and water mains, electric light and power and telephone or
telegraph or cable television conduits, poles, wires and cables) granted to or
reserved by other Persons which in the aggregate do not materially impair the
usefulness, in the operation of the business of a Borrower and its Subsidiaries,
considered as a whole, of the real property subject to the restrictions, easements,
rights-of-way, servitudes or other similar rights in land granted to or reserved by
other Persons;
	 	 	 	 
	 	(h)	 	the rights reserved to or vested in any Person by the terms of any lease,
licence, franchise, grant or permit held by a Borrower or a Subsidiary, as the case may
be, or by any statutory provision, to terminate any such lease, licence, franchise,
grant or permit, or to require annual or periodic payments as a condition to the
continuance thereof;
	 
	 	(i)	 	the reservations, limitations, provisos and conditions, if any, expressed in
any original grants from the Crown and any statutory exceptions to title;
	 
	 	(j)	 	restrictive covenants affecting the use to which real property may be put,
provided that the covenants are complied with and do not materially detract from the
value of the real property concerned or materially impair its use in the operations of
a Borrower or a Subsidiary, as the case may be;
	 
	 	(k)	 	the Security Documents;
	 
	 	(l)	 	the right reserved to or vested in any municipality or governmental or any
other public authority by the terms of any lease, license, franchise, grant or permit
acquired by that Person or by any statutory provision to terminate any such lease,
license, franchise, grant or permit, or to require annual or other payments as a
condition to the continuance thereof;
	 
	 	(m)	 	Liens resulting from the deposit of cash or securities in connection with
surety and appeal bonds and costs of litigation when required by law provided that such
Lien does not extend beyond the cash or securities deposited and provided that the
aggregate amount of all such Liens outstanding at any time shall not exceed $500,000;
	 
	 	(n)	 	security given to a public utility or any municipality or governmental
authority when required by such utility or authority in connection with the operations
of that Person in the ordinary course of its business;
	 
	 	(o)	 	any Lien securing Permitted Debt which was existing on any property or asset
when acquired by a Borrower provided such Lien does not extend beyond the properties
acquired and extensions, renewals or replacements thereof upon such property if the
amount of the obligations secured thereby are not increased;
	 
	 	(p)	 	undetermined or inchoate Liens, rights of distress and charges incidental to
current operation which have not at such time been filed or exercised and of

 

-24-

	 	 	 	which none of the Credit Facility Lenders nor the Administrative Agent has been
given notice, and which relate to obligations not due or payable;
	 	 	 	 
	 	(q)	 	zoning by-laws and other land use restrictions including, without limitation,
site plan agreements, development agreements and contract zoning agreements;
	 
	 	(r)	 	restrictive covenants, private deed restrictions or other agreements that
relate to the use of real property provided that such agreements would not have a
material adverse effect on such real property;
	 
	 	(s)	 	Liens on any specific asset acquired through a Tax Benefit Transaction provided
such Liens do not extend to any assets other than such specific asset and provided
further that such Liens are fully discharged or such specific asset is sold within 5
Business Days of such transaction; and
	 
	 	(t)	 	those Liens set out in Schedule 1.1(147) and extensions, renewals or
replacements thereof provided such extension, renewal or replacement does not increase
the obligations in respect of such Lien or extend the Lien to any additional property.

(148) Permitted Subordinated Debt means subordinated indebtedness evidenced in writing, including
the QMI Sub Debt, which, to the prior satisfaction of the Credit Facility Lenders, shall: (i) be
contractually subordinate in payment of principal, interest and fees and subordinate in priority to
the Credit Facilities and Other Secured Obligations owing to the Lenders pursuant to the terms of
an intercreditor or subordination agreement satisfactory to the Credit Facility Lenders, acting
reasonably, (ii) have a maturity in excess of the Maturity Date, (iii) be unsecured, unless the
total amount of all outstanding Permitted Subordinated Debt is equal to or less than 1:00 x the
EBITDA of Bidco and the Material Subsidiaries on a rolling 12-month basis as measured by the most
recent available financial statements after taking into account the transaction providing for the
Permitted Subordinated Debt, in which event the Permitted Subordinated Debt may be secured with a
subordinated second ranking security interest granted by a Borrower and only those Material
Subsidiaries that are party to an agreement of the type referred to in clause (i) above in respect
of such subordinated indebtedness and such intercreditor or subordination agreement shall be on
terms satisfactory to the Lenders; (iv) not be repayable during the term of the Credit Facilities
with respect to principal, except by way of Permitted Distributions, (v) contain satisfactory
standstill and drag along provisions, (vi) have covenants or restrictions which, in the reasonable
opinion of the Credit Facility Lenders, are less onerous than the Credit Facilities, (vii) may only
accelerate after acceleration of the Credit Facilities, and (viii) include incurrence and
performance based financial tests which are, in the reasonable opinion of the Credit Facility
Lenders, less onerous than those contained herein.

(149) Person means any natural person, sole proprietorship, partnership, syndicate, trust, joint
venture, Governmental Authority or any incorporated or unincorporated entity or association of any
nature.

(150) Prime Loan means an Advance which is denominated in Canadian Dollars and in respect of which
a Borrower is obligated to pay interest in accordance with Section 3.1.

 

-25-

(151) Prime Rate means, with respect to a Prime Loan, on any day the greater of:

	 	(a)	 	the annual rate of interest announced from time to time by the Administrative
Agent as being the reference rate of the Administrative Agent, or if the Administrative
Agent shall not be a Schedule I Lender, a Schedule I Lender selected by the
Administrative Agent, then in effect for determining interest rates on Canadian Dollar
denominated commercial loans made by it in Canada; and
	 
	 	(b)	 	the CDOR Rate in effect on such date plus 75 basis points per annum.

Any change in the Prime Rate shall be effective on the date the change becomes effective generally.

(152) Prospectus means the final prospectus of the Fund dated April 6, 2004.

(153) Proceeds of Realization means the amount actually realized by the Administrative Agent and
the Lenders upon enforcement of the Security Documents.

(154) QMI means Quebecor Media Inc.

(155) QMI Entities means QMI and any of its Subsidiaries and QMI Entity means any one of them.

(156) QMI Sub Debt means Debt of the Borrowers in favour of QMI, which (i) is unsecured; (ii) does
not exceed a principal amount of $200,000,000 at any time outstanding; (iii) prohibits the payment
of interest or principal on such Debt following an Event of Default or if an Event of Default would
result from such payment; and (iv) is subordinated to the Credit Facilities and the Other Secured
Obligations on terms satisfactory to the Credit Facility Lenders.

(157) Quebecor means Quebecor Inc.

(158) Rateable Portion, with respect to a Lender, means with respect to the Revolving Facility the
fraction of the Total Revolving Commitment represented by that Lender’s Revolving Commitment and
with respect to the Term Facility the fraction of the Total Term Commitment represented by that
Lender’s Term Commitment and, with respect to Other Secured Obligations, the fraction of the total
of all Lenders’ Other Secured Obligations represented by that Lender’s Other Secured Obligations.

(159) Real Property has the meaning given to it in Section 8.1(21).

(160) Reimbursement Date has the meaning given to it in Section 2.10(8).

(161) Reimbursement Obligation has the meaning given to it in Section 2.10(8).

(162) Release means the method by which a Contaminant comes to be in the environment at large and
includes discharging, spraying, injection, abandonment, depositing, spilling, leaking, seeping,
pouring, emitting, emptying, throwing, dumping, placing and exhausting, and when used as a noun has
a correlative meaning.

 

-26-

(163) Reorganization has the meaning given to it in Recital H.

(164) Reorganization Letter means the letter dated September 12, 2007 from the Fund to the
Administrative Agent outlining the proposed amendments to the Third Amended and Restated Credit
Agreement and the proposed reorganization and transfer of assets and liabilities among the Fund and
its Subsidiaries and Bidco, copies of which have been provided to the Lenders.

(165) Repeating Representations and Warranties means those representations and warranties set out
in Section 8.1(1), (3), (4), (5)(a), (6), (7) (in relation to a Borrower’s most recent financial
statements), (9), (11), (12), (16), (20) and (23).

(166) Reuters Screen CDOR Page means the display designated as page CDOR on the Reuters Monitor
Money Rates Service or other page as may, from time to time, replace that page on that service for
the purpose of displaying bid quotations for bankers’ acceptances accepted by leading Canadian
banks.

(167) Revolving Commitment means, with respect to any Credit Facility Lender, the principal amount
set out opposite the Lender’s name in Schedule 1.1(167) under the heading “Revolving Commitment”,
as the same may be reduced from time to time or cancelled from time to time in accordance with this
Agreement.

(168) Revolving Facility has the meaning given to it in Section 2.1.

(169) Revolving Facility Borrowers means Osprey LP, the Fund and, as of the Bidco Effective Date,
Bidco, and Revolving Facility Borrower means any one of them.

(170) Rollover means the rollover of an Advance by way of Bankers’ Acceptance, Letter of Credit or
Letter of Guarantee for an additional Contract Period under Section 2.8(8) or Section 2.10(7),
respectively.

(171) Rollover Date means the Business Day on which a Rollover occurs.

(172) Schedule I Lender means any Credit Facility Lender named on Schedule I to the Bank Act
(Canada).

(173) Schedule II/III Lender means any Credit Facility Lender named on Schedule II or Schedule III
to the Bank Act (Canada) or any other financial institution that carries on the business of
lending.

(174) Schedule I Reference Banks means at least one but no more than two banks named on Schedule I
to the Bank Act (Canada) as agreed by the Administrative Agent and the Borrowers.

(175) Schedule II/III Reference Banks means at least one but no more than two banks named on
Schedule II to the Bank Act (Canada) as agreed by the Administrative Agent and the Borrowers.

(176) Schedules means the schedules attached to and forming part of this Agreement, as
particularized in Section 1.16.

 

-27-

(177) Second Amended and Restated Closing Date means April 15, 2004.

(178) Second Amended and Restated Credit Agreement has the meaning given to it in Recital F.

(179) Security has the meaning given to it in the Securities Act (Ontario).

(180) Security Documents means the Documents creating Liens on the assets of the Borrowers or any
Material Subsidiary in favour of the Administrative Agent on behalf of the Lenders to secure the
Obligations or any guarantee thereof, and all other instruments, agreements and documents which
have been or may hereafter from time to time be executed in connection therewith, including,
without limitation, the Documents set out in Section 6.

(181) Subsidiary of a Person means (a) any corporation of which the Person and/or any one of its
Subsidiaries holds, directly or beneficially, other than by way of security only, securities to
which are attached more than 50% of the votes that may be cast to elect directors of such
corporation, (b) any corporation of which the Person and/or any one of its Subsidiaries has,
through operation of law or otherwise, the ability to elect or cause the election of a majority of
the directors of such corporation and (c) any partnership, limited liability company or joint
venture in which such Person and/or one or more Subsidiaries of such Person shall have, directly or
indirectly, more than 50% of the votes that may be cast to elect the governing body of such entity.

(182) Sufficient Copies means, in respect of documents required to be delivered under this
Agreement, the number of copies of each document equal to the number of Credit Facility Lenders
plus the Administrative Agent at the time the document is delivered, unless the Borrowers are
otherwise notified by the Administrative Agent.

(183) Swing Line Account has the meaning given to it in Section 2.9(1).

(184) Swing Line Facility means the credit facility made available to each Revolving Facility
Borrower by the Swing Line Lender pursuant to Section 2.9.

(185) Swing Line Lender means Canadian Imperial Bank of Commerce when acting in its capacity as
Swing Line Lender and any successor Swing Line Lender appointed from time to time with the consent
of the Credit Facility Lenders and the Borrowers.

(186) Swing Line Loan means a loan or advance made under this Agreement in accordance with Section
2.9.

(187) Synergy Credit means the amount or value of synergies, efficiencies and savings realized by
the Borrowers and the Material Subsidiaries during the 12-month period following a Permitted
Acquisition (up to a maximum of $3,000,000 for each Permitted Acquisition) as a result of actions
taken during such period in connection with a Permitted Acquisition as identified and calculated by
the Borrowers from time to time and approved by the Credit Facility Lenders, such approval not to
be unreasonably withheld after completion of the Credit Facility Lenders’ due diligence; provided
that in making such calculation, the amount or value of any such synergies, efficiencies and
savings in respect of which the Borrowers have taken a credit in

 

-28-

any Fiscal Quarter shall have been realized in such Fiscal Quarter and the amount or value of such
synergies, efficiencies and savings which have been identified but not fully realized shall be
credited during the Fiscal Quarter (for up to three (3) additional Fiscal Quarters) in which such
amount or value is realized.

(188) Tax Benefit Transaction means, for so long as the Borrowers are a direct or indirect
Subsidiary of Quebecor, any transaction between a QMI Entity and Quebecor or any of its Affiliates,
the primary purpose of which is to create tax benefits for any QMI Entity or for Quebecor or any of
its Affiliates; provided, however, that (a) the QMI Entity involved in the transaction obtains, or
has obtained in respect of a similar previous transaction to the extent same remains applicable as
certified by the Vice-President, Taxation of Bidco (or any officer having similar functions), a
favourable tax ruling from a competent tax authority or a favourable tax opinion from a nationally
recognized Canadian law or accounting firm having a tax practice of national standing as to the tax
efficiency of the transaction for such QMI Entity; (b) any Loan Party involved in the transaction
delivers to the Administrative Agent (i) a resolution of the board of directors or trustees (as
applicable) of such Loan Party to the effect the transaction will not prejudice the Lenders and
certifying that such transaction has been approved by a majority of the disinterested members of
such board of directors or trustees (as applicable), and (ii) an opinion as to the fairness to such
Loan Party of such transaction from a financial point of view issued by an accounting, appraisal or
investment banking firm of national standing in Canada or the United States of America; (c) such
transaction is set forth in writing; and (d) the EBITDA of Bidco is not reduced after giving pro
forma effect to the transaction as if the same had occurred at the beginning of the most recently
ended four fiscal quarter period of Bidco for which internal financial statements are available;
provided, however, that if such transaction shall thereafter cease to satisfy the preceding
requirements as a Tax Benefit Transaction, it shall thereafter cease to be a Tax Benefit
Transaction for purposes of this Agreement and shall be deemed to have been effected as of such
date and, if the transaction is not otherwise permitted by this Agreement as of such date, the
Borrowers will be in Default hereunder if such transaction does not comply with the preceding
requirements or is not otherwise unwound within 30 days of that date. Notwithstanding the
foregoing, it is agreed and understood that (a) the above-mentioned tax ruling or tax opinion,
resolution and fairness opinion shall not be required for any Tax Benefit Transaction in respect of
which the net consideration payable to or by a QMI Entity does not exceed, singly, Cdn$10,000,000
and, in the aggregate Cdn$25,000,000 for the preceding twelve-month period; and (b) the
above-mentioned resolution and fairness opinion shall not be required for any Tax Benefit
Transaction conduced among QMI Entities.

(189) Tax Credit has the meaning given to it in Section 5.2(6).

(190) Taxes means all taxes, surtaxes, duties, levies, imposts, rates, fees, assessments,
withholdings, dues and other charges of any nature imposed by any Governmental Authority (including
income, capital (including large corporations), withholding, consumption, sales, use, transfer,
goods and services or other value-added, excise, customs, anti-dumping, countervail, net worth,
stamp, registration, franchise, payroll, employment, health, education, business, school, property,
local improvement, development, education development and occupation taxes, surtaxes, duties,
levies, imposts, rates, fees, assessments, withholdings, dues and charges) together with all fines,
interest, penalties on or in respect of, or in lieu of or for non-collection of,

 

-29-

those taxes, surtaxes, duties, levies, imposts, rates, fees, assessments, withholdings, dues and
other charges.

(191) Term Commitment means, with respect to any Credit Facility Lender, the aggregate principal
amount set out opposite the Lender’s name in Schedule 1.1(191) under the heading “Term Commitment”,
as such amount may be reduced from time to time or cancelled in accordance with this Agreement.

(192) Term Facility has the meaning given to it in Section 2.2.

(193) Term Facility Borrowers means the Fund, Osprey LP and, as of the Bidco Effective Date, Bidco,
and Term Facility Borrower means any one of them.

(194) Third Amended and Restated Credit Agreement has the meaning given to it in Recital G.

(195) Total Commitment means the aggregate of the Total Revolving Commitment and the Total Term
Commitment.

(196) Total Debt of a Person means, on a consolidated basis, without duplication:

	 	(a)	 	the Credit Facility Obligations;
	 
	 	(b)	 	all debts and liabilities of such Person for borrowed money, including all
debts and liabilities denominated in a foreign currency; for the purposes of
calculating the amount of debt denominated in US$, the Borrowers shall use the exchange
rate contemplated in the hedging agreements entered into by it to the extent to which
such US$ denominated debt is covered by such hedging agreements;
	 
	 	(c)	 	obligations of such Person under Capital Leases;
	 
	 	(d)	 	indebtedness of such Person for the deferred purchase price of property other
than Debt referred to in clause (b) of the definition of Permitted Debt and debt
incurred in the ordinary course of the Person’s business and payable within a period
not exceeding 120 days of its incurrence;
	 
	 	(e)	 	indebtedness of such Person evidenced by notes, bonds, debentures or similar
instruments;
	 
	 	(f)	 	reimbursement obligations of such Person in respect of letters of credit,
letters of guarantee, bankers’ acceptances and similar agreement;
	 
	 	(g)	 	without duplication of Debt in respect of any hedging agreement under clause
(b) above, the out of the money mark-to-market exposure of the Person to any
counterparty arising under Hedge Contracts entered into with such counterparty;
	 
	 	(h)	 	all Debt of the type referred to in clauses (a) to (g) above directly or
indirectly guaranteed by such Person or for which such Person may be contingently
liable; and

 

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	 	(i)	 	to the extent that the Debt in clauses (a) to (g) above would be classified as
a liability on a balance sheet of such Person in accordance with GAAP, provided that
Total Debt shall not include any Debt described in clause (e) of the definition of
Permitted Debt.

(197) Total Revolving Commitment means the aggregate Revolving Commitment of all Lenders.

(198) Total Term Commitment means the aggregate Term Commitment of all Lenders.

(199) Transaction Costs means all professional fees, brokers fees paid on an arms length market
basis, sales taxes and other direct costs and expenses of a transaction, plus a reasonable estimate
of the income taxes payable in connection with such transaction to be based on a detailed proposal
of the Borrowers, acceptable to the Credit Facility Lenders, acting reasonably, but for greater
certainty does not include any other charges, not directly attributed to such transaction.

(200) U.S. Dollars and the symbol “US$” each mean lawful money of The United States of America.

(201) Written or in writing includes printing, typewriting, or any electronic means of
communication capable of being legibly reproduced at the point of reception.

1.2 Business Day

     If under this Agreement any payment or calculation is to be made, or any other action is to be
taken, (other than those expressly stated to be made or taken on the Closing Date) on or as of a
day which is not a Business Day, that payment or calculation is to be made, and that other action
is to be taken, as applicable, on or as of the next day that is a Business Day.

1.3 Conflict

     If there is a conflict between any provision of this Agreement and any provision of a Security
Document, the relevant provision of this Agreement is to prevail.

1.4 Currency

     Unless otherwise specified, all amounts are stated and all payments are to be made in Canadian
Dollars.

1.5 Time

     Time shall be of the essence in all provisions of this Agreement.

1.6 GAAP

     Unless otherwise expressly provided, all accounting terms, determinations and computations
used in this Agreement shall be interpreted and all financial information shall be

 

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prepared in accordance with GAAP from time to time, consistently applied. The Borrowers and
the Material Subsidiaries shall not change their accounting policies or practices without the prior
written consent of the Majority Lenders or unless otherwise required by GAAP.

1.7 Headings and Table of Contents

     The division of this Agreement into sections, the insertion of headings and the provision of a
table of contents are for convenience of reference only and are not to affect the construction or
interpretation of this Agreement.

1.8 Number and Gender

     Unless otherwise specified, words importing the singular include the plural and vice versa and
words importing gender include all genders.

1.9 References

     Unless otherwise specified, references in this Agreement to Sections and Schedules are to
sections of, and schedules to, this Agreement. The terms “this Agreement”, “hereof”, “hereunder”
and similar expressions refer to this Agreement and not to any particular section hereof.

1.10 Statutory References

     Unless otherwise specified, each reference to an enactment is deemed to be a reference to that
enactment, and to the regulations made under that enactment, as in force from time to time.

1.11 Time of Day

     Unless otherwise specified, references to time of day or date mean the local time or date in
the City of Toronto, Province of Ontario.

1.12 Governing Law

     This Agreement and each of the Documents are governed by, and are to be construed and
interpreted in accordance with, the laws of the Province of Ontario and the laws of Canada
applicable in the Province of Ontario, but without prejudice to or limitation of any other rights
or remedies available under the laws of any jurisdiction where property or assets of any Borrower
or any Material Subsidiary may be found.

1.13 Entire Agreement

     This Agreement and all Documents constitute the entire agreement between the parties with
respect to the subject matter and supersede all prior agreements, negotiations, discussions,
undertakings, representations, warranties and understandings, whether written or oral.

 

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1.14 Severability

     If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any
jurisdiction, the illegality, invalidity or unenforceability of that provision will not affect:

	 	(a)	 	the legality, validity or enforceability of the remaining provisions of this
Agreement; or
	 
	 	(b)	 	the legality, validity or enforceability of that provision in any other
jurisdiction.

1.15 Action by Osprey LP

     Any reference herein to any action to be taken by, or notice to be given to, Osprey LP shall
mean an action taken by, or notice given to, Osprey GP on behalf of Osprey LP.

1.16 Schedules

     The following Schedules are attached to and form part of this Agreement:

Schedule 1.1(26) — Form of Subordination Agreement

Schedule 1.1(37) — Branches of Account

Schedule 1.1(57) — Compliance Certificate

Schedule 1.1(69) — Discount Note

Schedule 1.1(120) — Material Contracts

Schedule 1.1(147) — Permitted Liens

Schedule 1.1(167) — Revolving Commitment

Schedule 1.1(191) — Term Commitment

Schedule 2.6(1) — Notice of Requested Advance

Schedule 2.8(8) — Notice of Rollover or Payment of Bankers’ Acceptances

Schedule 2.10(7) — Notice of Rollover of Letter of Credit or Letter of Guarantee

Schedule 2.12 — Conversion Option Notice

Schedule 4.6 — Notice of Prepayment

Schedule 4.7 — Notice of Cancellation of Credit Facilities

Schedule 8.1(15) — Canadian Benefit Plans and Pension Plans

Schedule 8.1(17) — Corporate Organization Chart

Schedule 8.1(18) — Environmental Matters

Schedule 8.1(19) — Intellectual Property

Schedule 8.1(21) — Real Property

Schedule 8.1(22) — Leased Property

 

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Schedule 9.3(4)(a) — Example of Synergy Credit

Schedule 14.1(3)(b) — Assignee’s Undertaking

SECTION 2 — THE CREDIT FACILITIES

2.1 Establishment of Revolving Facility

     Revolving Facility. Subject to the terms and conditions of this Agreement, the Credit Facility
Lenders hereby agree to maintain in favour of the Revolving Facility Borrowers a committed
revolving credit facility (the “Revolving Facility”) in an aggregate amount equal to the Total
Revolving Commitment. Each Credit Facility Lender severally agrees to make its Revolving Commitment
available to the Revolving Facility Borrowers by way of Prime Loans and Bankers’ Acceptances.
Subject to the provisions of this Agreement, the Revolving Facility Borrowers may borrow, repay and
reborrow under the Revolving Facility up to the amount of the Total Revolving Commitment.

2.2 Establishment of Term Facility

     Subject to the terms and conditions of this Agreement, the Credit Facility Lenders hereby
agree to maintain in favour of the Term Facility Borrowers a term credit facility (the “Term
Facility”) in the amount of the Total Term Commitment. As at the Closing Date, the Term Facility is
fully drawn. The Term Facility is non-revolving and amounts repaid (excluding Rollovers and
Conversions otherwise permitted hereunder of B/A’s on the maturity thereof) may not be reborrowed
under the Term Facility and any such repayments received by a Credit Facility Lender shall be a
permanent reduction of the Term Commitment of any such Credit Facility Lender. Each Credit Facility
Lender severally agrees to make its Term Commitment available to the Term Facility Borrowers by way
of Prime Loans and Bankers’ Acceptances.

2.3 Obligations of the Lenders and the Administrative Agent

(1) Rateable Portion. Subject to the provisions of this Agreement, each Credit Facility Lender
agrees to make available its Rateable Portion of each Advance (or Rollover or Conversion thereof)
other than a Swing Line Loan to the applicable Borrower. No Credit Facility Lender shall be
responsible for a Commitment of any other Credit Facility Lender. The failure of a Credit Facility
Lender to make available an Advance (or Rollover or Conversion thereof) other than a Swing Line
Loan in accordance with its obligations under this Agreement shall not release any other Credit
Facility Lender from its obligations. Notwithstanding anything to the contrary in this Agreement,
no Credit Facility Lender shall be obligated to make Advances available to the applicable Borrower
in excess of its Term Commitment or Revolving Commitment, as the case may be. If a Credit Facility
Lender does not make available its Rateable Portion of an Advance to which the applicable Borrower
is otherwise entitled, one or more other Credit Facility Lenders may, in their sole discretion,
make such portion of the Advance available and such additional Advance shall be added to the
Obligations due to such Credit Facility Lender or Credit Facility Lenders notwithstanding that such
Advance may be in excess of such Credit Facility Lender’s Rateable Portion or Term Commitment or
Revolving Commitment, as the case may be. Nothing

 

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herein shall obligate any Credit Facility Lender to make available the Rateable Portion of another
Credit Facility Lender.

(2) Separate Obligation. The obligation of each Credit Facility Lender to make its Commitment
available to the Revolving Facility Borrowers or Term Facility Borrowers, as applicable, is a
separate obligation between each Credit Facility Lender and the Revolving Facility Borrowers or
Term Facility Borrowers, as applicable, and that obligation is not the several or joint and several
obligation of any other Credit Facility Lender.

2.4 Revolving Nature of Revolving Facility

     Subject to the provisions of this Agreement, the Revolving Facility Borrowers may increase or
reduce the amount of Advances outstanding under the Revolving Facility by borrowing, repaying and
reborrowing Prime Loans, Swing Line Loans and by causing the acceptance of Bankers’ Acceptances and
funding them at maturity, and by causing the issue and re-issue of Letters of Credit or Letters of
Guarantee from time to time. If and so long as there shall be outstanding any Advance or Advances
under the Revolving Facility referred to in Section 2.5(4), all repayments made on account of the
Revolving Facility shall be deemed first to be repayments on account of such Advance or Advances.

2.5 Purpose

     The proceeds of Advances made under the Revolving Facility shall be used solely for (1)
Permitted Acquisitions, including any related Transaction Costs in connection therewith; (2)
Capital Expenditures; (3) general corporate purposes of the Borrowers and the Material Subsidiaries
(which excludes any uses related to any activity to the extent prohibited herein); and (4) for
Permitted Distributions, subject to a minimum availability of $20,000,000 under the Revolving
Facility after any such Permitted Distribution. For greater certainty, there will be no further
Advance under the Term Facility and the Term Facility was fully Advanced under the Original Credit
Agreement for the purpose of financing the acquisition of certain assets of Osprey and the Material
Subsidiaries.

2.6 Borrowing Procedures — General

(1) Notice of Borrowing. All Advances other than the Swing Line Loans require notice. To request an
Advance, the applicable Borrower shall give to the Administrative Agent written notice
substantially in the form attached as Schedule 2.6(1), indicating the purpose of the Advance, the
amount of the requested Advance, at or before the time set out below opposite the type of Advance
that the applicable Borrower wishes to request:

	 	 	 
	Type of Advance	 	Time of Notice
	 
	 	 
	Prime Loans or Swing Line Loans

(other than Overdrafts)

	 	Before 10:00 a.m. one Business Day prior
to the Drawdown Date.
	 
	 	 
	Bankers’ Acceptances

	 	Before 10:00 a.m. two Business Days prior
to the requested Drawdown Date.

 

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	Type of Advance	 	Time of Notice
	 
	Letters of Credit
and Letters of Guarantee

	 	Before 10:00 a.m. two Business Days prior
to the Issuance Date.

Each notice given in respect of an Advance by way of Prime Loan shall indicate the amount of the
required Advance and the date funds are required. Each notice given in respect of an Advance by way
of Bankers’ Acceptances shall indicate the amount of the Bankers’ Acceptances to be issued and the
applicable Contract Period of the Bankers’ Acceptances (which shall be identical for each Credit
Facility Lender). Each notice given in respect of an Advance by way of Letters of Credit and
Letters of Guarantee shall indicate the amount of the Letter of Credit or Letter of Guarantee to be
issued, the applicable Contract Period, the beneficiary, the terms of draw under the requested
Letter of Credit or Letter of Guarantee and all other relevant information.

(2) Limits on Advances. Notwithstanding any other term of this Agreement, a Borrower shall not
request from the Administrative Agent an Advance if, on the day notice of the Advance is given
pursuant to Section 2.6(1), after giving effect to the Advance, the principal amount of all
Advances outstanding from any Credit Facility Lender would exceed the Commitment of the Credit
Facility Lender. No Advance shall have a term that extends beyond the Maturity Date.

(3) Administrative Agent Determination. Each determination by the Administrative Agent of the Prime
Rate shall, in the absence of manifest error, be final, conclusive and binding on each Borrower and
the Credit Facility Lenders.

2.7 Minimum Advances

     Each Advance by way of Prime Loan shall be in a minimum aggregate amount of Cdn$1,000,000.
Each Advance by way of Bankers’ Acceptance shall be in a minimum aggregate face amount of
Cdn$2,000,000 and larger whole multiples of Cdn$100,000.

2.8 Bankers’ Acceptances

(1) Term. Each Bankers’ Acceptance shall have a Contract Period of 1, 2, 3 or 6 months or such
other Contract Period of 10 to 180 days as selected by the applicable Borrower, subject to
availability. No Contract Period shall extend beyond the Maturity Date.

(2) Discount Rate. On each Drawdown Date on which Bankers’ Acceptances are to be accepted, the
Administrative Agent shall advise the applicable Borrower as to the Administrative Agent’s
determination of the applicable Discount Rate for the Bankers’ Acceptances which any of the Credit
Facility Lenders have agreed to purchase.

(3) Purchase. If a Credit Facility Lender purchases a Bankers’ Acceptance accepted by it, the
applicable Borrower shall sell and that Credit Facility Lender shall purchase the Bankers’
Acceptance at the applicable Discount Rate. The Credit Facility Lender shall provide to the
Administrative Agent’s Account for Payments the Discount Proceeds less the Acceptance Fee payable
by the applicable Borrower with respect to the Bankers’ Acceptance.

 

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(4) Sale. Each Credit Facility Lender may from time to time hold, sell, rediscount or otherwise
dispose of any or all Bankers’ Acceptances accepted and purchased by it.

(5) Power of Attorney for Execution of Bankers’ Acceptances. To facilitate availment of Advances by
way of Bankers’ Acceptances, each Borrower hereby appoints each Credit Facility Lender as its
attorney to sign and endorse on its behalf, in handwriting or by facsimile or mechanical signature
as and when deemed necessary by such Credit Facility Lender, blank forms of Bankers’ Acceptances.
In this respect, it is each Credit Facility Lender’s responsibility to maintain an adequate supply
of blank forms of Bankers’ Acceptances for acceptance under this Agreement. Each Borrower
recognizes and agrees that all Bankers’ Acceptances signed and/or endorsed on its behalf by a
Credit Facility Lender shall bind such Borrower as fully and effectually as if signed in the
handwriting of and duly issued by the proper signing officers of the applicable Borrower. Each
Credit Facility Lender is hereby authorized to issue such Bankers’ Acceptances endorsed in blank in
such face amounts as may be determined by such Credit Facility Lender; provided that the aggregate
amount thereof is equal to the aggregate amount of Bankers’ Acceptances required to be accepted and
purchased by such Credit Facility Lender. No Credit Facility Lender shall be liable for any damage,
loss or other claim arising by reason of any loss or improper use of any such instrument except the
gross negligence or wilful misconduct of the Credit Facility Lender or its officers, employees,
agents or representatives. Each Credit Facility Lender shall maintain a record with respect to
Bankers’ Acceptances held by it in blank hereunder, voided by it for any reason, accepted and
purchased by it hereunder, and cancelled at their respective maturities. Each Credit Facility
Lender agrees to provide such records to the applicable Borrower at the applicable Borrower’s
expense upon request.

(6) Execution. Drafts drawn by a Borrower to be accepted as Bankers’ Acceptances shall be signed by
a duly authorized officer or officers of such Borrower or by its attorneys including attorneys
appointed pursuant to Section 2.8(5). Notwithstanding that any Person whose signature appears on
any Bankers’ Acceptance may no longer be an authorized signatory for such Borrower at the time of
issuance of a Bankers’ Acceptance, that signature shall nevertheless be valid and sufficient for
all purposes as if the authority had remained in force at the time of issuance and any Bankers’
Acceptance so signed shall be binding on such Borrower.

(7) Issuance. The Administrative Agent, promptly following receipt of a notice of Advance, Rollover
or Conversion by way of Bankers’ Acceptances, shall advise the Credit Facility Lenders of the
notice and shall advise each Credit Facility Lender of the name of the applicable Borrower giving
such notice and the face amount of Bankers’ Acceptances to be accepted by it and the applicable
Contract Period (which shall be identical for all Credit Facility Lenders). The aggregate face
amount of Bankers’ Acceptances to be accepted by a Credit Facility Lender shall be determined by
the Administrative Agent by reference to that Credit Facility Lender’s Rateable Portion of the
issue of Bankers’ Acceptances, except that, if the face amount of a Bankers’ Acceptance which would
otherwise be accepted by a Credit Facility Lender would not be Cdn$1,000, or a whole multiple
thereof, the face amount shall be increased or reduced by the Administrative Agent in its sole
discretion to Cdn$1,000, or the nearest whole multiple of that amount, as appropriate; provided
that after such issuance, no Credit Facility Lender shall have aggregate outstanding advances in
excess of its Commitment.

 

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(8) Rollover. At or before 10:00 a.m. two (2) Business Days before the maturity date of any
Bankers’ Acceptances, a Borrower shall give to the Administrative Agent written notice
substantially in the form attached as Schedule 2.8(8) if the applicable Borrower intends to repay
the maturing Bankers’ Acceptances on the maturity date or if the applicable Borrower intends to
issue Bankers’ Acceptances on the maturity date to provide for the payment of the maturing Bankers’
Acceptances. Otherwise, such Borrower shall provide payment to the Administrative Agent on behalf
of the Credit Facility Lenders of an amount equal to the aggregate face amount of the Bankers’
Acceptances on their maturity date. If such Borrower fails to make the payment, such Borrower’s
obligations in respect of the maturing Bankers’ Acceptances shall be deemed to have been converted
on the maturity date thereof into Prime Loans.

(9) Waiver of Presentment and Other Conditions. Each Borrower waives presentment for payment and
any other defence to payment of any amounts due to a Credit Facility Lender in respect of a
Bankers’ Acceptance accepted and purchased by it pursuant to this Agreement which might exist
solely by reason of the Bankers’ Acceptance being held, at the maturity thereof, by the Credit
Facility Lender in its own right and each Borrower agrees not to claim any days of grace if the
Credit Facility Lender as holder sues such Borrower on the Bankers’ Acceptance for payment of the
amount payable by that Borrower thereunder.

(10) Circumstances Making Bankers’ Acceptances Unavailable. If the Majority Lenders determine in
good faith, which determination shall be final, conclusive and binding upon the Borrowers, and
notifies the Borrowers that, by reason of circumstances affecting the money market there is no
market for Bankers’ Acceptances or the demand for Bankers’ Acceptances is insufficient to allow the
sale or trading of the Bankers’ Acceptances created hereunder, then:

	 	(a)	 	the right of each Borrower to request an Advance by means of Bankers’
Acceptances shall be suspended until the Majority Lenders determine that the
circumstances causing such suspension no longer exist and the Administrative Agent so
notifies the Borrowers; and
	 
	 	(b)	 	any notice of Drawdown or Rollover in respect of a Bankers’ Acceptance which is
outstanding shall be cancelled and any outstanding notice of Conversion to convert a
Prime Rate Loan into a Bankers’ Acceptance shall be cancelled and the request for a
Drawdown or Rollover by means of Bankers’ Acceptance shall be deemed to be a request
for a Drawdown of, or Rollover to, a Prime Loan in the face amount of the requested
Bankers’ Acceptance.

The Administrative Agent shall promptly notify the Borrowers of the suspension of the Borrowers’
right to request a Drawdown by means of Bankers’ Acceptances and of the termination of any such
suspension.

(11) BA Equivalent Loans by Non BA Lenders. Whenever a Borrower requests an Advance under this
Agreement by way of Bankers’ Acceptances, each Non BA Lender shall, in lieu of accepting a Bankers’
Acceptance, make a BA Equivalent Loan to such Borrower in an amount equal to the Non BA Lender’s
Rateable Portion of the Advance.

 

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(12) Terms Applicable to Discount Notes. As set out in the definition of Bankers’ Acceptances, that
term includes Discount Notes and all terms of this Agreement applicable to Bankers’ Acceptances
shall apply equally to Discount Notes evidencing BA Equivalent Loans with such changes as may in
the context be necessary. For greater certainty:

	 	(a)	 	the term of a Discount Note shall be the same as the Contract Period for
Bankers’ Acceptances accepted and purchased on the same Drawdown Date in respect of the
same Advance;
	 
	 	(b)	 	an acceptance fee will be payable in respect of a Discount Note and shall be
calculated at the same rate and in the same manner as the Acceptance Fee in respect of
a Bankers’ Acceptance; and
	 
	 	(c)	 	the Discount Rate applicable to a Discount Note shall be the Discount Rate
applicable to Bankers’ Acceptances accepted by the Administrative Agent (as Credit
Facility Lender) on the same Drawdown Date, Rollover Date or Conversion Date, as the
case may be, in respect of the same Advance.

(13) Depository Bills and Notes Act. At the option of the Borrowers and any Credit Facility Lender,
Bankers’ Acceptances under this Agreement to be accepted by that Credit Facility Lender may be
issued in the form of depository bills for deposit with The Canadian Depository for Securities
Limited pursuant to the Depository Bills and Notes Act (Canada). All depository bills so issued
shall be governed by the provisions of this Section 2.8.

2.9 Swing Line Loans

(1) Swing Line Accounts. The Swing Line Lender has established at its Branch of Account an account
for each Revolving Facility Borrower which is referred to as a “Swing Line Account.” The Swing Line
Account shall record the day to day banking business of each Revolving Facility Borrower through
the Swing Line Lender (other than under this Agreement). If, at the end of any Business Day, the
aggregate balance in the Swing Line Accounts:

	 	(a)	 	is a credit in excess of $100,000, the Swing Line Lender may apply the amount
of the credit or any part thereof rounded down to the nearest Cdn$25,000 as applicable,
as a repayment of Swing Line Loans owing to the Swing Line Lender; or
	 
	 	(b)	 	is a debit, the Swing Line Lender shall, if there is sufficient availability
under its Commitment, make available an Advance (a “Swing Line Loan”) by way of Prime
Loan in an amount rounded up to the nearest Cdn$25,000 to place the applicable
Revolving Facility Borrower in a minimum net credit position of zero (an “Overdraft”).

In addition, the Revolving Facility Borrowers may request Swing Line Loans and Letters of Credit or
Letters of Guarantee in accordance with the applicable notice requirement set out in Section 2.6.

 

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(2) Advances. Advances by the Swing Line Lender outstanding under this Section are limited to
Cdn$10,000,000. The aggregate amount of all Swing Line Loans, Advances and the face amount of all
issued and outstanding Letter(s) of Credit and Letter(s) of Guarantee shall be deducted from the
availability under the Revolving Facility. Each Advance under the Swing Line Facility shall be
available only by way of Prime Loans and Letters of Credit and Letters of Guarantee. At any time,
and from time to time, the Swing Line Lender shall notify the Administrative Agent of the
requirement for an Advance by way of Prime Loan under the Revolving Facility and the Administrative
Agent shall notify the Credit Facility Lenders of such requirements and the amount of such Advance
to be made available by each of them in an amount as nearly equal to that Credit Facility Lender’s
Rateable Portion of the, Advances by the Swing Line Lender outstanding under this Section as is
possible under the limitations regarding amount set out in Section 2.7. The proceeds of that
Advance shall be deposited by the Administrative Agent to the applicable Swing Line Account to be
applied against the Swing Line Lender’s Advances made available under this Section.

(3) Letters of Credit. The Swing Line Lender may, at the request of a Revolving Facility Borrower,
issue Letters of Credit or Letters of Guarantee under the Swing Line Facility, in accordance with
the notice requirements of Section 2.7 and the provisions of Section 2.10. The maximum amount of
exposure of the L/C Issuer to the beneficiary under all Letters of Credit and Letters of Guarantee
outstanding at any time shall be deducted from the maximum of Swing Line Loans available under
Section 2.9(2).

(4) Provisions relating to Swing Line Facility. While the Swing Line Lender is the sole Lender
making Advances or issuing Letters of Credit or Letters of Guarantee under the Swing Line Facility,
its participation in Advances under the Revolving Facility which are not made under the Swing Line
Facility (“Non-Swing Line Advances”) shall be reduced, and the participations of the other Credit
Facility Lenders in such Non-Swing Line Advances shall be increased, and such participations may be
adjusted from time to time, as determined by the Administrative Agent, so that each Credit Facility
Lender’s overall Rateable Portion of the aggregate of all Advances under the Revolving Facility,
including the Swing Line Facility is, to the greatest extent practicable, equal to the Rateable
Portion of each Credit Facility Lender. For greater certainty, the maximum aggregate amount of
Advances and Letters of Credit and Letters of Guarantee that could be outstanding under the Swing
Line Facility at any time shall be deducted from the availability of the Swing Line Lender to make
Non-Swing Line Advances.

(5) Transfer Relating to Rateable Portion. Notwithstanding that Advances and Letters of Credit and
Letters of Guarantee under the Swing Line Facility are from time to time made by the Swing Line
Lender and the Swing Line Lender’s participation in Non-Swing Line Advances is reduced, and the
participation of the other Credit Facility Lenders in Non-Swing Line Advances is increased in
accordance with Section 2.9(4), it is the intention of the parties that the ultimate credit risk
and exposure of each Credit Facility Lender in respect of the Revolving Facility be in accordance
with its Rateable Portion of the entire amount of the Revolving Facility. Accordingly, upon the
Obligations becoming due and payable under Section 11.2, each Credit Facility Lender shall (and
hereby absolutely, unconditionally and irrevocably agrees to) do all such things, including
delivery of indemnity agreements and assignments to other Credit Facility Lenders of Advances and
Letters of Credit and Letters of Guarantee made by the Swing Line Lender under the Swing Line
Facility or assignments to the Swing Line Lender of Non-Swing

 

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Line Advances made by other Credit Facility Lenders as shall be required to ensure that result. Any
such action on the part of the Credit Facility Lenders shall be binding on the Revolving Facility
Borrowers and the Material Subsidiaries.

If any Credit Facility Lender fails to take the actions required by this Section, the
Administrative Agent may, without prejudice to the other rights of the Credit Facility Lenders,
make such adjustments to the payments to the defaulting Credit Facility Lender under this Agreement
as are necessary to compensate the other Credit Facility Lenders for the defaulting Credit Facility
Lender’s failure.

(6) Swing Line Facility After Acceleration. Subject to the provisions of Section 2.9(5) regarding
the assignment of interests in Advances and Letters of Credit and Letters of Guarantee under the
Swing Line Facility in the event of acceleration of payment of the Obligations, the provisions of
this Agreement do not apply to Advances and issuance of Letters of Credit and Letters of Guarantee
under the Swing Line Facility to the extent that the provisions contemplate the participation by
any Credit Facility Lender other than the Swing Line Lender in making Advances and issuing Letters
of Credit and Letters of Guarantee and receiving payments in respect of Advances and Letters of
Credit and Letters of Guarantee under the Swing Line Facility. All Advances and issuing Letters of
Credit and Letters of Guarantee under the Swing Line Facility shall be made solely by the Swing
Line Lender and records concerning such Advances and Letters of Credit and Letters of Guarantee
shall be maintained solely by the Swing Line Lender. All Payments of principal, interest, fees and
other amounts relating to Advances and Letters of Credit and Letters of Guarantee under the Swing
Line Facility shall be made solely to the Swing Line Lender. Any notices by the Revolving Facility
Borrowers in connection with the Swing Line Facility shall be made to the Swing Line Lender. Notice
and minimum amount requirements in respect of Advances shall not apply to Advances by way of
Overdrafts under the Swing Line Facility.

2.10 Letters of Credit and Letters of Guarantee

(1) Currency. Each Letter of Credit and Letter of Guarantee shall be issued in Canadian Dollars or
U.S. Dollars and shall mature on a Business Day.

(2) Maximum Amount. The aggregate Advances which may be outstanding by way of Letter of Credit and
Letter of Guarantee shall not exceed Cdn$2,000,000 or the Equivalent Amount in U.S. Dollars.

(3) Other Documentation. The issue of a Letter of Credit or a Letter of Guarantee is subject to the
execution and delivery of an application and agreement or other specific agreement relative to the
instrument in form and substance satisfactory to the L/C Issuer acting reasonably (“L/C
Agreement”). In the event of a conflict between the terms and conditions of the L/C Agreement and
this Agreement, this Agreement shall prevail.

(4) Retirement. A Letter of Credit or a Letter of Guarantee may only be retired on its maturity
date unless and to the extent it has been honoured or unless the written consent of the beneficiary
of the instrument has been obtained and the original instrument has been returned to the issuing
Credit Facility Lender.

 

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(5) Drawings. Any drawing under a Letter of Credit or Letter of Guarantee shall be funded by an
Advance by way of a Swing Line Loan.

(6) Term. Each Letter of Credit and Letter of Guarantee shall have a Contract Period of not less
than thirty (30) days or more than 365 days.

(7) Rollover. Before the maturity date of any Letter of Credit or Letter of Guarantee the
applicable Revolving Facility Borrower shall notify the L/C Issuer and the Swing Line Lender by
notice substantially in the form attached as Schedule 2.10(7) if it wishes the issue of a
replacement Letter of Credit or Letter of Guarantee on the maturity date. If such Revolving
Facility Borrower fails to provide the foregoing notice, the maturing Letter of Credit or Letter of
Guarantee shall expire on its maturity date.

(8) Reimbursement. The L/C Issuer will notify the applicable Revolving Facility Borrower and the
Administrative Agent promptly following the presentment for payment of any Letter of Credit or
Letter of Guarantee which notice shall include the date (a “Disbursement Date") such payment shall
be made. Subject to the terms and provisions of such Letter of Credit or Letter of Guarantee, the
L/C Issuer shall make such payment to the beneficiary (or its designee) of such Letter of Credit or
Letter of Guarantee (each, a “Disbursement”). Unless such Revolving Facility Borrower has made
alternative arrangements with the L/C Issuer with respect to payment of an amount sufficient to
permit the L/C Issuer to discharge its obligations under the Letter of Credit or Letter of
Guarantee together with that amount equal to any and all charges and expenses which the L/C Issuer
may pay or incur in respect to such Letter of Credit or Letter of Guarantee, on or prior to 12:00
noon, Toronto time on the Disbursement Date, such Revolving Facility Borrower will reimburse the
L/C Issuer for all amounts disbursed under the Letter of Credit or Letter of Guarantee together
with that amount equal to any and all charges and expenses which the L/C Issuer may pay or incur in
respect of such Letter of Credit or Letter of Guarantee failing which, any such payment so payable
shall be deemed to be an Advance in accordance with Section 2.10(5) hereof; provided that the
provisions of Section 7 regarding conditions for Advances shall not apply to such Advances. In the
event that any amount so payable by the L/C Issuer exceeds the amount available to be drawn down by
the Revolving Facility Borrowers under the Swing Line Facility, then forthwith upon receipt of such
notice, the Revolving Facility Borrowers shall provide to the L/C Issuer an amount equal to such
excess amount. The Revolving Facility Borrowers’ obligation (a “Reimbursement Obligation”) to
reimburse the L/C Issuer with respect to each Disbursement, shall be absolute and unconditional
under any and all circumstances and irrespective of any setoff, counterclaim, or defence to payment
which the Revolving Facility Borrowers may have or have had against any Credit Facility Lender or
any beneficiary of a Letter of Credit or Letter of Guarantee, including any defence based upon the
occurrence of any Default, any draft, demand or certificate or other document presented under a
Letter of Credit or Letter of Guarantee proving to be forged, fraudulent, invalid or insufficient,
the failure of any Disbursement to conform to the terms of the applicable Letter of Credit or
Letter of Guarantee (if, in the L/C Issuer’s good faith opinion, acting reasonably, such
Disbursement is determined to be appropriate) or any non-application or misapplication by the
beneficiary of the proceeds of such Disbursement, or the legality, validity, form, regularity, or
enforceability of such Letter of Credit or Letter of Guarantee; provided, however, that nothing
herein shall adversely affect the right of the Revolving Facility Borrowers to commence any
proceeding against the L/C Issuer for any wrongful Disbursement made by the

 

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L/C Issuer under a Letter of Credit or Letter of Guarantee as a result of gross negligence or
wilful misconduct on the part of the L/C Issuer.

(9) Deemed Disbursements. Upon the declaration by the Administrative Agent that all Advances are
immediately due and payable or are due and payable on demand pursuant to Section 11.2 or the
occurrence of the Maturity Date, an amount equal to any portion of an outstanding and undrawn
Letter of Credit or Letter of Guarantee shall, at the election of the L/C Issuer acting on
instructions from the Majority Lenders, and without demand upon or notice to the Revolving Facility
Borrowers, be deemed to have been paid or disbursed by the L/C Issuer under such Letter of Credit
or Letter of Guarantee (notwithstanding that such amount may not in fact have been so paid or
disbursed), and, upon notification by the L/C Issuer to the Administrative Agent and the applicable
Revolving Facility Borrower of its obligations under this Section 2.10(9), such Revolving Facility
Borrower shall be immediately obligated to reimburse the L/C Issuer for the amount deemed to have
been so paid or disbursed by the L/C Issuer. Any amounts so received by the L/C Issuer from such
Revolving Facility Borrower pursuant to this Section 2.10(9) shall be held in an interest bearing
account with the L/C Issuer as collateral security for the repayment of such Revolving Facility
Borrower’s obligations in connection with the Letters of Credit or Letters of Guarantee issued by
the L/C Issuer. At any time when such Letters of Credit or Letters of Guarantee shall terminate or
be reduced, the obligations of the Revolving Facility Borrowers under this Section 2.10(9) shall be
reduced accordingly (subject, however, to reinstatement in the event any payment in respect of such
Letters of Credit or Letters of Guarantee is recovered in any manner from the L/C Issuer), and the
L/C Issuer will return to the applicable Revolving Facility Borrower the amount, if any, by which
(i) the amount deposited by such Revolving Facility Borrower with the L/C Issuer together with
accrued interest thereon; (ii) exceeds the amount applied by the L/C Issuer to any Reimbursement
Obligation of such Revolving Facility Borrower less the amount of all Reimbursement Obligations of
such Revolving Facility Borrower.

     If, pursuant to Section 11.2, the Administrative Agent withdraws its declaration that all
Advances are immediately due and payable or are due and payable on demand, or at such time when all
Events of Default shall have been cured or waived, the L/C Issuer shall return to the applicable
Revolving Facility Borrower all amounts then on deposit with such L/C Issuer pursuant to this
Section 2.10(9).

(10) Nature of Reimbursement Obligations. The Revolving Facility Borrowers shall assume all risks
of the acts, omissions, or misuse of any Letter of Credit or Letter of Guarantee it has requested
by the beneficiary thereof. Neither the L/C Issuer nor any Credit Facility Lender (except to the
extent of its own gross negligence or wilful misconduct) shall be responsible for:

	 	(a)	 	the form, validity, sufficiency, accuracy, genuineness, or legal effect of any
Letter of Credit or Letter of Guarantee or any document submitted by any party in
connection with the application for or issuance of a Letter of Credit or Letter of
Guarantee, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent, or forged;
	 
	 	(b)	 	the form, validity, sufficiency, accuracy, genuineness, or legal effect of any
instrument transferring or assigning or purporting to transfer or assign a Letter of

 

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	 	 	 	Credit or Letter of Guarantee or the rights or benefits thereunder or proceeds
thereof in whole or in part, which may prove to be invalid or ineffective for any
reason;

	 	(c)	 	failure of the beneficiary to comply fully with conditions required in order to
demand payment under a Letter of Credit or Letter of Guarantee;
	 
	 	(d)	 	errors, omissions, interruptions, or delays in transmission or delivery of any
messages, by mail, telecopier, or otherwise; or
	 
	 	(e)	 	any loss or delay in the transmission or otherwise of any document or draft
required in order to make a Disbursement under a Letter of Credit or Letter of
Guarantee or of the proceeds thereof.

None of the foregoing shall affect, impair, or prevent the vesting of any of the rights or powers
granted to the L/C Issuer or any Credit Facility Lender hereunder. Any action taken or omitted to
be taken by the L/C Issuer in good faith (other than gross negligence or wilful misconduct) shall
be binding upon the Revolving Facility Borrowers and shall not subject the L/C Issuer to any
resulting liability to the Revolving Facility Borrowers.

(11) Indemnity for Costs. The Revolving Facility Borrowers shall indemnify the L/C Issuer against
any and all costs, damages, expenses, taxes (other than taxes on overall net income, assets or
capital), claims and demands which the L/C Issuer may incur or sustain by reason of or arising in
any way whatsoever in connection with the operating, establishing or paying of the amounts payable
under the Letter of Credit or Letter of Guarantee or arising in connection with any amounts payable
by the L/C Issuer thereunder.

2.11 Hedge Contracts

(1) Procedure. Each Lender may establish an uncommitted Hedging Facility in favour of any Borrower.
Any Borrower may enter into Hedge Contracts under the Hedging Facilities from time to time over the
telephone with representatives of a Lender’s trading unit, the terms of which shall be confirmed in
writing in accordance with the procedures established by the trading unit of the relevant Lender.
Any Hedge Contracts entered into with a Lender must be permitted by the terms of this Agreement.

(2) Terms and Conditions. Each Hedge Contract is governed by the terms and conditions set out in
the confirmation forwarded by the applicable Lender to the applicable Borrower on entering into the
Hedge Contract and any applicable ISDA agreement. If there is a conflict between the terms and
conditions set out in the confirmation or ISDA agreement and this Agreement, the confirmation or
ISDA agreement shall govern unless otherwise expressly provided herein or therein.

(3) Maturity. Hedge Contracts may, at the discretion of each Lender, have Contract Periods
extending beyond the Maturity Date. Any Hedge Contract entered into with any Lender at any time
shall survive such Lender or its Affiliate ceasing to be a Credit Facility Lender hereunder or the
termination of this Agreement.

 

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(4) Uncommitted. Any Lender may, at its sole discretion, decline to make any Hedge Contract
available to any Borrower at any time.

2.12 Conversion Option

     Subject to this Agreement, a Borrower may, during the term of this Agreement, effective on any
Business Day, convert, in whole or in part, an outstanding Advance (other than by way of Letter of
Credit or Letter of Guarantee) into another type of Advance permitted under the Credit Facility
(other than by way of Letter of Credit or Letter of Guarantee) upon giving written notice to the
Administrative Agent in substantially the form attached hereto as Schedule 2.12, the notice period
being that which would be applicable to the type of Advance into which the outstanding Advance is
to be converted. Conversions under this Section 2.12 may only be made provided that:

	 	(a)	 	each conversion to an Advance shall be for minimum aggregate amounts and whole
multiples in excess thereof as are specified in respect of that type of Advance in this
Section 2;
	 
	 	(b)	 	an Advance by way of Bankers’ Acceptance may be converted only on the last day
of the relevant Contract Period; if less than all Advances by way of Bankers’
Acceptances are converted, after the conversion not less than Cdn$1,000,000 shall
remain as Advances by way of Bankers’ Acceptances; and
	 
	 	(c)	 	no Conversion into or Rollover of Bankers’ Acceptances shall be permitted if a
Default or Event of Default shall have occurred and be continuing on the relevant
Conversion Date or Rollover Date or after giving effect to the Conversion or Rollover
of the Advance to be made on the Conversion Date or Rollover Date.

2.13 Conversion and Rollover Not Repayment

     No Conversion or Rollover shall constitute a repayment of any Advance or a new Advance.

2.14 Determination Final

     With respect to all matters referred to in this Section 2, the determination by the
Administrative Agent shall be final, conclusive and binding on each Borrower and the Lenders,
absent manifest error.

2.15 Mandatory Conversion of Bankers’ Acceptances

     Notwithstanding Sections 2.8(8) and 2.12, and subject to Section 10.2, if a Default or Event
of Default has occurred and is continuing on the maturity date of a Bankers’ Acceptance, in respect
of an Advance by way of Bankers’ Acceptances, the applicable Borrower shall be deemed to have
converted such Advance into a Prime Loan in an amount equal to the face amount of the Bankers’
Acceptances on the maturity date.

 

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2.16 Reliance on Oral Instructions

     The Administrative Agent and any Credit Facility Lender shall be entitled to act upon the oral
instructions of any Person who the Administrative Agent or the Credit Facility Lender, acting
reasonably, believes is a Person authorized by a Borrower to act on such Borrower’s behalf. Neither
the Administrative Agent nor the Credit Facility Lender shall be responsible for any error or
omission in those instructions or in the performance thereof except in the case of gross negligence
or wilful misconduct by the Administrative Agent, the Credit Facility Lender or their respective
employees. Any instructions so given shall be confirmed in writing by the applicable Borrower to
the Administrative Agent or the Credit Facility Lender, as applicable, on the same day. The
applicable Borrower shall indemnify the Administrative Agent and each Credit Facility Lender for
any loss or expense suffered or incurred by the Administrative Agent or the Credit Facility Lender
as a consequence of the Administrative Agent or the Credit Facility Lender acting upon instructions
given or agreements made over the telephone or by electronic transmission of any type with Persons
reasonably believed by the Administrative Agent or the Credit Facility Lender to have been acting
on such Borrower’s behalf.

2.17 Deposit of Proceeds of Loans and Discount Proceeds

     The Administrative Agent shall credit to the applicable Borrower’s Account on the applicable
Drawdown Date (a) the proceeds of each Advance by way of Prime Loans made to such Borrower and (b)
the Discount Proceeds less the applicable Acceptance Fee with respect to each Bankers’ Acceptance
purchased and each BA Equivalent Loan advanced by a Credit Facility Lender to such Borrower on that
Drawdown Date. Where a Borrower has made separate arrangements for the purchase of Bankers’
Acceptances issued under this Agreement, the Administrative Agent shall debit such Borrower’s
Account for the applicable Acceptance Fee upon acceptance and such Borrower shall deposit the
Discount Proceeds to the applicable Borrower’s Account immediately upon receipt.

2.18 Evidence of Obligations

     The Administrative Agent shall open and maintain at its Branch of Account, accounts and
records evidencing the Credit Facility Obligations of each Borrower to each Credit Facility Lender
with respect to Advances made available by that Credit Facility Lender to such Borrower. The
Administrative Agent shall record in those accounts by appropriate entries all amounts on account
of those Credit Facility Obligations and all payments on account thereof. Those accounts and
records will constitute, in the absence of manifest error, prima facie evidence of those Credit
Facility Obligations from time to time, the date each Advance was made and the amounts that each
Borrower has paid from time to time on account of those Credit Facility Obligations.

2.19 Single Obligation of Borrowers

     All Advances to the Borrowers and all of the other Obligations of the Borrowers arising under
this Agreement and the other Documents shall constitute one general joint and several obligation of
the Borrowers.

 

 

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SECTION 3 — INTEREST, FEES AND EXPENSES

3.1 Interest on Prime Loans

(1) Rate. A Borrower shall pay to the Administrative Agent on behalf of the Credit Facility Lenders
interest on Prime Loans made to it at the Administrative Agent’s Accounts for Payments at a rate
per annum equal to the Prime Rate plus the Applicable Margin.

(2) Change in Rate. Each change in the fluctuating interest rate applicable to each Prime Loan will
take place simultaneously with the corresponding change in the Prime Rate without the necessity for
any notice to the applicable Borrower.

(3) Calculation. Interest on Prime Loans shall be payable monthly in arrears on every Interest
Payment Date and on the Maturity Date for the period from and including, as the case may be, the
Drawdown Date, the Conversion Date or the immediately preceding Interest Payment Date to but
excluding the first-mentioned Interest Payment Date or the Maturity Date, as applicable, and shall
be calculated on a daily basis on the principal amount of the Prime Loans remaining unpaid on the
basis of the actual number of days elapsed in a year of 365 days.

3.2 Fees on Bankers’ Acceptances

     Upon acceptance of a Bankers’ Acceptance by a Credit Facility Lender, the applicable Borrower
shall pay to the Administrative Agent on behalf of the Credit Facility Lender a fee (the
“Acceptance Fee”) calculated on the face amount of the Bankers’ Acceptance at a rate per annum
equal to the Applicable Margin on the basis of the number of days in the Contract Period for the
Bankers’ Acceptance and a year of 365 days.

3.3 Letter of Credit and Letter of Guarantee Fees

     Upon the issue of a Letter of Credit or Letter of Guarantee by the L/C Issuer, the applicable
Revolving Facility Borrower shall pay to the Administrative Agent on behalf of the L/C Issuer, a
fee at the rate per annum equal to the Applicable Margin. Issuance fees shall be calculated on the
maximum amount payable by the L/C Issuer to the beneficiary of each Letter of Credit or Letter of
Guarantee on the date of issue. Issuance fees shall be calculated on the basis of the number of
days in the Contract Period in respect of the Letter of Credit or Letter of Guarantee and a year of
365 days. Each determination by the Administrative Agent of the issuance fee applicable to a Letter
of Credit or Letter of Guarantee shall, in the absence of manifest error, be final, conclusive and
binding upon the Revolving Facility Borrowers.

3.4 Pricing Matrix

     For the purposes of this Section 3, the Applicable Margin with respect to Prime Loans, the
Acceptance Fee and Letter of Credit or Letter of Guarantee fees shall be selected from the
following matrix as set forth in the applicable column:

 

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	 	 	 	 	Acceptance Fees, Letter of
	 	 	 	 	Credit and Letter of
	Total Debt to EBITDA	 	Prime Loans	 	Guarantee Fees
	33.0x
	 	0.750%
	 	1.750%
	>2.5x
	 	0.375%
	 	1.375%
	£2.5x
	 	0.100%
	 	1.100%

     The Total Debt to EBITDA shall be determined based on the Total Debt of Bidco and the Material
Subsidiaries to EBITDA of Bidco and the Material Subsidiaries as set out in the most recent
Compliance Certificate of Bidco delivered to the Administrative Agent and the Credit Facility
Lenders in accordance with Section 9.4(2) or as set out below. Each change in the fluctuating
interest rate applicable to each Prime Loan will take place simultaneously with the delivery of a
Compliance Certificate evidencing a change in the Total Debt to EBITDA calculation to be used.

     The margins applicable to Prime Loans, Acceptance Fees and Letter of Credit and Letter of
Guarantee fees set forth above will be determined on a consolidated and rolling four Fiscal Quarter
basis; provided, that upon a Permitted Acquisition or divestiture by a Borrower or a Material
Subsidiary, Bidco agrees to provide each Credit Facility Lender with Compliance Certificates for
Bidco in each case, and any acquired company, in the case of a Permitted Acquisition, on the date
of closing of any Permitted Acquisition or divestiture, and that the Applicable Margins shall be
adjusted with respect to Prime Loans outstanding on the date of closing of the Permitted
Acquisition or divestiture and with respect to other Advances, on the date such other Advance is
made.

     Bidco shall deliver to the Administrative Agent and each Credit Facility Lender Compliance
Certificates for Bidco and the Material Subsidiaries as of the Closing Date, and the Applicable
Margins shall be adjusted as of the Closing Date with respect to Prime Loans outstanding and as of
the date of issuance with respect to all outstanding Bankers Acceptances, Letters of Credit and
Letters of Guarantee and any additional Acceptance Fees and Letter of Credit and Letter of
Guarantee fees shall be due and payable on the Closing Date to the Administrative Agent at the
Administrative Agent’s Account for payment, for the account of the Credit Facility Lenders with
outstanding Banker’s Acceptances, Letters of Credit and Letters of Guarantee, as the case may be.

     If Bidco fail to deliver a Compliance Certificate as required by Section 9.4 hereof, the
Credit Facility Lenders may adjust, on the date such Compliance Certificate should have been
delivered, the pricing on all Advances based on the information they have available. If a
Compliance Certificate is delivered after the time set out in Section 9.4 or if a Compliance
Certificate proves to have been incorrect when delivered, the Credit Facility Lenders may readjust
the fees and rates paid on a retroactive basis such that the fees and rates paid reflect what
should have been paid had the Compliance Certificate been delivered timely or correct when
delivered, as the case may be.

 

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3.5 Fees

     Each Borrower shall pay an agency fee to the Administrative Agent in accordance with the terms
of the Agency Fee Letter.

3.6 Commitment Fees

(1) Commitment Fees. On the first Business Day in each Fiscal Quarter during the term of this
Credit Facility (from the Closing Date to the Maturity Date) and on the Maturity Date (each a
“Commitment Fee Payment Date”), the Revolving Facility Borrowers shall pay in arrears to the
Administrative Agent at the Administrative Agent’s Account for Payments for the account of the
Credit Facility Lenders, a non-refundable commitment fee in Canadian Dollars (the “Commitment Fee”)
on the amount of the unutilized portion of the Revolving Facility at a rate per annum equal to (i)
0.250%, if the ratio of Total Debt to EBITDA of the Borrowers and the Material Subsidiaries is less
than or equal to 2.5:1; (ii) 0.300%, if the ratio of Total Debt to EBITDA of the Borrowers and the
Material Subsidiaries is greater than 2.5:1 but less than 3.0:1; and (iii) 0.400%, if the ratio of
Total Debt to EBITDA of the Borrowers and the Material Subsidiaries is greater than or equal to
3.0:1.

(2) Calculations. The Commitment Fee shall be payable for the period from and including the Closing
Date or the last Commitment Fee Payment Date, as the case may be, to but excluding the next
Commitment Fee Payment Date or the Maturity Date, as applicable, and shall be calculated on a daily
basis on the uncancelled portion of the Total Revolving Commitment in effect from time to time on
the basis of the actual number of days elapsed and a year of 365 days. Each Credit Facility Lender
shall be entitled to its Rateable Portion of each Commitment Fee.

3.7 Interest on Overdue Amounts

     A Borrower shall pay to the Administrative Agent on behalf of the Credit Facility Lenders
interest on overdue amounts owing by such Borrower both before and after demand, default and
judgment at a rate per annum equal to the same rate as is applicable to the amount overdue, if
principal or interest, and in the case of any other overdue amount at a rate per annum equal to the
Prime Rate plus 2% per annum, in each case calculated on a daily basis on the actual number of days
elapsed in a 365 day year, computed from the date the amount becomes due for so long as the amount
remains overdue. Interest shall be payable upon demand made by the Administrative Agent and shall
be compounded on each Interest Payment Date.

3.8 Interest Act

     For purposes of the Interest Act (Canada), where in this Agreement a rate of interest is to be
calculated on the basis of a year of 365 days, the yearly rate of interest to which the rate is
equivalent is the rate multiplied by the number of days in the year for which the calculation is
made and divided by 365.

3.9 Limit on Rate of Interest

(1) Adjustment. If any provision of this Agreement or any of the other Documents would obligate a
Borrower to make any payment of interest or other amount payable to any Credit

 

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Facility Lender in an amount or calculated at a rate which would be prohibited by law or would
result in a receipt by that Credit Facility Lender of interest at a criminal rate (as construed
under the Criminal Code (Canada)), then notwithstanding that provision, that amount or rate shall
be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest,
as the case may be, as would not be so prohibited by law or result in a receipt by that Credit
Facility Lender of interest at a criminal rate, the adjustment to be effected, to the extent
necessary, as follows:

	 	(a)	 	firstly, by reducing the amount or rate of interest required to be paid by such
Borrower to the affected Credit Facility Lender under this Section 3; and
	 
	 	(b)	 	thereafter, by reducing any fees, commissions, premiums and other amounts
required to be paid by such Borrower to the affected Credit Facility Lender which would
constitute interest for purposes of Section 347 of the Criminal Code (Canada).

(2) Reimbursement. Notwithstanding Section 3.9(1), and after giving effect to all adjustments
contemplated thereby, if any Credit Facility Lender shall have received an amount in excess of the
maximum permitted by the Criminal Code (Canada), then the applicable Borrower shall be entitled, by
notice in writing to the affected Credit Facility Lender, to obtain reimbursement from that Credit
Facility Lender in an amount equal to the excess, and pending reimbursement, the amount of the
excess shall be deemed to be an amount payable by that Credit Facility Lender to the applicable
Borrower.

(3) Actuarial Principles. Any amount or rate of interest referred to in this Section 3.9 shall be
determined in accordance with generally accepted actuarial practices and principles as an effective
annual rate of interest over the term that any Advance remains outstanding on the assumption that
any charges, fees or expenses that fall within the meaning of interest (as defined in the Criminal
Code (Canada)) shall, if they relate to a specific period of time, be pro-rated over that period of
time and otherwise be pro-rated over the period from the Closing Date to the Maturity Date and, in
the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed
by the Administrative Agent shall be conclusive for the purposes of that determination.

3.10 Change in Circumstances

(1) Reduction in Rate of Return. If at any time any change in any Applicable Law or any
interpretation thereof after the date of this Agreement, or compliance by the Credit Facility
Lender with any direction, requirement, guidelines or policies or request from any regulatory
authority given after the date of this Agreement, whether or not having the force of law, has or
would have, as a consequence of a Credit Facility Lender’s obligation under this Agreement, and
taking into consideration the Credit Facility Lender’s policies with respect to capital adequacy,
the effect of reducing the rate of return on the Credit Facility Lender’s capital to a level below
that which the Credit Facility Lender would have achieved but for the change or compliance, then
from time to time, upon demand of the Credit Facility Lender, the Borrowers shall pay the Credit
Facility Lender such additional amounts as will compensate the Credit Facility Lender for the
reduction.

 

-50-

(2) Taxes, Reserves, Capital Adequacy, etc. If, after the date of this Agreement, the introduction
of any Applicable Law or any change or introduction of a change in any Applicable Law (whether or
not having the force of law) or in the interpretation or application thereof by any court or by any
Governmental Authority, central bank or other authority or entity charged with the administration
thereof, or any change in the compliance of any Credit Facility Lender therewith now or hereafter:

	 	(a)	 	subjects any Credit Facility Lender to, or causes the withdrawal or termination
of a previously granted exemption with respect to, any Tax or changes the basis of
taxation, or increases any existing Tax, on payments of principal, interest, fees or
other amounts payable by a Borrower to the Credit Facility Lender under or by virtue of
this Agreement (except for Excluded Taxes);
	 
	 	(b)	 	imposes, modifies or deems applicable any reserve, special deposit, deposit
insurance or similar requirement against assets held by, or deposits in or for the
account of, or loans by or any other acquisition of funds by, an office of any Credit
Facility Lender in respect of any Advance or any other condition with respect to this
Agreement;
	 
	 	(c)	 	imposes on a Credit Facility Lender or expects there to be maintained by a
Credit Facility Lender any additional capital in respect of the Credit Facilities; or
	 
	 	(d)	 	imposes any Tax on reserves or deemed reserves with respect to the undrawn
portion of the Revolving Commitment of any Credit Facility Lender.

and the result of any of the foregoing, in the sole determination of the Credit Facility Lender
acting reasonably, shall be to increase the cost to, or reduce the amount received or receivable by
the Credit Facility Lender or its effective rate of return in respect of making, maintaining or
funding an Advance hereunder, the Credit Facility Lender shall, acting reasonably, determine that
amount of money which shall compensate the Credit Facility Lender for the increase in cost or
reduction in income.

(3) Payment of Additional Compensation. Upon a Credit Facility Lender having determined that it is
entitled to compensation in accordance with the provisions of this Section 3.10 (“Additional
Compensation”), the Credit Facility Lender shall promptly so notify the Borrowers and the
Administrative Agent and shall provide to the Borrowers and the Administrative Agent a photocopy of
the relevant Applicable Law or request, as applicable, and a certificate of an officer of the
Credit Facility Lender setting forth the Additional Compensation and the basis of calculation
thereof, which shall be conclusive evidence of the Additional Compensation in the absence of
manifest error. The Borrowers shall pay to the Credit Facility Lender within thirty (30) Business
Days of the giving of notice the Additional Compensation for the account of the Credit Facility
Lender accruing from the date of the notification. The Credit Facility Lender shall be entitled to
be paid Additional Compensation from time to time to the extent that the provisions of this Section
3.10 are then applicable notwithstanding that the Credit Facility Lender has previously been paid
Additional Compensation.

 

-51-

(4) Commercially Reasonable. If it is commercially reasonable in the opinion of a Credit Facility
Lender receiving Additional Compensation under this Section 3.10, the Credit Facility Lender shall
make reasonable efforts to limit the incidence of that Additional Compensation, including seeking
recovery for the account of the Borrowers following the Borrowers’ request and at the Borrowers’
expense, if the Credit Facility Lender, in its sole determination, would suffer no appreciable
economic, legal, regulatory or other disadvantage as a result.

3.11 Payment of Portion

     Notwithstanding any other term or condition of this Agreement, if a Credit Facility Lender
gives the notice provided for in Section 3.10 with respect to any Advance (an “Affected
Borrowing”), the applicable Borrower may, at its option, upon five (5) Business Days notice to that
Credit Facility Lender (which notice shall be irrevocable), repay to the Credit Facility Lender in
full without penalty (other than any breakage costs incurred by such Credit Facility Lender in
terminating a B/A or a Letter of Credit or Letter of Guarantee prior to its maturity date) the
Credit Facility Lender’s proportionate share of the Affected Borrowing outstanding together with
accrued and unpaid interest on the principal amount so repaid up to the date of repayment, together
with such Additional Compensation as may be applicable to the date of payment.

3.12 Illegality

     If any change in Applicable Law, or in the interpretation or application thereof by any court
or by any Governmental Authority or central bank or comparable agency or any other entity charged
with the interpretation or administration thereof, or compliance by any Credit Facility Lender with
any request or direction (whether or not having the force of law) of any Governmental Authority,
central bank or comparable agency or other entity, now or hereafter makes it unlawful or impossible
for the Credit Facility Lender to make, fund or maintain an Advance or to perform its obligations
under or by virtue of this Agreement, the Credit Facility Lender may, by written notice thereof to
the Borrowers and the Administrative Agent, terminate its obligations to make further Advances of
such type under this Agreement, and the applicable Borrowers or Borrowers, if required by the
Credit Facility Lender, shall repay forthwith (or at the end of such longer period as the Credit
Facility Lender in its discretion has agreed) the principal amount of the Advance together with
accrued interest without penalty or bonus (and in the case of Bankers’ Acceptances, the face amount
thereof) and such Additional Compensation as may be applicable to the date of payment and all other
outstanding Credit Facility Obligations to the Credit Facility Lender. If any change shall only
affect a portion of any Credit Facility Lender’s obligations under this Agreement which is
severable from the remainder of this Agreement so that the remainder of this Agreement may be
continued in full force and effect without otherwise affecting any of the obligations of the Credit
Facility Lender or the Borrowers under this Agreement, the Credit Facility Lender shall only
declare its obligations under that portion so terminated.

3.13 Indemnity

(1) General. Each Borrower shall indemnify the Administrative Agent and each Credit Facility Lender
and their respective directors, officers, employees, attorneys and agents (each, an

 

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“Indemnified Person”) against all suits, actions, proceedings, claims, losses (other than loss of
profits), expenses (including reasonable fees, charges and disbursements of counsel), damages and
liabilities including liabilities arising under Environmental Laws (each, a “Claim”) that the
Administrative Agent or the Credit Facility Lender may sustain or incur as a consequence of (a) any
default by a Borrower under this Agreement or any other Document, or (b) any representation or
warranty made herein or any other Document by a Borrower or any Subsidiary which was incorrect at
the time it was made, or (c) the Administrative Agent or the Credit Facility Lender entering into
this Agreement, or (d) the use of proceeds of the Credit Facilities by a Borrower, or (e) the
operations of a Borrower, except that no Indemnified Person will be indemnified for any claim to
the extent it results from its own gross negligence or wilful misconduct.

(2) Certificate. A certificate of the Administrative Agent or the affected Credit Facility Lender,
as the case may be, setting out the basis for the determination of the amount necessary to
indemnify the Administrative Agent or the Credit Facility Lender pursuant to this Section 3.13
shall be conclusive evidence, absent manifest error, of the correctness of that determination.

(3) Right to Assume Defence. If any Claim be asserted against an Indemnified Person by a third
party the Indemnified party shall promptly notify the applicable Borrower of the Claim and, when
known, the facts constituting the bases for such Claim, and if known, the amount or an estimate of
the amount of the Claim. The failure of an Indemnified party to give notice of a Claim promptly
shall not (other than gross negligence or wilful misconduct) adversely affect the Indemnified
Party’s rights to indemnity hereunder. The Indemnified party shall not settle or compromise any
Claim by a third party for which it is entitled to indemnification under this Section 3.13, without
prior written consent of the applicable Borrower except as set out below. Such Borrower at its sole
cost and expense may, upon written notice to the Indemnified Party, assume the defence of any such
Claim or any legal proceeding resulting therefrom. The Indemnified Party shall be entitled to
participate in, but not control, the defence of any such action, with his own counsel. If such
Borrower does not assume the defence of any such Claim or litigation resulting therefrom, the
Indemnified Party may defend against any such Claim or litigation, in such manner as it deems
appropriate and at the expense of such Borrower, including, but not limited to settling such Claim
or litigation, after giving notice of the same and receiving the consent of such Borrower (which
consent shall not be unreasonably withheld). In such case such Borrower shall be entitled to
participate in the defence of such action with its own counsel and at its own expense. If such
Borrower (i) unreasonably fails to provide its consent; or (ii) fails to take over control of the
defence of such Claim, the Indemnified Person may defend against such Claim or litigation in such
manner as it deems appropriate and at the expense of such Borrower including settling such Claim or
litigation.

(4) Survival. It is the intention of each Borrower, the Administrative Agent and each Credit
Facility Lender that Section 2.16 and this Section 3.13 shall supersede any other provisions in
this Agreement which in any way limit the liability of a Borrower and that such Borrower shall be
liable for any obligations arising under Section 2.16 and this Section 3.13 even if the amount of
the liability incurred exceeds the amount of the other Obligations. The obligations of each
Borrower under these Sections are absolute and unconditional and shall not be affected by any act,
omission or circumstance whatsoever, whether or not occasioned by the fault of the Administrative
Agent or a Credit Facility Lender, except in respect of gross negligence or wilful

 

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misconduct by it. The obligations of each Borrower under Section 2.16 and this Section 3.13 shall
survive the repayment of the other Obligations and the termination of the Credit Facilities.

SECTION 4 — REDUCTION AND REPAYMENT

4.1 Term and Maturity of Revolving Facility

     The term of the Revolving Facility and the Swing Line Account contained therein shall commence
on the Closing Date and end on the Maturity Date.

4.2 Term and Maturity of Term Facility

     The term of the Term Facility shall commence on the Original Closing Date and end on the
Maturity Date.

4.3 Repayment of Revolving Facility

     All Advances and other amounts outstanding under the Revolving Facility including principal,
interest and fees shall be paid, all outstanding Bankers’ Acceptances, Letters of Credit and
Letters of Guarantee shall be cash collateralized or replaced in a manner satisfactory to the
Administrative Agent and the Revolving Facility shall be cancelled, on the Maturity Date.

4.4 Repayment of Term Facility

     The Term Facility shall be repaid and permanently reduced on the Maturity Date.

4.5 Mandatory Repayment

     The Total Term Commitment and the principal amount of the Term Facility shall be permanently
reduced by an amount equal to (1) all proceeds of insurance claims (“Insurance Proceeds”) in excess
of $3,000,000, other than proceeds of claims under business interruption insurance, in respect of
any of the assets and undertaking of a Borrower, or any Material Subsidiary which are not
reinvested or set aside for reinvestment in property and assets which would qualify as a Permitted
Acquisition within 12 months after the receipt of such Insurance Proceeds; provided, that in the
case of amounts set aside for reinvestment, the Borrowers or Material Subsidiary shall have taken
steps to acquire such property or assets within such 12 month period; and (2) all of the net cash
proceeds (after Transaction Costs) of any asset sale by a Borrower or any Material Subsidiary out
of the ordinary course of business, other than (i) proceeds from the sale of the telephone
directory business and the sale of the magazine division to Groupe TVA Inc., but including any
regulatory mandated dispositions, (ii) proceeds from the sale of assets previously acquired as part
of a Tax Benefit Transaction and (iii) any asset sale permitted pursuant to the last sentence of
section 9.2(1) (“Asset Sale Proceeds”) in excess of $3,000,000 where the Asset Sale Proceeds are
not, within 12 months after receipt of such Asset Sale Proceeds, reinvested in property and assets
that would qualify as a Permitted Acquisition.

 

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4.6 Permanent Prepayment

     From time to time, prior to the Maturity Date, the Term Facility Borrowers may permanently
prepay, without penalty, in whole or in part, the Advances outstanding under the Term Facility
provided that all accrued interest with respect to the amount to be prepaid shall have been paid.
Payments shall be in the minimum aggregate amount of Cdn$500,000, and shall be made in Cdn$100,000
multiples. The Term Facility Borrowers shall give three (3) Business Days’ notice of their desire
to make any prepayment, substantially in the form as attached hereto as Schedule 4.6.
Notwithstanding the foregoing, if outstanding Bankers’ Acceptances are prepaid, the Term Facility
Borrowers shall be required to deposit the amount of such prepayment in a cash collateral account
with the Administrative Agent until the date of maturity of those Bankers’ Acceptances. The cash
collateral account shall be under the sole control of the Administrative Agent. Except as
contemplated by this Section 4.6, neither the Term Facility Borrowers nor any Person claiming on
behalf of the Term Facility Borrowers shall have any right to any of the cash in the cash
collateral account. The Administrative Agent shall apply the cash held in the cash collateral
account to the face amount of those Bankers’ Acceptances at maturity whereupon any cash remaining
in the cash collateral account shall be released by the Administrative Agent to the Term Facility
Borrowers. Any prepayment shall be paid to the Administrative Agent and distributed among the
Credit Facility Lenders in accordance with their respective Rateable Portions. No amount
permanently prepaid may be reborrowed under this Agreement. Each Credit Facility Lender’s Term
Commitment will be permanently reduced by the amount of any permanent prepayment made to it and the
Total Term Commitment reduced correspondingly. Any such voluntary permanent prepayment shall not be
financed using the Revolving Facility.

4.7 Cancellation

     The Revolving Facility Borrowers may at any time cancel undrawn amounts of the Revolving
Facility without premium or penalty, in minimum amounts of $500,000 and in multiples of
Cdn$100,000, subject to giving the Administrative Agent three (3) Business Days prior written
notice substantially in the form attached as Schedule 4.7. Amounts cancelled will not be reinstated
and the Revolving Commitments and Total Revolving Commitment correspondingly reduced.

SECTION 5 — PAYMENTS AND TAXES

5.1 Payments Generally

     All amounts owing in respect of the Credit Facilities, whether on account of principal,
interest or fees or otherwise, shall be paid in the currency in which the Advance is outstanding.
Each payment under this Agreement shall be made for value on the day the payment is due, provided
that if that day is not a Business Day, the payment shall be due on the Business Day next following
the day, unless the Business Day next following the day is in the next following month, in which
event the payment shall be made on the immediately preceding Business Day. All interest and other
fees shall continue to accrue until payment has been received by the Administrative Agent. Each
payment by a Borrower shall be made at such Borrower’s Administrative Agent’s Account for Payments
at or before 1:00 p.m. on the day the payment is

 

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due. Receipt by the Administrative Agent from a Borrower of funds under this Agreement, as
principal, interest, fees or otherwise, shall be deemed to be receipt of those funds by the Credit
Facility Lenders.

5.2 Taxes

(1) Payments. All payments to be made by or on behalf of a Borrower under or with respect to this
Agreement are to be made free and clear of and without deduction or withholding for, or on account
of, any present or future Taxes, unless such deduction or withholding is required by Applicable
Law. If a Borrower is required to deduct or withhold any Taxes from any amount payable on account
of Credit Facility Obligations to the Administrative Agent or any Credit Facility Lender (a) the
amount payable shall be increased as may be necessary so that, after making all required deductions
or withholdings (including deductions and withholdings applicable to, and taking into account all
Taxes on, or arising by reason of the payment of, additional amounts under this Section 5.2), the
Administrative Agent or the Credit Facility Lender, as the case may be, receives and retains an
amount equal to the amount that it would have received had no such deductions or withholdings been
required, (b) such Borrower shall make such deductions or withholdings, and (c) such Borrower shall
remit the full amount deducted or withheld to the relevant taxing authority in accordance with
Applicable Laws. Notwithstanding the foregoing, such Borrower shall not be required to pay
additional amounts in respect of Excluded Taxes.

(2) Indemnity. Each Borrower shall indemnify the Administrative Agent and the Credit Facility
Lenders for the full amount of any Taxes (other than Excluded Taxes) imposed by any jurisdiction on
amounts payable by the applicable Borrower on account of Credit Facility Obligations under this
Agreement and paid by the Administrative Agent or any Credit Facility Lender and any liability
(including penalties, interest and reasonable expenses) arising therefrom or with respect thereto,
whether or not such Taxes were correctly or legally asserted, and any Taxes levied or imposed with
respect to any indemnity payment made under this Section 5.2. Each Borrower shall also indemnify
the Administrative Agent and the Credit Facility Lenders for any Taxes (other than Excluded Taxes)
that may arise as a consequence of the execution, sale, transfer, delivery or registration of, or
otherwise with respect to this Agreement or any other Document. The indemnifications contained in
this Section 5.2(2) shall be made within thirty (30) days after the date the Administrative Agent
makes written demand therefor.

(3) Evidence of Payment. Within thirty (30) days after the date of any payment of Taxes by a
Borrower, such Borrower shall furnish to the Administrative Agent the original or a certified copy
of a receipt evidencing payment by such Borrower of any Taxes with respect to any amount payable to
the Administrative Agent and the Credit Facility Lenders hereunder.

(4) Excluded Taxes. For the purpose of Section 3.10(2)(a) and this Section 5.2, “Excluded Taxes”
means, in relation to the Administrative Agent or any Credit Facility Lender, (i) any Taxes of the
Administrative Agent or any Credit Facility Lender which is a resident of Canada for the purposes
of the ITA, and (ii) any Taxes of any other Credit Facility Lender imposed on the net income or
capital of such Credit Facility Lender by any Governmental Authority as a result of such other
Credit Facility Lender (a) carrying on a trade or business or having a permanent establishment in
any jurisdiction or political subdivision thereof, (b) being organized

 

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under the laws of such jurisdiction or any political subdivision thereof, or (c) being or being
deemed to be resident in such jurisdiction or political subdivision thereof.

(5) Survival. Each Borrower’s obligations under this Section 5.2 shall survive the termination of
this Agreement and the payment of all amounts payable under or with respect to this Agreement.

(6) Tax Credit. If a payment (“Gross-Up Payment”) made by a Borrower has been increased by an
amount (“Gross-Up”) referred to in this Section 5.2 and one or more Credit Facility Lenders who has
received the Gross-Up is able to apply for, or otherwise take advantage of, any tax credit, tax
refund, deduction in computing income, or similar benefit by reason of any payment, withholding or
deduction made by such Borrower in respect of the Gross-Up Payment (such credit, deduction or
benefit hereinafter being referred to as a “Tax Credit”), then such Credit Facility Lender or
Credit Facility Lenders will use reasonable commercial efforts to obtain the Tax Credit (whether by
way of reducing taxes payable, receiving a tax refund or otherwise), and shall repay to the
applicable Borrower such amount (not exceeding the Gross-Up), if any, as is reasonably determined
by such Credit Facility Lender to be equal to the net after-tax value to such Credit Facility
Lender of such part of the Tax Credit as is reasonably attributable to such payment, withholding or
deduction having regard to all dealings giving rise to similar credits, refunds, deductions or
benefits in relation to the same tax period and to the cost of obtaining the same. Nothing
contained in this Section 5.2(6) shall interfere with the right of any Credit Facility Lender to
arrange its tax affairs in whatever manner it deems fit and, in particular, no Credit Facility
Lender shall be under any obligation to claim relief from its corporate profits or similar tax
liability in respect of any deduction, withholding or payment in priority to any other reliefs,
claims, credits, refunds or deductions available to it and no Credit Facility Lender shall be
obligated to disclose to the Borrowers any information regarding its tax affairs, tax computation
or otherwise.

5.3 No Set-Off

     All payments to be made by a Borrower under this Agreement shall be made without set-off or
counterclaim and without any deduction of any kind.

5.4 Application of Payments Before Exercise of Rights

     Subject to the provisions of this Agreement, all payments made by or on behalf of a Borrower
before the exercise of any rights arising under Section 11.2, or otherwise, shall be paid to the
Administrative Agent and distributed among the Credit Facility Lenders in accordance with their
respective Rateable Portions (or, as the case may be, to or among the Administrative Agent, the
Credit Facility Lender or the Credit Facility Lenders to whom those payments are owing by such
Borrower) in each instance, as applicable, in the following order:

	 	(a)	 	firstly, in payment of any amounts due and payable as and by way of agency fees
owing to the Administrative Agent for its services provided hereunder;
	 
	 	(b)	 	secondly, in payment of any amounts due and payable as and by way of
recoverable expenses hereunder;

 

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	 	(c)	 	thirdly, in payment of any interest, other fees, or default interest then due
and payable on or in respect of the Advances;
	 
	 	(d)	 	fourthly, in respect of payment by the Revolving Facility Borrowers, in the
non-permanent repayment of any principal amounts of the Advances due under the
Revolving Facility, and
	 
	 	(e)	 	fifthly, in payment of any other amounts then due and payable by such Borrower
hereunder or in connection herewith.

5.5 Application of Payments After Exercise of Rights Under Section 11.2

     All payments made by or on behalf of a Borrower after the exercise of any rights arising under
Section 11.2 shall be paid to the Administrative Agent and distributed among the Lenders in
accordance with their respective Rateable Portions (or, as the case may be, to or among the
Administrative Agent, the Lender or the Lenders to whom those payments are owing by such Borrower)
in each instance, as applicable, in the following order:

	 	(a)	 	firstly, in payment of agency fees and the reasonable costs and expenses of any
realization against a Borrower or of its property and assets, including the
out-of-pocket expenses of the Administrative Agent and the reasonable fees and out-of
pocket expenses of counsel, consultants and other advisers employed in connection
therewith and in payment of all reasonable costs and expenses incurred by the
Administrative Agent in connection with the administration and enforcement of this
Agreement or the other Documents, to the extent that those funds, costs and expenses
shall not have been reimbursed to the Administrative Agent;
	 
	 	(b)	 	secondly, in payment of any other unpaid fees payable hereunder by a Borrower;
	 
	 	(c)	 	thirdly, in payment or prepayment of principal under the Term Facility (in
respect of the Term Facility Borrowers) or the Revolving Facility (in respect of the
Revolving Facility Borrowers) and any other Obligations (other than on account of
interest) outstanding under this Agreement, any other Documents and any document or
agreement under which Other Secured Obligations arise and then to the payment of
accrued and unpaid interest thereunder; and
	 
	 	(d)	 	fourthly, in payment of the balance, if any, to the applicable Borrower or such
other person or persons who may be entitled at law or, in each case, their respective
successors or assigns, or as a court of competent jurisdiction may otherwise direct.

 

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SECTION 6 — SECURITY DOCUMENTS

6.1 Security Documents

     Each Borrower shall, and shall cause each of its Material Subsidiaries to, execute and deliver
to the Administrative Agent on behalf of the Lenders to secure the Obligations, the following
documents to be in form and substance satisfactory to the Administrative Agent and the Credit
Facility Lenders:

	 	(a)	 	unconditional and unlimited guarantee of Osprey GP, each other Material
Subsidiary, Amalco I and Nominee in respect of the Obligations;
	 
	 	(b)	 	general security agreements creating a first priority security interest,
subject only to Permitted Liens, in all of the personal property, assets and
undertaking of each Borrower (including Bidco, as and from the Bidco Effective Date),
Amalco I, Nominee and each Material Subsidiary (and a deed of hypothec to the same
effect in respect of Bidco, as and from the Bidco Effective Date);
	 
	 	(c)	 	debenture of Osprey LP and each Material Subsidiary creating a first fixed
charge, subject only to Permitted Liens, on all of its owned and leasehold real
property together with a related debenture delivery or pledge agreement;
	 
	 	(d)	 	assignment of all property and business interruption insurance policies;
	 
	 	(e)	 	specific assignments of certain contracts by Osprey LP and each Material
Subsidiary, acknowledged by all parties to such contracts;
	 
	 	(f)	 	pledges of shares, intercompany indebtedness and all other ownership interests
of each Subsidiary of the Borrowers and each Material Subsidiary;
	 
	 	(g)	 	subordination and/or inter-creditor agreement in respect of all Permitted
Subordinated Debt;
	 
	 	(h)	 	pledge of all of the Securities of Osprey LP and Osprey GP, and of the Fund (as
and from the Bidco Effective Date);
	 
	 	(i)	 	pledge of all of the Securities of Amalco I and Nominee; and
	 
	 	(j)	 	such other security as the Credit Facility Lenders may reasonably require,
including revisions to any of the foregoing security, if necessary, to reflect any
uncertificated securities held by the applicable pledgor.

6.2 Additional Material Subsidiaries

     If at any time a Borrower establishes or acquires a Material Subsidiary, such Borrower shall
immediately cause such Material Subsidiary to become a guarantor by entering into a guarantee in
substantially the same form as the guarantee referred to in Section 6.1(a) above and deliver other
security documents similar to those referred to in Section 6.1, which documents

 

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shall be Security Documents for the purpose hereof, and cause the delivery of such legal
opinions, and other supporting documents as the Credit Facility Lenders may reasonably require and
such Material Subsidiary shall be subject to all of the terms of this Agreement applicable to a
Material Subsidiary.

6.3 Additional Subsidiaries

     If at any time a Borrower or any Material Subsidiary establishes or acquires a Subsidiary (in
compliance with the terms and conditions hereof) that is not a Material Subsidiary or a wholly
owned Subsidiary, such Borrower or such Material Subsidiary shall cause its interest in such
Subsidiary to immediately be pledged as part of the Security Documents and cause the delivery of
such legal opinions and other supporting documents as the Credit Facility Lenders may reasonably
require.

6.4 Credit Facility Obligations and Other Secured Obligations

     Unless otherwise agreed by the Credit Facility Lenders among themselves, the following
obligations are secured pari passu with each other:

	 	(a)	 	the Credit Facility Obligations; and
	 
	 	(b)	 	the present and future debts, liabilities and obligations of any Borrower to
any Lender (collectively, the “Other Secured Obligations”) under or in connection with,
(i) Hedge Contracts permitted pursuant to Section 9.2(16), (ii) cash management and
consolidation, money management, foreign-exchange, credit card and other facilities
provided by a Lender to any Borrower, and (iii) other transactions not made under this
Agreement if it is agreed by the Borrowers and the Administrative Agent acting on the
instructions of the Credit Facility Lenders that such facilities, debts, liabilities
and obligations shall be secured; provided, for greater certainty, that upon any
financial institution ceasing to be a “Credit Facility Lender”, the Other Secured
Obligations of such financial institution and its Affiliates, as the case may be, shall
continue to be secured by the Security Documents so long as such financial institution
was a Credit Facility Lender at the time any agreement under which any such Other
Secured Obligations arise was entered into.

     If the Credit Facility Obligations have been indefeasibly paid in full, the Lenders will
release their interest in the Security Documents upon receiving Collateral to secure the Other
Secured Obligations, in a form and an amount satisfactory to the Lenders to whom Other Secured
Obligations are owed.

     Notwithstanding the rights of Lenders to benefit from the Security Documents in respect of the
Other Secured Obligations, all decisions concerning the Security Documents and the enforcement
thereof shall be made by the Credit Facility Lenders, the Majority Lenders or the Administrative
Agent in accordance with this Agreement. No Lender holding Other Secured Obligations from time to
time shall have any additional right to influence the Security Documents or the enforcement thereof
as a result of holding Other Secured Obligations as long

 

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as this Agreement remains in force. However, the Other Secured Obligations shall continue to
be secured by the Security Documents notwithstanding the termination of this Agreement by reason of
payment of the Credit Facility, or for any other reason. After the termination of this Agreement,
decisions concerning the Security Documents shall be made by the holders of Other Secured
Obligations as they may determine among themselves.

SECTION 7 — CONDITIONS PRECEDENT

7.1 Conditions Precedent to Effectiveness

     This Agreement shall be effective subject to the fulfillment of the following conditions:

(1) Delivery of Documents. The Administrative Agent shall have received on or prior to the Closing
Date Sufficient Copies, in form and substance satisfactory to the Administrative Agent, of the
following:

	 	(a)	 	this Agreement duly executed by all the parties thereto;
	 
	 	(b)	 	each Security Document or, where applicable, confirmation of the validity of
existing security, and all other Documents duly executed by all the parties thereto;
	 
	 	(c)	 	a Compliance Certificate, dated September 28, 2007, confirming the Borrowers
and the Material Subsidiaries are in compliance with the financial covenants set forth
in Section 9.3;
	 
	 	(d)	 	Certificate or other evidence satisfactory to the Administrative Agent and the
Credit Facility Lenders of each Existing Borrower, Bidco and Osprey GP dated the
Closing Date executed by an Authorized Signatory certifying:

	 	  (i)	 	the names and the specimen signatures of the Persons authorized
to sign this Agreement, the Security Documents and the other Documents to be
executed and delivered by it under this Agreement;
	 
	 	  (ii)	 	that its declaration of trust, limited partnership agreement or
articles of incorporation, amalgamation or continuance, as the case may be, and
all other constating documents, which shall be attached thereto, are a complete
and correct copy and that each of the declaration of trust, limited partnership
agreement or articles of incorporation, amalgamation or continuance, as the
case may be, and all other constating documents have not been amended, modified
or supplemented and are in full force and effect; and
	 
	 	  (iii)	 	its resolution and all other authorizations necessary to
authorize the execution and delivery of and the performance by it of its
obligations under the Security Documents and the other Documents to which it is
a party and all the transactions contemplated thereby;

 

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	 	(e)	 	opinions of Ogilvy Renault LLP, counsel to Bidco, the Fund, Osprey LP and
Osprey GP and each of their Subsidiaries, dated as of September 28, 2007 regarding
corporate existence, due authorization, enforceability of this Agreement and the
Security Documents and registration of the Security Documents etc. addressed to the
Administrative Agent and each Credit Facility Lender;
	 
	 	(f)	 	opinions of Aikins, MacAuley & Thorvaldson LLP, Manitoba counsel to Osprey LP,
dated as of September 28, 2007 regarding, existence, due authorization of this
Agreement and the Security Documents etc. addressed to the Administrative Agent and
each Credit Facility Lender;
	 
	 	(g)	 	certified copies of all Material Contracts then in effect not previously
provided to the Administrative Agent; and
	 
	 	(h)	 	such other documents as the Administrative Agent may reasonably request on
behalf of the Credit Facility Lenders, including standard documentation used by a
Credit Facility Lender in connection with the issuance of Bankers’ Acceptances, Letters
of Credit, Letters of Guarantee and Hedge Contracts prior to any Advance by way of any
such method.

	(2)	 	Registration of Security Documents. All registrations, recordings and filings of or with
respect to the Security Documents which in the opinion of counsel to the Administrative Agent are
necessary to render effective the security intended to be created thereby shall have been
completed.
	 
	(3)	 	Fees. All fees payable by the Borrowers on or before the Closing Date shall have been paid to
the Administrative Agent, including, without limitation, all reasonable legal fees and
disbursements of McMillan Binch Mendelsohn LLP, counsel to the Administrative Agent.
	 
	(4)	 	Representations Correct. The representations and warranties set forth in Section 8 shall be
true and correct as at the Closing Date.
	 
	(5)	 	No Default. No Default or Event of Default shall exist as at the Closing Date.

7.2 Conditions Precedent to All Advances

     The obligations of the Credit Facility Lenders to make available any Advance, Rollover or
Conversion, in addition to being subject to and conditional upon the conditions being satisfied in
Section 7.1, are subject to and conditional upon each of the conditions below being satisfied on
the applicable Drawdown Date, Rollover Date or Conversion Date:

(1) No Default. No Default or Event of Default shall exist, nor shall the Advance, Rollover or
Conversion result in the occurrence of a Default or Event of Default.

(2) Representations Correct. The Repeating Representations and Warranties shall be true and correct
on each Drawdown Date, Rollover Date or Conversion Date as if made on that date.

 

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(3) Notice of Advance. A Borrower shall have provided any notice required in respect of an Advance,
Rollover or Conversion.

7.3 Waiver of a Condition Precedent

     The conditions stated in Sections 7.1, 7.2 and 7.4 and are inserted for the sole benefit of
the Administrative Agent and Credit Facility Lenders and may be waived by the Administrative Agent
with the consent of the Majority Lenders, in whole or in part, with or without terms or conditions,
in respect of all or any portion of the Advances, without affecting the right of the Credit
Facility Lenders to assert terms and conditions in whole or in part in respect of any other
Advance.

7.4 Conditions Precedent to Bidco Effective Date

     Bidco shall become a Borrower under this Agreement as of the Bidco Effective Date subject to
the fulfillment of the following conditions:

(1) Delivery of Documents. The Administrative Agent shall have received Sufficient Copies, in form
and substance satisfactory to the Administrative Agent, of the following:

	 	(a)	 	each Security Document and all other Documents (other than this Agreement) duly
executed by Bidco;
	 
	 	(b)	 	a Certificate or other evidence satisfactory to the Administrative Agent and
the Credit Facility Lenders of Bidco dated the Bidco Effective Date executed by an
Authorized Signatory certifying:

	 	  (i)	 	the names and the specimen signatures of the Persons authorized
to sign the Security Documents and the other Documents to be executed and
delivered by it under this Agreement;
	 
	 	  (ii)	 	that its articles of incorporation, amalgamation or
continuance, as the case may be, and all other constating documents, which
shall be attached thereto, are a complete and correct copy and that each of the
articles of incorporation, amalgamation or continuance, as the case may be, and
all other constating documents have not been amended, modified or supplemented
and are in full force and effect; and
	 
	 	  (iii)	 	its resolution and all other authorizations necessary to
authorize the execution and delivery of and the performance by it of its
obligations under the Security Documents and the other Documents to which it is
a party and all the transactions contemplated thereby;

	 	(c)	 	a copy of the Advanced Income Tax Ruling issued by Canada Revenue Agency with
respect to the Reorganization or an opinion of Ogilvy Renault LLP, in form and
substance satisfactory to the Administrative Agent and its counsel;

 

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	 	(d)	 	opinions of Ogilvy Renault LLP, counsel to Bidco, dated as of the Bidco
Effective Date regarding corporate existence, due authorization, enforceability of the
Security Documents entered into by Bidco and registration of such Security Documents
etc. addressed to the Administrative Agent and each Credit Facility Lender; and
	 
	 	(e)	 	such other documents as the Administrative Agent may reasonably request on
behalf of the Credit Facility Lenders, including standard documentation used by a
Credit Facility Lender in connection with the issuance of Bankers’ Acceptances, Letters
of Credit, Letters of Guarantee and Hedge Contracts prior to any Advance by way of any
such method.

(2) Registration of Security Documents. All registrations, recordings and filings of or with
respect to the Security Documents of Bidco which in the opinion of counsel to the Administrative
Agent are necessary to render effective the security intended to be created thereby shall have been
completed.

(3) Fees. All fees payable by the Borrowers on or before the Bidco Effective Date shall have been
paid to the Administrative Agent, including, without limitation, all reasonable legal fees and
disbursements of McMillan Binch Mendelsohn LLP, counsel to the Administrative Agent.

(4) Representations Correct. The representations and warranties set forth in Section 8 shall be
true and correct as of the Bidco Effective Date.

(5) No Default. No Default or Event of Default shall exist as of the Bidco Effective Date.

SECTION 8 — REPRESENTATIONS AND WARRANTIES

8.1 Representations and Warranties

     Each Borrower, with respect to itself and each of its Material Subsidiaries, makes the
following representations and warranties to the Administrative Agent and each Credit Facility
Lender, all of which shall survive the execution and delivery of this Agreement:

(1) Existence, Power and Qualification. Each Borrower and each of its Material Subsidiaries (a) is
an entity, duly incorporated or otherwise formed, organized and validly existing under the laws of
its jurisdiction of incorporation or formation, (b) is up to date in all material respects in the
filings of all corporate and similar returns required under those laws, except as specified on
Schedule 8.1(1), (c) has the requisite power and authority to own, operate and lease its properties
and assets and to conduct the businesses in which it is presently engaged, and (d) is duly
qualified in all material respects under the laws of each jurisdiction where its ownership, lease
or operation of properties or assets or the conduct of its business requires qualification.

(2) Power and Authority. The execution and delivery by the Borrowers of this Agreement and by the
Borrowers and each Material Subsidiary of the Security Documents and the other Documents to which
it is a party and the performance by the Borrowers and each Material

 

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Subsidiary of their respective obligations thereunder (a) are within their powers, (b) have been
duly authorized by all necessary or proper trust, corporate, shareholder, partnership, or other
action, (c) do not conflict with, result in a breach or violation of, or constitute a default
under, its constating documents, any unanimous shareholders’ agreement, any declaration of trust,
any partnership agreement, any Applicable Law or any other document to which it is a party or by
which it is bound, (d) do not conflict with or result in the breach or termination of, constitute a
default under, or accelerate any performance required by any Material Contract, and (e) do not and
will not result in the creation of any Lien, except as set out in the Security Documents, upon any
of its assets or properties under any agreement or other document.

(3) Authorization, Execution, Delivery and Binding Effect. Each of this Agreement, the Security
Documents and the other Documents executed by the Borrowers and each Material Subsidiary, as the
case may be, has been or will be at the time required to be executed and delivered under this
Agreement, duly authorized, executed and delivered and constitutes or will constitute at the time
required to be executed and delivered under this Agreement, a legal, valid and binding obligation
of the Borrowers and each Material Subsidiary, as the case may be, enforceable in accordance with
its terms, subject to (a) applicable bankruptcy, insolvency, moratorium, reorganization or other
similar laws affecting creditors’ rights generally, (b) general principals of equity including the
fact that specific performance and injunctive relief may only be given at the discretion of the
courts, and (c) the equitable or statutory powers of the courts to stay proceedings before them and
to stay the execution of judgments.

(4) No Approvals Required. (a) Each Borrower and each of its Material Subsidiaries has obtained all
material Governmental Approvals which are necessary for the conduct of its business as presently
conducted, each of which is in full force and effect, is a good, valid and subsisting approval
which has not been surrendered, forfeited or become void or voidable and is unamended, (b) there is
no material default under any Governmental Approval, nor are there any proceedings in progress,
pending or threatened which may result in the revocation, suspension or material adverse
modification of such Governmental Approval, and (c) no further registration, order, permit, filing,
consent, authorization, licence, decree or approval of, from or with any Person (including any
Governmental Authority) is necessary or advisable in order to ensure the legality, validity,
binding effect and enforceability of this Agreement, the Security Documents, or any other Document
or the performance of the Credit Facility Obligations.

(5) Financial Statements. As of the Closing Date:

	 	(a)	 	the most recent financial statements as of August 30, 2007 of the Fund, copies
of each which have been furnished to the Administrative Agent, were prepared in
accordance with GAAP applied on a basis consistent with preceding periods, except as
stated therein or in the notes, and those financial statements fairly represent the
financial condition of the Borrowers as at their date; and
	 
	 	(b)	 	the Compliance Certificate delivered on the Closing Date denominating
compliance with all financial covenants of the Borrowers and the Material Subsidiaries
under this Agreement were based on the financial statements of the Fund referred to in
(a) above and such balance sheet and income statement were

 

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	 	 	 	prepared in accordance with GAAP with only adjustments thereto that would be
required under GAAP.

(6) Material Adverse Change. Since the date of the most recent financial statements referred to in
Section 8.1(5)(a), except as otherwise disclosed to the Administrative Agent in writing, there has
been no Material Adverse Change in the Collateral or the operations of the Borrowers and the
Material Subsidiaries taken as a whole as a result of any act or event, including fire, accident,
strike, expropriation or acts of any Governmental Authority and there has been no change in their
financial condition or the results of their operations that would have a Material Adverse Effect.

(7) Contingent Liabilities and Debt. None of the Borrowers or any Material Subsidiary has any
contingent liabilities which are not disclosed in the most recent audited or unaudited financial
statements furnished to the Administrative Agent and referred to in Section 8.1(5) which would have
a Material Adverse Effect, nor have the Borrowers or any Material Subsidiary incurred any Debt
which would have a Material Adverse Effect which is not disclosed in those financial statements,
other than Permitted Debt.

(8) Title to Assets and Liens. Except as disclosed in Schedule 8.1(8) with respect to real and
personal property, each Borrower and each of its Material Subsidiaries is the legal and beneficial
owner of or validly leases all of its properties and assets free and clear of any Liens, other than
Permitted Liens.

(9) Security Documents. The Security Documents create or will create valid and enforceable Liens
upon all the undertaking and assets of the Borrowers and the Material Subsidiaries on the terms set
out therein, subject only to the terms of this Agreement and to Permitted Liens, and the Security
Documents have been or will be registered or recorded in all places where registration or recording
is necessary to perfect and protect the charges and security interests created therein.

(10) Location of Assets, Places of Business. All of the Borrowers’ and each Material Subsidiary’s
tangible and intangible property and assets and places of business are located in the Province of
Ontario. Each of the Borrowers’ and Material Subsidiaries’ registered and chief executive office is
in the Province of Ontario, except Bidco, which is located in the Province of Quebec. The Borrowers
and the Material Subsidiaries do not have any account debtors in a material aggregate amount
located in any province not governed by the Personal Property Security Act (Ontario) or equivalent
statute, or outside Canada other than in states governed by Article 9 of the Uniform Commercial
Code, as of the date hereof.

(11) No Default or Event of Default. There exists no Default or Event of Default.

(12) Compliance. Each Borrower and each of its Material Subsidiaries is in compliance with its
constating documents and is in compliance in all respects with all Applicable Laws, including
employment standards, labour codes and Environmental Laws except any non-compliance which would not
have a Material Adverse Effect or as referenced in the reports set out in Schedule 8.1(18).

 

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(13) Litigation. No litigation, investigation or proceeding of or before any Governmental
Authority, arbitrator, court or administrative agency is pending or, to its knowledge, threatened
against the Borrowers or any Material Subsidiary or against any of their respective properties,
assets or revenues, including the Collateral, which would reasonably be expected to have a Material
Adverse Effect.

(14) Tax Returns. Each Borrower (or in the case of Osprey LP, each of its partners) and each of its
Material Subsidiaries has filed or caused to be filed all tax returns which are required to have
been filed, and has paid all Taxes shown to be due and payable on those returns or on any
assessments made against it and all other Taxes, fees or other charges imposed on it by any
Governmental Authority, other than, (i) those in an amount of up to $1,000,000 in the aggregate
outstanding at any time; or (ii) those the amount or validity of which is currently being contested
in good faith by appropriate proceedings being diligently pursued, and with respect to which
adequate reserves in conformity with GAAP have been provided in its books and of which the details
have been provided to the Administrative Agent. No Liens against the Borrowers or any Material
Subsidiary for Taxes other than Permitted Liens have been filed and, to its knowledge, no claims
are being asserted with respect to any Taxes other than Permitted Debt.

(15) Canadian Pension and Benefit Plans. All Canadian Pension Plans (if any) and Canadian Benefit
Plans (if any) to which the Borrowers or any Material Subsidiary is a party are described in
Schedule 8.1(15).

(16) Insurance. The Borrowers and the Subsidiaries maintain insurance in compliance with Section
9.1(2) and all premiums and other sums of money due and payable for that purpose have been paid.

(17) Corporate Organization. Set out in the first chart attached to Schedule 8.1(17) is a complete
and accurate corporate organization chart showing the Borrowers and the Material Subsidiaries as at
the Closing Date and set out in the second chart attached to Schedule 8.1(17) is a complete and
accurate corporate organization chart showing the Borrowers and the Material Subsidiaries as and
from the Bidco Effective Date.

(18) Environmental Activity. Neither the Borrowers nor any Material Subsidiary (i) engages in any
Environmental Activity and, (ii) to the best of any of their knowledge, no Contaminants are stored
in or present in any form in or under any premises or lands owned or leased by the Borrowers or any
Material Subsidiary, as the case may be, except in compliance with Environmental Laws or as
referenced in environmental reports set out in Schedule 8.1(18).

(19) Trade-marks, Patents, etc. The Borrowers and the Material Subsidiaries possesses all patents,
industrial designs, trade-marks, trade secrets, know-how, environmental technology, biotechnology,
confidential information, trade-names, goodwill, copyrights, integrated circuit topographies,
software and all other forms of intellectual and industrial property, and any registrations and
applications for registration of any of the foregoing (collectively, the “Intellectual Property”),
referred to in Schedule 8.1(19). To the best of the Borrowers’ knowledge, none of the Borrowers or
the Material Subsidiaries is infringing in any material respect on the rights of any person with
respect to any Intellectual Property and none of the Borrowers or the Material Subsidiaries knows
of any fact which is likely to result in the

 

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successful assertion against the Borrowers or any Material Subsidiary of a claim for such an
infringement which would reasonably be expected to have a Material Adverse Effect.

(20) Material Subsidiaries. Each Material Subsidiary is, directly or indirectly, a wholly owned
Subsidiary of the Borrowers.

(21) Real Property. Attached hereto as Schedule 8.1(21) is a list of all real property (the “Real
Property”) beneficially owned by the Borrowers or any Material Subsidiary including the municipal
address and legal description thereof.

(22) Leases. Attached hereto as Schedule 8.1(22) is a list of all leases and licenses (the “Leased
Property”) to which the Borrowers or any Material Subsidiary is a party as lessee including, the
lessee, the municipal address thereof and the annual lease payments in respect thereof. Except as
disclosed in Schedule 8.1(22), none of the Borrowers or any Material Subsidiary has any material
oral or written agreement with any tenants or sub-tenants of its Real Property or Leased Property.

(23) Permitted Subordinated Debt. The Borrowers have delivered to the Administrative Agent a
complete and correct copy of all evidences of Permitted Subordinated Debt and neither the Borrowers
nor any Material Subsidiary is in default thereunder. The Borrowers and each Material Subsidiary
has the corporate power and authority to incur the Debt evidenced by such Permitted Subordinated
Debt. The subordination provisions of all Permitted Subordinated Debt are enforceable against the
holders thereof by the Administrative Agent and the Lenders subject to (a) applicable bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting creditors’ rights generally,
(b) general principals of equity including the fact that specific performance and injunctive relief
may only be given at the discretion of the courts, and (c) the equitable or statutory powers of the
courts to stay proceedings before them and to stay the execution of judgments, and are subject to
the terms of this Agreement and the other Loan Documents. The Borrowers acknowledge that the
Administrative Agent and each Credit Facility Lender are entering into this Agreement and are
extending the Commitments in reliance upon the subordination provisions of the Permitted
Subordinated Debt.

(24) Material Facts. As of the Closing Date, to the knowledge of the Borrowers, there is no fact
that has not been disclosed to the Administrative Agent and the Credit Facility Lenders in writing
that would have a Material Adverse Effect on its ability to perform its obligations under the
Documents.

8.2 Deemed Repetition

     The representations and warranties made by each Borrower in Section 8.1 shall continue in
effect until payment and performance of all the Credit Facility Obligations, and the Repeating
Representations and Warranties shall be deemed to be repeated on each Drawdown Date, Rollover Date
and Conversion Date, mutatis mutandis, as if made on that date.

 

 

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SECTION 9 — COVENANTS

9.1 Affirmative Covenants

     While any amount owing under this Agreement or any of the other Documents remains unpaid, or
the Administrative Agent or the Credit Facility Lenders have any obligations under this Agreement
or any of the other Documents, each Borrower covenants with the Administrative Agent and each
Credit Facility Lender as follows:

(1) Existence. Each Borrower shall do or cause to be done all things necessary to keep in full
force and effect its existence and that of its Material Subsidiaries and all rights, franchises,
trademarks, licences and qualifications required for it and them to carry on their respective
businesses and own, lease or operate their respective properties in each jurisdiction in which they
carry on business or own, lease or operate property or assets from time to time the absence of
which could materially affect the Borrowers’ or a Material Subsidiary’s ability to carry on its
business.

(2) Insurance. Each Borrower shall maintain, and shall cause its Material Subsidiaries to maintain,
insurance on its and their respective properties and assets and for the operation of their
respective businesses in such amounts and against such risks as would be customarily obtained and
maintained by a prudent owner of similar properties and assets operating a similar business,
including appropriate liability insurance, business interruption insurance and third party
liability insurance. The Borrowers shall provide copies of those policies to the Administrative
Agent, which policies shall be satisfactory to the Administrative Agent and shall not be subject to
any co-insurance clause. Each insurance policy shall include an endorsement whereby the insurers
agree to give the Administrative Agent on behalf of the Credit Facility Lenders not less than
thirty (30) days notice of the cancellation of the policy of insurance and permit the
Administrative Agent on behalf of the Credit Facility Lenders to cure any default which may exist
under the policy. The Administrative Agent shall either be named as loss payee or additional
insured as its interest may appear in all of the Borrowers’ and each Material Subsidiary’s policies
of insurance or otherwise be assured of the availability of continuing coverage in a manner
satisfactory to the Administrative Agent.

(3) Compliance with Laws, etc. Each Borrower shall comply, and shall cause its Material
Subsidiaries to comply, with all Applicable Laws, all Government Approvals and all Material
Contracts required in respect of its and their respective businesses, properties, the Collateral,
or any activities or operations carried out thereon including employment standards, labour codes
the non-compliance with which could materially adversely affect the Borrowers’ or a Material
Subsidiary’s ability to carry on its business; provided that this clause 9.1(3) shall not apply to
Environmental Laws, which are referred to in Section 10. If required by the Administrative Agent,
the Borrowers shall deliver to the Administrative Agent evidence satisfactory to the Administrative
Agent concerning compliance with all Applicable Laws and Government Approvals.

(4) Government Approvals. Each Borrower shall obtain, and shall cause its Material Subsidiaries to
obtain, (to the extent not in existence on the Closing Date) and maintain, by the

 

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observance and
performance of all obligations thereunder and conditions thereof, all material Government Approvals
required for it and them to carry on their respective businesses.

(5) Conduct of Business. Each Borrower shall and shall cause its Material Subsidiaries to:

	 	(a)	 	conduct its business in a proper and efficient manner and keep proper books of
account and records with respect to the operation of its business;
	 
	 	(b)	 	diligently maintain, repair, use and operate its property and premises in a
commercially reasonable and efficient manner; and
	 
	 	(c)	 	subject to the exceptions set out in Section 9.1(13), maintain its physical
assets in good condition so that each asset may be used at all times for the purpose
for which it was intended.

(6) Payment. Each Borrower shall, duly and punctually pay or cause to be paid all sums of money due
and payable by it under this Agreement and the other Documents on the dates, at the places and in
the currency and the manner set forth herein and therein.

(7) Litigation. Upon becoming aware thereof, the Borrowers shall (a) promptly give notice to the
Administrative Agent of any litigation, proceeding or dispute, threatened or commenced against any
Borrower or any Material Subsidiary, if the litigation, proceeding or dispute is likely to be
adversely determined and would, if adversely determined, have a Material Adverse Effect, (b) advise
the Administrative Agent of the extent to which any adverse determination is covered by insurance,
and (c) provide all reasonable information requested by the Administrative Agent concerning the
status of any such litigation, proceeding or dispute.

(8) Pay Claims and Taxes. Each Borrower shall promptly pay and discharge, and shall cause its
Material Subsidiaries to promptly pay and discharge, when due all Taxes charged to or payable by it
or them and all obligations which may result in Liens (other than Permitted Liens) on its or their
properties or assets unless the relevant Tax or obligation (i) is an amount of up to $1,000,000 in
the aggregate outstanding at any time; or (ii) is being actively and diligently contested in good
faith by appropriate proceedings and is adequately reserved against in accordance with GAAP.

(9) Notice of Default or Material Adverse Change. Each Borrower shall provide to the Administrative
Agent prompt notice of any Material Adverse Change, Default or Event of Default of which it is
aware, setting forth its details and the action taken or to be taken to remedy it.

(10) Auditors. Each Borrower shall promptly give notice to the Administrative Agent of a change in
its Auditors and the reasons for the change.

 

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(11) Access. Each Borrower shall, and shall cause each of its Material Subsidiaries to, at all
reasonable time and upon reasonable notice, permit representatives of the Credit Facility Lenders
to inspect any of the Collateral and to examine its and its Material Subsidiaries’ books and
records and take extracts therefrom, including but not limited to, accounts and records stored in
computer data banks and computer software systems provided that:

	 	(a)	 	the Credit Facility Lenders exercise of their rights under this paragraph does
not reasonably interfere with the operations of the Borrowers and the Material
Subsidiaries;
	 
	 	(b)	 	the Credit Facility Lenders maintain the confidentiality of all information
they receive in accordance with usual requirements of banker/customer confidentiality,
and do not use it except for the purpose of this Agreement; and
	 
	 	(c)	 	other than during the continuance of an Event of Default, the Credit Facility
Lenders shall not exercise such right of access more than twice in any Fiscal Year.

(12) Canadian Benefit and Pension Plans.

	 	(a)	 	Each Borrower shall ensure that each Canadian Pension Plan described in
Schedule 8.1(15) retains its registered status under and is administered in a timely
manner in all respects in accordance with the applicable pension plan text, funding
agreement, the ITA and all other Applicable Laws.
	 
	 	(b)	 	Upon the request of the Administrative Agent, each Borrower shall use its best
efforts to obtain and to provide the Administrative Agent with written confirmation
from the applicable Governmental Authorities that each Canadian Pension Plan adopted by
the applicable Borrower or any of its Material Subsidiaries after the date hereof which
is required to be registered under the ITA or any other Applicable Law has been
registered without condition. From and after the adoption and registration of any
Canadian Pension Plan, each Borrower shall and shall cause each of its Material
Subsidiaries to use its best efforts to ensure that the plan retains its registered
status under and is administered in all respects in accordance with the applicable
pension plan text, funding agreement, the ITA and all other Applicable Laws.
	 
	 	(c)	 	Each Borrower shall cause all reports and disclosures relating to any Canadian
Pension Plan that are required by the plan or any Applicable Laws to be filed or
distributed in a timely manner.
	 
	 	(d)	 	Each Borrower shall, and shall cause its Material Subsidiaries to perform, all
obligations (including fiduciary, funding, investment and administration obligations)
required to be performed in connection with each Canadian Pension Plan and Canadian
Benefit Plan and the funding media therefor; make all contributions and pay all
premiums in a timely manner required to be made or paid by a Borrower or any Material
Subsidiary in accordance with the terms of the

 

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	 	 	 	plan and all Applicable Laws; withhold
by way of authorized payroll deductions or otherwise collect and pay into the plan all
employee contributions required to be withheld or collected by a Borrower or any
Material Subsidiary in accordance
with the terms of the plan and all Applicable Laws; and ensure that the plan is
fully funded, both on an ongoing basis and on a solvency basis (using actuarial
methods and assumptions which are consistent with the valuations last filed with the
applicable Governmental Authorities and which are consistent with generally accepted
actuarial principles).
	 
	 	(e)	 	The Borrowers shall deliver to the Administrative Agent, on request, (i)
promptly after the filing thereof by any Borrower or any Material Subsidiary with any
applicable Governmental Authority, copies of each annual and other return, report or
valuation with respect to each Canadian Pension Plan; (ii) promptly after receipt
thereof, a copy of any direction, order, notice, ruling or opinion that any Borrower or
any Material Subsidiary may receive from any applicable Governmental Authority with
respect to any Canadian Pension Plan; and (iii) notification within thirty (30) days of
any increases in the benefits of any existing Canadian Pension Plan or Canadian Benefit
Plan, or the establishment of any new Canadian Pension Plan or Canadian Benefit Plan,
or the commencement of contributions to any plan to which a Borrower or any Material
Subsidiary was not previously contributing.
	 
	 	(f)	 	The Borrowers shall deliver to the Administrative Agent on request an
undertaking signed by the funding agent for each of the Canadian Pension Plans,
addressed to the Administrative Agent, stating that such funding agent shall on request
deliver to the Administrative Agent a copy of any notice required to be delivered by
the funding agent under applicable pension standards legislation at the same time such
notice is given to the applicable pension standards regulator.

(13) Maintenance. Each Borrower shall not, and shall not permit its Material Subsidiaries to,
permit waste (excluding redevelopment or reconstruction of existing buildings) to be committed or
suffered on any Real Property or Leased Property, will, and will cause its Material Subsidiaries,
to diligently maintain, use, operate and repair the Real Property and Leased Property, reasonable
wear and tear excepted, and will, and will cause its Material Subsidiaries to, carry on its
business on such Real Property or Leased Property in a proper and efficient manner so as to
preserve and protect the Real Property and the Leased Property and the earnings, income, rents,
issues, profit, benefits and advantages thereof.

9.2 Negative Covenants

     While any amount owing under this Agreement or any of the other Documents remains unpaid, or
the Administrative Agent or the Credit Facility Lenders have any obligations under this Agreement
or any of the other Documents, each Borrower covenants with the Administrative Agent and each
Credit Facility Lender that it shall not without the prior consent of the Majority Lenders:

 

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(1) Dispositions. Sell, lease, transfer, assign, convey or otherwise dispose of, or permit any
Material Subsidiary to sell, lease, transfer, assign, convey or otherwise dispose of, any assets or
enter into any sale and leaseback transaction generating, after the Closing Date, a fair market
value greater than $55,000,000 in aggregate for the Borrowers and the Material Subsidiaries on a
cumulative basis over the remaining term of this Agreement (provided that the sale of the assets of
the magazine division of Osprey LP to Groupe TVA Inc. shall not be subject to this threshold), or
engage, after the Closing Date, in material asset swaps representing in excess of 20% of EBITDA of
the Borrowers and the Material Subsidiaries on a consolidated basis (using for such purposes the
net amount of asset resulting from such swaps) and on a cumulative basis over the term of this
Agreement (other than in the ordinary course of business), unless consent is granted by Credit
Facility Lender approval on terms and conditions specified by the Administrative Agent and the
Credit Facility Lenders, acting reasonably; provided, that all the assets acquired in connection
with an asset swap shall meet the requirements of a Permitted Acquisition; and, provided further
that the Borrowers may, with the consent of the Credit Facility Lenders not to be unreasonably
withheld if the Credit Facility Lenders are satisfied with their due diligence, (i) re-set the 20%
of EBITDA basket for a particular asset swap transaction 6 months after the completion of such swap
transaction and (ii) re-set the $55,000,000 disposition basket for a particular disposition (other
than an asset swap) 6 months after completion of such asset disposition. Notwithstanding the
foregoing, a Borrower or a Material Subsidiary may sell, lease, transfer, assign, convey or
otherwise dispose of assets (i) to a Borrower or a Material Subsidiary that, in the case of a
Material Subsidiary has complied with the provisions hereof relating to the delivery of guarantees
and security or (ii) which are worn out, obsolete, surplus, damaged or of no material economic
value in the Business.

(2) Negative Pledge. Assume, create or permit to exist, or permit any Material Subsidiary to
assume, create or permit to exist, any Lien, other than Permitted Liens, in respect of any of their
respective undertakings, properties and assets, whether now owned or hereafter acquired.

(3) Debt. Create, incur, assume or permit to exist, or permit any Material Subsidiary to create,
incur, assume or permit to exist, any Debt other than Permitted Debt and Debt in connection with
any Tax Benefit Transaction.

(4) Distributions. Make any Distributions other than Permitted Distributions.

(5) Amalgamation and Merger. Enter into, or permit any Material Subsidiary to enter into, any
merger, consolidation, amalgamation, reorganization, reconstruction or arrangement with any Person
unless (i) the successor corporation resulting from such merger, consolidation, amalgamation,
reorganization, reconstruction or arrangement shall have entered into and delivered to the
Administrative Agent on behalf of itself and the Credit Facility Lenders an agreement in form and
substance satisfactory to the Administrative Agent, acting reasonably, wherein it shall have duly
assumed in writing the obligations of such Borrower or such Material Subsidiary, as the case may
be, hereunder and under each Security Document to which it is a party; (ii) this Agreement and each
Security Document shall remain in full force and effect with respect to such successor corporation;
and (iii) such opinions, registrations and other documents as the Administrative Agent shall
reasonably require shall have been delivered.

 

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(6) Fundamental Change. (a) Change, or permit any Material Subsidiary to change, its business
objectives, purposes or operations from the Business in any way which could adversely affect the
repayment of the Credit Facility Obligations or result in a Material Adverse Effect; or (b) enter
into any acquisition or permit any Material Subsidiary to enter into any acquisition of a business
or operation other than Permitted Acquisitions; provided, that prior to entering into any
Permitted Acquisition (including an assets swap permitted under Section 9.2(1)) the Borrowers shall
provide not less than ten (10) (or in the case of a Permitted Acquisition involving any assets
located outside Ontario twenty (20)) Business Day’s prior notice to the Credit Facility Lenders of
the details of such acquisition including evidence satisfactory to the Credit Facility Lenders,
acting reasonably, that such acquisition meets the criteria for a Permitted Acquisition.

(7) Material Contracts. (a) Cancel or terminate, or permit any Material Subsidiary to cancel or
terminate, any Material Contract; (b) waive, or permit any Material Subsidiary to waive, any
default or breach under any Material Contract; (c) amend or otherwise modify, or permit any
Material Subsidiary to waive or otherwise modify, any Material Contract; or (d) take, or permit any
Material Subsidiary to take, any other action in connection with any Material Contract, in each
case, that would have a Material Adverse Effect.

(8) Investments and Financial Assistance. (a) Make, or permit any Material Subsidiary to make, any
Investments other than a Permitted Acquisition, any Back-to-Back Securities or any Tax Benefit
Transaction; or (b) grant, or permit any Material Subsidiary to grant, any Financial Assistance
other than an Investment in a Material Subsidiary or a Borrower, Permitted Debt or in connection
with any Tax Benefit Transaction; except, provided that no Default has occurred and is continuing
or would arise therefrom and no Event of Default has occurred, the Borrowers may make any
Investments or grant Financial Assistance, or permit any Material Subsidiaries to do the same, so
long as at the date of such Investment or Financial Assistance and on a pro forma basis after
taking such Investment or Financial Assistance into account as if it existed at all times during
the relevant period, the financial covenants in Section 9.3 are complied with.

(9) Off-Balance Sheet Transaction. Enter into, or permit any Material Subsidiary to enter into, any
off-balance sheet financial transaction including, without limitation, synthetic leases or other
structured finance transactions other than Permitted Debt.

(10) Fiscal Year End. Change, or permit any Material Subsidiary to change, its Fiscal Year.

(11) Change of Control. Permit any Change of Control without the prior written consent of the
Majority Lenders, such consent not to be unreasonably withheld.

(12) Chief Executive Office. Move, or permit any Material Subsidiary, to move, its registered or
chief executive office outside the Province of Ontario (and in the case of Bidco, outside of the
Provinces of Ontario and Quebec), without providing the Administrative Agent with at least thirty
(30) days prior written notice thereof and promptly take such other steps, if any, as the Credit
Facility Lenders reasonably request, to permit the Security Documents to remain perfected with
respect to such change in location.

(13) Amendment to Sub-Debt. Notwithstanding Section 9.2(7), (i) agree to or permit any amendment to
the terms of any Permitted Subordinated Debt which would cause such Permitted

 

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Subordinated Debt not
to comply with the definition of Permitted Subordinated Debt (the applicable Borrower shall provide
prior written notice of any permitted amendment to any Permitted Subordinated Debt to the Credit
Facility Lenders) or any document relating to any of the foregoing without the prior written
consent of the Credit Facility Lenders.

(14) Redeemable Shares. Issue any share, ownership interest or other security (other than to
another Borrower or a Material Subsidiary) that by its terms (or by the terms of any security into
which it is convertible or for which it is exchangeable), or upon the happening of any event,
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof, in whole or in part, other than in all cases from
any Permitted Distributions.

(15) Guarantee Shares. In the case of any Material Subsidiary or Osprey LP, issue or permit any
Material Subsidiary to issue any shares or other ownership interests except to a Borrower or any
other Material Subsidiary.

(16) Hedge Contracts. Enter into any Hedge Contracts with a Lender or any other Person, other than
non-speculative interest rate, U.S. Dollar exchange rate or commodities Hedge Contracts entered
into for the purpose of mitigating the risk to a Borrower or any of its Subsidiaries from interest
rate, U.S. Dollar exchange rate and commodities price fluctuations.

9.3 Financial Covenants

     While any amount owing under this Agreement or any of the other Documents remains unpaid, or
the Administrative Agent or the Credit Facility Lenders have any obligations under this Agreement
or any of the other Documents, each Borrower covenants with the Administrative Agent and each
Credit Facility Lender as follows:

(1) Cash Interest Coverage Ratio. The Borrowers shall maintain, on a consolidated basis, at all
times in each Fiscal Year a Cash Interest Coverage Ratio of not less than 2.50x.

(2) Total Debt to EBITDA. The Borrowers shall maintain at all times, on a consolidated basis, a
ratio of Total Debt of the Borrowers and the Material Subsidiaries to EBITDA of the Borrowers and
the Material Subsidiaries of not more than 3.75:1. For greater certainty, Total Debt of the
Borrowers and the Material Subsidiaries shall exclude the amount of the QMI Sub Debt that is
applied, firstly, to the permanent repayment of the Term Facility and, secondly, to the
non-permanent repayment of the Revolving Facility to the extent applicable.

(3) Credit to EBITDA. The Borrowers may, in the calculation of EBITDA for the purpose of this
Section 9.3, apply the appropriate portion of the Synergy Credit relating to a Permitted
Acquisition for the calculation of EBITDA for the first twelve months after such Permitted
Acquisition shall have occurred.

 

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(4) Calculation. For the purposes of calculating the ratios in clauses (1) and (2) above and for
the purpose of Section 3.4 and in relation to the delivery of a Compliance Certificate, the
following rules shall apply, and the Borrowers shall provide details, satisfactory to the
Administrative Agent, of the EBITDA derived from Subsidiaries that are not Material Subsidiaries:

	 	(a)	 	the ratios shall be determined as of the last day of each Fiscal Quarter on a
rolling four quarter basis based on the Compliance Certificate delivered in respect of
such Fiscal Quarter and the ratios so determined shall be deemed to apply throughout
the subsequent Fiscal Quarter unless a disposition or Permitted
Acquisition occurs during such Fiscal Quarter, in which case the ratios shall be
adjusted as of the closing date of such disposition or Permitted Acquisition;
provided, that if a Compliance Certificate shall be delivered late, not be in form
and substance satisfactory to the Credit Facility Lenders or prove to be incorrect,
the Credit Facility Lenders may adjust the calculation based on the information
available to them;
	 
	 	(b)	 	for all purposes if a Borrower or a Material Subsidiary shall make a
disposition or Permitted Acquisition, other than a disposition to or acquisition from a
Borrower or another Material Subsidiary, then (i) the EBITDA that the Borrowers in
respect of the 12-month period following the closing date of such disposition or
Permitted Acquisition shall thereupon be adjusted on a pro forma basis to include the
EBITDA of the operation comprising the Permitted Acquisition or exclude the EBITDA of
the operations disposed of (without deduction for any management fees) and to include
annualized interest on any Debt assumed in connection with such Permitted Acquisition
or exclude annualized interest on any Debt repaid or assumed by a third party in
connection with such disposition, in each case, for the applicable portion of the
12-month period preceding such closing date and (ii) the Cash Interest Coverage Ratio
in respect of the 12-month period following the closing of such disposition or
Permitted Acquisition shall thereupon be adjusted on a pro forma basis to include or
exclude annualized Cash Interest on Debt assumed in connection therewith or any Debt
repaid or assumed by a third party in connection with such disposition, in each case,
for the applicable portion of the 12-month period preceding such closing date provided
that, where the operations disposed of were previously acquired using the proceeds of
an Advance under the Revolving Facility, then for the purposes of this subclause (ii)
the amount of the mandatory repayments that may be excluded shall be the amount of such
Debt so repaid or assumed as shall exceed that portion of the aforesaid Advance under
the Revolving Facility as is reasonably attributable to the operations disposed of. At
the closing date of any Permitted Acquisition, the Borrowers will provide the
Administrative Agent with EBITDA and Cash Interest projections for the next 12-month
period to demonstrate compliance with clauses (1) and (2) above.

9.4 Accounting, Financial Statements and Other Information

     While any amount owing under this Agreement or any of the other Documents remains unpaid, or
the Administrative Agent or the Credit Facility Lenders have any obligations under

 

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this Agreement
or any of the other Documents, each Borrower covenants with each Credit Facility Lender and the
Administrative Agent as follows:

(1) General. Each Borrower and each of its Material Subsidiaries shall maintain a system of
accounting established and administered in accordance with GAAP consistently applied and shall set
aside on their respective books all proper reserves as GAAP shall require. The Borrowers shall
permit, and shall cause each of their Material Subsidiaries to permit, representatives of any
Credit Facility Lender or the Administrative Agent to visit and inspect any of the properties of
the Borrowers and the Material Subsidiaries and examine any of their respective books and records
in accordance with Section 9.1(11) at any reasonable time and as
often as is reasonably necessary and to discuss the business, operations, properties and financial
and other condition of the Borrowers and the Material Subsidiaries with officers and employees of
the Borrowers and the Material Subsidiaries and with their Auditors. Except for information
required to be disclosed by Applicable Law and information in the public domain, any information
regarding the Borrowers and the Material Subsidiaries obtained pursuant to those examinations
shall, for so long as no Event of Default has occurred and is continuing, not be disclosed to third
parties other than agents or other professionals engaged by the Administrative Agent or any Credit
Facility Lender to advise it with respect to this Agreement. For greater certainty, to the extent
that, in any period of determination, EBITDA from Subsidiaries that are not Material Subsidiaries
exceeds 15% of consolidated EBITDA of Bidco, the Borrowers shall provide the financial statements
under Sections 9.4(2) and (3) on a consolidated basis for the Borrowers and the Material
Subsidiaries for such period, excluding, for greater certainty, the Subsidiaries that are not
Material Subsidiaries.

(2) Quarterly Reports. The Borrowers shall provide the Administrative Agent with the following
reports on a quarterly basis, promptly upon availability, and in any event within sixty (60) days
of the end of each quarter in each Fiscal Year:

	 	(a)	 	unaudited consolidated financial statements of Bidco prepared in accordance
with GAAP (including a balance sheet and statements of income and retained earnings and
changes in financial position but excluding notes); and
	 
	 	(b)	 	a Compliance Certificate for such Fiscal Quarter in detail satisfactory to the
Administrative Agent.

(3) Annual Reports. The Borrowers shall provide the Administrative Agent with the following reports
within 120 days of the end of its Fiscal Year:

	 	(a)	 	audited annual consolidated financial statements of Bidco duly certified by its
board of directors together with a report of its Auditors whose report shall contain no
qualifications except those satisfactory to the Administrative Agent; and
	 
	 	(b)	 	a Compliance Certificate for such Fiscal Year in detail satisfactory to the
Administrative Agent and certifying that, as of the date of such certificate, there are
no material outstanding issues arising from the Auditor’s management letter in respect
of the Auditor’s review of the financial statements of the Borrowers for the most
recently completed Fiscal Year or, in the event that any such issues have

 

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	 	 	 	arisen, an
explanation of such issues and the Borrowers’ plan to rectify them, including any steps
taken to rectify such issues.

(4) Annual Budgets. The Borrowers shall provide the Administrative Agent within sixty (60) days of
the end of the preceding Fiscal Year a budget for each Fiscal Year which shall set forth, on a
quarterly basis, an outline of proposed Capital Expenditures (including Capital Leases and similar
arrangements) and financial projections concerning the Borrowers and the Material Subsidiaries on a
consolidated basis, all in such detail as may reasonably be required by the Credit Facility
Lenders.

(5) Securities Filings and Press Releases. The Borrowers shall provide to the Administrative Agent
and the Credit Facility Lenders, promptly upon their becoming available, copies of all press
releases and other statements made available by the Borrowers to the public concerning material
changes or material developments in the business of the Borrowers or any of their Subsidiaries.

(6) Other Information. The Borrowers shall provide the Administrative Agent with such other reports
and information regarding the operations, business, assets and financial condition of the Borrowers
and their Subsidiaries as the Administrative Agent may reasonably request.

Each of the financial statements required by this Section 9.4 shall set forth in comparative form
the corresponding figures for the corresponding period of the preceding fiscal period (if any), all
in reasonable detail.

9.5 Reorganization

     Notwithstanding the provisions of Section 9.1 and 9.2 hereof, the Lenders hereby consent to
each of the transactions comprising the Reorganization (provided that the Reorganization takes
effect concurrently with the Bidco Effective Date) and will promptly release all Securities of
Osprey LP and Osprey GP after request by Bidco to the extent necessary to permit such transactions
to be effected in accordance with the Reorganization Letter, and, upon the Reorganization taking
effect, Bidco will redeliver to the Lenders certificates representing all Securities of Osprey LP
and Osprey GP.

SECTION 10 — ENVIRONMENTAL PROVISIONS

10.1 Compliance with Environmental Laws

     Each Borrower shall, and shall cause its Material Subsidiaries to, comply with all applicable
Environmental Laws in a timely manner except to the extent that non-compliance would not have,
individually or in the aggregate, a Material Adverse Effect.

10.2 Environmental Notices

     Each Borrower, on behalf of itself and each of its Material Subsidiaries, shall provide to the
Administrative Agent and Credit Facility Lenders, promptly upon receipt, copies of any material
correspondence, notice, pleading, citation, indictment, complaint, order, decree or other

 

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material
document from any source asserting or alleging a circumstance or condition which requires or could
reasonably require a financial contribution by any Borrower or any Material Subsidiary or a
cleanup, removal, remedial action or other response by or on the part of any Borrower or any
Material Subsidiary under applicable Environmental Laws or which seeks damages or civil, criminal
or punitive penalties from any Borrower or any Material Subsidiary for an alleged violation of
Environmental Laws.

10.3 Environmental Conditions

     Each Borrower, on behalf of itself and each of its Material Subsidiaries, as applicable, shall
promptly notify the Credit Facility Lenders in writing as soon as it becomes aware of any condition
or circumstance which makes the environmental warranties or representations in this Agreement
incomplete or inaccurate as of any date except to the extent such matters would not likely have,
individually or in the aggregate, a Material Adverse Effect.

10.4 Environmental Consultant

     In the event of any condition or circumstance that makes any environmental warranty,
representation and/or agreement incomplete or inaccurate as of any date except to the extent such
matters would not likely have, individually or in the aggregate, a Material Adverse Effect, the
Borrowers, shall, at their sole expense, retain an environmental professional consultant,
reasonably acceptable to the Credit Facility Lenders, to conduct a thorough and complete
environmental audit regarding the changed condition and/or circumstance and any environmental
concerns arising from that changed condition and/or circumstance. A copy of the environmental
consultant’s report will be promptly delivered to the Credit Facility Lenders upon completion.

10.5 Environmental Audit

     At any time the Borrowers or any of the Material Subsidiaries, directly or indirectly through
any third party professional consultant, determines to undertake an environmental audit, assessment
or investigation, the Borrowers shall provide the Credit Facility Lenders with a written summary of
the results of such environmental audit where the matters disclosed in such environmental audit
would individually or in the aggregate, have a Material Adverse Effect.

10.6 Indemnity

     Each Borrower hereby indemnifies and holds the Administrative Agent and the Credit Facility
Lenders, their agents and any of their past, present and future officers, directors, shareholders
and employees harmless from any and all loss, damages, suits, penalties, costs, liabilities and
expenses (including but not limited to reasonable investigation, environmental audit and legal
expenses) arising out of any claim, loss or damage of any property, injuries to or death of
persons, contamination of or adverse effects on the environment, or any violation of any applicable
Environmental Laws, due to any acts of such Borrower or any of its Subsidiaries, their officers,
directors, shareholders, employees, consultants and/or representatives. In no event shall any
Borrower be liable hereunder for any loss, damages, suits, penalties, costs, liabilities or
expenses arising from any act of gross negligence or wilful misconduct of the Administrative Agent,
the Credit Facility Lenders or any other indemnified Person or their agents or employees.

 

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It is
expressly understood and agreed that (A) the indemnifications granted herein are intended to
protect the Administrative Agent and the Credit Facility Lenders and their past, present and future
officers, directors, shareholders, employees, agents, consultants and representatives from any
claims that may arise by reason of the security interest, liens and/or mortgages granted to the
Administrative Agent and the Credit Facility Lenders, or under any other document or agreement
given to secure repayment of any indebtedness from any Borrower, any Material Subsidiary or any
Subsidiary of any of them, whether or not such claims arise before or after the
Administrative Agent and the Credit Facility Lenders have foreclosed upon and/or otherwise
become the owner of any such property; (B) all obligations of indemnity as provided hereunder shall
be secured by the Security Documents; and (C) the provisions hereof shall be continuing and shall
survive the repayment of any indebtedness from any Borrower to the Administrative Agent and the
Credit Facility Lenders.

10.7 Environmental Approvals

     Each Borrower shall and shall cause each of its Subsidiaries to maintain all permits, licenses
and approvals required under applicable Environmental Laws except to the extent failure to maintain
such permits, licenses and approvals could not, individually or in the aggregate, have a Material
Adverse Effect.

SECTION 11 — DEFAULT AND ENFORCEMENT

11.1 Events of Default

     Upon the occurrence of an event described in Sections 11.1(11) or 11.1(12), an Event of
Default under the Credit Facilities shall have occurred, and upon the occurrence of any one or more
of the following events other than an event described in Sections 11.1(11) or 11.1(12), the
Administrative Agent may, or, if requested by the Majority Lenders, shall, by written notice to the
Borrowers, declare that an Event of Default under the Credit Facilities has occurred:

(1) Non-payment of Principal. Any Borrower fails to make when due, whether by acceleration or
otherwise, any payment of principal required to be made by that Borrower under this Agreement or
any other Document.

(2) Non-payment of Interest. Any Borrower fails to make within three (3) Business Days of the due
date thereof, whether by acceleration or otherwise, any payment of interest under this Agreement or
any other Document.

(3) Non Payment of Fees or Other Amounts. Any Borrower fails to make within five (5) Business Days
of the due date thereof, whether by acceleration or otherwise, any payment of fees, costs or any
other payment under this Agreement or any other Document.

(4) Breach of Covenants, etc. Any Borrower fails to perform or observe:

	 	(a)	 	any term, condition, covenant or undertaking contained in Section 9.2(1), (4),
(5), (8), (11), (12) or (15); or

 

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	 	(b)	 	any other term, condition, covenant or undertaking contained in any Document
which is not otherwise specifically addressed in this Section 11.1 and that failure, if
capable of being remedied, is not remedied within fifteen (15) days of its occurrence.

(5) Cross-Default. With respect to any Debt of the Borrowers or any of the Material Subsidiaries
aggregating in excess of $10,000,000 (other than under any Document):

	 	(a)	 	default occurs in the payment thereof when due, whether by acceleration or
otherwise; or
	 
	 	(b)	 	default occurs in the performance or observance of any obligation or condition
with respect thereto and that default remains unremedied after any remedial period with
respect thereto or any other event occurs with respect thereto, and the effect of that
default or other event is to accelerate the maturity of that Debt or to permit the
holder or holders thereof, or any trustee or agent for the holder or holders, to cause
the Debt to become due and payable prior to its expressed maturity, unless a waiver of
such default is given by the holder or holders, or any trustee or agent for the holder
or holders, or such default is cured prior to the Credit Facility Lenders declaring an
Event of Default.

(6) Representations and Warranties. Any representation, warranty or statement which is made by the
Borrowers or any Material Subsidiary in any Document or which is contained in any certificate,
written statement or written notice provided under or in connection with any Document or which is
deemed to have been made is untrue or incorrect when made or deemed to have been made in any
material respect and, if capable of being remedied, such representation, warranty or statement is
not made true and correct within fifteen (15) days.

(7) Execution. Any writ, distress, execution, attachment, seizure, garnishment, sequestration,
extent or any similar process is issued, levied or enforced against any Borrower or any of its
Subsidiaries, or any of their respective properties or assets for an amount of $7,500,000 or more
which are not released, bonded, discharged, vacated or stayed within sixty (60) days after issue,
levy or enforcement with respect to personal property and ninety (90) days with respect to real
property.

(8) Invalidity and Contest. This Agreement or any of the other material Documents, or any material
provision hereof or thereof, shall at any time after execution and delivery hereof or thereof, for
any reason, cease to be a legal, valid and binding obligation of any Borrower or any Material
Subsidiary or cease to be enforceable against any Borrower or any Material Subsidiary in accordance
with its terms or shall be declared to be null and void, or the legality, validity, binding nature
or enforceability of this Agreement or any other Document, or any provision hereof or thereof,
shall be contested by any Borrower or any Material Subsidiary or any Borrower or any Material
Subsidiary shall deny that it has any further liabilities or obligations hereunder or thereunder.

(9) Judgment. A final judgment in excess of $10,000,000 is levied or enforced against any Borrower
or any of its Subsidiaries, unless the judgment is being actively and diligently appealed

 

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and is
satisfied, vacated, discharged or execution thereof stayed pending appeal or a settlement of the
judgment has been negotiated on terms acceptable to the Administrative Agent within thirty (30)
days of the rendering of the judgment, or if any stay is lifted or a default occurs in any
settlement.

(10) Government Approval. Any Government Approval required to enable any Borrower or any Material
Subsidiary to conduct its business substantially as presently conducted or to perform its
obligations under any Document is not obtained or is withdrawn or ceases to be in full force and
effect and that required Government Approval cannot be acquired or reinstated within thirty (30)
days of the date on which a Borrower knew the Government Approval was required or withdrawn and the
lack of such Government Approval would have a Material Adverse Effect on the Borrowers and the
Material Subsidiaries taken as a whole.

(11) Voluntary Proceedings. Any Borrower or any Material Subsidiary:

	 	(a)	 	institutes proceedings for substantive relief in any bankruptcy, insolvency,
debt restructuring, reorganization, readjustment of debt, dissolution, liquidation,
winding-up or other similar proceedings (including any such proceedings under the
Bankruptcy and Insolvency Act (Canada), the Winding-up and Restructuring Act (Canada),
the Companies’ Creditors Arrangement Act (Canada), the incorporating statute of the
relevant corporation or other similar legislation), including proceedings for the
appointment of a trustee, interim receiver, receiver, receiver and manager,
administrative receiver, custodian, liquidator, provisional liquidator, administrator,
sequestrator or other like official with respect to the relevant corporation or all or
any material part of its property or assets;
	 
	 	(b)	 	makes an assignment for the benefit of creditors;
	 
	 	(c)	 	is unable or admits in writing its inability to pay its debts as they become
due or otherwise acknowledges its insolvency or commits any other act of bankruptcy or
is taken to be insolvent under any applicable legislation;
	 
	 	(d)	 	voluntarily suspends the conduct of its business or operations;
	 
	 	(e)	 	or acquiesces to, or takes any action in furtherance of, any of the foregoing.

(12) Involuntary Proceedings. If any third party in respect any Borrower or any Material
Subsidiary:

	 	(a)	 	makes any application under the Companies’ Creditors Arrangement Act (Canada)
or similar legislation;
	 
	 	(b)	 	files a proposal or notice of intention to file a proposal under the Bankruptcy
and Insolvency Act (Canada) or similar legislation;
	 
	 	(c)	 	institutes a winding-up proceeding under the Winding-up and Restructuring Act
(Canada), any relevant incorporating statute or any similar legislation;

 

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	 	(d)	 	presents a petition in bankruptcy under the Bankruptcy and Insolvency Act
(Canada) or any similar legislation; or
	 
	 	(e)	 	files, institutes or commences any other petition, proceeding or case under any
other bankruptcy, insolvency, debt restructuring, reorganization, incorporation,
readjustment of debt, dissolution, liquidation, winding-up or similar law now or
hereafter in effect, seeking bankruptcy, liquidation, reorganization, dissolution,
winding-up, composition or readjustment of debt of any of them, the appointment of a
trustee, interim receiver, receiver, receiver and manager, administrative receiver,
custodian, liquidator, provisional liquidator, administrator, sequestrator or other
like official for any of them, or any material part of any of their respective
assets or any similar relief;
	 
	 	(f)	 	and if the applicable filing, proceeding, petition or case is not contested by
bona fide action on the part of the applicable corporation and is not dismissed, stayed
or withdrawn within thirty (30) days of commencement thereof.

(13) Creditor Action. Any secured creditor, encumbrancer or lienor, or any trustee, interim
receiver, receiver, receiver and manager, administrative receiver, agent, bailiff or other similar
official appointed by any secured creditor, encumbrancer or lienor, takes possession of,
forecloses, seizes, retains, sells or otherwise disposes of, or otherwise proceeds to enforce
security over, all or a substantial part of the assets of any Borrower or any of the Material
Subsidiaries or gives notice of its intention to do any of the foregoing.

(14) Material Contracts. Any Borrower or any Material Subsidiary defaults in any material respect
under any Material Contract which defaults would have a Material Adverse Effect and all applicable
notice or cure periods under the Material Contract have expired and the default has not been cured
or waived within thirty (30) days of such default or a Material Contract is terminated for any
reason other than on its scheduled termination date and is not replaced within thirty (30) days.

11.2 Rights upon Default and Event of Default

     Upon the occurrence of a Default, the Administrative Agent may, and shall upon the
instructions of the Majority Lenders, on notice to the Borrowers, declare that the ability of any
Borrower to make any further borrowing under the Credit Facilities shall be suspended pending the
remedying of the Default. Upon the occurrence of an Event of Default pursuant to Sections 11.1(11)
or 11.1(12), the Administrative Agent shall, and upon the occurrence of any other Event of Default
and for so long as the other Event of Default shall continue, the Administrative Agent may, and
shall upon the instructions of the Majority Lenders, without notice to the Borrowers, do either or
both of the following:

	 	(a)	 	declare that the Total Commitment has expired and that the Credit Facility
Lenders’ obligations to make Advances have terminated; and
	 
	 	(b)	 	declare the entire principal amount of all Advances outstanding, all unpaid
accrued interest and all fees and other amounts required to be paid by the

 

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	 	 	 	Borrowers or
either of them hereunder to be immediately due and payable without the necessity of
presentment for payment, notice of non-payment and of protest (all of which are hereby
expressly waived) and proceed to exercise any and all rights and remedies hereunder and
under any other Document or otherwise permitted by law.

From and after the issuance of any declaration referred to in this Section 11.2, no Credit Facility
Lender shall be required to honour any cheque or other instrument presented to it by any Borrower
regardless of the date of issue or presentation. Immediately upon receipt of a declaration under
Section 11.2(b), each Borrower shall pay to the Administrative Agent on behalf of the Lenders all
amounts outstanding hereunder owing by such Borrower, including the face amount of all Bankers’
Acceptances which have not matured, the maximum amount payable under all outstanding Letters of
Credit and Letters of Guarantee, and the amount owing to that Lender in respect of any Hedge
Contracts with any Credit Facility Lenders which are unmatured or unexpired, which amounts shall be
held by the Administrative Agent in an interest bearing account as collateral security for the
applicable Borrower’s obligations with respect to those Bankers’ Acceptances, Letters of Credit,
Letters of Guarantee and Hedge Contracts, as applicable. If any Borrower does not pay any such
amount so required to be paid, the applicable Lender shall have the option at any time without
notice to the Borrowers to make an Advance of a Prime Loan to the applicable Borrower equal to that
amount, such Advance to bear interest at the rates specified in this Agreement. The proceeds of
such Advance shall be held by the Administrative Agent in the interest bearing account as
collateral security for the applicable Borrower’s obligations under the Bankers’ Acceptances,
Letters of Credit or Letters of Guarantee, as applicable. Each Borrower shall execute such security
documents with respect to those Bankers’ Acceptances, Letters of Credit, Letters of Guarantee and
Hedge Contracts and any amounts paid or held in respect thereof as the Administrative Agent shall
require.

11.3 Hedge Contracts

     Upon demand under Section 11.2, notwithstanding the terms of any Hedge Contract, all Hedge
Contracts may be terminated, at the sole option of each Lender a party thereto, and the cost to the
applicable Lender of that termination, if any, shall be determined as of the date of the demand. In
determining that cost, it shall be assumed that the applicable Borrower has defaulted under the
Hedge Contracts, and the cost shall then be determined in accordance with the terms of the
agreement governing the Hedge Contracts or, if there are no such terms, in accordance with the
usual practices of the applicable Lender. For greater certainty, the, usual practices of each
Lender shall be determined by reference to the provisions regarding payments on early termination
in the (Multicurrency — Cross Border) ISDA Master Agreement (1992 version) as may be amended and
agreed by the parties.

11.4 Waiver of Default

     No express or implied waiver by the Administrative Agent and the Credit Facility Lenders or
any of them of any Default or Event of Default shall in any way be or be construed to be a waiver
of any future or subsequent Default or Event of Default. To the extent permitted by Applicable Law,
each Borrower hereby waives any rights now or thereafter conferred by statute or otherwise which
may limit or modify any of the Administrative Agent’s or the Credit Facility

 

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Lenders’ rights or
remedies under any Document. Each Borrower acknowledges and agrees that the exercise by the
Administrative Agent or any Credit Facility Lender of any rights or remedies under any Document
without having declared an acceleration shall not in any way alter, affect or prejudice the right
of the Administrative Agent and the Credit Facility Lenders to make a declaration pursuant to
Section 11.2 at any time and, without limiting the foregoing, shall not be construed as or deemed
to constitute a waiver of any rights under Section 11.2.

SECTION 12 — REMEDIES

12.1 Remedies Cumulative

     For greater certainty, the rights and remedies of the Administrative Agent and the Credit
Facility Lenders under this Agreement and the other Documents are cumulative and are in addition to
and not in substitution for any rights or remedies provided by law or by equity. Any single or
partial exercise by the Administrative Agent or any Credit Facility Lender of any right or remedy
upon the occurrence of a Default or Event of Default shall not be deemed to be a waiver of, or to
alter, affect or prejudice any other right or remedy to which the Administrative Agent or the
Credit Facility Lender may be lawfully entitled as a result of the Default or Event of Default, and
any waiver by the Administrative Agent or any Credit Facility Lender of the strict observance of,
performance of or compliance with any term, covenant, condition or agreement herein contained, and
any indulgence granted thereby, either expressly or by conduct, shall be effective only in the
specific instance and for the purpose for which it is given and shall be deemed not to be a waiver
of any subsequent Default or Event of Default.

12.2 Sharing of Information

     Each Borrower authorizes the Administrative Agent and the Credit Facility Lenders to share
among each other any information possessed by any of them regarding that Borrower and its Material
Subsidiaries.

12.3 Remedies Not Limited

     The Administrative Agent on behalf of itself and the Lenders may, to the extent permitted by
Applicable Law, bring suit at law, in equity or otherwise, for any available relief or purpose
including: (1) the specific performance of any covenant or agreement contained in this Agreement or
in any other Document; (2) an injunction against a violation of any of the terms of this Agreement
or any other Document; (3) in aid of the exercise of any power granted by this Agreement or any
other Document or by law; or (4) the recovery of any judgment for any and all amounts due in
respect of the Obligations.

12.4 Sharing of Proceeds Among the Lenders

     The Lenders agree among themselves that, except as otherwise contemplated by the provisions of
this Agreement, all sums received by the Lenders for application against amounts owing by the
Borrowers under this Agreement (whether received by voluntary payment, by the exercise of any right
of set-off, or by counterclaim, cross-action or as proceeds of realization of

 

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any security), after
payment to the Administrative Agent of its fees and disbursements, shall be shared by each Lender
as nearly as possible in accordance with each Lender’s Rateable Portion.

12.5 Set-Off, etc.

     Upon the occurrence of an Event of Default which is continuing, the Administrative Agent, each
Credit Facility Lender and each of their respective branches and offices are hereby authorized by
each Borrower, from time to time, without notice to: (1) set off and apply any and all amounts
owing by the Administrative Agent or any Credit Facility Lender or any of its
branches or offices to that Borrower (whether payable in Canadian Dollars or any other
currency — and any amounts so owing in any other currency may be converted into Canadian Dollars at
such rate or rates as the party may be able to obtain, acting reasonably — whether matured or
unmatured, and in the case of deposits, whether general or special, time or demand and however
evidenced) against and on account of the Obligations of such Borrower (whether or not any
declaration under Section 11.2 has been made and whether or not those Obligations are unmatured or
contingent); (2) hold any amounts owing by the Administrative Agent or any Credit Facility Lender
as collateral to secure payment of the Obligations of such Borrower owing to it to the extent that
those amounts may be required to satisfy any contingent or unmatured Obligations owing to it; and
(3) return as unpaid for insufficient funds any and all cheques and other items drawn against any
deposits so held as the Administrative Agent or any Credit Facility Lender in its sole discretion
may elect.

12.6 Administrative Agent or Lender May Perform Covenants

     If any Borrower fails to perform any of its obligations under any covenant contained in this
Agreement or any other Document, the Administrative Agent or any Credit Facility Lender may (but
has no obligation to), after the occurrence of an Event of Default, which is continuing, perform
any covenant capable of being performed by it and, if the covenant requires the payment or
expenditure of money, it may make an Advance to fund that requirement, which Advance shall be
repaid by applicable Borrower on demand. That Advance shall bear interest at a rate calculated and
paid in accordance with Section 3.

12.7 Determination of Exposure

     Prior to any distribution of cash Proceeds of Realization to the Lenders, the Administrative
Agent shall request each Lender to provide to the Administrative Agent a written calculation of
such Lender’s Rateable Portion of the Obligations, each such calculation to be certified true and
correct by the Lender providing same. Each Lender shall so provide such calculation within two (2)
Business Days following the request of the Administrative Agent. Any such calculation provided by a
particular Lender which is approved by the Administrative Agent shall, absent manifest error,
constitute prima facie evidence of such Lender’s Rateable Portion of Obligations at such time. If
the Administrative Agent does not approve any such calculation provided by a particular Lender, the
Administrative Agent and such Lender shall, expeditiously and in good faith, make a determination
of such Lender’s Rateable Portion of the Obligations which the Administrative Agent approves. With
respect to each determination of the Rateable Portion of the Obligations of the Lenders, the
Administrative Agent shall promptly notify the

 

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Lenders. For the purposes of determining a
particular Lender’s Rateable Portion of the Obligations:

	 	(a)	 	the Rateable Portion of the Obligations of a Lender under this Agreement and
the Security Documents shall be the aggregate amount (expressed in Canadian Dollars) of
the Commitments and the Other Secured Obligations of such Lender;
	 
	 	(b)	 	the Rateable Portion of the Other Secured Obligations of a Lender under Hedge
Contracts shall be the amount (expressed in Canadian Dollars) by which a Borrower would
be “out of the money” (as such phrase is generally understood in
the banking industry) on a net basis if all the Hedge Contracts between that
Borrower and such Lender were “marked-to-market” (as such phrase is generally
understood in the banking industry).

12.8 Decision to Enforce Security Documents

     Upon the Security Documents becoming enforceable in accordance with their terms, the
Administrative Agent shall promptly so notify each of the Credit Facility Lenders. Any Credit
Facility Lender may thereafter provide the Administrative Agent with a written request to enforce
the Security Documents. Forthwith after the receipt of such a request, the Administrative Agent
shall seek the instruction of the Majority Lenders as to whether the Security Documents should be
enforced and the manner in which the Security Documents should be enforced. In seeking such
instructions, the Administrative Agent shall submit a specific proposal to the Credit Facility
Lenders. The Administrative Agent shall promptly notify the Credit Facility Lenders of all
instructions and approvals of the Majority Lenders. If the Majority Lenders instruct the
Administrative Agent to enforce the Security Documents, each of the Lenders agree to accelerate the
Obligations owed to it in accordance with and to the extent permitted under the Hedge Contracts
with it.

12.9 Enforcement

     The Administrative Agent reserves the sole right to enforce, or otherwise deal with, the
Security Documents and to deal with the Borrowers and their Subsidiaries in connection therewith;
provided, however, that the Administrative Agent shall so enforce, or otherwise deal with, the
Security Documents as the Majority Lenders shall instruct.

12.10 Application of Cash Proceeds of Realization

     All Proceeds of Realization not in the form of cash shall be forthwith delivered to the
Administrative Agent and disposed of, or realized upon, by the Administrative Agent in such manner
as the Majority Lenders may approve so as to produce cash Proceeds of Realization.

     Subject to the claims, if any, of security creditors of the Borrowers or any of their
Subsidiaries whose security ranks in priority to the Security Documents, all cash Proceeds of
Realization shall be applied and distributed, and the claims of the Lenders shall be deemed to have
the relative priorities which would result in the cash Proceeds of Realization being applied and
distributed, as follows:

 

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	 	(a)	 	firstly, to the payment of all reasonable costs and expenses incurred by the
Administrative Agent or any trustee of the Lenders appointed by the Administrative
Agent (including, without limitation, all legal fees and disbursements) in the exercise
of all or any of the powers granted to it hereunder or under the Security Documents and
in payment of all of the remuneration of any receiver or similar agent and all
reasonable costs and expenses properly incurred by such receiver (including, without
limitation, all reasonable legal fees and disbursements) in the exercise of all or any
powers granted to it under the Security Documents;
	 
	 	(b)	 	secondly, in payment of all amounts of money borrowed or advanced by the
Administrative Agent, any trustee of the Lenders appointed by the Administrative Agent
or such receiver pursuant to the Security Documents and any interest thereon;
	 
	 	(c)	 	thirdly, to the payment or prepayment of the Obligations (including holding as
cash collateral to be applied against Obligations which have not then matured) to the
Lenders pro rata in accordance with their Rateable Portion including, without
limitation, any Lenders’ exposure under any Hedging Facilities; and
	 
	 	(d)	 	the balance, if any, to the applicable Borrower or otherwise in accordance with
Applicable Law.

SECTION 13 — THE ADMINISTRATIVE AGENT AND THE LENDERS

13.1 Authorization of Administrative Agent

     Each Lender irrevocably appoints and authorizes the Administrative Agent to take all action as
agent on its behalf and to exercise those powers and perform those duties under this Agreement and
the other Documents as are delegated to the Administrative Agent by the terms thereof, together
with all powers reasonably incidental thereto. As to any matters not expressly provided for by this
Agreement or the other Documents, the Administrative Agent is not required to exercise any
discretion or to take any action, but is required to act or to refrain from acting (and is fully
protected in so acting or refraining from acting) upon the instructions of the Majority Lenders.
Notwithstanding anything to the contrary in this Agreement and the other Documents, the
Administrative Agent shall never be required to take any action which is contrary to this
Agreement, the other Documents or Applicable Law. No Lender shall have any right of action
whatsoever against the Administrative Agent as a result of the Administrative Agent acting or
refraining from acting under this Agreement in accordance with the terms and conditions of this
Section 13.

13.2 Arrangements for Advances

(1) The Administrative Agent shall give notice to each Credit Facility Lender promptly in writing
upon receipt by the Administrative Agent of any notice given under this Agreement which affects a
Credit Facility Lender. The Administrative Agent shall advise each Credit Facility
Lender of the
amount, date and details of each Advance and of each Credit Facility

 

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Lender’s participation in each
Advance. At or before 1:00 p.m. on the Drawdown Date, each Credit Facility Lender will make its
participation available to the Borrowers at the Administrative Agent’s Account for Payments and,
for greater certainty, Bankers’ Acceptances shall be accepted by the Credit Facility Lenders at
their respective Branches of Account.

(2) Without prejudice to the foregoing, each Lender hereby irrevocably appoints and authorizes the
Administrative Agent (and any successor acting as administrative agent) to act as the person
holding the power of attorney (fondé de pouvoir) (in such capacity “Attorney”) of the Lenders as
contemplated under Article 2692 of the Civil Code of Quebec, and to enter into, to take and to hold
on their behalf, and for their benefit, any hypothec, and to exercise such powers
and duties which are conferred upon the Attorney under any hypothec. Moreover, without prejudice
to such appointment and authorization to act as the person holding the power of attorney as
aforesaid, each Lender hereby irrevocably appoints and authorizes the Administrative Agent (and any
successor acting as administrative agent) (in such capacity, the “Custodian”) to act as agent and
custodian for and on behalf of the Lenders to hold and to be the sole registered holder of any bond
which may be issued under any hypothec, the whole notwithstanding Section 32 of the Act respecting
the special powers of legal persons (Quebec) or any other applicable law. In this respect: (i) the
Custodian shall keep a record indicating the names and addresses of, and the pro rata portion of
the obligations and indebtedness secured by any pledge of any such bond and owing to each Lender,
and (ii) each Lender will be entitled to the benefits of any charged property covered by any
hypothec and will participate in the proceeds of realization of any such charged property, the
whole in accordance with the terms hereof.

(3) Each of the Attorney and the Custodian shall: (a) have the sole and exclusive right and
authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all
rights and remedies given to the Attorney and the Custodian (as applicable) pursuant to any
hypothec, bond, pledge, applicable laws or otherwise, (b) benefit from and be subject to all
provisions hereof with respect to the Administrative Agent mutatis mutandis, including, without
limitation, all such provisions with respect to the liability or responsibility to and
indemnification by the Lenders, and (c) be entitled to delegate from time to time any of its powers
or duties under any hypothec, bond, or pledge on such terms and conditions as it may determine from
time to time. Any person who becomes a Lender shall be deemed to have consented to and confirmed:
(i) the Attorney as the person holding the power of attorney as aforesaid and to have ratified, as
of the date it becomes a Lender, all actions taken by the Attorney in such capacity, and (ii) the
Custodian as the agent and custodian as aforesaid and to have ratified, as of the date it becomes a
Lender, all actions taken by the Custodian in such capacity.

13.3 Arrangements for Repayment of Advances

All payments made by or on behalf of a Borrower and received by the Administrative Agent,
whether before or after the exercise of any rights arising under Section 11.2, shall be paid to
each Lender in accordance with its entitlement under this Agreement. Payment by the Administrative
Agent shall be made promptly following receipt and, in any event, the Administrative Agent shall
use its reasonable efforts to pay to each Lender at the applicable Credit Facility Lender’s Branch
of Account the applicable amount on the same Business Day as the amount is received by the
Administrative Agent.

 

 

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13.4 Lenders Bound by Decision to Exercise Remedies

     Each Lender agrees to be bound by a decision of the Majority Lenders to exercise the rights
and remedies provided in this Agreement. Each Lender shall, subject to Applicable Law, do all acts
and things as may be necessary or reasonable to enable the Administrative Agent to act pursuant to
any decision.

13.5 Deemed Repayment and Funding

(1) Assumption re Payments. Unless the Administrative Agent has been notified in writing by a
Borrower at least one (1) Business Day before the date on which any payment to be made by that
Borrower under this Agreement is due that such Borrower does not intend to remit the payment, the
Administrative Agent may, in its discretion, assume that such Borrower has remitted the payment
when so due and the Administrative Agent may, in its discretion and in reliance upon that
assumption, make available to each Credit Facility Lender on the payment date an amount equal to
its Rateable Portion of the assumed payment. If the applicable Borrower does not in fact remit that
payment to the Administrative Agent, the Administrative Agent shall promptly notify each Credit
Facility Lender and each Credit Facility Lender shall forthwith on demand pay to the Administrative
Agent the amount of the assumed payment made available to the Credit Facility Lender, together with
interest thereon until the date of repayment thereof at a rate determined by the Administrative
Agent (the determination to be conclusive and binding on the Credit Facility Lender) in accordance
with the Administrative Agent’s usual banking practice for similar advances to financial
institutions of like standing to that Credit Facility Lender, and, in any event, at a rate no
greater than the usual interbank offered rate for the sale of deposits in the applicable currency.

(2) Assumption re Advances. Unless the Administrative Agent has been notified in writing by a
Credit Facility Lender at least one (1) Business Day before a Drawdown Date that the Credit
Facility Lender does not intend to make available its Rateable Portion of an Advance to be made
available on the Drawdown Date, the Administrative Agent may, in its discretion, assume that the
Credit Facility Lender has remitted to the Administrative Agent funds in an amount equal to its
Rateable Portion of the Advance and the Administrative Agent may, in its discretion and in reliance
upon that assumption, make available to a Borrower on the Drawdown Date an amount equal to the
Credit Facility Lender’s Rateable Portion of that Advance. If the Credit Facility Lender does not
in fact remit such funds to the Administrative Agent, the Administrative Agent shall promptly
notify that Credit Facility Lender, and that Credit Facility Lender, or failing that Credit
Facility Lender, the applicable Borrower, shall forthwith on demand pay to the Administrative Agent
the amount made available by the Administrative Agent on behalf of that Credit Facility Lender,
together with interest thereon until the date of repayment thereof at a rate determined by the
Administrative Agent (the determination to be conclusive and binding on that Credit Facility
Lender) in accordance with the Administrative Agent’s usual banking practice for similar advances
to financial institutions of like standing to that Credit Facility Lender, but, in any event, at a
rate no greater than the usual interbank offered rate for the sale of deposits in the applicable
currency.

 

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13.6 Responsibility of Administrative Agent

     The Administrative Agent makes no representation or warranty, and accepts no responsibility,
with respect to the due execution, legality, validity, sufficiency or enforceability of any
Document or any other instrument or document referred to herein or relative hereto. The
Administrative Agent assumes no responsibility for the financial condition of any Borrower or for
the repayment of any of the Advances. The Administrative Agent assumes no responsibility with
respect to the accuracy, authenticity, legality, validity, sufficiency or enforceability of any
documents, papers, materials or other information furnished by any Borrower or any other Person to
the Administrative Agent or to any Lender in connection with any of the Documents or any matter
referred to therein. Except for its gross negligence or wilful misconduct, the Administrative Agent
shall incur no liability to the Lenders under or in respect of this Agreement or any of the other
Documents with respect to anything which it may do or refrain from doing in the reasonable exercise
of its judgment or which may seem to it to be necessary or desirable in the circumstances. The
Administrative Agent assumes no responsibility for the repayment of any of the Advances or other
amounts outstanding under this Agreement or any of the other Documents by any Borrower. The
Administrative Agent shall not have any duty to the Lenders to investigate whether a Default or an
Event of Default has occurred. The Administrative Agent shall, as regards the Lenders, be entitled
to assume that no Default or Event of Default has occurred and is continuing unless the
Administrative Agent has actual knowledge or has been notified by any Borrower or a Material
Subsidiary of such fact or has been notified by a Credit Facility Lender that such Credit Facility
Lender considers that a Default or Event of Default has occurred and is continuing, such
notification to specify in detail the nature thereof.

13.7 Acknowledgement of Lenders

(1) Independent Appraisal of Borrowers. Each Lender acknowledges to the Administrative Agent that
it has been, and will continue to be, solely responsible for making its own independent appraisal
of and investigation into the financial condition, creditworthiness, affairs, status and nature of
the Borrowers and, accordingly, each Lender confirms to the Administrative Agent that it has not
relied, and will not hereafter rely on the Administrative Agent:

	 	(a)	 	to check or enquire on its behalf into the adequacy, accuracy or completeness
of any information provided by the Borrowers or in connection with any of the Documents
(whether or not the information has been or is hereafter circulated to the Lender by
the Administrative Agent);
	 
	 	(b)	 	to enquire as to the performance by the Borrowers of its obligations under any
of the Documents; or
	 
	 	(c)	 	to assess or keep under review on its behalf the financial condition,
creditworthiness, affairs, status or nature of the Borrowers.

(2) No Fiduciary Obligations. Each Lender acknowledges to the Administrative Agent that the
Administrative Agent is not a fiduciary in respect of the Lender, and owes no fiduciary duties or
obligations to the Lender under or by virtue of this Agreement or otherwise.

 

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13.8 Successor Administrative Agent

     The Administrative Agent may resign at any time by giving written notice thereof to each of
the Credit Facility Lenders and the Borrowers. Upon any resignation, the Majority Lenders shall
have the right to appoint a successor agent, prior to the occurrence of an Event of Default which
is continuing, with the written approval of the Borrowers (that approval not to be unreasonably
withheld). If no successor agent has been appointed by the Majority Lenders and accepted that
appointment within thirty (30) days after the retiring agent gives notice of its resignation, then
the retiring agent may, on behalf of the Lenders, prior to the occurrence of an Event of Default
which is continuing with the written approval of the Borrowers (that approval not to be
unreasonably withheld), appoint a successor agent. If no successor agent has been appointed
pursuant to the foregoing within the thirty (30) days following the giving of notice of resignation
by the retiring agent, the resignation shall nonetheless then become effective and the Majority
Lenders shall perform the duties of agent hereunder until they appoint a successor agent. Any
successor agent appointed under this Section 13.8 shall be a Credit Facility Lender which has an
office in Toronto, Ontario. Upon the acceptance of any appointment as agent by a successor agent,
the successor agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring agent. Whether or not a successor agent has been appointed,
the retiring agent shall be discharged from its duties and obligations under this Agreement upon
its resignation becoming effective and shall have no further rights in its capacity as
Administrative Agent under this Agreement other than indemnity rights which are to survive the
termination of this Agreement. After any Person’s resignation under this Agreement as the agent,
the provisions of this Agreement shall continue in effect for its benefit and for the benefit of
the Lenders in respect of any actions taken or omitted to be taken by the Person while it was
acting as the agent.

13.9 Notices between the Lenders and the Administrative Agent

     All notices by a Lender to the Administrative Agent shall be through the Administrative
Agent’s Branch of Account and all notices by the Administrative Agent to the Lender shall be
through the Credit Facility Lender’s Branch of Account.

13.10 Relations with the Borrowers

     Each Lender may deal with the Borrowers in any transaction not associated with this Agreement
and generally conduct any other banking business with or provide any other financial services to
the Borrowers without having any liability to account to the other Lenders therefor. With respect
to its Commitment as a Credit Facility Lender and its Rateable Portion of Advances, the
Administrative Agent shall have the same rights and powers under this Agreement as any other Credit
Facility Lender and may exercise them as though it were not the Administrative Agent. All
communication between the Borrowers and any Credit Facility Lender in connection with this
Agreement and the other Documents shall be directed through the Administrative Agent.

 

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13.11 Reliance by Administrative Agent

     The Administrative Agent shall be entitled to rely upon any writing, letter, notice,
certificate, telex, telecopy, cable, statement, order or other document believed by the
Administrative Agent to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons. With respect to legal matters, the Administrative Agent may (but is not
obligated to) act upon advice of legal advisers selected by the Administrative Agent, including
in-house counsel of the Administrative Agent, concerning all matters pertaining to this Agreement
and the other Documents and the Administrative Agent’s duties under this Agreement and the other
Documents, and the Administrative Agent shall assume no responsibility and shall incur no liability
to the Borrowers or any Lender by reason of relying on any such document or acting on any such
advice.

13.12 Reimbursement of Administrative Agent’s Expenses and Indemnity

     Each Lender agrees to indemnify the Administrative Agent (to the extent not reimbursed by the
Borrowers) in accordance with its Rateable Portion from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any nature or kind whatsoever which may be imposed on, incurred by, or asserted
against the Administrative Agent in that capacity in any way relating to or arising out of this
Agreement or any other Document or any action taken or omitted by the Administrative Agent under
this Agreement or any other Document except for those resulting from the Administrative Agent’s
gross negligence or wilful misconduct. Without limiting the generality of the foregoing, each
Lender agrees to reimburse the Administrative Agent promptly upon demand for that Lender’s Rateable
Portion of out-of-pocket expenses (including the fees and disbursements of counsel) incurred by the
Administrative Agent in connection with the determination or preservation of any rights or remedies
of the Administrative Agent or the Lenders under, or the enforcement of, or legal advice in respect
of rights, remedies or responsibilities under, this Agreement or the other Documents, to the extent
that the Administrative Agent is not reimbursed for those expenses by the Borrowers. The
obligations of the Lenders under this Section 13.12 shall survive the repayment of all Advances and
the termination of the Credit Facility.

13.13 Action by Administrative Agent

     The Administrative Agent shall have the right, subject to the provisions of this Agreement,
and without restricting the generality of this Agreement, to take such actions as the
Administrative Agent deems necessary or refrain from taking those actions, or to give agreements,
consents, waivers, approvals, or instructions to the Borrowers on behalf of the Lenders in respect
of all matters referred to in or contemplated by this Agreement.

13.14 Borrowers’ Right to Rely on Administrative Agent

     Unless otherwise required hereunder, during the term of this Agreement:

 

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(1) The Borrowers shall be entitled to deal exclusively with the Administrative Agent and to rely
on discussions with and instructions from the Administrative Agent in order to fulfil their
obligations hereunder;

(2) All certificates, statements, notices and other documents which are delivered by a Borrower to
the Administrative Agent in accordance with this Agreement shall be deemed to have been delivered
to each of the Credit Facility Lenders; and

(3) All payments which are delivered by a Borrower to the Administrative Agent in accordance with
this Agreement shall be deemed to have been duly delivered to each of the applicable Credit
Facility Lenders.

13.15 Amendments, Waivers, etc.

(1) Binding Waiver. Except as otherwise provided in this Section 13.15, no amendment, waiver,
discharge or termination of any provision of this Agreement or any other Document and no waiver of
any breach of any provision of this Agreement or any other Document:

	 	(a)	 	shall be binding upon the Borrowers unless it is evidenced by an instrument in
writing signed by the Borrowers; nor
	 
	 	(b)	 	be binding upon the Administrative Agent and the Lenders unless it is approved
in writing by the Administrative Agent and all the Credit Facility Lenders or the
Majority Lenders, as applicable.

Notwithstanding the foregoing, any waiver, discharge or termination may be validly effected by
execution by the Administrative Agent on behalf of itself and all the Lenders or the Majority
Lenders, as applicable, of an instrument in writing without requiring the execution of that
instrument by the Borrowers, so long as the waiver, discharge or termination does not adversely
affect the rights or obligations of the Borrowers. The Administrative Agent shall forward a copy of
the written instrument to the Borrowers as soon as practicable following the execution thereof.

(2) Errors. The Administrative Agent may correct any typographical error or other error of a
clerical nature in this Agreement and the other Documents and substitute the corrected text in the
counterparts of this Agreement and the other Documents if the corrections do not modify in any
manner the meaning or the interpretation of this Agreement or any other Document and if the
Administrative Agent gives the Borrowers not less than five (5) Business Days prior notice of any
correction and the Borrowers do not object in writing to such correction within a period of five
(5) Business Days after receipt of such notice.

(3) Approval of All Lenders. Where any amendment, waiver, discharge, termination, determination,
consent, approval or other action by the Lenders relates to the following matters, the amendment,
waiver, discharge, termination, determination, consent, approval or other action requires the
approval of all Credit Facility Lenders:

	 	(a)	 	decrease the rate or amount of any principal, interest or fees or any other
amount payable by any Borrower or any alteration in the currency or mode of calculation
or computation thereof;

 

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	 	(b)	 	any extension or reduction of the time for any payments required to be made by
any Borrower,
	 
	 	(c)	 	any extension of the Maturity Date;
	 
	 	(d)	 	the types of Advances available;
	 
	 	(e)	 	an increase in the Total Commitment or in any Credit Facility Lender’s
Commitment;
	 
	 	(f)	 	an extension or reduction of the notice period required in connection with any
Advance;
	 
	 	(g)	 	the definition of Majority Lenders;
	 
	 	(h)	 	the nature and scope of the Security Documents;
	 
	 	(i)	 	permit any subordination of any secured Obligations;
	 
	 	(j)	 	an assignment or transfer by any Borrower of any of its rights and obligations
under this Agreement; or
	 
	 	(k)	 	any provision of this Section 13.15, or of Sections 2.3, 7.1, 7.2, 12.4 and
12.5.

Any other such amendment, waiver, discharge, termination, determination, consent, approval or other
action requires the approval of only the Majority Lenders, which approval, if obtained, shall be
binding upon all the Lenders. Any reference in this Agreement to any action of the Lenders shall
mean such action by the Majority Lenders unless such action relates to a matter in items (a) to (k)
above, in which case it shall mean such action by all of the Credit Facility Lenders.

(4) Request for Approval. If the approval of a Credit Facility Lender is required under this
Section 13.15, the Administrative Agent shall advise the Credit Facility Lender in writing of the
issue to be decided and, if the Administrative Agent feels it is appropriate to do so, request the
Credit Facility Lender’s approval of a course of action proposed by the Administrative Agent. In
requesting a Credit Facility Lender’s approval, the Administrative Agent may establish, in its
discretion acting reasonably, a deadline by which the Credit Facility Lender shall respond to the
Administrative Agent’s request. If the Credit Facility Lender fails to respond by that deadline,
that Credit Facility Lender’s failure to respond shall be conclusive evidence of the decline by
such Credit Facility Lender of the course of action proposed by the Administrative Agent.

(5) Amendment re Rights of Administrative Agent. Any amendment or waiver of any provision of any
Document which relates to the rights or obligations of the Administrative Agent shall require the
written agreement of the Administrative Agent thereto.

 

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13.16 Administrative Agent’s Duty to Deliver Documents

     The Agent shall promptly deliver to each of the Credit Facility Lenders, at their respective
Branches of Account, all documents, papers, materials and other information as are furnished by the
Borrowers to the Administrative Agent on behalf of the Credit Facility Lenders under this
Agreement, but shall have no other obligation to provide any Lender with any credit or other
information whatsoever with respect to the Borrowers and shall be under no obligation to inquire as
to the performance by any Borrower of its obligations under this Agreement or any other Document.

13.17 No Partnership

     Nothing contained in this Agreement and no action taken pursuant to it shall be deemed to
constitute the Lenders a partnership, association, joint venture or other similar entity.

13.18 Adjustments Among Lenders

(1) Adjustment After Exercise of Rights. Each Credit Facility Lender agrees that, after the
exercise of any rights pursuant to Section 11.2, it will at any time or from time to time, upon the
request of the Administrative Agent, purchase portions of the amounts due and owing to the other
Credit Facility Lenders (other than by way of Hedge Contract) and make any other adjustments which
the Administrative Agent determines may be necessary or appropriate so that the amounts due and
owing to each Credit Facility Lender (other than by way of Hedge Contract), as adjusted under this
Section 13.18, will, as nearly as possible, reflect each Credit Facility Lender’s Rateable Portion
determined as at the date of this Agreement prior to the making of any Advance.

(2) General Application. For greater certainty, the Credit Facility Lenders acknowledge and agree
that, without limiting the generality of the provisions of Section 13.18(1), those provisions will
have application if and whenever any Credit Facility Lender shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of set-off or otherwise) on account of
any money owing or payable by any Borrower to it in excess of its Rateable Portion thereof
determined as at the date of this Agreement prior to the making of any Advance.

(3) Borrowers’ Agreement. Each Borrower agrees to be bound by and to do all things necessary or
appropriate to give effect to any and all purchases and other adjustments made by and between the
Credit Facility Lenders under this Section 13.18 but shall incur no increased liabilities by reason
thereof.

13.19 Indemnity of Administrative Agent

     The Administrative Agent may refrain from exercising any right, power or discretion or taking
any action to protect or enforce the rights of any Lender under this Agreement and the Documents
until it has been indemnified or secured to its satisfaction against any and all costs, losses,
expenses or liabilities (including legal fees) which it would or might sustain or incur as a result
of the action or exercise.

 

-96-

13.20 Administrative Agent May Debit Accounts

     Each Borrower authorizes and directs the Administrative Agent, in the Administrative Agent’s
discretion, to debit automatically, by mechanical, electronic or manual means, any bank account of
that Borrower maintained with The Bank of Nova Scotia (for so long as The Bank of Nova Scotia is
Administrative Agent) for all amounts payable by such Borrower under this Agreement or any other
Document, including the repayment of principal and the payment of interest, fees and all charges
for the keeping of that bank account. The Administrative Agent shall notify each Borrower as to the
particulars of those debits in the normal course.

13.21 Consultation with Counsel

     The Administrative Agent may consult with legal counsel selected by it as counsel for the
Administrative Agent and the Lenders and the Administrative Agent shall not be liable for any
action taken or not taken or suffered by it in good faith and in accordance with the advice and
opinion of such counsel.

13.22 Administrative Agent as Lender

     With respect to those portions of the Credit Facilities made available by it, the
Administrative Agent shall have the same rights and powers under the Documents as any other Credit
Facility Lender and may exercise the same as though it were not the Administrative Agent. The
Administrative Agent and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with any Borrower and its Affiliates and Persons doing business with
any Borrower and/or any of its Affiliates as if it were not the Administrative Agent and without
any obligation to account to the Lenders therefor.

13.23 Delegation by Administrative Agent

     With the prior approval of the Majority Lenders, the Administrative Agent shall have the right
to delegate any of its duties or obligations hereunder as Administrative Agent to any Affiliate of
the Administrative Agent so long as the Administrative Agent shall not thereby be relieved of such
duties or obligations.

SECTION 14 — ASSIGNS AND PARTICIPANTS

14.1 Assignment and Participation

(1) Benefit and Burden of this Agreement. This Agreement shall enure to the benefit of and be
binding on the parties hereto, their respective successors and any permitted Assignees.

(2) Borrower. No Borrower may assign, delegate or transfer all or any part of its rights or
obligations under this Agreement without the prior written consent of the Credit Facility Lenders.

 

-97-

(3) Assignment and Participation.

	 	(a)	 	Any Credit Facility Lender (herein sometimes called a “Granting Lender”) may,
without the prior consent of the Borrowers or the Administrative Agent, grant a
participation in the Revolving Facility to one or more financial institutions that are
not non-residents of Canada for the purpose of the ITA (the “Participant”). If a
participation is granted, (i) the Granting Lender shall remain fully liable for all of
its obligations and responsibilities under this Agreement to the same extent as if the
participation had not been granted, and (ii) the Granting Lender shall administer the
participation of the Participant. None of the Participant, the Borrowers and the
Administrative Agent shall have any rights against or obligations to one another, nor
shall any of them be required to deal directly with one another in respect of the
participation by a Participant. For greater certainty, Participants, as such, shall
have no voting rights as “Credit Facility Lenders” under this Agreement.
	 
	 	(b)	 	Any Credit Facility Lender (herein sometimes called an “Assigning Lender”) may,
prior to an Event of Default, with the consent of the Borrowers, not to be unreasonably
withheld, and after the occurrence of an Event of Default, without the prior consent of
the Borrowers, but in all cases with the prior written consent of the Administrative
Agent, which consent may not be unreasonably withheld, (for greater certainty, it is
hereby acknowledged that if the Administrative Agent has concerns about the ability of
the Assignee to fund its Obligations under this Agreement it would be reasonable not to
consent to such assignment), assign all or any part of its rights to, and may have its
obligations in respect of the Revolving Facility and the Term Facility assumed by, one
or more financial institutions that are residents of Canada for the purposes of the ITA
(each an “Assignee”), provided that, when assigning all or part of its Commitment, the
Assigning Lender must assign an equal portion of its Revolving Commitment and Term
Commitment. Without limiting the generality of the foregoing, no Credit Facility Lender
shall assign any portion of its Commitment if, after that assignment, (i) the Assigning
Lender’s Commitment would be less than Cdn$10,000,000, or (ii) the Assignee’s
Commitment would be less than Cdn$10,000,000, except that, with respect to those
Lenders whose Commitment as of the date hereof is less than Cdn$10,000,000, the dollar
amount of the foregoing assignment restriction shall be deemed to be equal to the
amount of each such Lender’s Commitment as of the date hereof. Notwithstanding the
foregoing, no consent shall be required in respect of any assignment by an Assigning
Lender to (i) its Affiliate which, in the case of any transfer prior to the occurrence
of an Event of Default, is a financial institution that is not a non-resident in Canada
for the purpose of the ITA or (ii) another Credit Facility Lender. An assignment shall
become effective when the Borrowers and the Administrative Agent have been notified of
it by the Assigning Lender and have received from the Assignee an undertaking
(addressed to all the parties to this Agreement) to be bound by this Agreement and to
perform the obligations assigned to it, in substantially the form of Schedule
14.1(3)(b) and the Administrative Agent has received from the Assignee an assignment
fee of a

 

-98-

	 	 	 	minimum of $2,500 per Credit Facility Lender per assignment. Any Assignee shall be
treated as a Credit Facility Lender for all purposes of this Agreement, shall be
entitled to the full benefit hereof and shall be subject to the obligations of the
Assigning Lender to the same extent as if it were an original party in respect of
the rights or obligations assigned to it, and the Assigning Lender shall be released
and discharged accordingly and to the same extent, and such Schedules as applicable
shall be amended accordingly from time to time without further notice or other
requirement.

(4) Limitation. Except following the occurrence of an Event of Default and so long as such Event of
Default is continuing, no Credit Facility Lender shall be entitled to grant a participation under
Section 14.1(3)(a), make an assignment under Section 14.1(3)(b) or change its Branch of Account if
this would, immediately following the assignment, participation or change of Branch of Account,
increase the cost of the Credit Facilities either of the Borrowers, except that nothing in this
Section 14.1(4) shall prohibit the granting of an assignment by a Schedule I Lender to a Schedule
II/III Lender notwithstanding that the Discount Rate applicable to Bankers’ Acceptances issued by
the Schedule II/III Lender may be higher than the Discount Rate applicable to Bankers’ Acceptances
issued by the Schedule I Lender; provided that the Discount Rate applicable to Bankers’ Acceptances
issued by any such Schedule II/III Lender shall not exceed the Discount Rate set out in subsection
(b) of the definition of Discount Rate.

(5) Borrowers’ Cooperation. Each Borrower will execute such further documents and instruments and
do such further things as the Administrative Agent or Credit Facility Lenders may reasonably
request for the purpose of any participation or assignment.

(6) Disclosure. Subject to Section 15.10, each Credit Facility Lender may disclose to any
prospective Assignee or Participant, on a confidential basis, such information concerning the
Borrowers or either of them as it considers appropriate without incurring any liability for any
breach of the duty of banker-customer confidentiality provided such prospective Assignee or
Participant has agreed to keep such information confidential in accordance with the terms hereof.

14.2 Assignment After Default

     Notwithstanding anything to the contrary herein contained, where a Default has occurred and is
continuing, nothing in this Agreement shall limit or otherwise restrict the right of a Lender to
assign all or any part of its rights and obligations under or with respect to this Agreement.
Without limiting the generality of the foregoing, any such assignment shall not require the consent
of the Borrowers or the Administrative Agent nor be restricted to third parties resident in Canada.

SECTION 15 — MISCELLANEOUS

15.1 Amendments

     No amendment or waiver of any provision of this Agreement or consent to any departure by a
party from any provision of this Agreement will be effective unless it is in writing, and then

 

-99-

the amendment, waiver or consent will be effective only in the specific instance, for the
specific purpose and for the specific length of time for which it is given.

15.2 Notice

         Unless otherwise specified, any notice or other communication required or permitted to be
given to a party under this Agreement shall be in writing and may be delivered personally or sent
by prepaid registered mail or by facsimile, to the address or facsimile number of the party set out
beside its name at the foot of this Agreement to the attention of the Person there indicated or to
such other address, facsimile number or other Person’s attention as the party may have specified by
notice in writing given under this Section. Any notice or other communication shall be deemed to
have been given (1) if delivered personally, when received; (2) if mailed, subject to Section 15.3,
on the fifth Business Day following the date of mailing; (3) if sent by facsimile, on the Business
Day when the appropriate confirmation of receipt has been received if the confirmation of receipt
has been received before 3:00 p.m. on that Business Day or, if the confirmation of receipt has been
received after 3:00 p.m. on that Business Day, on the next succeeding Business Day; and (4) if sent
by facsimile on a day which is not a Business Day, on the, next succeeding Business Day on which
confirmation of receipt has been received.

15.3 Disruption of Postal Service

         If a notice has been sent by prepaid registered mail and before the fifth Business Day after
the mailing there is a discontinuance or interruption of regular postal service so that the notice
cannot reasonably be expected to be delivered within five (5) Business Days after the mailing, the
notice will be deemed to have been given when it is actually received.

15.4 Further Assurances

         Each Borrower shall from time to time promptly, upon the request of the Administrative Agent,
take such action, and execute and deliver such further documents as may be reasonably necessary or
appropriate to give effect to the provisions and intent of this Agreement.

15.5 Judgment Currency

         If for the purpose of obtaining judgment in any court it is necessary to convert any amount
owing or payable to the Administrative Agent or the Credit Facility Lenders under this Agreement
from the currency in which it is due (the “Agreed Currency”) into a particular currency (the
“Judgment Currency”), the rate of exchange applied in that conversion shall be that at which the
Administrative Agent, in accordance with its normal procedures, could purchase the Agreed Currency
with the Judgment Currency at or about noon on the Business Day immediately preceding the date on
which judgment is given. The obligation of a Borrower in respect of any amount owing or payable
under this Agreement to the Administrative Agent or Credit Facility Lenders in the Agreed Currency
shall, notwithstanding any judgment and payment in the Judgment Currency, be satisfied only to the
extent that the Administrative Agent, in accordance with its normal procedures, could purchase the
Agreed Currency with the amount of the Judgment Currency so paid at or about noon on the next
Business Day following that payment; and if the amount of the Agreed Currency which the
Administrative Agent could so

 

-100-

purchase is less than the amount originally due in the Agreed Currency, that Borrower shall,
as a separate obligation and notwithstanding the judgment or payment, indemnify the Administrative
Agent and the Credit Facility Lenders against any loss.

15.6 Waivers

     No failure to exercise, and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, remedy, power or privilege shall preclude the exercise of
any other right, remedy, power or privilege.

15.7 Reimbursement of Expenses

     Each Borrower agrees to: (1) pay or reimburse the Administrative Agent, on demand, for all of
its reasonable out-of-pocket costs and expenses incurred in connection with the preparation,
negotiation and execution of this Agreement and the other Documents including any subsequent
amendments of this Agreement or any other Document, and the consummation and the administration of
the transactions contemplated hereby including the reasonable fees and disbursements of counsel to
the Administrative Agent; and (2) pay or reimburse, on demand, the Administrative Agent for all its
reasonable costs and expenses incurred in connection with the determination, preservation and
enforcement of any responsibilities, rights and remedies under this Agreement and the other
Documents, including the reasonable fees and disbursements of its counsel. The obligations of each
Borrower under this Section 15.7 shall survive the repayment of all Advances and the termination of
the Credit Facilities.

15.8 Submission to Jurisdiction

     Each of the parties irrevocably submits to the non-exclusive jurisdiction of the courts of the
Province of Ontario.

15.9 Counterparts

     This Agreement may be executed and delivered in any number of counterparts, each of which when
executed and delivered is an original but all of which taken together constitute one and the same
instrument.

15.10 Confidentiality

     The Administrative Agent and the Credit Facility Lenders shall hold all non-public information
obtained pursuant to or in connection with this Agreement or obtained by them based on a review of
the books and records of the Borrowers or any of their Subsidiaries in accordance with their
customary procedures for handling confidential information of this nature, but may make disclosure
to any of their examiners, regulators (including the Office of the Superintendent of Financial
Institutions), Affiliates, outside auditors, counsel and other professional advisors in connection
with this Agreement or as reasonably required by any potential bona fide Participant or Assignee,
or in connection with the exercise of remedies under a Document, or as requested by any
Governmental Authority or pursuant to legal process; provided, however, that:

 

-101-

(1) unless specifically prohibited by Applicable Law or court order, the Administrative Agent and
each Credit Facility Lender shall promptly notify the Borrowers of any request by any governmental
agency or representative thereof (other than any such request in connection with an examination of
the financial condition of the Administrative Agent or Credit Facility Lender by such Governmental
Authority) for disclosure of any such non-public information and, where practicable, prior to
disclosure of such information;

(2) prior to any such disclosure pursuant to this Section 15.10, the Administrative Agent or Credit
Facility Lender, as the case may be, shall require any bona fide Participant and Assignee receiving
a disclosure of non-public information to agree in writing

	 	(a)	 	to be bound by this Section 15.10; and
	 
	 	(b)	 	to require such Person to require any other Person to whom such Person
discloses such non-public information to be similarly bound by this Section 15.10.

(3) disclosure may, with the consent of the Administrative Agent and the Borrowers, be made by any
Credit Facility Lender to any direct or indirect contractual counter parties of such Credit
Facility Lender in swap agreements or such contractual counter parties’ professional advisors;
provided that such contractual counter party or professional advisor agrees in writing to keep such
information confidential to the same extent required of the Credit Facility Lenders hereunder; and

(4) except as may be required by an order of a court of competent jurisdiction and to the extent
set forth therein, no Credit Facility Lender shall be obligated or required to return any materials
furnished by the Borrowers or any of their Subsidiaries.

15.11 Acknowledgement re Liability of Fund

(1) The parties acknowledge and agree that the obligations of the Fund hereunder and under the
other Documents are not personally binding upon the Board of Trustees or any trustee thereof, any
unitholder of the Fund or any annuitant under a plan of which a unitholder of the Fund acts as
trustee or carrier, and resort shall not be had to, nor shall recourse or satisfaction be sought
from, any of the foregoing or any of the private property of any of the foregoing, but the property
of the Fund only shall be bound by such obligations. Any obligation of the Fund set out in this
Agreement or in any other Document shall to the extent necessary to give effect to such obligation
be deemed to constitute, subject to the provisions of the previous sentence, an obligation of the
Board of Trustees and each trustee thereof in their capacity as trustees of the Fund only.

(2) For greater certainty, the Fund acknowledges and agrees that the Administrative Agent and the
Lenders shall have the right to have any claim against the Fund in respect of the Obligations of
the Fund satisfied out of the property of the Fund regardless of whether the Board of Trustees or
any trustee thereof is entitled to be indemnified for such claim out of such property.

 

-102-

15.12 No Novation

     The parties agree that any Advance under this Agreement shall not discharge, constitute a
repayment and readvance or a novation of, any of the indebtedness, liabilities or obligations under
the Third Amended and Restated Credit Agreement, and the Third Amended and Restated Credit
Agreement, as amended and restated by this Agreement, remains in full force and effect without
novation.

[SIGNATURE PAGES TO FOLLOW]

 

 

     The parties have executed this Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	BORROWERS:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	100 Renfrew Drive

Suite 110

Markham, Ontario L3R 9R6	 	 	 	4411986 CANADA INC.
	 
	 	 	 	 	 	By:	 	/s/ Jean-Francois Pruneau
	Attention:	 	Mr. John Leader,
Vice President, Finance	 	 	 	 	 	Name:
 Title:	 	Jean-Francois Pruneau
 Authorized Signatory
	Telephone:

	 	
(905) 752-1132
	 	 	 	 	 	 
	 	 
	
Facsimile:

	 	(905) 752-0989
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	With a copy to	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc. 

612, St Jacques Street

Montreal, Quebec

H3C 4M8	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs	 	 	 	 	 	 	 	 
	Phone:

	 	(514) 954-0101	 	 	 	 	 	 	 	 
	Facsimile:

	 	(514) 985-8834	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	100 Renfrew Drive

Suite 110

Markham, Ontario L3R 9R6	 	 	 	OSPREY MEDIA LP, by its General
 Partner,
OSPREY MEDIA GP INC.
	 
	 	 	 	 	 	By:	 	/s/ Blair MacKenzie
	Attention:	 	Mr. John Leader,
Vice President, Finance	 	 	 	 	 	Name:
 Title:
	 	Blair MacKenzie
 Authorized Signatory

	Telephone:

	 	
(905) 752-1132
	 	 	 	 	 	 
	 	 

	
Facsimile:

	 	

(905) 752-0989
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	With a copy to	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc.

612, St Jacques Street 

Montreal, Quebec 

H3C 4M8

	 		 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs	 	 	 	 	 	 	 	 
	Phone:

	 	(514) 954-0101	 	 	 	 	 	 	 	 
	Facsimile:

	 	(514) 985-8834	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	100 Renfrew Drive

Suite 110

Markham, Ontario L3R 9R6	 	 	 	OSPREY MEDIA INCOME FUND
	 
	 	 	 	 	 	By:	 	/s/ Michael Sifton
	Attention:	 	Mr. John Leader,
Vice President, Finance	 	 	 	 	 	Name:
 Title:
	 	Michael Sifton
 Authorized Signatory
	Telephone:

	 	(905) 752-1132

	 	 	 	 	 	 
	 	 
	
Facsimile:

	 	
(905) 752-0989
	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	With a copy to	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc. 

612, St Jacques Street 

Montreal, Quebec 

H3C 4M8

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs	 	 	 	 	 	 	 	 
	Phone:

	 	(514) 954-0101	 	 	 	 	 	 	 	 
	Facsimile:

	 	(514) 985-8834	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CREDIT FACILITY LENDERS:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	The Bank of Nova Scotia

P.O. Box 4085, Station A 

40 King Street West
	 	 	 	THE BANK OF NOVA SCOTIA
	Scotia Plaza, 62nd Floor
	 	 	 	By:	 	/s/ Robert A. King
	Toronto, Ontario M5W 2X6	 	 	 	 	 	Name:
	 	Robert A. King
	 
	 	 	 	 	 	 	 	Title:
	 	Director
	Attention:	 	Director, Corporate Banking,
Communications Media &
Technology	 	 	 	By:	 	/s/ Bradley Walker
	Telephone:

	 	
(416) 933-1873
	 	 	 	 	 	Name:
	 	Bradley Walker
	Facsimile:

	 	(416) 866-2010
	 	 	 	 	 	Title:
	 	Associate Director

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Bank of Montreal	 	 	 	BANK OF MONTREAL
	Loan Products Group
	 	 	 	 
	Investment & Corporate Banking	 	 	 	By:	 	/s/ Martin Stevenson
	BMO Capital Markets	 	 	 	 	 	Name:

	 	Martin Stevenson

	4th Floor, 1 First Canadian Place	 	 	 	 	 	
Title:
	 	
Vice President
	Toronto, Ontario M5X 1H3	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attention:	 	Vice President	 	 	 	 	 	 
	Telephone:

	 	(416) 359-6873
	 	 	 	 	 	 

	 	 

	
Facsimile:

	 	
(416) 359-7796
	 	 	 	 	 	
 
	 	
 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Canadian Imperial Bank of Commerce
	 	 	 	CANADIAN IMPERIAL BANK OF COMMERCE
	
Brookfield Place, 8th Floor	 	 	 	 
	161 Bay Street	 	 	 	By:	 	/s/ William J. Chrumka
	Toronto, Ontario M5J 2S8	 	 	 	 	 	Name:	 	William J. Chrumka
	 
	 	 	 	 	 	 	 	Title:	 	Executive Director
	Attention:	 	Managing Director,
Credit Capital Markets	 	 	 	By:	 	/s/ Mark Chandler
	Telephone:

	 	(416) 956-3837
	 	 	 	 	 	Name:	 	Mark Chandler
	Facsimile:

	 	(416) 956-3816
	 	 	 	 	 	Title:	 	Executive Director
	 
	 	 	 	 	 	 	 	 	 	 
	Caisse centrale Desjardins	 	 	 	CAISSE CENTRALE DESJARDINS
	1170, rue Peel, Bureau 600	 	 	 	 
	Montreal, Quebec H3B 0B1	 	 	 	By:	 	/s/ André Roy
	 
	 	 	 	 	 	 	 	Name:

	 	André Roy

	Attention:	 	Senior Manager	 	 	 	 	 	
Title:
	 	
Senior Manager
	Telephone:

	 	(514) 281-7791
	 	 	 	 	 	 

	 	 

	
Facsimile:

	 	
(514) 281-4317
	 	 	 	By:	 	/s/ Francine Champoux
	 

	 	 	 	 	 	 	 	Name:
	 	Francine Champoux
	 

	 	 	 	 	 	 	 	Title:
	 	Vice President

 

 

	 	 	 	 	 	 	 	 	 	 	 
	National City Bank, Canada Branch

130 King Street West, Suite 2140

Toronto, Ontario M5X 1E4	 	 	 	NATIONAL CITY BANK, CANADA BRANCH
	 
	 	 	 	 	 	By:	 	/s/ Caroline Stade
	Attention:	 	Vice President	 	 	 	 	 	Name:

	 	Caroline Stade

	Telephone:

	 	(416) 361-1744 ext. 224
	 	 	 	 	 	
Title:
	 	
Vice President
	
Facsimile:

	 	
(416) 361-0085
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	By:	 	/s/ G. William Hines
	 

	 	 	 	 	 	 	 	Name:
	 	G. William Hines
	 

	 	 	 	 	 	 	 	Title:
	 	SVP & Principal Officer
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:

	 	 	 	THE BANK OF NOVA SCOTIA
	The Bank of Nova Scotia
	 	 	 	By:	 	/s/ Ian McKay
	P.O. Box 4085, Station A

	 	 	 	 	 	Name:
	 	Ian McKay
	40 King Street West
	 	 	 	 	 	Title:
	 	Managing Director & Unit Head
	Scotia Plaza, 62nd Floor
	 	 	 	 
	Toronto, Ontario M5W 2X6	 	 	 	By:	 	/s/ Janet Qi
	 
	 	 	 	 	 	 	 	Name:
	 	Janet Qi
	Attention:	 	Director, Corporate Banking,
Loan Syndications	 	 	 	 	 	Title:
	 	Associate
	Telephone:

	 	(416) 866-7826
	 	 	 	 	 	 
	 	 
	Facsimile:

	 	(416) 866-3329
	 	 	 	 	 	 
	 	 

 

 

 

EXECUTION COPY

 

 

 

FIRST AMENDMENT TO FOURTH AMENDED

AND RESTATED CREDIT AGREEMENT

Made as of January 1, 2008

Between

4411986 CANADA INC.

as a Borrower

and

OSPREY MEDIA LP,

by its General Partner, Osprey Media GP Inc.

as a Borrower

and

OSPREY MEDIA PUBLISHING INC.

as a Borrower

and

EACH OF THE FINANCIAL INSTITUTIONS

FROM TIME TO TIME PARTIES HERETO

as Credit Facility Lenders

and

CANADIAN IMPERIAL BANK OF COMMERCE

as Syndication Agent

and

BANK OF MONTREAL

as Documentation Agent

and

THE BANK OF NOVA SCOTIA

as Administrative Agent

 

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	RECITALS
	 	 	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 1  —  INTERPRETATION	 	 	2	 
	1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 2  —  INCORPORATION INTO CREDIT AGREEMENT	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 3  —  CONSENT	 	 	3	 
	 
	 	 	 	 	 	 
	SECTION 4  —  ACKNOWLEDGEMENT AND CONFIRMATION	 	 	3	 
	4.1
	 	Acknowledgment of Borrowers	 	 	3	 
	4.2
	 	Confirmation of Security Documents	 	 	3	 
	 
	 	 	 	 	 	 
	SECTION 5  —  AMENDMENTS TO CREDIT AGREEMENT	 	 	4	 
	5.1
	 	Amendments to Credit Agreement	 	 	4	 
	 
	 	 	 	 	 	 
	SECTION 6  —  CONDITIONS PRECEDENT	 	 	5	 
	6.1
	 	Conditions to Effectiveness of First Amendment	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 7  —  REPRESENTATIONS AND WARRANTIES	 	 	7	 
	7.1
	 	Representations and Warranties	 	 	7	 
	 
	 	 	 	 	 	 
	SECTION 8  —  MISCELLANEOUS	 	 	8	 
	8.1
	 	No Other Amendments	 	 	8	 
	8.2
	 	Reservation of Rights and Remedies	 	 	8	 
	8.3
	 	Severability	 	 	9	 
	8.4
	 	Parties	 	 	9	 
	8.5
	 	Further Assurances	 	 	9	 
	8.6
	 	Document	 	 	9	 
	8.7
	 	Governing Law	 	 	9	 
	8.8
	 	Submission to Jurisdiction	 	 	9	 
	8.9
	 	Counterparts	 	 	9	 

     Schedule 5.1(11)

(i)

 

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

This First Amendment to Fourth Amended and Restated Credit Agreement (this “First Amendment”)
amends the Credit Agreement (as defined below) and is made as of January 1, 2008 between

4411986 CANADA INC.

as a Borrower

and

OSPREY MEDIA LP,

by its General Partner, Osprey Media GP Inc.

as a Borrower

and

OSPREY MEDIA PUBLISHING INC.

as a Borrower

and

EACH OF THE FINANCIAL INSTITUTIONS

FROM TIME TO TIME PARTIES HERETO

as Credit Facility Lenders

and

CANADIAN IMPERIAL BANK OF COMMERCE

as Syndication Agent

and

BANK OF MONTREAL

as Documentation Agent

and

THE BANK OF NOVA SCOTIA

as Administrative Agent

 

 

-2-

RECITALS

A. Reference is made to the Fourth Amended and Restated Credit Agreement made as of September 28,
2007 between 4411986 Canada Inc. (“Bidco”), Osprey Media LP (“Osprey LP”) and Osprey Media Income
Fund (the “Fund”), as borrowers (the “Existing Borrowers”), the Credit Facility Lenders, Canadian
Imperial Bank of Commerce, as Syndication Agent, Bank of Montreal, as Documentation Agent, and the
Administrative Agent (as amended, supplemented, restated, replaced or otherwise modified from time
to time, the “Credit Agreement”).

B. The Existing Borrowers have completed the Reorganization and propose to effect further
complementary steps to the Reorganization (the “Post-Closing Reorganization”) to simplify their
corporate structure by: (i) terminating the Fund as a borrower under the Credit Agreement; (ii)
nominating Osprey Media Publishing Inc. (“Newco”), a wholly owned subsidiary of Osprey LP, as a
borrower under the Credit Agreement; (iii) transferring the assets and liabilities of Osprey LP to
Newco (the “First Transfer”); (iv) at a later date to be determined by Bidco, transferring the
shares of Newco held by Osprey LP to Bidco (the “Second Transfer”); and (v) terminating Osprey LP
as a borrower under the Credit Agreement upon completion of the Second Transfer.

C. Bidco has advised the Administrative Agent and Lenders that (i) it intends to treat Osprey LP
(subject to completion of the Second Transfer) as a non-Material Subsidiary and to wind-up Osprey
LP after completion of the Second Transfer, and (ii) the Fund was wound-up and terminated effective
as of December 28, 2007.

D. The Borrowers have requested, and the Administrative Agent and the Majority Lenders have agreed,
(1) to amend the Credit Agreement to, among other things, (i) terminate the Fund as a borrower and
(ii) add Newco as a borrower; and (2) to approve the termination of Osprey LP as a borrower
(subject to completion of the Second Transfer), subject to the terms and conditions of this First
Amendment.

FOR VALUE RECEIVED, the parties agree as follows:

SECTION 1 — INTERPRETATION

1.1 Definitions

     Capitalized terms used and not otherwise defined herein have the meanings given to them in the
Credit Agreement.

SECTION 2 — INCORPORATION INTO CREDIT AGREEMENT

     The Credit Agreement and this First Amendment shall henceforth be read together and shall have
the effect as if all of the provisions of such agreements were contained in one instrument.

 

-3-

SECTION 3 — CONSENT

(1) This First Amendment gives effect to the consent of the Administrative Agent and the Majority
Lenders to (i) the termination of the Fund as a borrower under the Credit Agreement and (ii) the
addition of Newco as a borrower under the Credit Agreement. The Administrative Agent and the
Majority Lenders have also consented to the subsequent termination of Osprey LP as a borrower under
the Credit Facilities (subject to completion of the Second Transfer), and the Administrative Agent
is hereby authorized and directed to execute, for and on behalf of the Majority Lenders, such
further amendments to the Credit Agreement as necessary solely to document the termination of
Osprey LP as a borrower under the Credit Agreement upon completion of the Second Transfer.

(2) This First Amendment has been approved by the Administrative Agent and the Majority Lenders
pursuant to Section 13.15 of the Credit Agreement, and the execution of this First Amendment by the
Administrative Agent and the Majority Lenders shall be binding upon all of the Lenders.

SECTION 4 — ACKNOWLEDGEMENT AND CONFIRMATION

4.1 Acknowledgment of Borrowers

(1) Newco hereby acknowledges, agrees and confirms that, by its execution of this First Amendment
as a Borrower, it (i) shall assume all existing Obligations owing to the Lenders under the Credit
Agreement and the other Documents and shall be jointly and severally liable with the other
Borrowers for all existing and future Obligations owing to the Lenders under the Credit Agreement
and the other Documents, and (ii) shall be bound by all of the terms, provisions and conditions
contained in the Credit Agreement as if it were an original party thereto.

(2) Bidco acknowledges, agrees and confirms that (i) it intends to treat Osprey LP (subject to
completion of the Second Transfer) as a non-Material Subsidiary in accordance with the exception
criteria set out in the definition of Material Subsidiary and to wind-up Osprey LP after completion
of the Second Transfer, and (ii) the Fund was wound-up and terminated effective as of December 28,
2007.

4.2 Confirmation of Security Documents

(1) Each of Bidco and Osprey LP hereby acknowledges, agrees and confirms that the Security
Documents to which it is a party (i) are not released, discharged or otherwise affected by the
execution, delivery or performance of this First Amendment or the consummation of the Post-Closing
Reorganization; (ii) remain in full force and effect, enforceable against it in accordance with
their terms; and (iii) continue to secure all Obligations under the Credit Agreement and the other
Documents, and hereby waives any circumstances which might constitute a legal or equitable
discharge or defence of any such Obligations.

 

-4-

SECTION 5 — AMENDMENTS TO CREDIT AGREEMENT

5.1 Amendments to Credit Agreement

     On and after the Effective Date (as defined below), the Credit Agreement is amended as
follows:

(1) The definition of “Authorized Signatory” in Section 1.1(25) of the Credit Agreement is hereby
deleted in its entirety and replaced as follows:

“Authorized Signatory means, in respect of Osprey LP, the Person or
Person authorized by the board of directors of Osprey GP to sign on
behalf of Osprey LP in accordance with the Limited Partnership
Agreement; and, in respect of Osprey GP, Bidco and Newco, the Person
or Persons authorized by the respective board of directors of Osprey
GP, Bidco or Newco, as applicable, to sign on each of their behalf.”

(2) The definition of “Fund Declaration of Trust” in Section 1.1(86) of the Credit Agreement is
hereby deleted in its entirety and replaced with the words “[Intentionally Deleted]”.

(3) A new definition is added as Section 1.1(124.1) of the Credit Agreement immediately after
Section 1.1(124) as follows:

“(124.1) Newco means Osprey Media Publishing Inc.”

(4) The definition of “Revolving Facility Borrowers” in Section 1.1(169) of the Credit Agreement is
hereby amended by deleting the words “the Fund” in the first line thereof and replacing them with
the word “Newco”.

(5) The definition of “Term Facility Borrowers” in Section 1.1(193) of the Credit Agreement is
hereby amended by deleting the words “the Fund” in the first line thereof and replacing them with
the word “Newco”.

(6) Section 6.1(h) of the Credit Agreement is hereby deleted and replaced as follows:

“(h) pledge of all of the Securities of Osprey LP, Osprey GP and
each other Material Subsidiary;”

(7) Section 8.1(17) of the Credit Agreement is hereby deleted in its entirety and replaced as
follows:

“(17) Corporate Organization. Set out in the first chart attached
to Schedule 8.1(17) is a complete and accurate corporate
organization chart showing the Borrowers and the Material
Subsidiaries after the First Transfer (as such term is defined in
the first amendment to this Agreement dated January 1, 2008 (the
“First Amendment”))

 

-5-

and set out in the second chart attached to Schedule 8.1(17) is a
complete and accurate corporate organization chart showing the
Borrowers and the Material Subsidiaries after the Second Transfer
(as such term is defined in the First Amendment).”

(8) Section 15.11 of the Credit Agreement is hereby deleted in its entirety and replaced with the
words “[Intentionally Deleted]”.

(9) All references to the words “Osprey Media Income Fund” in the cover page, title page and
Schedules 1.1(57), 1.1(69), 2.6(1), 2.8(8), 2.10(7), 2.12, 4.6, 4.7 and 14.1(3)(b) of the Credit
Agreement are hereby deleted and replaced with the word “Osprey Media Publishing Inc.”.

(10) The reference to the words “the Fund” in paragraph 6 of Schedule 1.1(57) — Compliance
Certificate is hereby deleted and replaced with the word “Bidco”.

(11) “Schedule 8.1(17) — Corporate Organization Chart” of the Credit Agreement is hereby deleted
and replaced with “Schedule 8.1(17) — Corporate Organization Chart” attached hereto as Schedule
5.1(11).

SECTION 6 — CONDITIONS PRECEDENT

6.1 Conditions to Effectiveness of First Amendment

     The provisions of this First Amendment shall become effective on the date upon which each of
the following conditions are satisfied (the “Effective Date”):

(1) Delivery of Documents. The Administrative Agent shall have received on or prior to the
Effective Date Sufficient Copies, in form and substance satisfactory to the Administrative Agent,
of the following:

	 	(a)	 	this First Amendment duly executed by all the parties thereto;
	 
	 	(b)	 	a general security agreement granted by Newco in favour of the Administrative
Agent, for itself and on behalf of the Lenders, creating a first priority security
interest in all the personal property, assets and undertaking of Newco;
	 
	 	(c)	 	a pledge agreement granted by Newco in favour of the Administrative Agent, for
itself and on behalf of the Lenders, pledging all the Securities of Nominee;
	 
	 	(d)	 	a pledge amendment executed by Osprey LP in respect of the Securities of Newco;
	 
	 	(e)	 	a deed of hypothec granted by Newco on the universality of all of its movable
and immovable property in favour of the Administrative Agent, acting as fondé de
pouvoir for the Lenders;

 

-6-

	 	(f)	 	a bond issued by Newco in favour of the Administrative Agent, for itself and on
behalf of the Lenders;
	 
	 	(g)	 	a pledge of the bond granted by Newco in favour of the Administrative Agent and
the Lenders;
	 
	 	(h)	 	a confirmation of security executed by Osprey GP and Nominee;
	 
	 	(i)	 	an assignment and assumption agreement executed by Osprey LP, Newco, Nominee
and the Administrative Agent;
	 
	 	(j)	 	an updated certificate of insurance of the Borrowers evidencing the insurance
requirements under the Credit Agreement;
	 
	 	(k)	 	evidence of the termination of the Fund;
	 
	 	(l)	 	Certificate or other evidence satisfactory to the Administrative Agent and the
Majority Lenders of each Borrower, Osprey GP and Nominee dated the Effective Date
executed by an Authorized Signatory certifying, as applicable:

	 	(i)	 	the names and the specimen signatures of the Persons authorized
to sign this First Amendment, the Security Documents and the other Documents to
be executed and delivered by it under this Agreement;
	 
	 	(ii)	 	that its articles of incorporation, amalgamation or
continuance, or limited partnership agreement, as the case may be, and all
other constating documents, which shall be attached thereto (or in the case of
Osprey LP, Osprey GP, Nominee and Bidco, copies of amendments thereto since
September 28, 2007, if any), are a complete and correct copy and that each of
articles of incorporation, amalgamation or continuance, or limited partnership
agreement, as the case may be, and all other constating documents have not been
amended, modified or supplemented and are in full force and effect; and
	 
	 	(iii)	 	its resolution and all other authorizations necessary to
authorize the execution and delivery of and the performance by it of its
obligations under this First Amendment, the Security Documents and the other
Documents to which it is a party and all the transactions contemplated thereby;

	 	(m)	 	opinions of Ogilvy Renault LLP, counsel to the Borrowers, Osprey GP and
Nominee, dated as of January 1, 2008 regarding corporate existence, due authorization,
enforceability of this First Amendment, the Security Documents and the other Documents
and registration of the Security Documents etc. addressed to the Administrative Agent
and each Credit Facility Lender;

 

-7-

	 	(n)	 	opinions of Aikins, MacAuley & Thorvaldson LLP, Manitoba counsel to Osprey LP,
dated as of January 1, 2008 regarding, existence, due authorization of this First
Amendment and the other Documents to which Osprey LP is a party addressed to the
Administrative Agent and each Credit Facility Lender; and
	 
	 	(o)	 	such other documents as the Administrative Agent may reasonably request on
behalf of the Credit Facility Lenders, including standard documentation used by a
Credit Facility Lender in connection with the issuance of Bankers’ Acceptances, Letters
of Credit, Letters of Guarantee and Hedge Contracts prior to any Advance by way of any
such method.

(2) Registration of Security Documents. All registrations, recordings and filings of or with
respect to the Security Documents which in the opinion of counsel to the Administrative Agent are
necessary to render effective the security intended to be created thereby shall have been
completed.

(3) Fees. All fees then owing and payable by the Borrowers on or before the Closing Date shall have
been paid to the Administrative Agent, including, without limitation, all reasonable legal fees and
disbursements of McMillan Binch Mendelsohn LLP, counsel to the Administrative Agent.

(4) Representations Correct. The representations and warranties set forth in the Credit Agreement
(as and to the extent amended pursuant to Section 5.1 of this First Amendment) shall be true and
correct on and as of the Effective Date, except to the extent that any such representation or
warranty expressly relates to an earlier date.

(5) No Default. No Default or Event of Default shall exist as of the Effective Date, and no Default
or Event of Default will occur as a result of the execution and delivery of this First Amendment or
the consummation of the Post-Closing Reorganization.

SECTION 7 — REPRESENTATIONS AND WARRANTIES

7.1 Representations and Warranties

     Each Borrower, with respect to itself and each of its Material Subsidiaries, makes the
following representations and warranties to the Administrative Agent and each Credit Facility
Lender, all of which shall survive the execution and delivery of this Agreement:

(1) Power and Authority. The execution and delivery by the Borrowers and each of the Material
Subsidiaries of this First Amendment, the Security Documents and the other Documents to which it is
a party and the performance by the Borrowers and each of the Material Subsidiaries of their
respective obligations thereunder, and the consummation of the Post-Closing Reorganization (a) are
within their powers, (b) have been duly authorized by all necessary or proper corporate,
shareholder, partnership, or other action, (c) do not conflict with, result in a breach or
violation of, or constitute a default under, its constating documents, any unanimous shareholders’
agreement, any partnership agreement, any Applicable Law or any other document

 

-8-

to which it is a party or by which it is bound, (d) do not conflict with or result in the breach or
termination of, constitute a default under, or accelerate any performance required by any Material
Contract, and (e) do not and will not result in the creation of any Lien, except as set out in the
Security Documents, upon any of its assets or properties under any agreement or other document.

(2) Authorization, Execution, Delivery and Binding Effect. Each of this First Amendment, the
Security Documents and the other Documents executed by the Borrowers and the Material Subsidiaries
has been or will be at the time required to be executed and delivered under this First Amendment,
duly authorized, executed and delivered and constitutes or will constitute at the time required to
be executed and delivered under this First Amendment, a legal, valid and binding obligation of the
Borrowers and the Material Subsidiaries enforceable in accordance with its terms, subject to (a)
applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting
creditors’ rights generally, (b) general principals of equity, including the fact that specific
performance and injunctive relief may only be given at the discretion of the courts, and (c) the
equitable or statutory powers of the courts to stay proceedings before them and to stay the
execution of judgments.

(3) No Approvals Required. (a) Each Borrower and each of its Material Subsidiaries has obtained all
material Governmental Approvals which are necessary for the conduct of its business as presently
conducted, each of which is in full force and effect, is a good, valid and subsisting approval
which has not been surrendered, forfeited or become void or voidable and is unamended, (b) there is
no material default under any Governmental Approval, nor are there any proceedings in progress,
pending or threatened which may result in the revocation, suspension or material adverse
modification of such Governmental Approval, and (c) no further registration, order, permit, filing,
consent, authorization, licence, decree or approval of, from or with any Person (including any
Governmental Authority) is necessary or advisable in order to ensure the legality, validity,
binding effect and enforceability of this First Amendment, the Security Documents or any other
Document or the consummation of the Post-Closing Reorganization.

SECTION 8 — MISCELLANEOUS

8.1 No Other Amendments

     Except for the amendments expressly set forth in this First Amendment, the Credit Agreement
and each of the other Documents shall remain unchanged and in full force and effect and this First
Amendment shall be limited precisely as drafted and shall not be construed as an amendment of any
other terms or provisions of the Credit Agreement.

8.2 Reservation of Rights and Remedies

     The Administrative Agent and each Lender reserves all of its rights to exercise any or all of
its rights and remedies at any time and from time to time in connection with any and all Defaults
or Events of Default now existing or hereafter arising, whether known or unknown, under the Credit
Agreement or any other Document.

 

-9-

8.3 Severability

     Wherever possible, each provision of this First Amendment shall be interpreted in such manner
as to be effective and valid under Applicable Law, but if any provision of this First Amendment
shall be prohibited by or invalid under any Applicable Law, such provision shall be ineffective to
the extent of such prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this First Amendment.

8.4 Parties

     This First Amendment shall enure to the benefit of and be binding on the parties hereto, their
respective successors and any permitted assignees in accordance with the Credit Agreement.

8.5 Further Assurances

     Each of the Borrowers shall from time to time promptly, upon the request of the Administrative
Agent, take such action, and execute and deliver such further documents as may be reasonably
necessary or appropriate to give effect to the provisions and intent of this First Amendment.

8.6 Document

     For greater certainty, this First Amendment constitutes a Document.

8.7 Governing Law

     This First Amendment is governed by, and is to be construed and interpreted in accordance
with, the laws of the Province of Ontario and the laws of Canada applicable in the Province of
Ontario.

8.8 Submission to Jurisdiction

     Each of the parties irrevocably submits to the non-exclusive jurisdiction of the courts of the
Province of Ontario.

8.9 Counterparts

     This First Amendment may be executed and delivered in any number of counterparts, each of
which when executed and delivered is an original but all of which taken together constitute one and
the same instrument.

[SIGNATURE PAGES TO FOLLOW]

 

 

The parties have executed this First Amendment.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	BORROWERS:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc.
612, St Jacques Street 

Montreal, Quebec 

H3C 4M8	 	 	 	4411986 CANADA INC.

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs
	 	 	 	By:	 	/s/ Jean-François Pruneau	 	 
	
Phone:

	 	
(514) 954-0101
	 	 	 	 	 	Name:
	 	Jean-François Pruneau	 	 
	
Facsimile:

	 	
(514) 985-8834	 	 	 	 	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc.

612, St Jacques Street 

Montreal, Quebec 

H3C 4M8	 	 	 	OSPREY MEDIA LP, by its General
 Partner,
OSPREY MEDIA GP INC.

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs
	 	 	 	By:	 	/s/ Jean-François Pruneau	 	 
	
Phone:

	 	(514) 954-0101
	 	 	 	 	 	Name:
	 	Jean-François Pruneau	 	 
	
Facsimile:

	 	
(514) 985-8834	 	 	 	 	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Quebecor Media Inc.

612, St Jacques Street 

Montreal, Quebec 

H3C 4M8	 	 	 	OSPREY MEDIA PUBLISHING INC.

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	VP Legal Affairs
	 	 	 	By:	 	/s/ Jean-François Pruneau	 	 
	
Phone:

	 	
(514) 954-0101
	 	 	 	 	 	Name:
	 	Jean-François Pruneau	 	 
	
Facsimile:

	 	
(514) 985-8834	 	 	 	 	 	Title:
	 	Treasurer	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	CREDIT FACILITY LENDERS:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bank of Nova Scotia

P.O. Box 4085, Station A
	 	 	 	THE BANK OF NOVA SCOTIA	 	 
	40 King Street West
	 	 	 	By:	 	/s/ Robert A. King	 	 
	Scotia Plaza, 62nd Floor 

	 	 	 	 	 	Name:	 	Robert A. King	 	 
	Toronto, Ontario M5W 2X6
	 	 	 	 	 	Title	 	Director	 	 
	 
	Attention:

	 	Director, Corporate Banking,

Communications Media &

Technology
	 	 	 	By:	 	/s/ Bradley Walker	 	 
	
Telephone:

	 	
(416) 933-1873	 	 	 	 	 	Name:
	 	 Bradley Walker	 	 
	
Facsimile:

	 	
(416) 866-2010	 	 	 	 	 	Title:
	 	Associate Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Bank of Montreal 

Loan Products Group
	 	 	 	BANK OF MONTREAL	 	 
	Investment & Corporate Banking
	 	 	 	By:	 	/s/ Martin Stevenson	 	 
	BMO Capital Markets
	 	 	 	 	 	Name:
	 	Martin Stevenson	 
	4th Floor, 1 First Canadian Place 

Toronto, Ontario M5X 1H3	 	 	 	 	 	Title:
	 	Vice President	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Vice President
	 	 	 	 	 	 	 	 
	
Telephone:

	 	
(416) 359-6873
	 	 	 	 	 	 
	 	 	 	 
	
Facsimile:

	 	
(416) 359-7796	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Canadian Imperial Bank of Commerce 

Brookfield Place, 8th Floor
	 	 	 	CANADIAN IMPERIAL
BANK OF COMMERCE	 	 
	161 Bay Street	 	 	 	By:	 	/s/ William J. Chrumka	 	 
	Toronto, Ontario M5J 2S8	 	 	 	 	 	Name:	 	William J. Chrumka	 	 
	 	 	 	 	 	 	Title	 	Executive Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Managing Director, 

Credit Capital Markets
	 	 	 	By:	 	/s/ John Parker	 	 
	
Telephone:

	 	
(416) 956-3837
	 	 	 	 	 	Name:
	 	John Parker	 	 
	
Facsimile:

	 	
(416) 956-3816	 	 	 	 	 	Title:
	 	[Authorized Signatory]	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Caisse centrale Desjardins 

1170, rue Peel, Bureau 600

Montreal, Quebec H3B 0B1	 	 	 	CAISSE CENTRALE DESJARDINS	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Senior Manager
	 	 	 	By:	 	/s/ André Roy	 	 
	
Telephone:

	 	
(514) 281-7791
	 	 	 	 	 	Name:
	 	André Roy	 	 
	
Facsimile:

	 	
(514) 281-4317	 	 	 	 	 	Title:
	 	Senior Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Francine Champoux	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	 Francine Champoux	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	National City Bank, Canada Branch 

130 King Street West, Suite 2140 

Toronto, Ontario M5X 1E4	 	 	 	NATIONAL CITY BANK, CANADA BRANCH	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Vice President
	 	 	 	By:	 	/s/ Mike Danby	 	 
	
Telephone:

	 	
(416) 361-1744 ext. 224
	 	 	 	 	 	Name:
	 	Mike Danby	 	 
	
Facsimile:

	 	
(416) 361-0085	 	 	 	 	 	Title:
	 	Assistant Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Bill Hines	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	Bill Hines	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	Senior Vice President & Principal Officer
	 	
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	 	 	THE BANK OF NOVA SCOTIA	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Bank of Nova  Scotia

P.O. Box 4085, Station A 

40 King Street West

	 	 	 	By:	 	/s/ Jim Beninger	 	 
	Scotia Plaza, 62nd Floor
	 	 	 	 	 	Name:
	 	Jim Beninger	 	 
	Toronto, Ontario M5W 2X6
	 	 	 	 	 	Title:
	 	Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Director, Corporate Banking,

Loan Syndications
	 	 	 	By:	 	/s/ Janet Qi	 	 
	
Telephone:

	 	
(416) 866-7826
	 	 	 	 	 	Name:
	 	Janet Qi	 	 
	
Facsimile:

	 	
(416) 866-3329	 	 	 	 	 	Title:
	 	Associate Director	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	United Overseas Bank Limited, 

Vancouver Branch

#1680 — 650 West Georgia Street 

Vancouver, British Columbia V6B 4N9	 	 	 	UNITED OVERSEAS BANK LIMITED,

VANCOUVER BRANCH	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attention:

	 	Vice President

	 	 	 	By:	 	/s/ K. Jin Koh	 	 
	
Telephone:

	 	
(604) 662-7055
	 	 	 	 	 	Name:
	 	K. Jin Koh	 	 
	
Facsimile:

	 	
(604) 662-3356	 	 	 	 	 	Title:
	 	General Manager

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