Document:

exv10w39

 

Exhibit 10.39

Execution Copy

 

BRIDGE CREDIT AND GUARANTEE AGREEMENT

dated as of

April 16, 2007

among

BLOCK FINANCIAL CORPORATION,

as Borrower,

H&R BLOCK, INC.,

as Guarantor,

The Lenders Party Hereto,

HSBC BANK USA, NATIONAL ASSOCIATION,

as Administrative Agent,

and

HSBC BANK USA, NATIONAL ASSOCIATION,

as Lead Arranger and Sole Bookrunner

$500,000,000 BRIDGE FACILITY

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1. Defined Terms
	 	 	1	 
	SECTION 1.2. Terms Generally
	 	 	10	 
	SECTION 1.3. [RESERVED]
	 	 	10	 
	SECTION 1.4. Accounting Terms; GAAP
	 	 	10	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	11	 
	 
	 	 	 	 
	SECTION 2.1. Commitments
	 	 	11	 
	SECTION 2.2. [RESERVED]
	 	 	11	 
	SECTION 2.3. Request for Borrowing
	 	 	11	 
	SECTION 2.4. [RESERVED]
	 	 	11	 
	SECTION 2.5. Funding of Borrowing
	 	 	11	 
	SECTION 2.6. Interest Elections
	 	 	12	 
	SECTION 2.7. [RESERVED]
	 	 	12	 
	SECTION 2.8. Repayment of Loans; Evidence of Debt
	 	 	12	 
	SECTION 2.9. Prepayment of Loans
	 	 	13	 
	SECTION 2.10. Fees
	 	 	13	 
	SECTION 2.11. Interest
	 	 	13	 
	SECTION 2.12. Alternate Rate of Interest
	 	 	14	 
	SECTION 2.13. Increased Costs
	 	 	14	 
	SECTION 2.14. Break Funding Payments
	 	 	15	 
	SECTION 2.15. Taxes
	 	 	15	 
	SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	16	 
	SECTION 2.17. Mitigation Obligations; Replacement of Lenders
	 	 	17	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	18	 
	 
	 	 	 	 
	SECTION 3.1. Organization; Powers
	 	 	18	 
	SECTION 3.2. Authorization; Enforceability
	 	 	18	 
	SECTION 3.3. Governmental Approvals; No Conflicts
	 	 	18	 
	SECTION 3.4. Financial Condition; No Material Adverse Change
	 	 	19	 
	SECTION 3.5. Properties
	 	 	19	 
	SECTION 3.6. Litigation and Environmental Matters
	 	 	19	 
	SECTION 3.7. Compliance with Laws and Agreements
	 	 	20	 
	SECTION 3.8. Investment and Holding Company Status
	 	 	20	 
	SECTION 3.9. Taxes
	 	 	20	 
	SECTION 3.10. ERISA
	 	 	20	 
	SECTION 3.11. Disclosure
	 	 	20	 
	SECTION 3.12. Federal Regulations
	 	 	20	 
	SECTION 3.13. Subsidiaries
	 	 	21	 
	SECTION 3.14. Insurance
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS
	 	 	21	 

-i-

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V COVENANTS
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI [RESERVED]
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VII GUARANTEE
	 	 	22	 
	 
	 	 	 	 
	SECTION 7.1. Guarantee
	 	 	22	 
	SECTION 7.2. Delay of Subrogation
	 	 	23	 
	SECTION 7.3. Amendments, etc. with respect to the Obligations; Waiver of Rights
	 	 	24	 
	SECTION 7.4. Guarantee Absolute and Unconditional
	 	 	24	 
	SECTION 7.5. Reinstatement
	 	 	25	 
	SECTION 7.6. Payments
	 	 	25	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	27	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	29	 
	 
	 	 	 	 
	SECTION 10.1. Notices
	 	 	29	 
	SECTION 10.2. Waivers; Amendments
	 	 	29	 
	SECTION 10.3. Expenses; Indemnity; Damage Waiver
	 	 	30	 
	SECTION 10.4. Successors and Assigns
	 	 	31	 
	SECTION 10.5. Survival
	 	 	33	 
	SECTION 10.6. Counterparts; Integration; Effectiveness
	 	 	33	 
	SECTION 10.7. Severability
	 	 	34	 
	SECTION 10.8. Right of Setoff
	 	 	34	 
	SECTION 10.9. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	34	 
	SECTION 10.10. WAIVER OF JURY TRIAL
	 	 	34	 
	SECTION 10.11. Headings
	 	 	35	 
	SECTION 10.12. Confidentiality
	 	 	35	 
	SECTION 10.13. Interest Rate Limitation
	 	 	35	 
	SECTION 10.14. USA Patriot Act
	 	 	35	 

SCHEDULES:

	 	 	 
	Schedule 2.1

	 	Commitments
	Schedule 3.4(a)

	 	Guarantee Obligations
	Schedule 3.6

	 	Disclosed Matters
	Schedule 3.13

	 	Subsidiaries
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	Form of Assignment and Acceptance
	Exhibit B-l

	 	Form of Opinion of Mayer, Brown, Rowe & Maw LLP
	Exhibit B-2

	 	Form of Opinion of Bryan Cave LLP

-ii-

 

 

          BRIDGE CREDIT AND GUARANTEE AGREEMENT, dated as of April 16, 2007, among BLOCK FINANCIAL
CORPORATION, a Delaware corporation, as Borrower, H&R BLOCK, INC., a Missouri corporation, as
Guarantor, the LENDERS party hereto, and HSBC BANK USA, NATIONAL ASSOCIATION, a national
association, as Administrative Agent.

          WHEREAS, the Borrower has requested that the Lenders provide a bridge facility in an amount of
$500,000,000;

          NOW, THEREFORE, in consideration of the agreements herein and in reliance upon the
representations and warranties set forth herein, the parties agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.1. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

     “Administrative Agent” means HSBC Bank USA, National Association, a
national association, in its capacity as administrative agent for the Lenders
hereunder.

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

     “Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified. For the avoidance of doubt, neither the Guarantor
nor any of its Subsidiaries shall be deemed to Control any of its franchisees by virtue of
provisions in the relevant franchise agreement regulating the business and operations of
such franchisee.

     “Agreement” means this Bridge Credit and Guarantee Agreement.

     “Applicable Percentage” means, with respect to any Lender, the percentage of
the total Loans represented by such Lender’s Loan.

     “Applicable Rate” means, for any day, the rate per annum based on the Ratings
in effect on such day, as set forth in the table below:

 

2

	 	 	 	 	 
	Category	 	Ratings	 	Applicable Rate
	I
	 	Higher than: BBB+
by S&P or Baa1 by
Moody’s
	 	0.350%
	II
	 	BBB+ by S&P or
Baa1 by Moody’s
	 	0.450%
	III
	 	BBB by S&P or
Baa2 by
Moody’s
	 	0.600%
	IV
	 	Lower than: BBB
by S&P or Baa2 by
Moody’s
	 	0.750%

; provided that (a) if on any day the Ratings of S&P and Moody’s do not fall in the
same category, then the higher of such Ratings shall be applicable for such day, unless one of the
two ratings is two or more Ratings levels lower than the other, in which case the applicable rate
shall be determined by reference to the Ratings level next below that of the higher of the two
ratings, (b) if on any day the Rating of only S&P or Moody’s is available, then such Rating shall
be applicable for such day and (c) if on any day a Rating is not available from both S&P and
Moody’s, then the Ratings in category IV above shall be applicable for such day. Any change in the
Applicable Rate resulting from a change in Rating by either S&P or Moody’s shall become effective
on the date such change is publicly announced by such rating agency.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 10.4),
and accepted by the Administrative Agent, substantially in the form of Exhibit A or any other form
approved by the Administrative Agent.

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

     “Borrower” means Block Financial Corporation, a Delaware corporation and a wholly-owned
indirect Subsidiary of the Guarantor

     “Borrowing” means the Loans made on the Closing Date.

     “Borrowing Request” means the request by the Borrower for the Borrowing in
accordance with Section 2.3.

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

 

3

     “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

     “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants or options to purchase any of the
foregoing.

     “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934, as amended, and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof) of shares representing more than 25% of the aggregate ordinary voting
power represented by the issued and outstanding Capital Stock of the Guarantor; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Guarantor by
Persons who were neither (i) nominated by the board of directors of the Guarantor nor (ii)
appointed by directors so nominated; (c) the acquisition of direct or indirect Control of the
Guarantor by any Person or group; or (d) the failure of the Guarantor to own, directly or
indirectly, shares representing 100% of the aggregate ordinary voting power represented by the
issued and outstanding Capital Stock of the Borrower.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any
Lender (or, for purposes of Section 2.13(b), by any lending office of such Lender or by such
Lender’s holding company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of this Agreement.

     “Charges” has the meaning assigned to such term in Section 10.13.

     “Closing Date” means the date on which the conditions specified in Article IV are
satisfied (or waived in accordance with Section 10.2).

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

     “Commitment” means, with respect to each Lender, the commitment of such Lender to make a Loan
hereunder to the Borrower on the Closing Date. The initial amount of each Lender’s Commitment is
set forth on Schedule 2.1 under the heading “Commitment”.

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

     “Credit Parties” means the collective reference to the Borrower and the Guarantor.

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

 

4

     “Disclosed Matters” means (a) matters disclosed in the Borrower’s public filings with
the Securities and Exchange Commission prior to April 15,2007 and (b) the actions, suits,
proceedings and environmental matters disclosed in Schedule 3.6.

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

     “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, to the management, release or threatened release of any Hazardous Material or
to health and safety matters.

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

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together
with any Credit Party, is treated as a single employer under Section 414(b) or (c) of the Code or,
solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

     “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any
Credit Party or any of their ERISA Affiliates of any liability under Title IV of ERISA with respect
to the termination of any Plan; (e) the receipt by any Credit Party or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by any Credit Party
or any of their ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by any Credit Party or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from any Credit Party or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the
meaning of Title IV of ERISA.

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

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the Borrower hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income by the

 

5

United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which the Borrower is located and
(c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.17(b)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement or is attributable to such
Foreign Lender’s failure or inability to comply with Section 2.15(e), except to the extent that
such Foreign Lender’s assignor (if any) was entitled, at the time of assignment, to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section
2.15(a).

     “Existing Revolving Credit Agreement” means the Five-Year Credit and Guarantee
Agreement, dated as of August 10, 2005, among the Borrower, the Guarantor, the lenders parties
thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent.

     “Federal Funds Effective Rate” means, with respect to any amount, the rate per annum
which is the average of the rates on the offered side of the Federal funds market quoted by three
interbank Federal funds brokers, selected by the Administrative Agent, at approximately 2:00 p.m.,
New York City time, on such day for dollar deposits in immediately available funds, in an amount
comparable to such amount, as determined by the Administrative Agent and rounded upwards, if
necessary, to the nearest 1/100 of 1%.

     “Financial Officer” means the chief financial officer, principal accounting
officer, treasurer or controller of the Borrower or the Guarantor, as the context may
require.

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

     “GAAP” means generally accepted accounting principles in the United States of America.

     “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state, provincial or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

     “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or services for the purpose
of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement condition or liquidity of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation or (d) as an account party in respect of any letter of credit or letter of guaranty

 

6

issued to support such Indebtedness or obligation; provided that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of business.

     “Guarantee Obligation” means, as to any Person, any obligation of such Person
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations
(the “primary obligations”) of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of such Person, whether or not contingent, (a) to
purchase any such primary obligation or any property constituting direct or indirect security
therefor, (b) to advance or supply funds (i) for the purchase or payment of any such primary
obligation or (ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such primary
obligation of the ability of the primary obligor to make payment of such primary obligation or (d)
otherwise to assure or hold harmless the owner of any such primary obligation against loss in
respect thereof; provided, however, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation shall be deemed to be an amount equal as of any date of
determination to the stated determinable amount of the primary obligation in respect of which such
Guarantee Obligation is made (unless such Guarantee Obligation shall be expressly limited to a
lesser amount, in which case such lesser amount shall apply) or, if not stated or determinable, the
amount as of any date of determination of the maximum reasonably anticipated liability in respect
thereof as determined by such Person in good faith.

     “Guarantor” means H&R Block, Inc., a Missouri corporation.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedging Agreement” means any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person
for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such
Person upon which interest charges are customarily paid, (d) all obligations of such Person under
conditional sale or other title retention agreements relating to property acquired by such Person,
(e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable and accrued expenses incurred in the ordinary course
of business), (f) all Indebtedness of others secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property
owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed,
(g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of
such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (j) all obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a
general partner) to the extent such Person is liable therefor

 

7

as a result of such Person’s ownership interest in or other relationship with such entity, except
to the extent the terms of such Indebtedness provide that such Person is not liable therefor.
Indebtedness of a Person shall not include obligations with respect to funds held by such Person in
custody for, or for the benefit of, third parties which are to be paid at the direction of such
third parties (and are not used for any other purpose).

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” has the meaning assigned to such term in Section
10.3(b).

     “Information” has the meaning assigned to such term in Section
10.12.

     “Interest Election Request” means a request by the Borrower to continue the Borrowing
in accordance with Section 2.6.

     “Interest Payment Date” means, with respect to any Loan, the last day of each Interest
Period applicable thereto and, in the case of an Interest Period of more than three months’
duration, each day prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period.

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

     “Lenders” means the Persons listed on Schedule 2.1 and any other Person that shall have become
a party hereto pursuant to an Assignment and Acceptance, other than any such Person that ceases to
be a party hereto pursuant to an Assignment and Acceptance.

     “LIBOR Rate” means, with respect to any Interest Period, the rate appearing on Reuters
Screen LIBOR01 Page at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to
such Interest Period. In the event that such rate is not available at such time for any reason,
then the “LIBOR Rate” with respect to such Interest Period shall be determined by reference to such
other comparable publicly available service for displaying eurodollar rates as may be selected by
the Administrative Agent or, in the absence of such availability, by reference to the rate at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest
of

 

8

a vendor or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities; provided that clause (c)
above shall be deemed not to include stock options granted by any Person to its directors, officers
or employees with respect to the Capital Stock of such Person.

     “Loan Documents” means this Agreement and the Notes, if any.

     “Loans” has the meaning assigned to such term in Section 2.1.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
property or condition (financial or otherwise) of the Guarantor and the Subsidiaries taken as a
whole, (b) the ability of any Credit Party to perform any of its obligations under this Agreement
or (c) the rights of or benefits available to the Lenders under this Agreement.

     “Material Indebtedness” means Indebtedness (other than the Loans), or obligations in
respect of one or more Hedging Agreements, of any one or more of the Credit Parties and any
Subsidiaries in an aggregate principal amount exceeding $40,000,000. For purposes of determining
Material Indebtedness, the “principal amount” of the obligations of any Credit Party or any
Subsidiary in respect of any Hedging Agreement at any time shall be the aggregate amount (giving
effect to any netting agreements) that the Credit Party or such Subsidiary would be required to pay
if such Hedging Agreement were terminated at such time.

     “Material Subsidiary” means any Subsidiary of any Credit Party, other than OOMC, the
aggregate assets or revenues of which, as of the last day of the most recently ended fiscal quarter
for which the Borrower has delivered financial statements, when aggregated with the assets or
revenues of all other Subsidiaries with respect to which the actions contemplated by Section 6.4 of
the Existing Revolving Credit Agreement are taken, are greater than 5% of the total assets or total
revenues, as applicable, of the Guarantor and its consolidated Subsidiaries, in each case as
determined in accordance with GAAP.

     “Maturity Date” means December 20, 2007.

     “Maximum Rate” has the meaning assigned to such term in Section 10.13.

     “Moody’s” means Moody’s Investors Service, Inc.

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

     “Net Cash Proceeds” means, in connection with any issuance of Indebtedness, the cash
proceeds received from such issuance, net of attorneys’ fees, investment banking fees, accountants’
fees, underwriting discounts and commissions and other customary fees and expenses actually
incurred in connection therewith.

     “Notes” means the collective reference to any promissory note evidencing Loans.

     “Obligations” means, collectively, the unpaid principal of and interest on the Loans and all
other obligations and liabilities of the Borrower (including interest accruing at the then
applicable rate provided herein after the maturity of the Loans and interest accruing at the then

 

9

applicable rate provided herein after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding) to the
Administrative Agent or any Lender, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, out of, or in connection
with, this Agreement or any other document made, delivered or given in connection herewith, whether
on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including all fees and disbursements of counsel to the Administrative Agent or to the
Lenders that are required to be paid by the Borrower pursuant to the terms of any of the foregoing
agreements).

     “OOMC” means Option One Mortgage Corporation, a California corporation.

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

     “Participant” has the meaning assigned to such term in Section 10.4(e).

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

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

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

     “Rating” means the rating of S&P or Moody’s, as the case may be, applicable to the long-term
senior unsecured non-credit enhanced debt of the Borrower, as announced by S&P or Moody’s, as the
case may be, from time to time.

     “Register” has the meaning assigned to such term in Section 10.4(c).

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

     “Required Lenders” means, at any time, Lenders holding more than 50% of the aggregate
unpaid principal amount of the Loans then outstanding.

     “S&P” means Standard & Poor’s Ratings Services.

     “Subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date,

 

10

as well as any other corporation, limited liability company, partnership, association or
other entity (a) of which securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such date, owned,
controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or
one or more Subsidiaries of the parent or by the parent and one or more Subsidiaries of the
parent. Notwithstanding the foregoing, no entity shall be considered a “Subsidiary” solely
as a result of the effect and application of FASB Interpretation No. 46R (Consolidation of
Variable Interest Entities). Unless the context shall otherwise require, all references to a
“Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Guarantor, including the Borrower and the Subsidiaries of the Borrower.

     “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority.

     “Transactions” means the execution, delivery and performance by the Credit Parties of
this Agreement, the borrowing of Loans and the use of the proceeds thereof.

     “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.

          SECTION 1.2. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to tune amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

          SECTION 1.3. [RESERVED].

          SECTION 1.4. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the Administrative Agent
that the Borrower requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

 

11

ARTICLE II

THE CREDITS

          SECTION 2.1. Commitments. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make a loan (a “Loan”) to the Borrower on the Closing Date in an
aggregate principal amount not to exceed such Lender’s Commitment.

          SECTION 2.2. [RESERVED].

          SECTION 2.3. Request for Borrowing. To request the Borrowing, the Borrower shall
deliver to the Administrative Agent a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower. Such written Borrowing Request shall specify the
following information:

     (i) the aggregate amount of the Borrowing;

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

     (iii) the initial Interest Period to be applicable thereto, which shall be
a period contemplated by the definition of the term “Interest Period”; and

     (iv) the location and number of the Borrower’s account to which funds are
to be disbursed, which shall comply with the requirements of Section 2.5(a).

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

          SECTION 2.4. [RESERVED].

          SECTION 2.5. Funding of Borrowing. (a) Each Lender shall make the Loan to be made by
it hereunder on the Closing Date by wire transfer of immediately available funds by 12:00 noon, New
York City time, to the account of the Administrative Agent designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower by
wire transfer of the amounts so received, in like funds, to an account specified by the Borrower by
5:00 p.m., New York City time (to the extent funds in respect thereof are received by the
Administrative Agent reasonably prior to such time), on the Closing Date.

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

 

12

interest rate then applicable to the Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in the Borrowing.

          SECTION 2.6. Interest Elections. (a) The Borrowing shall have an initial Interest
Period as specified in the Borrowing Request or determined pursuant to the penultimate sentence of
Section 2.3. Thereafter, the Borrowing shall be continued, and the Borrower may elect Interest
Periods therefor, all as provided in this Section.

          (b) To make an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone by not later than 11:00 a.m., New York City
time,
three Business Days before the proposed effective date of such election. Each such telephonic
Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the
Administrative Agent of a written Interest Election Request in a form approved by the
Administrative
Agent and signed by the Borrower.

          (c) Each telephonic and written Interest Election Request shall specify the following
information:

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

     (ii) the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the term
“Interest Period”.

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

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof.

          (e) If the Borrower fails to deliver a timely Interest Election Request prior to the end
of an Interest Period, then, unless the Borrowing is repaid as provided herein, at the end of such
Interest Period the Borrowing shall be continued with an Interest Period of one month’s duration.

          SECTION 2.7. [RESERVED].

          SECTION 2.8. Repayment of Loans: Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of each Lender
the then unpaid principal amount of the Loan made by such Lender on the Maturity Date.

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

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

 

13

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

          (e) Any Lender may request that the Loan made by it be evidenced by a promissory note.
In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and
its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the
Loan evidenced by such promissory note and interest thereon shall at all times (including
after assignment pursuant to Section 10.4) be represented by one or more promissory notes in
such form payable to the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns). In addition, upon receipt of an
affidavit of an officer of such Lender as to the loss, theft, destruction or mutilation of
the promissory note, and, in the case of any such loss, theft, destruction or mutilation,
upon cancellation of such promissory note, the Borrower will issue, in lieu thereof, a
replacement promissory note in the same principal amount thereof and otherwise of like tenor.

          SECTION 2.9. Prepayment of Loans. (a) The Borrower shall have the right at any time
and from time to time to prepay the Borrowing in whole or in part, without premium or penalty
except as provided in Section 2.14. The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder not later than 11:00 a.m., New York City time,
three Business Days before the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of the Borrowing to be prepaid. Promptly
following receipt of any such notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment shall be in an amount that is an integral multiple of
$10,000,000 and not less than $50,000,000. Each prepayment under this Section 2.9(a) shall be
applied ratably to the Loans then outstanding and shall be accompanied by accrued interest to the
extent required by Section 2.11.

          (b) An amount equal to 100% of the Net Cash Proceeds of any issuance of capital market
debt obligations (other than commercial paper) by the Guarantor, the Borrower, or any of their
respective Subsidiaries shall be applied on the date of such issuance toward the prepayment of the
Borrowing. Each prepayment under this Section 2.9(b) shall be applied ratably to the Loans then
outstanding and shall be accompanied by accrued interest to the extent required by Section 2.11.

          SECTION 2.10. Fees. (a) The Borrower agrees to pay to the Administrative Agent, for
its own account, fees payable in the amounts and at the times separately agreed upon between the
Borrower and the Administrative Agent.

          (b) All fees payable hereunder shall be paid on the dates due, in immediately
available funds. Fees paid shall not be refundable under any circumstances.

          SECTION 2.11. Interest. (a) The Loans shall bear interest at a rate per annum equal
to the LIBOR Rate for the Interest Period in effect plus the Applicable Rate.

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

 

14

          (c) Accrued interest on each Loan shall be payable in arrears on each Interest Payment
Date for such Loan; provided that (i) interest accrued pursuant to paragraph (b) of this
Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any
Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment, and (iii) all accrued interest shall be payable upon the
Maturity Date.

          (d) All interest hereunder shall be computed on the basis of a year of 360 days.
The LIBOR Rate shall be determined by the Administrative Agent, and such determination shall
be conclusive absent manifest error. The Administrative Agent shall as soon as practicable
notify the Borrower and the Lenders of the effective date and the amount of each change in
interest rate.

          SECTION 2.12. Alternate Rate of Interest. If prior to the commencement of any
Interest Period:

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

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

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, the Borrower and the Lenders shall negotiate in good faith to determine a comparable
interest rate of the Loans and, in the absence of agreement on such a rate, the interest rate
applicable to the Loans shall be an “alternate base rate” as reasonably determined by the
Administrative Agent according to methodology as described in the Existing Revolving Credit
Agreement.

          SECTION 2.13. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender; or

     (ii) impose on any Lender or the London interbank market any other
condition affecting this Agreement or such Lender’s Loan;

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

          (b) If any Lender determines that any Change in Law regarding capital requirements has
or would have the effect of reducing the rate of return on such Lender’s capital or on the capital
of such Lender’s holding company, if any, as a consequence of this Agreement or the Loan made by
such Lender to a level below that which such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time
the Borrower will

 

15

pay to such Lender such additional amount or amounts as will compensate such Lender or such
Lender’s holding company for any such reduction suffered.

          (c) A certificate of a Lender setting forth the amount or amounts necessary
to compensate such Lender or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section (together with a statement of the reason for such
compensation and a calculation thereof in reasonable detail) shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender
the amount shown as due on any such certificate within 10 days after receipt thereof.

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

          SECTION 2.14. Break Funding Payments. In the event of (a) the payment of any
principal of any Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the failure to borrow, continue or prepay any
Loan on the date specified in any notice delivered pursuant hereto, or (c) the assignment of any
Loan other than on the last day of an Interest Period applicable thereto as a result of a request
by the Borrower pursuant to Section 2.17, then, in any such event, the Borrower shall compensate
each Lender for the loss, cost and expense attributable to such event. The loss to any Lender
attributable to any such event shall be deemed to include an amount determined by such Lender to be
equal to the excess, if any, of (i) the amount of interest that such Lender would pay for a deposit
equal to the principal amount of the Loan made by it for the period from the date of such payment,
failure or assignment to the last day of the then current Interest Period for such Loan (or, in the
case of a failure to borrow or continue, the duration of the Interest Period that would have
resulted from such borrowing or continuation) if the interest rate payable on such deposit were
equal to the LIBOR Rate for such Interest Period, over (ii) the amount of interest that such Lender
would earn on such principal amount for such period if such Lender were to invest such principal
amount for such period at the interest rate that would be bid by such Lender (or an affiliate of
such Lender) for dollar deposits from other banks in the eurodollar market at the commencement of
such period. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any
such certificate within 10 days after receipt thereof.

          SECTION 2.15. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrower or the Guarantor hereunder shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided that if the Borrower or the Guarantor shall
be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative Agent or
Lender (as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made (provided, however, that neither the Borrower nor the Guarantor shall
be required to increase any such amounts payable to the Administrative Agent or Lender (as the case
may be) with respect to any Indemnified or Other Taxes that are attributable to such Lender’s
failure to comply with the requirements of paragraph (e) of this Section), (ii) the Borrower or the
Guarantor shall make such deductions and (iii) the Borrower

 

16

or the Guarantor shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

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

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

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

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding
tax under the law of the jurisdiction in which the Borrower is located, or any treaty to
which such jurisdiction is a party, with respect to payments under this Agreement shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such properly completed
and executed documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate.

          SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The
Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest or fees, or under Section 2.9,2.13, 2.14 or 2.15, or otherwise) prior to 12:00 noon, New
York City time, on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 452 Fifth Avenue, New York, New York, except that payments pursuant to
Sections 2.13, 2.14, 2.15 and 10.3 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension. All payments hereunder shall be made in dollars.

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

 

17

hereunder, ratably among the parties entitled thereto in accordance with such amounts then due to
such parties.

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

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

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.5(b), 2.16(c) or 2.16(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully paid.

          SECTION 2.17. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.13, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.15, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loan hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.13 or
2.15, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b) If any Lender requests compensation under Section 2.13, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of

 

18

any Lender pursuant to Section 2.15, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in Section 10.4),
all its interests, rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) the Borrower shall have received the prior written consent of the
Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loan, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts) and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.13 or payments required to be made pursuant to Section 2.15, such
assignment will result in a reduction in such compensation or payments. A Lender shall not be
required to make any such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and
delegation cease to apply. In determining whether to make a claim, and calculating the amount of
compensation, under Sections 2.13 and 2.15, each Lender shall apply standards that are not
inconsistent with those generally applied by such Lender in similar circumstances.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each of the Credit Parties represents and warrants to the Lenders that:

          SECTION 3.1. Organization; Powers. Each of the Credit Parties and the Subsidiaries is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has the power and authority to carry on its business as now conducted and, except
where the failure to be so, individually or in the aggregate, would not reasonably be expected to
result in a Material Adverse Effect, is qualified to do business in, and is in good standing in,
every jurisdiction where such qualification is required.

          SECTION 3.2. Authorization; Enforceability. The Transactions are within each Credit
Party’s corporate powers and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by each Credit Party and
constitutes a legal, valid and binding obligation of each Credit Party, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.

          SECTION 3.3. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of any Credit Party or any Subsidiary or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture, material agreement or
other instrument (other than those to be terminated on or prior to the Closing Date) binding upon
any Credit Party or any Subsidiary or their assets, or give rise to a right thereunder to require
any payment to be made by any Credit Party or any Subsidiary, and (d) will not result in the
creation or imposition of any Lien on any asset of any Credit Party or any Subsidiary.

 

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          SECTION 3.4. Financial Condition; No Material Adverse Change. (a) Each Credit Party
has heretofore furnished to the Lenders consolidated balance sheets and statements of income and
cash flows (and, in the case of the Guarantor, of stockholders’ equity) as of and for the fiscal
year ended April 30, 2006 (A) reported on by KPMG LLP, an independent registered public accounting
firm, in respect of the financial statements of the Guarantor, and (B) certified by its chief
financial officer, in respect of the financial statements of the Borrower. Each Credit Party has
heretofore furnished to the Lenders consolidated balance sheets and statements of income and cash
flows (and, in the case of the Guarantor, of stockholders’ equity) as of and for the nine-month
period ended January 31, 2007 certified by its chief financial officer. Such financial statements
present fairly, in all material respects, the financial position and results of operations and cash
flows of the Borrower and its consolidated Subsidiaries and of the Guarantor and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP. Except as set forth on
Schedule 3.4(a), neither the Guarantor nor any of its consolidated Subsidiaries had, at the date of
the most recent balance sheet referred to above, any material Guarantee Obligation, contingent
liability or liability for taxes, or any long-term lease or unusual forward or long-term
commitment, including any interest rate or foreign currency swap or exchange transaction not in the
ordinary course of business, which is not reflected in the foregoing statements or in the notes
thereto. During the period from April 30, 2006 to and including the date hereof, and except as
disclosed in filings made by the Guarantor with the U.S. Securities and Exchange Commission
pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, there has been no sale, transfer or other disposition by the Guarantor or any of its
consolidated Subsidiaries of any material part of its business or property other than in the
ordinary course of business and no purchase or other acquisition of any business or property
(including any Capital Stock of any other Person), material in relation to the consolidated
financial condition of the Guarantor and its consolidated Subsidiaries at April 30, 2006.

          (b) Since April 30, 2006, there has been no material adverse change in the business,
assets, property or condition (financial or otherwise) of the Guarantor and its Subsidiaries, taken
as a whole.

          SECTION 3.5. Properties. (a) Each of the Credit Parties and the Subsidiaries has good
title to, or valid leasehold interests in, all its real and personal property material to its
business, except for minor defects in title that do not interfere with its ability to conduct its
business as currently conducted or to utilize such properties for their intended purposes.

          (b) Each of the Credit Parties and the Subsidiaries owns, or is licensed to use, all
trademarks, tradenames, copyrights, patents and other intellectual property material to its
business, and the use thereof by the Credit Parties and the Subsidiaries does not infringe upon the
rights of any other Person, except for any such infringements that, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.6. Litigation and Environmental Matters. (a) There are no actions, suits
or proceedings by or before any arbitrator or Governmental Authority pending against or, to the
knowledge of any Credit Party, threatened against or affecting any Credit Party or any Subsidiary
that (i) have not been disclosed in the Disclosed Matters and as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined, would reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect or (ii)
challenge or would reasonably be expected to affect the legality, validity or enforceability of
this Agreement.

          (b) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, would not reasonably be expected to result in a Material
Adverse Effect, neither of the Credit Parties nor any Subsidiary (i) has failed to comply with
any Environmental

 

20

Law or to obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any
Environmental Liability.

          SECTION 3.7. Compliance with Laws and Agreements. Each of the Credit Parties and the
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to be so, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.8. Investment Company Status. Neither of the Credit Parties nor any of the
Subsidiaries is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended.

          SECTION 3.9. Taxes. Each of the Credit Parties and the Subsidiaries has timely filed
or caused to be filed all Tax returns and reports required to have been filed and has paid or
caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which the Guarantor, the Borrower or
such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent
that the failure to do so would not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, would reasonably be expected to result in a Material Adverse Effect. The present
value of all accumulated benefit obligations under each Plan (based on the assumptions used for
purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than $25,000,000 the fair
market value of the assets of such Plan, and the present value of all accumulated benefit
obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $25,000,000 the fair market value of the
assets of all such underfunded Plans.

          SECTION 3.11. Disclosure. None of the reports, financial statements, certificates or
other information furnished by or on behalf of the Credit Parties to the Administrative Agent or
any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified
or supplemented by other information so furnished) contains any material misstatement of fact or
omits to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with respect to
projected financial information, the Credit Parties represent only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the tune.

          SECTION 3.12. Federal Regulations. No part of the proceeds of any Loans will be used
for “purchasing” or “carrying” any “margin stock” (within the respective meanings of each of the
quoted terms under Regulation U of the Board as now and from time to time hereafter in effect) in a
manner or in circumstances that would constitute or result in non-compliance by any Credit Party or
any Lender with the provisions of Regulations U, T or X of the Board. If requested by any Lender or
the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR Form U-l referred to in
said Regulation U.

 

21

          SECTION 3.13. Subsidiaries. As of the date hereof, the Guarantor has only the
Subsidiaries set forth on Schedule 3.13.

          SECTION 3.14. Insurance. Each Credit Party and each Subsidiary of each Credit Party
maintains (pursuant to a self-insurance program and/or with financially sound and reputable
insurers) insurance with respect to its properties and business and against at least such
liabilities, casualties and contingencies and in at least such types and amounts as is customary in
the case of companies engaged in the same or a similar business or having similar properties
similarly situated.

ARTICLE IV

CONDITIONS

     The obligations of the Lenders to make Loans hereunder shall not become effective until the
date on which each of the following conditions is satisfied (or waived in accordance with Section
10.2):

          (a) The Administrative Agent (or its counsel) shall have received from each party hereto
a counterpart of this Agreement signed on behalf of such party.

          (b) The Lenders and the Administrative Agent shall have received all fees required to be
paid on or prior to the Closing Date.

          (c) The Administrative Agent shall have received reasonably satisfactory
written opinions (addressed to the Administrative Agent and the Lenders and dated the Closing
Date) of Mayer, Brown, Rowe & Maw LLP, special New York counsel for the Credit Parties, and
Bryan Cave LLP, special counsel for the Credit Parties, substantially in the forms of Exhibit
B-1 and B-2, respectively, and covering such other matters relating to the Credit Parties,
this Agreement or the Transactions as the Required Lenders shall reasonably request. The
Credit Parties hereby request such counsel to deliver such opinion.

          (d) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence
and good standing of the Credit Parties, the authorization of the Transactions and any other
legal matters relating to the Credit Parties, this Agreement or the Transactions, all in form
and substance satisfactory to the Administrative Agent and its counsel.

          (e) The Administrative Agent shall have received a certificate, dated the Closing Date
and signed by the President, a Vice President or a Financial Officer of each Credit Party,
confirming compliance with the conditions set forth in paragraphs (h) and (i) of this Article
IV.

          (f) The Administrative Agent shall have received all fees and other amounts due
and payable on or prior to the Closing Date, including, to the extent invoiced, reimbursement
or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower
hereunder.

          (g) All governmental and material third party approvals necessary in connection with the
execution, delivery and performance of this Agreement shall have been obtained and be in full
force and effect.

          (h) The representations and warranties of the Credit Parties set forth in Article III of
this Agreement shall be true and correct in all material respects on and as of the Closing Date.

 

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          (i) At the time of and immediately after giving effect to the Borrowing, no Default
shall have occurred and be continuing.

The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and such
notice shall be conclusive and binding.

ARTICLE V

COVENANTS

     Until the principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full, each of the Credit Parties covenants and agrees with the Lenders that it will
comply with the covenants set forth in Articles V and VI of the Existing Revolving Credit Agreement
(other than Section 5.9 of the Existing Revolving Credit Agreement) and the terms and provisions
set forth therein shall be incorporated by reference in this Agreement in their entirety as if
fully set forth herein with the same effect as if applied to this Agreement; provided, that Section
6.5 of the Existing Revolving Credit Agreement shall not apply to any transactions with OOMC. All
capitalized terms set forth in Articles V and VI of the Existing Revolving Credit Agreement shall
have the meanings provided in the Existing Revolving Credit Agreement.

     If Article V or VI of the Existing Revolving Credit Agreement or any definitions set forth or
used therein are amended or modified or the Existing Revolving Credit Agreement is terminated, this
Article V shall be deemed refer to the Existing Revolving Credit Agreement as in effect immediately
prior to such amendment, modification or termination, except, in the case of any such amendment or
modification, if the Required Lenders have consented thereto (either as parties to the Existing
Revolving Credit Agreement or as Lenders hereunder).

ARTICLE VI

[RESERVED]

ARTICLE VII

GUARANTEE

          SECTION 7.1. Guarantee. (a) The Guarantor hereby unconditionally and irrevocably
guarantees to the Administrative Agent and the Lenders and their respective successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the Borrower when due
(whether at the stated maturity, by acceleration or otherwise) of the Obligations.

          (b) The Guarantor further agrees to pay any and all expenses (including all fees and
disbursements of counsel) which may be paid or incurred by the Administrative Agent or any Lender
in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Article. This Article shall remain in full force and
effect until the Obligations and the obligations of

 

23

the Guarantor under the guarantee contained in this Article shall have been satisfied by payment in
full, notwithstanding that from time to time prior thereto the Borrower may be free from any
Obligations.

          (c) No payment or payments made by any Credit Party, any other guarantor or any other
Person or received or collected by the Administrative Agent or any Lender from any Credit Party
or any other Person by virtue of any action or proceeding or any set-off or appropriation or
application, at any time or from time to time, in reduction of or in payment of the
Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of
the Guarantor hereunder which shall, notwithstanding any such payment or payments, remain
liable hereunder for the Obligations until the Obligations are paid in full.

          (d) The Guarantor agrees that whenever, at any tune or from time to time, it shall make
any payment to the Administrative Agent or any Lender on account of its liability hereunder, it
will notify the Administrative Agent and such Lender in writing that such payment is made
under this Article for such purpose.

          SECTION 7.2. Delay of Subrogation. Notwithstanding any payment or payments made by
the Guarantor hereunder, or any set-off or application of funds of the Guarantor by the
Administrative Agent or any Lender, the Guarantor shall not be entitled to be subrogated to any of
the rights of the Administrative Agent or any Lender against the Borrower or against any collateral
security or guarantee or right of offset held by the Administrative Agent or any Lender for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or
reimbursement from the Borrower in respect of payments made by the Guarantor hereunder, until all
amounts owing to the Administrative Agent and the Lenders by the Borrower on account of the
Obligations are paid in full. If any amount shall be paid to the Guarantor on account of such
subrogation rights at any time when all of the Obligations shall not have been paid in full, such
amount shall be held by the Guarantor in trust for the Administrative Agent and the Lenders,
segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor,
be turned over to the Administrative Agent in the exact form received by the Guarantor (duly
indorsed by the Guarantor to the Administrative Agent, if required) to be applied against the
Obligations, whether matured or unmatured, in such order as the Administrative Agent may determine.
The provisions of this Section shall be effective notwithstanding the termination of this Agreement
and the payment in full of the Obligations.

 

24

          SECTION 7.3. Amendments, etc. with respect to the Obligations; Waiver of Rights. The
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against the Guarantor, and without notice to or further assent by the Guarantor, any demand for
payment of any of the Obligations made by the Administrative Agent or any Lender may be rescinded
by the Administrative Agent or such Lender, and any of the Obligations continued, and the
Obligations, or the liability of any other party upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Administrative Agent or any Lender, and this Agreement and any other
documents executed and delivered in connection herewith may be amended, modified, supplemented or
terminated, in whole or in part, in accordance with the provisions hereof as the Administrative
Agent (or the requisite Lenders, as the case may be) may deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the Administrative Agent or
any Lender for the payment of the Obligations may be sold, exchanged, waived, surrendered or
released. Neither the Administrative Agent nor any Lender shall have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as security for the Obligations or for
this Agreement or any property subject thereto. When making any demand hereunder against the
Guarantor, the Administrative Agent or any Lender may, but shall be under no obligation to, make a
similar demand on the Borrower or any other guarantor, and any failure by the Administrative Agent
or any Lender to make any such demand or to collect any payments from the Borrower or any such
other guarantor or any release of the Borrower or such other guarantor shall not relieve the
Guarantor of its obligations or liabilities hereunder, and shall not impair or affect the rights
and remedies, express or implied, or as a matter of law, of the Administrative Agent or any Lender
against the Guarantor. For the purposes hereof “demand” shall include the commencement and
continuance of any legal proceedings.

          SECTION 7.4. Guarantee Absolute and Unconditional. The Guarantor waives any and all
notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or
proof of reliance by the Administrative Agent or any Lender upon this Agreement or acceptance of
this Agreement; the Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this
Agreement; and all dealings between the Borrower and the Guarantor, on the one hand, and the
Administrative Agent and the Lenders, on the other, shall likewise be conclusively presumed to have
been had or consummated in reliance upon this Agreement. The Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to or upon the
Borrower and the Guarantor with respect to the Obligations. This Article shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (a) the validity,
regularity or enforceability of this Agreement, any other documents executed and delivered in
connection herewith, any of the Obligations or any other collateral security therefor or guarantee
or right of offset with respect thereto at any time or from time to time held by the Administrative
Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by the Guarantor against the
Administrative Agent or any Lender, or (c) any other circumstance whatsoever (with or without
notice to or knowledge of the Borrower or the Guarantor) which constitutes, or might be construed
to constitute, an equitable or legal discharge of the Borrower for the Obligations, or of the
Guarantor under this Article, in bankruptcy or in any other instance. When pursuing its rights and
remedies hereunder against the Guarantor, the Administrative Agent and any Lender may, but shall be
under no obligation to, pursue such rights and remedies as it may have against the Borrower or any
other Person or against any collateral security or guarantee for the Obligations or any right of
offset with respect thereto, and any failure by the Administrative Agent or any Lender to pursue
such other rights or remedies or to collect any payments from the Borrower or any such other Person
or to realize upon any such collateral security or guarantee or to exercise any such right of
offset, or any release of the Borrower or any such other Person or of any such collateral security,
guarantee or right of offset, shall not relieve the Guarantor of any liability

 

25

hereunder, and shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any Lender against the Guarantor. This
Article shall remain in full force and effect and be binding in accordance with and to the extent
of its terms upon the Guarantor and its successors and assigns, and shall inure to the benefit of
the Administrative Agent and the Lenders, and their respective successors, indorsees, transferees
and assigns, until all the Obligations and the obligations of the Guarantor under this Agreement
shall have been satisfied by payment in full, notwithstanding that from time to time during the
term of this Agreement the Borrower may be free from any Obligations.

          SECTION 7.5. Reinstatement. This Article shall continue to be effective, or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any of the
Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or
any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Credit Party or upon or as a result of the appointment of a receiver, intervenor or conservator of,
or trustee or similar officer for, any Credit Party or any substantial part of its property, or
otherwise, all as though such payments had not been made.

          SECTION 7.6. Payments. The Guarantor hereby agrees that all payments required to be
made by it hereunder will be made to the Administrative Agent without set-off or counterclaim in
accordance with the terms of the Obligations, including in the currency in which payment is due.

ARTICLE VIII

EVENTS OF DEFAULT

          If any of the following events (“Events of Default”) shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof
or otherwise;

          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any
other amount (other than an amount referred to in clause (a) of this Article) payable under
this Agreement, when and as the same shall become due and payable, and such failure shall
continue unremedied for a period of five business days;

          (c) any representation or warranty made or deemed made by any Credit Party (or any of
its officers) in or in connection with this Agreement or any amendment or modification hereof, or
in any report, certificate, financial statement or other document furnished pursuant to or in
connection with this Agreement or any amendment or modification hereof, shall prove to have
been incorrect in any material respect when made or deemed made;

          (d) any Credit Party shall fail to observe or perform any covenant, condition
or agreement contained in Article V as it relates to Section 5.2, 5.3 (with respect to
the Credit Parties’ existence) or 5.8 or Article VI of the Existing Revolving Credit
Agreement;

          (e) any Credit Party shall fail to observe or perform any covenant, condition
or agreement contained in this Agreement (other than those specified in clause (a), (b) or
(d) of this Article), and such failure shall continue unremedied for a period of 30 days
after notice thereof from the Administrative Agent (given at the request of any Lender) to
the Borrower;

 

26

          (f) any Credit Party or any Subsidiary shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable (after expiration of any applicable grace
or cure period);

          (g) any event or condition occurs that results in any Material Indebtedness becoming due
prior to its scheduled maturity; provided that this clause (g) shall not apply to (i)
secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness or (ii) any obligation under a Hedging
Agreement that becomes due as a result of a default by a party thereto other than a Credit
Party or a Subsidiary;

          (h) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of any Credit Party or any
Material Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state
or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii)
the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for any Credit Party or any Material Subsidiary or for a substantial part of its assets, and, in
any such case, such proceeding or petition shall continue undismissed for 60 days or an order or
decree approving or ordering any of the foregoing shall be entered;

          (i) any Credit Party or any Material Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other relief under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner,
any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for the Borrower or any Material Subsidiary or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding,
(v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose
of effecting any of the foregoing;

          (j) any Credit Party or any Material Subsidiary shall become unable, admit in
writing or fail generally to pay its debts as they become due;

          (k) one or more final judgments for the payment of money shall be rendered against the
Guarantor, the Borrower, any Subsidiary or any combination thereof and either (i) a creditor shall
have commenced enforcement proceedings upon any such judgment in an aggregate amount (to the extent
not covered by insurance as to which the relevant insurance company has not denied coverage) in
excess of $40,000,000 (a “Material Judgment”) or (ii) there shall be a period of 30 consecutive
days during which a stay of enforcement of any Material Judgment shall not be in effect (by reason
of pending appeal or otherwise) (it being understood that, notwithstanding the definition of
“Default”, no “Default” shall be triggered solely by the rendering of such a judgment or judgments
prior to the commencement of enforcement proceedings or the lapse of such 30 consecutive day
period, so long as such judgments are capable of satisfaction by payment at any time);

          (1) an ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, would reasonably be expected to
result in a Material Adverse Effect;

          (m) a Change in Control shall occur; or

          (n) the Guarantee contained in Article VII herein shall cease, for any reason, to be in
full force and effect in any material respect or any Credit Party shall so assert;

 

27

then, and in every such event (other than an event with respect to the Credit Parties described in
clause (h) or (i) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Borrower, declare the Loans then outstanding to be due and payable in whole (or in part, in
which case any principal not so declared to be due and payable may thereafter be declared to be due
and payable), and thereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and all fees and other Obligations of the Credit Parties accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Credit Parties; and in case of any event
with respect to the Credit Parties described in clause (h) or (i) of this Article, the principal of
the Loans then outstanding, together with accrued interest thereon and all fees and other
Obligations of the Credit Parties accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by
the Credit Parties.

ARTICLE IX

THE ADMINISTRATIVE AGENT

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

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

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

 

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

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

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent of
the Borrower so long as no Event of Default under Section 8(a), 8(b) or 8(i) shall have occurred
and be continuing (which consent shall not be unreasonably withheld), to appoint a successor. If no
successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice of its resignation,
then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of
any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to
a successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 10.3 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while it was acting as
Administrative Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any related agreement or any document furnished hereunder or thereunder.

          Notwithstanding anything to the contrary contained in this Agreement, the parties hereto
hereby agree that no agent (other than the Administrative Agent) shall have any rights, duties or
responsibilities in its capacity as agent hereunder and that no agent (other than the
Administrative Agent) shall have the authority to take any action hereunder in its capacity as
such.

 

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ARTICLE X

MISCELLANEOUS

          SECTION 10.1. Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

          (a) if to the Borrower or the Guarantor, to it at One H&R Block Way, Kansas City, Missouri
64105, Attention of Becky Shulman (Telecopy No. (816) 854-8043), David Staley (Telecopy No. (816)
854-8043) and Andrew Somora (Telecopy No. (816) 802-1043);

          (b) if to the Administrative Agent, to HSBC Bank USA, National Association, Agency
Services Group, One HSBC Center, Floor 26, Buffalo, NY 14203, Attention of Donna Riley
(Telecopy No. (716) 841-0269), with a copy to HSBC Bank USA, National Association, 452 Fifth
Avenue, New York, NY 10018, Attention of Peter Nealon (Telecopy No. (212) 525-2479); and

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

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt. Notices and other communications to the Lenders hereunder may be posted to
Intralinks or a similar website or delivered by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not apply to
notices pursuant to Section 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent, the Borrower or the Guarantor may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

          SECTION 10.2. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or consent to any departure
by the Credit Parties therefrom shall in any event be effective unless the same shall be permitted
by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of
whether the Administrative Agent or any Lender may have had notice or knowledge of such Default at
the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the Credit Parties and the
Required Lenders or by the Credit Parties and the Administrative Agent with the consent of the
Required Lenders; provided that no such agreement shall (i) increase the Commitment of any
Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or
reduce the

 

30

rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each
Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of
any Loan, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or
excuse any such payment, without the written consent of each Lender affected thereby, (iv) change
Section 2.16(b) or (c) in a manner that would alter the pro rata sharing of payments required
thereby, without the written consent of each Lender, (v) release the guarantee contained in Article
VII, without the written consent of each Lender or (vi) change any of the provisions of this
Section or the definition of “Required Lenders” or any other provision hereof specifying the number
or percentage of Lenders required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the written consent of each Lender;
provided, further, that no such agreement shall amend, modify or otherwise affect the
rights or duties of the Administrative Agent hereunder without the prior written consent of the
Administrative Agent.

          SECTION
10.3. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all
reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates, including the reasonable and documented fees, charges and disbursements of counsel for
the Administrative Agent, in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of this Agreement and any amendments, modifications or
waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby
shall be consummated) and (ii) all reasonable and documented out-of-pocket expenses incurred by the
Administrative Agent, or any Lender, including the reasonable and documented fees, charges and
disbursements of any counsel for the Administrative Agent, or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement, including its rights
under this Section, or in connection with the Loans made hereunder, including in connection with
any workout, restructuring or negotiations in respect thereof.

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

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

 

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Administrative Agent shall have the right to deduct any amount owed to it by any Lender under
this paragraph (c) from any payment made by it to such Lender hereunder.

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

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

          SECTION 10.4. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Credit Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Credit Party without such consent shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement,

          (b) Any Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Loan); provided that
(i) each of the Borrower and the Administrative Agent must give its prior written consent to such
assignment (which consent shall not be unreasonably withheld), (ii) except in the case of an
assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount
of the assigning Lender’s Loan, the amount of the Loan of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, (iii) each partial assignment shall be
made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement, (iv) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee
of $3,500, and (v) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire; provided,  further, that any consent of the
Borrower otherwise required under this paragraph shall not be required if an Event of Default has
occurred and is continuing. Upon acceptance and recording pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and Acceptance, the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Acceptance, be released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.13,2.14, 2.15 and 10.3). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.

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

 

32

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

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

          (e) Any Lender may, without the consent of any Credit Party or the Administrative Agent, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a portion of its Loan);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Credit Parties, the Administrative Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such
a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 10.2(b) that affects such Participant. Subject to paragraph (f) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections
2.13, 2.14 and 2.15 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.

          (f) A Participant shall not be entitled to receive any greater payment under Section 2.13 or
2.15 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.15 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.15(e) as though it were a Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any such pledge or
assignment to a Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such
assignee for such Lender as a party hereto.

          (h) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”). identified as such in
writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the
option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC
elects not to exercise such

 

33

option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be
obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan were
made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for which shall remain
with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the date that is one year
and one day after the payment in full of all outstanding commercial paper or other indebtedness of
any SPC, it will not institute against, or join any other person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws
of the United States or any state thereof. In addition, notwithstanding anything to the contrary in
this Section 10.4(h), any SPC may (A) with notice to, but without the prior written consent of, the
Borrower and the Administrative Agent and without paying any processing fee therefor, assign all or
a portion of its Loan to the Granting Lender, or with the prior written consent of the Borrower and
the Administrative Agent (which consent shall not be unreasonably withheld) to any financial
institutions providing liquidity and/or credit support to or for the account of such SPC to support
the funding or maintenance of Loans, and (B) disclose on a confidential basis any non-public
information relating to its Loan to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancement to such SPC; provided that non-public
information with respect to the Borrower may be disclosed only with the Borrower’s consent which
will not be unreasonably withheld. This paragraph (h) may not be amended without the written
consent of any SPC with a Loan outstanding at the time of such proposed amendment. An SPC shall not
be entitled to receive any greater payment under Section 2.13 or 2.15 than the applicable Granting
Lender would have been entitled to receive under such Sections if the Granting Lender had made the
relevant credit extension.

          SECTION 10.5. Survival. All covenants, agreements, representations and warranties
made by the Credit Parties herein and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this Agreement and the making
of any Loans regardless of any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any accrued interest on any
Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid. The
provisions of Sections 2.13, 2.14,2.15 and 10.3 and Article IX shall survive and remain in full
force and effect regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans or the termination of this Agreement or any provision hereof.

          SECTION 10.6. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and any separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. This Agreement shall become effective when it shall have
been executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

 

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          SECTION 10.7. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 10.8. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any tune held and other indebtedness at any time owing by such
Lender to or for the credit or the account of either Credit Party against any of and all the
obligations of such Credit Party now or hereafter existing under this Agreement held by such
Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement
and although such obligations may be unmatured. The rights of each Lender under this Section are in
addition to other rights and remedies (including other rights of setoff) which such Lender may
have.

          SECTION
10.9. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

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

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

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.1. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,

 

35

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

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

          SECTION 10.12. Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by
any regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement,
(g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section by it or (ii) becomes available to the
Administrative Agent or any Lender on a nonconfidential basis from a source other than any Credit
Party. For the purposes of this Section, “Information” means all information received from any
Credit Party relating to any Credit Party or its business, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure
by such Credit Party; provided that, in the case of information received from any Credit
Party after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

          SECTION 10.13. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other periods shall be increased (but not above the
Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal
Funds Effective Rate to the date of repayment, shall have been received by such Lender.

          SECTION 10.14. USA Patriot Act.

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

 

 

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

	 	 	 	 	 	 	 
	 	 	BLOCK FINANCIAL CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Becky S. Shulman
	 	 	 	 	 
	 

	 	 	 	Title:
	 	SVP & Treasurer
	 
	 	 	 	 	 	 
	 	 	H&R BLOCK, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ William L. Trubeck
	 	 	 	 	 
	 

	 	 	 	Title:
	 	EVP/CFO
	 
	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL ASSOCIATION, as
	 	 	Administrative Agent and as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Peter G. Nealon
	 	 	 	 	 
	 

	 	 	 	Title:
	 	PETER G. NEALON
	 

	 	 	 	 	 	MANAGING DIRECTOR
	 
	 	 	 	 	 	 
	 	 	BNP PARIBAS,
	 	 	as a Lender
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Curtis Price
	 	 	 	 	 
	 

	 	 	 	Title:	 	Managing Director 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher Grumboski
	 	 	 	 	 
	 

	 	 	 	Title:	 	Director

[Bridge Credit and Guarantee Agreement]

 

 

SCHEDULE 2.1

COMMITMENTS

	 	 	 	 	 
	Lender	 	Commitment
	HSBC Bank USA, National Association
	 	$	250,000,000	 
	BNP Paribas
	 	$	250,000,000	 
	 
	 	 	 	 
	Total
	 	$	500,000,000	 

 

 

SCHEDULE 3.4(a)

Guarantee Obligations

None.

 

 

SCHEDULE 3.6

Disclosed Matters

None.

 

 

SCHEDULE 3.13

Subsidiaries

          The following is a list of the direct and indirect subsidiaries of H&R Block, Inc., a
Missouri corporation.

	 	 	 	 	 
	 	 	Name	 	Jurisdiction
	1)

	 	H&R Block Group, Inc.
	 	Delaware
	2)

	 	HRB Management, Inc.
	 	Missouri
	3)

	 	H&R Block Tax and Financial Services Limited
	 	United Kingdom
	4)

	 	Companion Insurance, Ltd.
	 	Bermuda
	5)

	 	H&R Block Services, Inc.
	 	Missouri
	6)

	 	H&R Block Tax Services, Inc.
	 	Missouri
	7)

	 	HRB Partners, Inc.
	 	Delaware
	8)

	 	HRB Texas Enterprises, Inc.
	 	Missouri
	9)

	 	H&R Block and Associates, L.P.
	 	Delaware
	10)

	 	H&R Block Canada, Inc.
	 	Canada
	11)

	 	Financial Stop, Inc.
	 	British Columbia
	12)

	 	H&R Block Canada Financial Services, Inc.
	 	Canada
	13)

	 	H&R Block (Nova Scotia) Incorporated
	 	Nova Scotia
	14)

	 	H&R Block Enterprises, Inc.
	 	Missouri
	15)

	 	H&R Block Eastern Enterprises, Inc.
	 	Missouri
	16)

	 	The Tax Man, Inc.
	 	Massachusetts
	17)

	 	HRB Royalty, Inc,
	 	Delaware
	18)

	 	H&R Block Limited.
	 	New South Wales
	19)

	 	West Estate Investors, LLC
	 	Missouri
	20)

	 	H&R Block Global Solutions (Hong Kong) Limited
	 	Hong Kong
	21)

	 	Express Tax Services, Inc.
	 	Delaware
	22)

	 	H&R Block Tax and Business Services, Inc.
	 	Delaware
	23)

	 	Tax Works, Inc.
	 	Delaware
	24)

	 	H&R Block Tax Institute, LLC
	 	Missouri
	25)

	 	Block Financial Corporation
	 	Delaware
	26)

	 	Option One Mortgage Corporation
	 	California

 

 

	 	 	 	 	 
	 	 	Name	 	Jurisdiction
	27)

	 	Option One Mortgage Acceptance Corporation
	 	Delaware
	28)

	 	Option One Mortgage Securities Corp.
	 	Delaware
	29)

	 	Option One Mortgage Securities II Corp.
	 	Delaware
	30)

	 	Premier Trust Deed Services, Inc.
	 	California
	31)

	 	Premier Mortgage Services of Washington, Inc.
	 	Washington
	32)

	 	H&R Block Mortgage Corporation
	 	Massachusetts
	33)

	 	Option One Insurance Agency, Inc. (d/b/a H&R
Block Insurance Agency)
	 	California
	34)

	 	Woodbridge Mortgage Acceptance Corporation
	 	Delaware
	35)

	 	Option One Loan Warehouse Corporation
	 	Delaware
	36)

	 	Option One Advance Corporation
	 	Delaware
	37)

	 	AcuLink Mortgage Solutions, LLC
	 	Florida
	38)

	 	AcuLink of Alabama, LLC
	 	Alabama
	39)

	 	Option One Mortgage Corporation (India) Pvt Ltd
	 	India
	40)

	 	Option One Mortgage Capital Corporation
	 	Delaware
	41)

	 	First Option Asset Management Services, LLC
	 	California
	42)

	 	Premier Property Tax Services, LLC
	 	California
	43)

	 	First Option Asset Management Services, Inc.
	 	California
	44)

	 	Companion Mortgage Corporation
	 	Delaware
	45)

	 	Franchise Partner, Inc.
	 	Nevada
	46)

	 	HRB Financial Corporation
	 	Michigan
	47)

	 	H&R Block Financial Advisors, Inc.
	 	Michigan
	48)

	 	OLDE Discount of Canada
	 	Canada
	49)

	 	H&R Block Insurance Agency of Massachusetts, Inc.
	 	Massachusetts
	50)

	 	HRB Property Corporation
	 	Michigan
	51)

	 	HRB Realty Corporation
	 	Michigan
	52)

	 	4230 West Green Oaks, Inc.
	 	Michigan
	53)

	 	Financial Marketing Services, Inc.
	 	Michigan
	54)

	 	2430472 Nova Scotia Co.
	 	Nova Scotia
	55)

	 	H&R Block Digital Tax Solutions, LLC
	 	Delaware
	56)

	 	TaxNet Inc.
	 	California
	57)

	 	H&R Block Bank
	 	Federal

 

 

	 	 	 	 	 
	 	 	Name	 	Jurisdiction
	58)

	 	BFC Transactions, Inc.
	 	Delaware
	59)

	 	RSM McGladrey Business Services, Inc.
	 	Delaware
	60)

	 	RSM McGladrey, Inc.
	 	Delaware
	61)

	 	RSM McGladrey Financial Process Outsourcing, L.L.C.
	 	Minnesota
	62)

	 	RSM McGladrey Financial Process Outsourcing India Pvt. Ltd
(70% ownership)
	 	India
	63)

	 	Birchtree Financial Services, Inc.
	 	Oklahoma
	64)

	 	Birchtree Insurance Agency, Inc.
	 	Missouri
	65)

	 	Pension Resources, Inc.
	 	Illinois
	66)

	 	FM Business Services, Inc. (d/b/a Freed Maxick ABL Services)
	 	Delaware
	67)

	 	O’Rourke Career Connections, LLC (50% ownership)
	 	California
	68)

	 	Credit Union Jobs, LLC
	 	California
	69)

	 	RSM McGladrey TBS, LLC
	 	Delaware
	70)

	 	PDI Global, Inc.
	 	Delaware
	71)

	 	RSM Equico, Inc.
	 	Delaware
	72)

	 	RSM Equico Capital Markets, LLC
	 	Delaware
	73)

	 	Equico, Inc.
	 	California
	74)

	 	Equico Europe Limited
	 	United Kingdom
	75)

	 	RSM Equico Canada, Inc.
	 	Canada
	76)

	 	RSM McGladrey Business Solutions, Inc. (d/b/a RSM McGladrey Retirement Resources)
	 	Delaware
	77)

	 	CFS-McGladrey, LLC (50% ownership)
	 	Massachusetts
	78)

	 	Creative Financial Staffing of Western Washington, LLC (50%
ownership)
	 	Massachusetts
	79)

	 	Cfstaffing, Ltd. (25% ownership)
	 	British Columbia
	80)

	 	RSM McGladrey Insurance Services, Inc.
	 	Delaware
	81)

	 	RSM McGladrey Employer Services, Inc.
	 	Georgia
	82)

	 	RSM Employer Services Agency, Inc.
	 	Georgia
	83)

	 	RSM Employer Services Agency of Florida, Inc.
	 	Florida
	84)

	 	H&R Block (India) Pvt. Ltd.
	 	India
	85)

	 	RSM (Bahamas) Global, Ltd.
	 	Bahamas

 

 

EXHIBIT A

FORM OF

ASSIGNMENT AND ACCEPTANCE

          Reference is made to the $500,000,000 Bridge Credit and Guarantee Agreement, dated as of April
16,2007 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Block Financial Corporation (the “Borrower”), H&R Block, Inc.,
the Lenders party thereto and HSBC Bank USA, National Association, as administrative agent for the
Lenders (in such capacity, the “Agent”). Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

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

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

          2. The Assignor (a) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with the Credit
Agreement or with respect to the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement, or any other instrument or document furnished
pursuant thereto, other than that the Assignor has not created any adverse claim, lien or
encumbrance upon the interest being assigned by it hereunder and that such interest is free and
clear of any such adverse claim, lien or encumbrance; (b) makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any Credit Party, any of their
respective Subsidiaries or any other obligor or the performance or observance by any Credit Party,
any of their Subsidiaries or any other obligor of any of their respective obligations under the
Credit Agreement or any other instrument or document furnished pursuant hereto or thereto; and (c)
attaches any promissory notes held by it evidencing the Assigned Facilities and (i) requests that
the Agent, upon request by the Assignee, exchange the attached promissory notes for a new
promissory note or promissory notes payable to the Assignee and (ii) if the Assignor has retained
any interest in the Assigned Facility, requests that the Agent exchange the attached promissory
notes for a new promissory note or promissory notes payable to the Assignor, in each case in
amounts which reflect the assignment being made hereby (and after giving effect to any other
assignments which have become effective on the Effective Date).

          3. The Assignee (a) represents and warrants that it is legally authorized to enter into this
Assignment and Acceptance; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements delivered pursuant to Section 3.4 thereof and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (c) agrees that it will, independently and
without reliance upon the Assignor, the Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement or any other instrument or document
furnished pursuant hereto or thereto; (d) appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any
other instrument or document furnished pursuant hereto or

 

 

 2

thereto as are delegated to the Agent by the terms thereof, together with such powers as are
incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement
and will perform in accordance with its terms all the obligations which by the terms of the Credit
Agreement are required to be performed by it as a Lender including, if it is organized under the
laws of a jurisdiction outside the United States, its obligation pursuant to Section 2.15(e) of the
Credit Agreement.

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

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

          6. From and after the Effective Date, (a) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and shall be bound by the provisions thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and
be released from its obligations under the Credit Agreement.

          7. This Assignment and Acceptance shall be governed by and construed in accordance with the
laws of the State of New York.

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

 

 

Schedule 1

to Assignment and Acceptance

	 	 	 	 	 	 	 
	Name of Assignor:
	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name of Assignee:
	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Effective Date of Assignment:  	 	 	 	 
	 

	 	 	 

	 	 

	 	 	 	 	 
	Principal	 	 	 	 
	Amount Assigned	 	 	 	 
	$                    
	 	 	 	 
	$                    
	 	 	 	 

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

	 	 	 	 	 	By:	 	 	 	 
	 

	 

	 	 	 	 	 

	 	 
	Title: 

	 	 	 	 	Title: 	 	 	 
	 

	 

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Consented to and Accepted:	 	 	 	Consented To:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	HSBC BANK USA, NATIONAL	 	 	 	BLOCK FINANCIAL CORPORATION	 	 
	ASSOCIATION, as Administrative Agent	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 

	 	 	 	 	 

	 	 
	Title: 

	 	 	 	 	Title: 	 	 	 
	 

	 

	 	 	 	 	 

	 	 

 

 

EXHIBIT B-l 

[FORM OF OPINION OF MAYER, BROWN, ROWE & MAW LLP]

 

 

	 	 	 
	April 16, 2007

	 	Mayer, Brown, Rowe & Maw LLP
	 

	 	71 South Wacker Drive
	 

	 	Chicago, Illinois 60606 - 4637

	 

	 	Main Tel (312) 782 - 0600
	 

	 	Main Fax (312) 701 - 7711
	 

	 	www.mayerbrownrowe.com

HSBC Bank USA, National Association, as Administrative Agent,

   and each other financial institution that is a party

   to the Credit Agreement referred to below

			
	Re:	 	Bridge Credit and Guarantee Agreement dated as of
April 16, 2007 among
Block Financial Corporation, as Borrower, H&R Block, Inc., as Guarantor, the
Lenders party thereto and HSBC Bank USA, National Association, as
Administrative Agent (the “Credit Agreement”)

Ladies and Gentlemen:

          We have acted as special New York counsel for Block Financial Corporation, a Delaware
corporation (the “Borrower”), and H&R Block, Inc., a Missouri corporation (the
“Guarantor”), in connection with the above-referenced Credit Agreement. This opinion
letter is rendered to you pursuant to clause (c) of Article IV of the Credit Agreement. The
Borrower and the Guarantor are sometimes referred to herein as a “Credit Party” and collectively
as the “Credit Parties.” Capitalized terms used but not defined herein have the respective
meanings given thereto in the Credit Agreement.

          We have examined a copy of the Credit Agreement and conducted such investigations of law as
we have deemed necessary or advisable for purposes of this opinion letter. We have not undertaken
any independent investigation of any factual matter which might be relevant to this opinion letter
and we have made no independent investigation of the records of, or other matters relating to, the
Credit Parties or any other Person.

          For the purposes of this opinion letter, we have assumed that all items submitted to us as
originals are complete and authentic and all signatures thereon are genuine, and all items
submitted to us as copies are complete and conform to the originals. We have also assumed, with
your permission and without independent investigation of any kind, that: (i) all of the parties to
the Credit Agreement (the “Parties”) have been duly incorporated and are validly

Brussels
Charlotte Chicago Cologne Frankfurt Houston London LosAngeles Manchester New York
Palo Alto Paris Washington, D.C. Independent Mexico City Correspondent: Jauregui, Navarrete,
Nader y Rojas, S.C.

Mayer, Brown, Rowe & Maw LLP operates in combination with our associated English limited liability
partnership in the offices listed above.

 

 

Mayer,
Brown, Rowe & Maw LLP

HSBC Bank USA, National Association, and

the Lenders party to the Credit Agreement

April 16, 2007

Page 2

existing and in good standing under the laws of their respective jurisdictions of organization;
(ii) the Credit Agreement has been duly authorized, executed and delivered by all of the
Parties; (iii) the execution, delivery and performance of the Credit Agreement by each Party
(a) are in accordance with (and do not conflict with) the laws of such Party’s jurisdiction of
organization, (b) do not violate or contravene such Party’s organizational documents and (c) do
not violate or contravene any provision of any agreement or contract applicable to or binding
upon such Party; (iv) the Credit Agreement is the legal, valid and binding obligation of each
Party (other than the Credit Parties, as to which we express an opinion below); (v) there are
no agreements or understandings among the Parties, written or oral, and no usage of trade or
course of prior dealing among the Parties which would, in either case, define, supplement or
qualify the terms of the Credit Agreement; and (vi) the representations and warranties made in
the Credit Agreement by the Parties are true and accurate.

          Upon the basis of the foregoing and the other assumptions and qualifications set forth
below, we are of the opinion that:

          1. The Credit Agreement constitutes a legal, valid and binding agreement of the Credit
Parties, enforceable in accordance with its terms.

          2. Based upon our review of those statutes, rules, regulations and judicial decisions
which in our experience are normally applicable to or normally relevant in connection with
transactions of the type provided for in the Credit Agreement, the execution and delivery by
the Credit Parties of the Credit Agreement and the performance by the Credit Parties of their
respective payment obligations thereunder do not and will not violate, contravene or constitute
a default under any provision of any United States Federal or New York State law or regulation.

          3. No order, consent, approval, license, authorization or validation of or exemption by
any government or public body or authority of the State of New York is required to authorize or
is required in connection with the execution, delivery and performance by the Credit Parties of
the Credit Agreement.

          4. The making of the Loans and the application of the proceeds thereof as provided in the
Credit Agreement will not violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System.

          Our opinions set forth above are subject to the following qualifications:

          (a) We express no opinion as to any law, rule, regulation, ordinance, code or similar
provision of law of any county, municipality or similar political subdivision of the State of
New York or any agency or instrumentality thereof, and we express no opinion as to any law to
which the Credit Parties may be subject solely as a result of your legal or regulatory status
or as to any federal or state securities or “blue sky” law. Members of our Firm are admitted
to practice law

 

 

Mayer,
Brown, Rowe & Maw LLP

HSBC Bank USA, National Association, and

the Lenders party to the Credit Agreement

April 16, 2007

Page 3

in the State of New York and we express no opinion on any law other than the laws of the State
of New York and the Federal law of the United States to the extent specifically set forth
herein.

          (b) Our opinions are subject to the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar law affecting creditors’ rights
generally and to the effect of general principles of equity (regardless of whether considered
in a proceeding in equity or at law), including (without limitation) concepts of materiality,
reasonableness, good faith and fair dealing and limitations on the availability of specific
performance, injunctive relief or other equitable remedies.

          (c) We express no opinion as to: (i) obligations relating to indemnification,
contribution or exculpation of costs, expenses or liabilities which contravene public policy;
(ii) any agreement by the Credit Parties to the subject matter jurisdiction of a United States
federal court, to the waiver of the right to jury trial or to be served with process by service
in a particular manner; (iii) any agreement by the Credit Parties purporting to waive any
objection to the laying of venue or any claim that an action or proceeding has been brought in
an inconvenient forum; (iv) the effect of the law of any jurisdiction other than the State of
New York wherein any Lender may be located or wherein the enforcement of the Credit Agreement
may be sought that limits the rates of interest, fees or other charges legally chargeable or
collectible; or (v) whether any court outside the State of New York would honor the choice of
New York law as the governing law of the Credit Agreement. Without limiting clause (iii)
above, we note that (i) under NYCPLR §510 a New York State court may have discretion to
transfer the place of trial and (ii) under 28 U.S.C. §1404(a) a United States District Court
has discretion to transfer an action from one Federal court to another.

          (d) We wish to point out that provisions of the Credit Agreement which provide that the
liability of the Guarantor shall not be released or reduced by any amendment to, or any
variation, release or waiver of, any obligation of the Borrower may be enforceable only to the
extent such amendment, variation, release or waiver is not so material as to constitute a new
contract between the parties.

          (e) We express no opinion as to any provision of the Credit Agreement that authorizes the
Administrative Agent or any Lender, or any purchaser of a participation interest from any
party, to set off or apply any deposit, indebtedness or other property against any
participation interest.

          (f) We express no opinion as to: (i) provisions restricting access to legal or equitable
remedies; (ii) provisions that purport to establish evidentiary standards; (iii) provisions
relating to waivers, severability, contribution or delay or omission of enforcement of rights
or remedies; (iv) provisions purporting to convey rights to Persons other than parties to the
Credit Agreement; or (v) any provision which provides that the Credit Agreement may only be
amended, waived or modified in writing.

 

 

Mayer,
Brown, Rowe & Maw LLP

HSBC Bank USA, National Association, and

the Lenders party to the Credit Agreement

April 16, 2007

Page 4

          (g) We have made no examination of any financial or accounting matters, including the
ability of the Guarantor to comply with any financial covenant or the ability of any Credit
Party to comply with any financial limitation on indebtedness, and we express no opinion with
respect to any such matter.

          The opinions expressed herein are effective only as to the date of this opinion letter.
We do not assume responsibility for updating this opinion letter as of any date subsequent to
the date of this opinion letter, and we assume no responsibility for advising you of (i) any
changes with respect to any matters described in this opinion letter or (ii) the discovery
subsequent to the date of this opinion letter of factual information not previously known to
us pertaining to events occurring prior to the date of this opinion letter.

          This opinion letter is rendered solely to you in connection with the above-described
transactions. This opinion letter may not be relied upon by you for any other purpose, or
relied upon by any other Person for any purpose, without in each case our prior written
consent.

Very truly yours,

MAYER, BROWN, ROWE & MAW LLP

 

 

EXHIBIT B-2 

[FORM OF OPINION OF BRYAN CAVE LLP]

 

 

	 	 	 
	 

	 	Bryan Cave LLP
	 
	 	 
	 

	 	One Kansas City Place
	 

	 	1200 Mam Street, Suite 3500
	 

	 	Kansas City, MO 64105-2100
	 

	 	Tel (816) 374-3200
	 

	 	Fax (816) 374-3300
	 

	 	www.bryancave.com
	 
	 	 
	 

	 	Chicago
	 

	 	Hong Kong
	 

	 	Irvine
	 

	 	Jefferson City
	 

	 	Kansas City
	 

	 	Kuwait
	 

	 	Los Angeles
	 

	 	New York
	 

	 	Phoenix
	 

	 	Shanghai
	 

	 	St. Louis
	 

	 	Washington, DC
	 
	 	 
	 

	 	And Bryan Cave,
	 

	 	A Multinational Partnership,
	 
	 	 
	 

	 	London

April 16, 2007

HSBC Bank USA, National Association,

as Administrative Agent,

and each of the other financial institutions

which is a party to the Credit Agreement 

referred to below

		
	Re:	Bridge Credit and Guarantee Agreement dated as of April 16, 2007, among Block Financial
Corporation, as Borrower, H&R Block, Inc., as Guarantor, the Lenders party thereto and HSBC
Bank USA, National Association as Administrative Agent (the
“Credit Agreement”)

Ladies and Gentlemen:

We have acted as special counsel to Block Financial Corporation, a Delaware corporation, as
borrower (the “Borrower”), and H&R Block, Inc., a Missouri corporation, as guarantor (the
“Guarantor”), in connection with the above-referenced Credit Agreement. The Borrower and
the Guarantor are sometimes individually referred to herein as a “Credit Party” and are
sometimes collectively referred to herein as the “Credit Parties.” This opinion letter is furnished
to you pursuant to clause (c) of Article IV of the Credit Agreement. Capitalized terms used herein
without definition have the same meanings as in the Credit Agreement.

For purposes of this opinion letter, we have examined the following documents: (i) a copy of the
Credit Agreement; (ii) copies of the certificates delivered to the Administrative Agent by the
Credit Parties pursuant to clauses (d) and (e) of Article IV of the Credit Agreement; (iii) the
Officer’s Certificates delivered to us by the Credit Parties; (iv) a copy of the Certificate of
Good Standing with respect to the Borrower issued by the Secretary of State of the State of
Delaware dated April 13, 2007; (v) a copy of the Certificate of Good Standing with respect to the
Guarantor issued by the Secretary of State of the State of Missouri dated April 13, 2007; and (vi)
such other corporate records of the Credit Parties as we have deemed necessary or appropriate to
enable us to render the opinions expressed below.

We have also examined originals or copies, certified or otherwise identified to our satisfaction,
of the Articles of Incorporation or Certificate of Incorporation, as the case may be, and the
bylaws of each the Credit Parties and such other corporate records, agreements and instruments of
the Credit Parties, certificates of public officials and officers of the Credit Parties, and such
other documents, records and

 

 

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instruments, and we have made such legal and factual inquiries, as we have deemed necessary or
appropriate as a basis for us to render the opinions hereinafter expressed. In our examination of
the Credit Agreement and the foregoing, we have assumed the genuineness of all signatures, the
legal competence and capacity of natural persons, the authenticity of documents submitted to us as
originals and the conformity with authentic original documents of all documents submitted to us as
copies. When relevant facts were not independently established, we have relied without independent
investigation as to matters of fact upon statements of governmental officials and upon
representations made in or pursuant to the Credit Agreement and certificates and statements of
appropriate representatives of the Credit Parties.

In connection herewith, we have assumed that, other than with respect to the Credit Parties, all
of the documents referred to in this opinion letter have been duly authorized by, have been duly
executed and delivered by, and constitute the valid, binding and enforceable obligations of, all
of the parties to such documents, all of the signatories to such documents have been duly
authorized and all such parties are duly organized and validly existing and have the power and
authority (corporate or other) to execute, deliver and perform such documents.

Based upon the foregoing and in reliance thereon, and subject to the assumptions, comments,
qualifications, limitations and exceptions set forth herein, we are of the opinion that:

     1. Based solely on recently dated good standing certificate from the Secretary of State of the
State of Delaware, the Borrower is validly existing as a corporation, in good standing under the
laws of the State of Delaware. Based solely on recently dated good standing certificate from the
Secretary of State of the State of Missouri, the Guarantor is validly existing as a corporation, in
good standing under the laws of the State of Missouri. Each Credit Party has all requisite corporate
power to own and operate its material properties and conduct its business in all material respects
as now being conducted.

     2. The execution and delivery by each Credit Party of the Credit Agreement and the
consummation by each Credit Party of its obligations thereunder are within each Credit Party’s
corporate power and have been duly authorized by all necessary corporate action on the part of each
Credit Party.

     3. No consent, approval, authorization or other action by, and no notice to or filing with,
any federal or Delaware or Missouri governmental authority or regulatory body is required for the
due execution, delivery and consummation by each Credit Party of its obligations under the Credit
Agreement, except for such consents, approvals, filings or registrations that have been obtained or
made on or prior to the date hereof and are in full force and effect.

     4. The Credit Agreement has been duly executed and delivered by each Credit Party.

     5. The execution and delivery by each Credit Party of the Credit Agreement and the
consummation by each Credit Party of its obligations thereunder do not result in (a) any violation
by

 

 

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either Credit Party of (i) the provisions of its Articles of Incorporation or Certificate of
Incorporation, as the case may be, or its bylaws, (ii) any provision of applicable law that we,
based on our experience, recognize as applicable to either Credit Party in a transaction of this
type, or (iii) to our knowledge, any order, writ, judgment or decree of any U.S. federal or
Delaware or Missouri court or governmental authority or regulatory body having jurisdiction over
either Credit Party or any of their subsidiaries or any of their material properties, or (b) a
breach or default or require the creation or imposition of any security interest or lien upon any
of either Credit Party’s properties pursuant to any material agreement, contract or instrument
known to us to which either Credit Party is a party or by which either Credit Party is bound. For
purposes of the foregoing, we have assumed that the only material agreements, contracts or
instruments to which either Credit Party is a party or by which it is bound are those listed as
exhibits to the Guarantor’s Annual Report on Form 10-K filed with the Securities and Exchange
Commission on June 30, 2006 and Quarterly Reports on Form 10-Q filed with the Securities and
Exchange Commission on September 11, 2006, December 11, 2006 and March 14, 2007, respectively.

     6. Neither Credit Party is an “investment company” or a company “controlled” by an
“investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

In addition to the assumptions, comments, qualifications, limitations and exceptions set forth
above, the opinions set forth herein are further limited by, subject to and based upon the
following assumptions, comments, qualifications, limitations and exceptions:

     (a) Wherever this opinion letter refers to matters “known to us,” or to our “knowledge,” or
words of similar import, such reference means that, during the course of our representation of the
Credit Parties with respect to the Credit Agreement, we have requested information of the Credit
Parties concerning the matter referred to and no information has come to the attention of (either
as a result of such request for information or otherwise) the attorneys currently employed by our
Firm devoting substantive attention or a material amount of time thereto, which has given us actual
knowledge of the existence (or absence) of facts to the contrary. Except as otherwise stated
herein, we have undertaken no independent investigation or verification of such matters, and no
inference should be drawn to the contrary from the fact of our representation of the Credit
Parties.

     (b) Our opinions herein reflect only the application of applicable Missouri law, the Federal
laws of the United States and, to the extent required by the foregoing opinions, the General
Corporation Law of the State of Delaware. The opinions set forth herein are made as of the date
hereof and are subject to, and may be limited by, future changes in the factual matters set forth
herein, and we undertake no duty to advise you of the same. The opinions expressed herein are based
upon the law in effect (and published or otherwise generally available) on the date hereof, and we
assume no obligation to revise or supplement these opinions should such law be changed by
legislative action, judicial decision or otherwise. In rendering our opinions, we have not
considered, and hereby disclaim any opinion as to, the application or impact of any laws, cases,
decisions, rules or regulations of any other jurisdiction, court or administrative agency.

 

 

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     (c) In Missouri, there is some question as to whether Article XI, Section 7, of the Missouri
Constitution and Section 351.160 of the General and Business Corporation Law of Missouri (“MGBCL”),
which provide that no corporation shall issue shares or bonds or other obligations for the payments
of money, except for money paid, labor done or property actually received, apply to guarantees.
However, Section 351.385(7) of the MGBCL provides that Missouri corporations have power to
guarantee the debt and obligations of other corporations, and there is judicial precedent that a
guarantee, even in the absence of consideration therefor, does not violate the constitutional
prohibition. See Charter Capital Group, Inc. v. Cook, 813 S.W. 2nd 383 (Mo. App.
1991). We are aware of an unpublished opinion in which the issue was whether a corporation’s
guaranty was invalid under Article XI, Section 7 of the Missouri Constitution and Mo, Rev. Stat. §
351.160. According to the court’s opinion, the purpose of those provisions is to insure that a
corporation does not incur an obligation unless it receives reasonably equivalent consideration in
return. The court did not expressly rule that a corporate guaranty could be prohibited by those
provisions but found that the guarantor had received adequate consideration for its guaranty
because the proceeds of the guaranteed loans were used to pay off an antecedent indebtedness of the
guarantor. In re Holden Fertilizer Service, Inc., No. 89-41949-2-11, Slip Op. at 5-6
(Bankr, W.D. Mo., Sept. 20, 1990). Although the guaranty was upheld, the opinion raises the
uncertainty that the Missouri fictitious indebtedness provisions would invalidate a corporate
guaranty which is given without sufficient benefit to the guarantor. For purposes of this opinion,
we have assumed that the Guarantor’s guaranty is being given for sufficient benefit to the
Guarantor.

This opinion letter is rendered only to the Administrative Agent and the Lenders and is solely for
their benefit and the benefit of their permitted assignees and participants in connection with the
above-described transactions. By your acceptance of this opinion letter, you agree that it may not
be relied upon, circulated, quoted or otherwise referred to by the Administrative Agent, the
Lenders or any permitted assignee or participant for any other purpose, or relied upon,
circulated, quoted or otherwise referred to by any other person, firm or corporation for any
purpose without our prior written consent in each instance.

Very truly yours,exv10w58

 

Exhibit 10.58

      

SUPPLEMENTAL INDENTURE NUMBER ONE

Dated as of April 27, 2007

to the

INDENTURE

Dated as of November 1, 2003

OPTION ONE OWNER TRUST 2003-5,

as Issuer

and

WELLS FARGO BANK, N.A.

not in its individual capacity, but solely as Indenture Trustee

OPTION ONE OWNER TRUST 2003-5

MORTGAGE-BACKED NOTES

 

     This SUPPLEMENTAL INDENTURE NUMBER ONE is made and entered into this 27th day of
April, 2007 (the “Supplemental Indenture Number One”), by and between OPTION ONE OWNER TRUST
20.03-5, as the issuer (the “Issuer”), and WELLS FARGO BANK, N.A. as the indenture trustee (the
“Indenture Trustee”), in connection with the Indenture dated as of November 1, 2003 between the
above mentioned parties as previously amended or supplemented (the “Indenture”), and the issuance
of the Option One Owner Trust 2003-5 Mortgage-Backed Notes. This amendment is made pursuant to
Section 9.02 of the Indenture.

PRELIMINARY STATEMENT

     WHEREAS, Section 9.02 of the Indenture provides that the Indenture may be amended by the
Issuer and the Indenture Trustee with the consent of the Majority Noteholders of all Notes, for
among other reasons, to add, change, eliminate any provisions thereto or modify in any manner
the rights of any Noteholder thereunder; and

     WHEREAS, the Indenture Trustee (as directed by the Majority Noteholder), the Majority
Noteholder, the Owner Trustee and the Owner hereby waive the various notice requirements in
connection with this Supplemental Indenture Number One set forth in the Indenture and the Trust
Agreement; and

     WHEREAS, the parties desire to amend the maturity date with respect to the Notes on the
terms and conditions herein and in the other Basic Documents; and

 

 

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

     1. Capitalized terms used herein and not defined herein shall have the meanings assigned to
such terms in the Indenture.

     2. The Indenture is hereby amended by deleting the definition of “Maturity Date” in Article
I and replacing it with the following:

          “Maturity Date” means, with respect to the Notes, My 30, 2007.

     3. Direction and Instruction.

          (a) The Issuer, by signing this Supplemental Indenture Number One, hereby directs
and instructs the Indenture Trustee to enter into this Supplemental Indenture Number One
pursuant to
Section 9.02 of the Indenture. The Issuer, the Owner Trustee and the Indenture Trustee hereby
acknowledge and agree that the direction and instruction set forth in the previous sentence
shall constitute
the Issuer Order required by Section 9.02 of the Indenture.

          (b) Option One Loan Warehouse LLC (as successor-in-interest to Option One Loan
Warehouse Corporation), as holder of 100% Percentage Interests in the Trust Certificate issued
pursuant
to the Trust Agreement, hereby directs and instructs Wilmington Trust Company under the Trust
Agreement to execute (i) this Supplemental Indenture Number One and (ii) the Second Amended
and
Restated Pricing Letter, dated as of the date hereof among the Issuer, the Depositor, Option
One
Mortgage Corporation and the Indenture Trustee, in each case in its capacity as Owner Trustee
and on
behalf of the Trust, and agrees that Wilmington Trust Company is covered by the fee and
indemnification
provisions of the Trust Agreement in connection with this request.

     4. Waivers. The Noteholder, as the sole Noteholder of 100% of the Notes issued under
the
Indenture, hereby consents to this Supplemental Indenture Number One, acknowledges that the
substance
of this Supplemental Indenture Number One may have an adverse effect on the Notes, and the
Noteholder
waives, and hereby directs the Indenture Trustee to waive, the requirement under Section 9.02
of the
Indenture that the Indenture Trustee receive an Opinion of Counsel for the benefit of the
Noteholder to
the effect that this Supplemental Indenture Number One will not have a material adverse effect
on the
Notes. The Indenture Trustee and the Noteholder hereby waive the requirement under Section
9.02 of the
Indenture that the Indenture Trustee provide the Noteholder with a notice prepared by the
Issuer setting
forth the substance of this Supplemental Indenture Number One. The Owner Trustee, the Owner
and the
Noteholder hereby waive the requirement under Section 4.1(a) of the Trust Agreement that the
Owner
Trustee shall have provided thirty days’ prior written notification to the Owner and the
Noteholder of the
substance of this Supplemental Indenture Number One.

     6. Ratification of Indenture. Except as expressly amended hereby, the Indenture is
in all
respects ratified and confirmed and all the terms, conditions and provisions thereof shall
remain in full
force and effect. This Supplemental Indenture Number One shall form a part of the Indenture
for all
purposes, and every Holder heretofore or hereafter authenticated and delivered shall be bound
hereby.
The Trustee makes no representation or warranty as to the validity or sufficiency of this
Supplemental
Indenture Number One.

     7. Counterparts. This Supplemental Indenture Number One may be
executed
simultaneously in any number of counterparts, each of which counterparts shall be deemed to be
an
original, and such counterparts shall constitute but one and the same instrument.

2

 

     8. Governing Law. This Supplemental Indenture Number One shall be construed in
accordance with the laws of the State of New York and the obligations, rights and remedies of
the parties
hereunder shall be determined in accordance with such laws, without reference to or giving
effect to its
rules or principles governing conflicts of laws.

     9. Severability of Provisions. If any one or more of the covenants, agreements,
provisions
or terms of this Supplemental Indenture Number One for any reason whatsoever shall be held
invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the
remaining
covenants, agreements, provisions or terms of this Supplemental Indenture Number One and shall
in no
way affect the validity or enforceability of the other provisions of this Supplemental
Indenture Number
One or the Indenture.

     10. Successors and Assigns. The provisions of this Supplemental Indenture Number One
shall be binding upon and inure to the benefit of the respective successors and assigns of the
parties
hereto, and all such provisions shall inure to the benefit of the Noteholder.

     11. Article and Section Headings. The article and section headings herein
are for
convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

[Signature Page Follows]

3

 

     IN WITNESS WHEREOF, the Issuer and the Indenture Trustee, have caused their duly
authorized representatives to execute and deliver this Supplemental Indenture Number One as of the
date first above written.

	 	 	 	 	 
	 	 	OPTION ONE OWNER TRUST 2003-5, as Issuer
	 
	 	 	 	 
	 	 	By: Wilmington Trust Company, not in its individual

capacity but solely as owner trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mary Kay Pupillo
	 

	 	 	 	 
	 

	 	Name:
	 	Mary Kay Pupillo
	 

	 	Title:
	 	Assistant Vice President
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., not in its individual
capacity but solely as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Melissa Loiselle
	 

	 	 	 	 
	 

	 	Name:
	 	Melissa Loiselle
	 

	 	Title:
	 	Vice President

The undersigned certifies that it is the holder of 100% of the Notes issued by the Issuer
under the Indenture, and hereby executes this Supplemental Indenture Number One for purposes of
Section 5 and consents to this Supplemental Indenture Number One:

	 	 	 	 	 
	CITIGROUP GLOBAL MARKETS REALTY CORP.	 	 
	 
	 	 	 	 
	By:

	 	/s/ A. Randall Appleyard	 	 
	Name:

	 	 

A. Randall Appleyard
	 	 
	Title:

	 	Authorized Agent	 	 

The undersigned certifies that it is the holder of 100% of Percentage Interests in the Trust
Certificate issued pursuant to the Trust Agreement, and hereby executes this Supplemental
Indenture Number One for purposes of Section 3(b).

OPTION ONE LOAN WAREHOUSE LLC

(as successor-in-interest to Option One Loan Warehouse Corporation)

	 	 	 	 	 
	By:

	 	/s/ Charles R. Fulton	 	 
	Name:

	 	 

Charles R. Fulton
	 	 
	Title

	 	Assistant Secretary	 	 

Supplemental Indenture Number One to Indenture (Option One Owner Trust 2003-5)

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