Document:

$433,333,333.34

364-DAY CREDIT AGREEMENT

 

dated as of

 

August 14, 2009

 

among

 

THE McGRAW-HILL COMPANIES, INC.

as Borrower

 

STANDARD & POOR’S FINANCIAL SERVICES LLC

as Guarantor

 

 

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 

BANK OF AMERICA, N.A.

as Syndication Agent

 

 

 

DEUTSCHE BANK AG NEW YORK BRANCH

 

MORGAN STANLEY MUFG LOAN PARTNERS, LLC

 

THE ROYAL BANK OF SCOTLAND PLC

 

CITIBANK, N.A.

 

as Documentation Agents

 

	 J.P. MORGAN SECURITIES INC.	 	
BANC OF AMERICA SECURITIES LLC

as Joint Lead Arrangers and Joint Bookrunners

 

 

 

 

 

 

TABLE OF CONTENTS

 

Page 

 

	
ARTICLE I Definitions 
	
1

	 	 
	
SECTION 1.01. Defined Terms
	
1

	 	 
	
SECTION 1.02. Classification of Loans and Borrowings
	
17

	 	 
	
SECTION 1.03. Terms Generally
	
17

	 	 
	
SECTION 1.04. Accounting Terms; GAAP
	
17

	 	 
	
ARTICLE II The Credits
	
18

	 	 
	
SECTION 2.01. Commitments
	
18

	 	 
	
SECTION 2.02. Loans and Borrowings
	
18

	 	 
	
SECTION 2.03. Requests for Revolving Borrowings
	
19

	 	 
	
SECTION 2.04. Term Loans
	
19

	 	 
	
SECTION 2.05. Request for Term Borrowing
	
20

	 	 
	
SECTION 2.06. Competitive Bid Procedure
	
20

	 	 
	
SECTION 2.07. Funding of Borrowings
	
22

	 	 
	
SECTION 2.08. Interest Elections
	
23

	 	 
	
SECTION 2.09. Termination and Reduction of Commitments
	
24

	 	 
	
SECTION 2.10. Repayment of Loans; Evidence of Debt
	
25

	 	 
	
SECTION 2.11. Prepayment of Loans
	
25

	 	 
	
SECTION 2.12. Fees
	
26

	 	 
	
SECTION 2.13. Interest
	
26

	 	 
	
SECTION 2.14. Alternate Rate of Interest
	
27

	 	 
	
SECTION 2.15. Increased Costs
	
28

	 	 
	
SECTION 2.16. Break Funding Payments
	
29

 

 

i

 

 

	
SECTION 2.17. Taxes
	
30

	 	 
	
SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	
32

	 	 
	
SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	
34

	 	 
	
SECTION 2.20. Defaulting Lenders
	
34

	 	 
	
SECTION 2.21. Proceeds
	
35

	 	 
	
ARTICLE III Representations and Warranties
	
35

	 	 
	
SECTION 3.01. Organization, Powers and Good Standing
	
35

	 	 
	
SECTION 3.02. Authorization of Borrowing, etc
	
36

	 	 
	
SECTION 3.03. Financial Condition
	
37

	 	 
	
SECTION 3.04. No Adverse Material Change
	
37

	 	 
	
SECTION 3.05. Litigation
	
37

	 	 
	
SECTION 3.06. Payment of Taxes
	
37

	 	 
	
SECTION 3.07. Governmental Regulation
	
37

	 	 
	
SECTION 3.08. Securities Activities
	
38

	 	 
	
SECTION 3.09. ERISA
	
38

	 	 
	
SECTION 3.10. Disclosure
	
38

	 	 
	
ARTICLE IV  Conditions
	
38

	 	 
	
SECTION 4.01. Effective Date
	
38

	 	 
	
SECTION 4.02. Each Credit Event
	
39

	 	 
	
ARTICLE V Affirmative Covenants
	
40

	 	 
	
SECTION 5.01. Financial Statements and Other Reports
	
40

	 	 
	
SECTION 5.02. Corporate Existence
	
42

	 	 
	
SECTION 5.03. Payment of Taxes
	
42

	 	 
	
SECTION 5.04. Maintenance of Properties; Insurance
	
42

 

 

ii

 

	
SECTION 5.05. Compliance with Laws
	
42

	 	 
	
SECTION 5.06. Notices of ERISA Event
	
42

	 	 
	
SECTION 5.07. Inspection Rights
	
42

	 	 
	
ARTICLE VI Negative Covenants
	
43

	 	 
	
SECTION 6.01. Fundamental Changes
	
43

	 	 
	
SECTION 6.02. Liens
	
43

	 	 
	
SECTION 6.03. Financial Covenants
	
44

	 	 
	
SECTION 6.04. Use of Proceeds
	
44

	 	 
	
ARTICLE VII Events of Default
	
44

	 	 
	
SECTION 7.01. Failure to Make Payments When Due
	
44

	 	 
	
SECTION 7.02. Default in Other Agreements
	
44

	 	 
	
SECTION 7.03. Breach of Certain Covenants
	
45

	 	 
	
SECTION 7.04. Breach of Warranty
	
45

	 	 
	
SECTION 7.05. Other Defaults Under Agreement
	
45

	 	 
	
SECTION 7.06. Change In Control
	
45

	 	 
	
SECTION 7.07. Involuntary Bankruptcy; Appointment of Receiver, etc
	
46

	 	 
	
SECTION 7.08. Voluntary Bankruptcy; Appointment of Receiver, etc
	
46

	 	 
	
SECTION 7.09. Judgments and Attachments
	
47

	 	 
	
SECTION 7.10. Involuntary Dissolution
	
47

	 	 
	
SECTION 7.11. ERISA Event
	
47

	 	 
	
ARTICLE VIII The Administrative Agent
	
47

	 	 
	
ARTICLE IX Miscellaneous
	
49

	 	 
	
SECTION 9.01. Notices
	
49

	 	 
	
SECTION 9.02. Waivers; Amendments
	
51

 

iii

 

 

	
SECTION 9.03. Expenses; Indemnity; Damage Waiver
	
52

	 	 
	
SECTION 9.04. Successors and Assigns
	
53

	 	 
	
SECTION 9.05. Survival
	
55

	 	 
	
SECTION 9.06. Counterparts; Integration; Effectiveness
	
56

	 	 
	
SECTION 9.07. Severability
	
56

	 	 
	
SECTION 9.08. Right of Setoff
	
56

	 	 
	
SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	
56

	 	 
	
SECTION 9.10. WAIVER OF JURY TRIAL
	
57

	 	 
	
SECTION 9.11. Headings
	
57

	 	 
	
SECTION 9.12. Confidentiality
	
57

	 	 
	
SECTION 9.13. USA PATRIOT Act
	
58

	 	 
	
ARTICLE X Loan Guaranty
	
58

	 	 
	
SECTION 10.01. Guaranty
	
58

	 	 
	
SECTION 10.02. Guaranty of Payment
	
59

	 	 
	
SECTION 10.03. No Discharge or Diminishment of Loan Guaranty
	
59

	 	 
	
SECTION 10.04. Rights of Subrogation
	
60

	 	 
	
SECTION 10.05. Reinstatement; Stay of Acceleration
	
60

	 	 
	
SECTION 10.06. Maximum Liability
	
60

 

SCHEDULES:

 

Schedule 2.01 – Commitments

Schedule 3.01 – Material Subsidiaries

Schedule 3.05 – Material Litigation

Schedule 6.02 – Existing Liens

 

 

iv

 

 

EXHIBITS:

 

Exhibit A – Form of Assignment and Assumption

Exhibit B – Form of U.S. Tax Compliance Certificate

Exhibit C – Form of Opinion of General Counsel of Borrower

Exhibit D – Form of Joinder Agreement

 

 

 

 

 

 

 

 

v

 

 

364-DAY CREDIT AGREEMENT dated as of August 14, 2009, among THE McGRAW-HILL COMPANIES, INC. (the “Borrower”), STANDARD & POOR’S FINANCIAL SERVICES LLC and the certain other subsidiaries of the Borrower parties hereto from time to time as Loan Guarantors
(as defined herein), the several banks and other financial institutions from time to time parties hereto (the “Lenders”), BANK OF AMERICA, N.A., as syndication agent (in such capacity, the “Syndication Agent”), DEUTSCHE BANK AG NEW YORK BRANCH, MORGAN STANLEY MUFG LOAN PARTNERS, LLC, THE ROYAL BANK OF SCOTLAND PLC and CITIBANK, N.A., as documentation agents
(in such capacity, the “Documentation Agents”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”).

 

The parties hereto hereby agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

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

 

“Administrative Agent” means JPMorgan Chase Bank, 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.

 

“Agreement” means this 364-Day Credit Agreement, as amended, supplemented or otherwise modified from time to time.

 

“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c) the LIBO Rate for a LIBOR Loan with a one-month
interest period (or if such day is not a Business Day, the immediately preceding Business Day) plus 1.0%.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate, respectively.

 

“Applicable Percentage” means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment.  If the Commitments have

 

 

 

 

 

2

 

 

 terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments.

 

“Applicable Rate” means, for any day, with respect to (a) any ABR Revolving Loan, the Applicable LIBOR Revolving Loan Spread less 1% per annum (the “Applicable ABR Revolving Loan Spread”); provided that,
the Applicable ABR Revolving Loan Spread shall not be less than 0%, (b) any ABR Term Loan, the Applicable ABR Revolving Loan Spread plus 0.35% per annum (the “Applicable ABR Term Loan Spread”); provided that, the Applicable ABR Term Loan Spread shall not be less than 0%, (c) any LIBOR Revolving Loan, the applicable rate per annum set forth below under the caption “Applicable
LIBOR Revolving Loan Spread” (the “Applicable LIBOR Revolving Loan Spread”), (d) any LIBOR Term Loan, the Applicable LIBOR Revolving Loan Spread plus 0.35% (the “Applicable LIBOR Term Loan Spread”), or (e) commitment fees payable hereunder, the applicable rate per annum set forth below under the caption “Commitment Fee Rate”, based upon the
ratings by Moody’s and Fitch, respectively, applicable on such date to the Index Debt:

 

	
Index Debt Ratings:
	
Applicable LIBOR 

Revolving Loan 

Spread
	
Commitment Fee

Rate

	
Category 1:  ≥ A1/A+
	
75.0% of Index
	
0.125%

	
Category 2:  A2/A
	
87.5% of Index
	
0.150%

	
Category 3:  A3/A-
	
100.0% of Index
	
0.175%

	
Category 4:  Baa1/BBB+
	
125.0% of Index
	
0.250%

	
Category 5:  ≤ Baa2/BBB
	
150.0% of Index
	
0.375%

The Applicable LIBOR Revolving Loan Spread shall not on any date be less than the applicable rate per annum set forth below under the caption “Minimum LIBOR Revolving Loan Spread” (the “Minimum LIBOR Revolving Loan Spread”), based upon the ratings by
Moody’s and Fitch, respectively, applicable on such date to the Index Debt:

 

	
Index Debt Ratings:
	
Minimum LIBOR Revolving Loan Spread

	
Revolving Loans
	
Term Loans

	
Category 1:  ≥A2/A
	
0.75%
	
1.25%

	
Category 2:  ≥A3/A-
	
1.00%
	
1.50%

	
Category 3:  ≥Baa2/BBB
	
1.50%
	
2.00%

	
Category 4:  ≤ Baa3/BBB-
	
2.50%
	
3.00%

 

 

 

 

3

 

 

For purposes of determining any Applicable Rate, (i) if either Moody’s or Fitch shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last sentence of this paragraph), then such rating agency shall be deemed to have established a rating in Category 5 (or, with respect to the
Minimum LIBOR Revolving Loan Spread, Category 4); (ii) if the ratings established or deemed to have been established by Moody’s and Fitch for the Index Debt shall fall within different Categories, the Applicable Rate shall be based on the higher of the two ratings unless one of the two ratings is two or more Categories lower than the other, in which case the Applicable Rate shall be determined by reference to the Category next below that of the higher of the two ratings; (iii) if the ratings established
or deemed to have been established by Moody’s and Fitch for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody’s or Fitch), such change shall be effective as of the date on which it is first announced by the applicable rating agency; and (iv) the Index as used in determining the Applicable Rate for any Revolving or Term Loans shall be determined as of each Reset Date applicable to such Loans.  Each change in the Applicable Rate for any Revolving
Loans, Term Loans or commitment fee payable hereunder (whether by virtue of a change in the Index as of any Reset Date applicable thereto or by virtue of a change in any rating) shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change.  If the rating system of Moody’s or Fitch shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations,
the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating most recently in effect prior to such change or cessation.

 

If, for any reason, the Index is unavailable for any determination of the Applicable LIBOR Revolving Loan Spread as of any Reset Date, the Borrower and the Lenders under each Facility agree to negotiate in good faith (for a period of up to 30 days after the Index becomes unavailable) to agree on an alternative method for establishing the
Applicable LIBOR Revolving Loan Spread.  During such negotiations, and thereafter for any LIBOR Revolving Loans until the end of the then current Interest Period therefor, the Applicable Rate for Revolving Loans will be (i) in the case of ABR Revolving Loans, the Applicable ABR Revolving Loan Spread and (ii) in the case of LIBOR Revolving Loans, the Applicable LIBOR Revolving Loan Spread, in each case determined based on the last available quote of the Index.  If no such alternative method
is agreed upon, LIBOR Revolving Loans will be converted at the end of the current Interest Period to ABR Loans and all new Revolving Loans will be made as ABR Loans, with the interest rate applicable thereto and to ABR Loans continuing after such negotiations being the Alternate Base Rate.  With respect to Term Loans, during such negotiations and thereafter, the Applicable Rate will be (i) in the case of ABR Term Loans, the Applicable ABR Term Loan Spread and (ii) in the case of LIBOR Term Loans, the
Applicable LIBOR Term Loan Spread, in each case determined based on the last available quote of the Index.  If no such alternative method is agreed upon, LIBOR Term Loans will be converted at the end of the current Interest Period to ABR Loans, with the interest rate applicable thereto and to ABR Loans continuing after such negotiations being the Alternate Base Rate plus 0.35% per annum.

 

 

 

 

 

4

 

 

“Approved Fund” means, with respect to any Lender that is a fund that invests in commercial loans, any other fund that invests in commercial loans and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

 

 “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 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or
any other form approved by the Administrative Agent.

 

“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Termination Date and the date of termination of the Commitments.

 

“Available Commitment” means, as to any Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Commitment then in effect minus (b) such Lender’s Revolving Credit
Exposure then outstanding.

 

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

 

 “Borrower” means The McGraw-Hill Companies, Inc., a New York corporation.

 

“Borrowing” means (a) Revolving Loans or Term Loans of the same Type, made, converted or continued on the same date and, in the case of LIBOR Loans, as to which a single Interest Period is in effect, or (b) a Competitive Loan or group of Competitive Loans of the
same Type made on the same date and as to which a single Interest Period is in effect.

 

“Borrowing Request” means a request by the Borrower for a Revolving Borrowing or a Term Borrowing.

 

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

 

“Capitalized Lease” means any lease which is or should be capitalized on the balance sheet of the lessee in accordance with GAAP existing on the date hereof and Statement No. 13 of the Financial Accounting Standards Board.

 

“Capitalized Lease Obligations” means the amount of the liability reflecting the aggregate discounted amount of future payments under all Capitalized Leases calculated in accordance with GAAP existing on the date hereof and Statement No. 13 of the Financial Accounting
Standards Board.

 

“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)

 

 

 

 

 

5

 

 

 

compliance by any Lender or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement.

 

 “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term Loans or Competitive Loans.

 

“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 Revolving Loans and convert Revolving Loans to Term Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Loans and
Term Loans hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its Commitment, as applicable.

 

“Competitive Bid” means an offer by a Lender to make a Competitive Loan in accordance with Section 2.06.

 

“Competitive Bid Rate” means, with respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender making such Competitive Bid.

 

“Competitive Bid Request” means a request by the Borrower for Competitive Bids in accordance with Section 2.06.

 

“Competitive Loan” means a Loan made pursuant to Section 2.06.

 

“Compliance Certificate” has the meaning assigned to that term in Section 5.01(b)(i) hereof.

 

“Consolidated Cash Flow” of the Borrower and the Subsidiaries for any period (the “Determination Period”) means the sum of (i) Consolidated Net Income for the Determination Period, plus
(ii) all amounts deducted in the determination of such Consolidated Net Income in respect of (a) depreciation and amortization (including without limitation amortization of assets held under Capitalized Leases) excluding amortization relating to prepublication costs, (b) Consolidated Interest Expense, (c) provisions for taxes based on or measured by income and (d) non-recurring non-cash losses or charges and minus (iii) all amounts added in the determination of such Consolidated Net Income in respect of non-recurring
non-cash gains; provided, however that (1) when and to the extent that non-cash losses or charges described in clause (ii)(d) above become cash paid items, such amounts shall be deducted from Consolidated Cash Flow for the period when paid and (2) when and to the extent that non-cash gains described in clause (iii) above become cash received items, such amounts shall be added to Consolidated
Cash Flow for the period when received; provided further that (A) if during the Determination Period the Borrower disposes of any asset and such disposition

 

 

 

 

 

6

 

 

constitutes a Material Disposition, the sum of (x) the net income (loss) produced by such asset, before extraordinary items, during the portion of the Determination Period prior to the date on which such asset was disposed of, plus (y) all amounts deducted in determining such net income (loss) for such period in respect of depreciation
and amortization (including without limitation amortization of assets held under Capitalized Leases), interest on Indebtedness, and provisions for taxes based on or measured by income shall be excluded on a pro forma adjusted and consolidated basis in Consolidated Cash Flow for the Determination Period (to the extent they would otherwise have been included thereto), and (B) if during the Determination Period the Borrower makes an investment in any asset and such investment constitutes a Material Investment, the
sum of (x) the net income (loss) produced by such asset, before extraordinary items, during the portion of the Determination Period prior to the date on which such investment in such asset was made, plus (y) all amounts deducted in determining such net income (loss) for such period in respect of depreciation and amortization (including, without limitation, amortization of assets held under Capitalized Leases), interest on Indebtedness, and provisions for taxes based on or measured by income shall be included
on a pro forma adjusted and consolidated basis in Consolidated Cash Flow for the Determination Period (to the extent they would have otherwise been excluded therefrom).  As used in this definition, “Material Disposition” means any disposition of assets or series of related dispositions of assets that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $100,000,000, provided that
such proceeds, together with the proceeds received by the Borrower or such Subsidiary in any other such disposition of assets that yields gross proceeds to the Borrower or such Subsidiary in excess of $100,000,000 during the Determination Period, exceeds $200,000,000; and “Material Investment” means any acquisition of assets or series of related acquisitions of assets by the Borrower or any of its Subsidiaries that (a) constitutes assets
comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (b) involves the payment of consideration by the Borrower or such Subsidiary in excess of $100,000,000, provided that such consideration, together with the consideration paid in any other such acquisitions of assets that involves the payment of consideration by the Borrower or such Subsidiary in excess
of $100,000,000 during the Determination Period, exceeds $200,000,000.

 

“Consolidated Interest Expense” means, for any period, the interest expense of the Borrower and its Subsidiaries determined on a consolidated basis in conformity with GAAP existing on the date hereof including, without limitation, (i) the amortization of debt discount,
(ii) the amortization of all fees payable in connection with the incurrence of Indebtedness to the extent included in interest expense and (iii) the portion of any obligation with respect to a Capitalized Lease allocable to interest expense.

 

“Consolidated Net Income” for any period means the net income (or loss) of the Borrower and its Subsidiaries for such period before extraordinary items, determined in accordance with GAAP existing on the date hereof on a consolidated basis, after eliminating all
intercompany items, provided that there shall be excluded (i) income (or loss) of any Person (other than a consolidated Subsidiary of such Person) in which any other Person (other than such Person or any of its consolidated Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions actually paid to such Person or any of its consolidated Subsidiaries by such other Person during such Period, (ii) except for purposes of Consolidated Cash Flow to the extent provided
in clause (B) of the definition thereof, the income (or loss) of 

 

 

 

 

 

7

 

 

any Person accrued prior to the date it becomes a consolidated Subsidiary of such Person or is merged into or consolidated with such Person or any of its consolidated Subsidiaries, (iii) the income of any consolidated Subsidiary of such Person to the extent that the declaration or payment of dividends or similar distributions by that
consolidated Subsidiary of the income is not at the time permitted, (iv) any after-tax gains (but not pre-tax losses) attributable to sales of assets out of the ordinary course of business and any after-tax gains on pension reversions received by such Person and its consolidated Subsidiaries and (v) any income (or loss) attributable to any lease of property (whether real, personal or mixed) under which the Borrower or any of its Subsidiaries is the lessor; provided, however, there shall be excluded from any calculation
pursuant to any of clauses (ii)-(iv) any income or loss attributable to assets purchased or sold, as the case may be, having an individual or aggregate (for any consecutive twelve month period) fair market value of less than $50,000,000.

 

“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.

 

“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.

 

“Defaulting Lender” means any Lender, reasonably determined by the Administrative Agent, that has (a) failed to fund any portion of its Loans within three Business Days of the date required to be funded by it hereunder unless the subject of a good faith dispute,
(b) notified the Borrower, the Administrative Agent or any Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement unless the subject of a good faith dispute or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit, (c) failed, within three Business Days after request by the Administrative Agent, to confirm that it
will comply with the terms of this Agreement relating to its obligations to fund prospective Loans, unless the subject of a good faith dispute, provided that any such Lender shall cease to be a Defaulting Lender under this clause (c) upon receipt of such confirmation by the Administrative Agent, (d) otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith
dispute, or (e) (i) become or is insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment, provided that a Lender shall not qualify as a Defaulting Lender solely as a result of the acquisition or maintenance of an ownership interest in such Lender or its parent company, or to the
exercise of control over such Lender or any Person controlling such Lender, by a governmental authority or instrumentality thereof.

 

“Determination Date” means, as used in connection with any certificate, report or calculation delivered hereunder, the date (which shall be specified in such certificate, report or

 

 

 

 

 

8

 

 

calculation) as of which the determinations set forth in such certificate, report or calculation are made.

 

“Documentation Agents” has the meaning assigned in the preamble hereto.

 

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

 

“Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

 

“Environmental Laws” means federal, state, local and foreign laws or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved or entered thereunder relating to pollution or protection of the environment, including, without limitation,
laws relating to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

 

“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 the Borrower, 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(m) 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 a non-exempt Prohibited Transaction; (c) any failure by any Pension Plan to satisfy the minimum funding standards (within the meaning of Sections 412 or 430 of the Code or Section 302 of ERISA) applicable to such Pension Plan, whether or not waived; (d) the filing pursuant to Section 412 of the Code or Section 302 of ERISA of an application for a waiver of the minimum funding standard with respect to any Pension Plan or the failure by the Borrower or any of its ERISA Affiliates
to make any required contribution to a Multiemployer Plan; (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Pension Plan, including but not limited to the imposition of any Lien in favor of the PBGC or any Pension Plan; (f) a determination that any Pension Plan is, or is reasonably expected to be, in “at risk” status (within the meaning of Section 430 of the Code or Section 303 of ERISA); (g)
the receipt by the Borrower or any of its ERISA Affiliates from the PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan or to appoint a trustee to administer any Pension Plan under Section 4042 of ERISA; (h) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan; or (i) the receipt by the Borrower or any of its ERISA Affiliates of any notice,
or the receipt by any Multiemployer Plan from the Borrower or any of its ERISA Affiliates of any notice, concerning 

 

 

 

 

 

9

 

 

the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent, in reorganization or in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 or Title IV of ERISA).

 

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

 

“Exchange Act” means the Securities Exchange Act of 1934, as from time to time amended, and any successor statutes.

 

“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 United States of America, or any state or local government or taxing authority in the United States of America, (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 2.19(b)), any United States 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 at the time such Lender changes its applicable lending office or is attributable to such Foreign Lender’s failure or inability to comply with Section 2.17(e), except to the extent that  such Foreign Lender’s assignor (if any) or such Foreign Lender, in the case of a Lender that changes its applicable lending office, was entitled, at the time of assignment or at the time of the change in applicable lending office, to receive additional amounts from
the Borrower with respect to such withholding tax pursuant to Section 2.17(a).

 

“Existing Facility” means the existing $383,333,333.34 364-day credit agreement, dated as of September 12, 2008, as amended as of January 1, 2009, among the Borrower, the lenders parties thereto and JPMorgan Chase Bank, as administrative agent.

 

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

 

“Fiscal Quarter” means a quarterly period beginning on the first day of January, April, July and October in each Fiscal Year.

 

“Fiscal Year” means an annual period beginning on January 1 in each year and ending on December 31 of such year.

 

“Fitch” means Fitch IBCA, Inc.

 

 

 

 

 

10

 

 

“Fixed Rate” means, with respect to any Competitive Loan (other than a LIBOR Competitive Loan), the fixed rate of interest per annum specified by the Lender making such Competitive Loan in its related Competitive Bid.

 

“Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed Rate.

 

“Foreign Benefit Arrangement” means any employee benefit arrangement mandated by non-U.S. law that is maintained or contributed to by the Borrower or any ERISA Affiliate.

 

“Foreign Lender” means any Lender that is not a “U.S. Person” as defined by Section 7701(a)(30) of the Code.

 

“Foreign Plan” means each employee benefit plan (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to U.S. law and is maintained or contributed to by the Borrower or any ERISA Affiliate.

 

 “GAAP” means generally accepted accounting principles in the United States of America in effect from time to time except as specifically noted.

 

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

 

“Guarantee” means, with respect to any Person, (i) any guarantee, reimbursement agreement or similar contingent obligation made by such Person in respect of any Indebtedness of any other Person, (ii) any other arrangement whereby credit is extended to any other Person
on the basis of any promise or undertaking of such Person, (a) to pay the Indebtedness of such other Person, (b) to purchase an obligation owed by such other Person, (c) to purchase or lease assets under circumstances that would enable such other Person to discharge such credit of its obligations or (d) to maintain the capital, working capital, solvency or general financial condition of such other Person, in each case whether or not such arrangement is disclosed in the balance sheet of such other Person or is
referred to in a footnote thereto, and (iii) any liability, (other than Indebtedness which is recourse to a Subsidiary of the Borrower, the only asset of which is its interest in the partnership of which the Subsidiary is the general partner, and which Indebtedness is non-recourse to the Borrower) as a general partner of a partnership in respect of Indebtedness of such partnership; provided, however, that the term Guarantee shall not include (1)
endorsements for collection or deposit in the ordinary course of business or (2) obligations of the Borrower and its Subsidiaries which would constitute Guarantees solely by virtue of the continuing liability of any such Person which has sold assets subject to liabilities for liabilities which were assumed by another Person acquiring the assets which were sold, unless such liability is required to be carried on the balance sheet of the Borrower and its Subsidiaries in accordance with GAAP.  The amount
of any Guarantee and the amount of Indebtedness resulting from such Guarantee shall be the amount which would have to be carried on the balance sheet of the guarantor in respect of such Guarantee in accordance with GAAP.

 

 

 

 

 

11

 

 

“Guaranteed Obligations” has the meaning set forth in Section 10.01.

 

“Indebtedness” means, with respect to any Person, all obligations, for the repayment of borrowed money, which in accordance with GAAP in effect on the date hereof should be classified upon such Person’s balance sheet as liabilities, but in any event including
(i) liabilities for the repayment of borrowed money to the extent secured by any Lien existing on property owned or acquired by such Person or a Subsidiary thereof, whether or not the liability secured thereby shall have been assumed by such Person and (ii) all Guarantees of such Person.

 

“Indebtedness to Cash Flow Ratio” means the ratio of (i) Indebtedness of the Borrower at the Determination Date to (ii) the Consolidated Cash Flow for the four consecutive Fiscal Quarters ending immediately prior to the Determination Date.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes.

 

“Independent Public Accountant” means any of the firms of public accountants (or their survivors in any merger therewith) currently referred to as the “Big Four” or any other firm of public accountants of nationally recognized stature which is (i) independent
(as such term is defined in the rules and regulations promulgated by the Securities and Exchange Commission under the Exchange Act) from the Person the financial statements of which are being reported on, (ii) selected by such Person and (iii) reasonably acceptable to the Required Lenders.

 

“Index” means, with respect to any Revolving Loan or Term Loan for any period, the average of the Markit CDX.NA.IG Series 10 or any successor series (5 Year Period) for 30 business days (for purposes of this definition, “business days” means days in respect
of which the Securities Industry and Financial Markets Association declares the U.S. fixed income market to be open) preceding the Reset Date applicable to such Loan for such period, as available to the applicable office of the Administrative Agent or for the number of business days for which the then current Markit CDX.NA.IG is in effect, if such number of business days is fewer than 30 business days.

 

“Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of the Borrower that is not guaranteed by any other Person or subject to any other credit enhancement.

 

“Interest Election Request” means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.08.

 

“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December, (b) with respect to any LIBOR Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in
the case of a LIBOR Borrowing with 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, and (c) with respect to any Fixed Rate Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Fixed Rate Borrowing with an Interest Period of more than 90 days’ duration (unless otherwise
specified in the applicable Competitive Bid Request), each day prior to the last day of such Interest Period that occurs at intervals of 90 days’ duration after the first day of such Interest 

 

 

 

 

 

12

 

 

Period, and any other dates that are specified in the applicable Competitive Bid Request as Interest Payment Dates with respect to such Borrowing.

 

“Interest Period” means (a) with respect to any LIBOR Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months (or, with the consent of each
Lender, nine or twelve months) thereafter, as the Borrower may elect, (b) with respect to any Fixed Rate Borrowing, the period (which shall not be less than 7 days or more than 360 days) commencing on the date of such Borrowing and ending on the date specified in the applicable Competitive Bid Request; provided, that (i) 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, in the case of a LIBOR Borrowing only,
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, (ii) any Interest Period pertaining to a LIBOR Borrowing 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 (iii) no Interest Period shall extend
beyond the Termination Date (if such Interest Period commences prior to the Termination Date) or beyond the Maturity Date (if such Interest Period commences on or after the Termination Date).  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“JPMorgan Chase Bank” means JPMorgan Chase Bank, N.A.

 

“Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance.

 

 “LIBO Rate” means, with respect to any LIBOR Borrowing for any Interest Period, the rate per annum appearing on the Reuters Screen LIBOR01 Page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of such service, as reasonably determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period.  In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect to such LIBOR Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

 

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

 

 

 

 

 

13

 

 

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including, without limitation, any conditional sale or other title retention agreement or lease in the nature thereof) or any sale of receivables with recourse against
the seller.

 

“Loan Guarantors” means, collectively, Standard & Poor’s Financial Services LLC and each other Subsidiary of the Borrower that has executed a Joinder Agreement substantially in the form of Exhibit D and has not been released from the Loan Guaranty, and
their successors and assigns.

“Loan Guaranty” means Article X of this Agreement.

“Loan Parties” means the Borrower and the Loan Guarantors.

 

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

 

“Margin” means, with respect to any Competitive Loan bearing interest at a rate based on the LIBO Rate, the marginal rate of interest, if any, to be added to or subtracted from the LIBO Rate to determine the rate of interest applicable to such Loan, as specified
by the Lender making such Loan in its related Competitive Bid.

 

“Margin Stock” has the meaning assigned to that term in Regulation U of the Board as in effect from time to time.

 

“Material Adverse Effect” means a material adverse effect on the business, operations, properties, assets or financial condition of the Borrower and its Subsidiaries, taken as a whole.

 

“Material Subsidiary” means each Subsidiary of the Borrower that is a “significant subsidiary” as defined in Regulation § 230.405 promulgated pursuant to the Securities Act, as such Regulation is in effect on the date hereof.

 

“Maturity Date” means the first anniversary of the Termination Date.

 

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

 

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

 

“Note” means a promissory note executed and delivered pursuant to Section 2.10(e) evidencing the Loans of a Lender.

 

“Obligated Party” has the meaning set forth in Section 10.02.

“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations of the Borrower to the Lenders or to any Lender, the Administrative Agent or
any

 

 

 

 

 

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indemnified party arising under this Agreement.

 

“Officer’s Certificate” means, as applied to any Loan Party, a certificate executed on behalf of such Loan Party by its Chairman of the Board (if an officer), its President, its Chief Financial Officer or its Treasurer.

 

“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 set forth in Section 9.04.

 

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

 

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

 

“Permitted Liens” means:

 

(a)           Liens for taxes, assessments or governmental charges or levies (including any Lien imposed by ERISA arising out of an ERISA Event), either not yet delinquent or so long as the amount, applicability or validity of the same is being contested in good faith provided that any
proceedings commenced for the foreclosure on such Liens have been duly suspended and adequate reserves, if any, have been established therefor in accordance with GAAP;

 

(b)           Statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law incurred in the ordinary course of business for sums not delinquent for a period of more than 45 days or being contested in good faith, if such reserve
or other appropriate provision, if any, as shall be required by GAAP, shall have been made therefor;

 

(c)           Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, bids, leases, government contracts,
performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money);

 

(d)           Any attachment or judgment Lien unless the attachment or judgment it secures shall remain undischarged and execution thereof shall remain unstayed pending appeal for a period of 60 days;

 

 

 

 

 

15

 

 

(e)           Easements, rights-of-way, restrictions, minor defects or irregularities in title and other similar charges or encumbrances not interfering in any material respect with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

 

(f)           Any interest or title of a lessor under any lease; and

 

(g)           Liens arising from equipment leases entered into in the ordinary course of business.

 

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

 

“Plan” means any employee benefit plan as defined in Section 3(3) of ERISA, including any employee welfare benefit plan (as defined in Section 3(1) of ERISA), any employee pension benefit plan (as defined in Section 3(2) of ERISA), and any plan which is both an employee
welfare benefit plan and an employee pension benefit plan, and in respect of which the Borrower or any ERISA Affiliate is an “employer” as defined in Section 3(5) of ERISA.

 

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

 

“Prohibited Transaction” has the meaning assigned to such term in Section 406 of ERISA and Section 4975(c)(1) of the Code.

 

“Register” has the meaning set forth in Section 9.04.

 

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

 

“Required Lenders” means (a) prior to any conversion of Revolving Loans to Term Loans in accordance with Sections 2.04 and 2.05, Lenders having Revolving Credit Exposures and unused Commitments representing at least 51% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time; provided that, for purposes of declaring the Loans to be due and payable pursuant to Article VII, and for all purposes after the Loans become due and payable pursuant to Article VII or the Commitments expire or terminate, the outstanding Competitive Loans of the Lenders shall be included in their respective Revolving Credit Exposures in determining the Required Lenders, and (b) thereafter, Lenders having Term Loans with a total outstanding principal amount representing
at least 51% of the sum of the total outstanding principal amount of Term Loans at such time.

 

“Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or determination of any arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

 

 

 

 

 

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“Reset Date” means each date on which the Index will be determined.  The Reset Dates for any LIBOR Loans will be (a) for each Interest Period applicable thereto, the date that LIBO Rates are set for such Loans for such Interest Period and (b) for any LIBOR
Loan with an Interest Period of greater than three months, at the end of each successive three-month period during such Interest Period.  The Reset Dates for any ABR Loans will be the Closing Date and the first day of each calendar quarter thereafter.

 

“Revolving Borrowing Request” means a request by the Borrower for a Revolving Borrowing in accordance with Section 2.03.

 

“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans at such time.

 

“Revolving Loan” means a Loan made pursuant to Section 2.03.

 

“Securities Act” means the Securities Act of 1933, as from time to time amended, and any successor statutes.

 

“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board (a) with respect to the Base CD Rate, to which the Administrative Agent is subject for new negotiable nonpersonal time deposits in dollars of over $100,000 with maturities approximately equal to (i) three months and (b) with respect to the LIBO Rate, to which the Lender is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages
shall include those imposed pursuant to such Regulation D.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

 

“Subsidiary” means, with respect to any Person, a corporation of which shares of stock having ordinary voting power (other than stock having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers
of such corporation are at the time owned, directly or indirectly through one or more intermediaries, or both, by such Person.

 

“Syndication Agent” means Bank of America, N.A., in its capacity as syndication agent hereunder.

 

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

 

“Term Borrowing Request” means a request by the Borrower for a conversion of Revolving Loans to Term Loans in accordance with Section 2.05.

 

“Termination Date” means August 13, 2010.

 

“Term Loan” means a Loan made pursuant to Section 2.04.

 

 

 

 

 

17

 

 

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

 

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

 

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

 

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

 

SECTION 1.04.  Accounting Terms; GAAP.  Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP; 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

 

 

 

 

 

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change shall have become effective until  such notice shall have been withdrawn or such provision  amended in accordance herewith.

 

ARTICLE II

 

The Credits

 

SECTION 2.01.  Commitments.  Subject to the terms and conditions set forth herein, each Lender agrees to make Revolving Loans to the Borrower from time to time during the Availability Period
in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans exceeding the total Commitments.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

 

SECTION 2.02.  Loans and Borrowings.  (a)  Each Revolving Loan shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their
respective Commitments.  Each Term Loan shall be part of a Borrowing consisting of Term Loans made by the Lenders ratably in accordance with their respective Commitments.  Each Competitive Loan shall be made in accordance with the procedures set forth in Section 2.06.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments and Competitive Bids of the Lenders are several and
no Lender shall be responsible for any other Lender’s failure to make Loans as required.

 

(b)           Subject to Section 2.14, (i) each Revolving Borrowing or Term Borrowing, as applicable, shall be comprised entirely of ABR Loans or LIBOR Loans as the Borrower may request in accordance herewith, and (ii) each Competitive Borrowing shall be comprised entirely of
LIBOR Loans or Fixed Rate Loans as the Borrower may request in accordance herewith.  Each Lender at its option may make any LIBOR Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement and shall not cause the Borrower to incur as of the date of the exercise of such option any greater liability than it shall
then have under Sections 2.15 and 2.17.

 

(c)           At the commencement of each Interest Period for any LIBOR Revolving Borrowing or LIBOR Term Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $10,000,000.  At the time that each ABR Revolving
Borrowing or ABR Term Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $10,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments.  Each Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000.  Borrowings of more than one Type and Class may be outstanding
at the same time; provided that

 

 

 

 

 

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there shall not at any time be more than a total of 10 LIBOR Revolving Borrowings or 10 LIBOR Term Borrowings outstanding.

 

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

 

SECTION 2.03.  Requests for Revolving Borrowings.  To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a LIBOR Borrowing, not later than 11:00 a.m., New York City
time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the day of the proposed Borrowing.  Each such telephonic Revolving Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Revolving Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower.  Each such telephonic
and written Revolving Borrowing Request shall specify the following information in compliance with Section 2.02:

 

(i)         the aggregate amount of the requested Borrowing;

 

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

 

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

 

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

 

(v)         the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07.

 

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

 

SECTION 2.04.  Term Loans.  The Revolving Loans outstanding at the close of business on the Termination Date shall, at the option of the Borrower by notice given to the Administrative Agent
as provided in Section 2.05 but subject to the terms and conditions hereof (including Section 4.02), convert on such date into term loans (the “Term Loans”) to the Borrower.  The Term Loans may from time to time be (a) LIBOR Loans, (b) ABR Loans or (c) a

 

 

 

 

 

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combination thereof, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.05 and 2.08.

 

SECTION 2.05.  Request for Term Borrowing.  To request the conversion of the Revolving Loans to Term Loans as contemplated in Section 2.04, the Borrower shall notify the Administrative Agent
of such request by telephone prior to 11:00 A.M., New York City time, (a) three Business Days prior to the Termination Date, if all or any part of the Term Loans are to be initially a LIBOR Borrowing or (b) on the Termination Date, otherwise.  Such telephonic Term Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Term Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower.  Each
such telephonic and written Term Borrowing Request shall specify the following information in compliance with Section 2.02:

 

(i)         the aggregate amount of the requested conversion;

 

(ii)         the date of such conversion, which shall be the Termination Date;

 

(iii)         whether after giving effect to such conversion, the outstanding Term Loans are to consist of an ABR Borrowing or a LIBOR Borrowing, or a combination thereof; and

 

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

 

If no election as to the Type of Term Loans is specified, then the requested Term Loans shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested LIBOR Term Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following
receipt of a Term 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 converted as part of the requested Borrowing.  The aggregate principal amount of the Term Loans shall be equal to the aggregate principal amount of the Revolving Loans then outstanding and the Term Loans shall be made by conversion of such Revolving Loans, without any payments being made by the Lenders.

 

SECTION 2.06.  Competitive Bid Procedure.  (a)  Subject to the terms and conditions set forth herein, from time to time during the Availability Period the Borrower may request Competitive
Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow Competitive Loans; provided that the sum of the total Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans at any time shall not exceed the total Commitments.  To request Competitive Bids, the Borrower shall notify the Administrative Agent of such request by telephone, in the case of a LIBOR Borrowing, not later than 11:00 a.m., New York City time, four Business Days before
the date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later than 10:00 a.m., New York City time, one Business Day before the date of the proposed Borrowing; provided that the Borrower may submit up to (but not more than) three Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be made within five Business Days after the date of any

 

 

 

 

 

21

 

 

previous Competitive Bid Request, unless any and all such previous Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response thereto rejected.  Each such telephonic Competitive Bid Request shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Competitive
Bid Request in a form approved by the Administrative Agent and signed by the Borrower.  Each such telephonic and written Competitive Bid Request shall specify the following information in compliance with Section 2.02:

 

(i)         the aggregate amount of the requested Borrowing;

 

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

 

(iii)         whether such Borrowing is to be a LIBOR Borrowing or a Fixed Rate Borrowing;

 

(iv)         the Interest Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term “Interest Period”; and

 

(v)         the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07.

 

Promptly following receipt of a Competitive Bid Request in accordance with this Section, the Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting the Lenders to submit Competitive Bids.

 

(b)           Each Lender may (but shall not have any obligation to) make one or more Competitive Bids to the Borrower in response to a Competitive Bid Request.  Each Competitive Bid by a Lender must be in a form approved by the Administrative Agent and must be received by the
Administrative Agent by telecopy, in the case of a LIBOR Competitive Borrowing, not later than 9:30 a.m., New York City time, three Business Days before the proposed date of such Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New York City time, on the proposed date of such Competitive Borrowing.  Competitive Bids that do not conform substantially to the form approved by the Administrative Agent may be rejected by the Administrative Agent, and the
Administrative Agent shall notify the applicable Lender as promptly as practicable.  Each Competitive Bid shall specify (i) the principal amount (which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal the entire principal amount of the Competitive Borrowing requested by the Borrower) of the Competitive Loan or Loans that the Lender is willing to make, (ii) the Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan or Loans
(expressed as a percentage rate per annum in the form of a decimal to no more than four decimal places) and (iii) the Interest Period applicable to each such Loan and the last day thereof.

 

(c)           The Administrative Agent shall promptly notify the Borrower by telecopy of the Competitive Bid Rate and the principal amount specified in each Competitive Bid and the identity of the Lender that shall have made such Competitive Bid.

 

(d)           Subject only to the provisions of this paragraph, the Borrower may accept or reject any Competitive Bid.  The Borrower shall notify the Administrative Agent by

 

 

 

 

 

22

 

 

telephone, confirmed by telecopy in a form approved by the Administrative Agent, whether and to what extent it has decided to accept or reject each Competitive Bid, in the case of a LIBOR Competitive Borrowing, not later than 10:30 a.m., New York City time, three Business Days before the date of the proposed Competitive Borrowing,
and in the case of a Fixed Rate Borrowing, not later than 10:30 a.m., New York City time, on the proposed date of the Competitive Borrowing; provided that (i) the failure of the Borrower to give such notice shall be deemed to be a rejection of each Competitive Bid, (ii) the Borrower shall not accept a Competitive Bid made at a particular Competitive Bid Rate for a particular Interest Period if the Borrower rejects a Competitive Bid made at a lower Competitive Bid Rate for the same Interest Period,
(iii) the aggregate amount of the Competitive Bids accepted by the Borrower shall not exceed the aggregate amount of the requested Competitive Borrowing specified in the related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above, the Borrower may accept Competitive Bids at the same Competitive Bid Rate in part, which acceptance, in the case of multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata in accordance with the amount of each such
Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan unless such Competitive Loan is in a minimum principal amount of $5,000,000  and an integral multiple of $1,000,000; provided further that if a Competitive Loan must be in an amount less than $5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be rounded to integral multiples of $1,000,000 in a manner determined by the Borrower.  A notice given by the Borrower pursuant to this paragraph shall be irrevocable.

 

(e)           The Administrative Agent shall promptly notify each bidding Lender by telecopy whether or not its Competitive Bid has been accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each successful bidder will thereupon become bound, subject to the terms
and conditions hereof, to make the Competitive Loan in respect of which its Competitive Bid has been accepted.

 

(f)           If the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such Competitive Bid directly to the Borrower at least one quarter of an hour earlier than the time by which the other Lenders are required to submit their Competitive
Bids to the Administrative Agent pursuant to paragraph (b) of this Section.

 

SECTION 2.07.  Funding of Borrowings.  (a)  Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds
by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City and designated by the Borrower in the applicable Revolving Borrowing Request or Competitive Bid Request.

 

(b)           Unless the Administrative Agent shall have received notice from a Lender prior to the proposed time of any Borrowing (in the case of a LIBOR Borrowing) or the proposed

 

 

 

 

 

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

 

SECTION 2.08.  Interest Elections.  (a)  Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a LIBOR Revolving Borrowing,
shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a LIBOR Revolving Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding
the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  This Section shall not apply to Competitive Borrowings, which may not be converted or continued.

 

(b)           To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Revolving Borrowing Request would be required under Section 2.03 or that a Term Borrowing Request would be required under Section
2.05 if the Borrower were requesting a Revolving Borrowing or conversion of Revolving Loans to Term Loans, as applicable, of the Type resulting from such election to be made on the effective date of such election.  Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower.

 

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

 

(i)        the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii)
and (iv) below shall be specified for each resulting Borrowing);

 

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

 

 

 

 

 

24

 

 

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

 

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

 

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

 

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

 

(e)           If the Borrower fails to deliver a timely Interest Election Request with respect to a LIBOR Revolving Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, (a) if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a LIBOR Borrowing, (ii) no outstanding Term Borrowing may be converted to or continued as a LIBOR Borrowing and (iii) unless repaid, each
LIBOR Revolving Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto, and (b) no Revolving Loan or Term Loan may be converted into or continued as a LIBOR Borrowing after the date that is one month prior to the Termination Date or the Maturity Date, as the case may be.

 

SECTION 2.09.  Termination and Reduction of Commitments.  (a)  Unless previously terminated, the Commitments shall terminate on the Termination Date.

 

(b)           The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments shall be in minimum aggregate amounts of $10,000,000 (unless the total Commitment at such time is less than $10,000,000, in which case,
in an amount equal to the total Commitment at such time) and, if such reduction is greater than $10,000,000, in integral multiples of $5,000,000 in excess of such amount and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, the sum of the Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans would exceed the total Commitments.

 

(c)           The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments

 

 

 

 

 

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delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction
of the Commitments shall be permanent.  Termination of the Commitments prior to the Termination Date shall also terminate the obligations of the Lenders to convert the Revolving Loans to Term Loans.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

 

SECTION 2.10.  Repayment of Loans; Evidence of Debt.  (a)  The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the
then unpaid principal amount of the Revolving Loan of each Lender on the Termination Date (subject to the provisions of Section 2.04), (ii) to the Administrative Agent for the account of each Lender the then unpaid principal amount of the Term Loan of such Lender on the Maturity Date, and (iii) to the Administrative Agent for the account of each Lender with an outstanding Competitive Loan the then unpaid principal amount of such Competitive Loan on the last day of the Interest Period applicable to such Loan.

 

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

 

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

 

(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.  If there is a conflict in entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section, the entries made in the accounts maintained by the Administrative Agent shall be such prima facie evidence of the existence and amounts of the obligations.

 

(e)           Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender
and its registered assigns) and in a form approved by the Administrative Agent.

 

SECTION 2.11.  Prepayment of Loans.  (a)  The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice
in accordance with paragraph (b) of this Section; provided that the Borrower shall not have the right to prepay any Competitive Loan without the prior consent of the Lender thereof.

 

 

 

 

 

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

 

SECTION 2.12.  Fees.  (a)  The Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a commitment fee, which shall accrue at the Applicable Rate on
the daily amount of the Available Commitment of such Lender during the period from and including the Effective Date to the last day of the Availability Period, but excluding the date on which such Commitment terminates.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof.  All commitment fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

 

(b)           The Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a term-out fee in an amount equal to 1.00% of the aggregate principal amount of any Revolving Loans of such Lender requested to be converted to Term Loans pursuant to Section 2.04, payable
on the Termination Date.

 

(c)           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.

 

(d)           The Borrower agrees to pay to the Syndication Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Syndication Agent.

 

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

 

SECTION 2.13.  Interest.  (a)  The Loans comprising each ABR Borrowing shall bear interest at a rate per annum equal to the Alternate Base Rate plus the Applicable Rate then in effect
for such Borrowing.

 

 

 

 

 

27

 

 

(b)           The Loans comprising each LIBOR Borrowing shall bear interest at a rate per annum equal to (i) in the case of a LIBOR Revolving Loan or a LIBOR Term Loan, the LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate then in effect for such
Borrowing, or (ii) in the case of a LIBOR Competitive Loan, the LIBO Rate for the Interest Period in effect for such Borrowing plus (or minus, as applicable) the Margin applicable to such Loan.

 

(c)           Each Fixed Rate Loan shall bear interest at a rate per annum equal to the Fixed Rate applicable to such Loan.

 

(d)           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 (x) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided above or (y) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided above.

 

(e)           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 (d) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other
than a prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, (iii) in the event of any conversion of any LIBOR Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion and (iv) all accrued interest shall be payable upon termination of the Commitments.

 

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

 

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

 

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

 

(b)           the Administrative Agent is advised by the Required Lenders (or, in the case of a LIBOR Competitive Loan, the Lender that is required to make such Loan) that the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders
(or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period;

 

 

 

 

 

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then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Revolving Borrowing or Term Borrowing to, or continuation of any Revolving Borrowing or Term Borrowing as, a LIBOR Borrowing shall be ineffective, (ii) if any Borrowing Request requests a LIBOR Borrowing, such Borrowing shall be made as an ABR Borrowing and (iii) any request by the Borrower for a LIBOR Competitive Borrowing shall be ineffective; provided that (A) if the circumstances giving rise to such notice do not affect all the Lenders, then requests by the Borrower for LIBOR Competitive
Borrowings may be made to Lenders that are not affected thereby and (B) if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.

 

SECTION 2.15.  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 (except any such reserve requirement as is covered by Section 2.15 (c)); or

 

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

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any LIBOR Loan or Fixed Rate Loan (or of maintaining its obligation to make any such Loan) (excluding any such increased costs from Taxes or Excluded Taxes) 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 upon notice by such Lender 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 Loans 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, upon notice by such Lender, will 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 to the extent allocable to this Agreement.

 

(c)           The Borrower shall pay to each Lender at any time when such Lender is required to maintain reserves for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board), additional interest on the unpaid principal amount
of each LIBOR Loan of such Lender from the date of such requirement until such principal amount is paid in full or such requirement ceases at the rate per annum equal to (i) the LIBO rate for the relevant Interest Period multiplied by (ii) the Statutory Reserve Rate for such Lender minus (iii)

 

 

 

 

 

29

 

 

such LIBO Rate, payable upon notice by such Lender on each Interest Payment Date for such LIBOR Loan.

 

(d)           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), (b) or (c) of 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.

 

(e)           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.

 

(f)           Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled to compensation pursuant to this Section in respect of any Competitive Loan if the Change in Law that would otherwise entitle it to such compensation shall have been publicly announced
prior to submission of the Competitive Bid pursuant to which such Loan was made.

 

SECTION 2.16.  Break Funding Payments.  In the event of (a) the payment of any principal of any LIBOR Loan or Fixed Rate Loan other than on the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any LIBOR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any LIBOR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable under Section 2.11(b) and is revoked in accordance therewith), (d) the failure to borrow any Competitive Loan after accepting the Competitive Bid to make such
Loan, or (e) the assignment of any LIBOR Loan or Fixed Rate Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event (excluding any loss of anticipated profits).  In the case of a LIBOR Loan, 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 such Loan for the period from the date of such payment, conversion, failure or assignment to the last day of the then current Interest Period for such Loan (or, in the case of a failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or continuation) if the interest rate payable
on such deposit were equal to the LIBO Rate for such Interest Period, over (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

 

 

 

 

 

30

 

 

certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

 

SECTION 2.17.  Taxes.  (a)  Any and all payments by or on account of any obligation of the Borrower hereunder to, or for the account of, any Lender or any recipient of any payment
to be made by or on account of any obligation of the Borrower under this Agreement shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that, if the Borrower or any Loan Guarantor, as the case may be, 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 receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower or such Loan Guarantor shall make such deductions and (iii) the Borrower or such Loan 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 and any penalties, interest and reasonable expenses arising therefrom or with respect thereto.

 

(d)           Each Lender shall indemnify the Administrative Agent, within 10 days after demand therefor, for the full amount of any Excluded Taxes attributable to such Lender that are payable or paid by the Administrative Agent, and reasonable expenses arising therefrom or with respect
thereto, whether or not such Excluded 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 any Lender by the Administrative Agent shall be conclusive absent manifest error.

 

(e)           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.

 

(f)           Any Lender that is entitled to an exemption from or reduction of any applicable withholding tax with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times reasonably requested by the Borrower
or the Administrative Agent, 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 of withholding.  All reasonable out-of-pocket expenses incurred by such Lender in connection with the completion of such forms or documentation (other than with respect to forms

 

 

 

 

 

31

 

 

applicable to U.S. withholding tax) shall be borne by the Borrower.  In addition, any Lender, if requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative
Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Without limiting the generality of the foregoing, each Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement or changes its lending office (and from time to time
thereafter upon the request of the Borrower or the Administrative Agent), whichever of the following is applicable:

 

(i)           duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States of America is a party,

 

(ii)           duly completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)           in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit B to the effect that such Foreign Lender is not (A) a “bank” within the meaning
of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code and (D) the interest payments in question are not effectively connected with the United States trade or business conducted by such Lender (a “U.S. Tax Compliance Certificate”) and (y) duly
completed copies of  Internal Revenue Service Form W-8BEN,

 

(iv)           to the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or participating Lender granting a typical participation), an Internal Revenue Service Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, U.S. Tax Compliance
Certificate, Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that, if the Foreign Lender is a partnership (and not a participating Lender) and one or more beneficial owners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf of each such beneficial owner, or

 

(v)           any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine
the withholding or deduction required to be made.

 

Each Lender agrees that if any form or certification previously delivered by it expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

 

 

 

 

 

32

 

 

(g)           If any Lender or the Administrative Agent determines, in its sole discretion, that it has received a refund attributable to any Indemnified Taxes or Other Taxes paid by the Borrower or for which such Lender or the Administrative Agent has received payment from the Borrower
hereunder, such Lender or the Administrative Agent, within 30 days of such receipt, shall deliver to the Borrower the amount of such refund (but only to the extent of indemnity payments made under this Section with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of such Lender or the Administrative Agent and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided however,
that the Borrower, upon the request of such Lender or Administrative Agent, agrees to repay the amount paid over pursuant to this Section 2.17(g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Lender or the Administrative Agent in the event that such Lender or the Administrative Agent is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will any Lender be required
to pay any amount to the Borrower the payment of which would place such Lender or the Administrative Agent in a less favorable net after-Tax position than such Lender or the Administrative Agent would have been in if the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph shall not be construed to require any Lender or the Administrative Agent to make available its Tax returns (or any other information relating to its Taxes that it deems confidential)
to the Borrower or any other Person.

 

(h)           Each Lender that is a “U.S. Person” as defined in Section 7701(a)(3) of the Code shall, at the reasonable request of the Borrower or the Administrative Agent and to the extent it is legally entitled to do so, deliver to the Borrower or the Administrative Agent
two U.S. Internal Revenue Service Form W-9s (or substitute or successor form), properly completed and duly executed, certifying that such Lender is exempt from the United States backup withholding; provided, that for the avoidance of doubt, the failure to deliver such forms shall not subject any Lender that may be treated as an exempt recipient based on the indicators described in Treasury Regulation 1.6049-4(c)(1)(ii) to backup withholding.

 

SECTION 2.18.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a)  The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, or fees, or under Section 2.15, 2.16 or 2.17, or otherwise) prior to 2:00 p.m., 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 270
Park Avenue, New York, New York, except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in dollars.

 

 

 

 

 

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

 

(c)           If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Revolving Loans or Term Loans resulting in such Lender receiving payment of a greater proportion of the aggregate
amount of its Revolving Loans or Term Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans or Term 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 Revolving Loans or Term 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 any of its Loans 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 2.07(b) or 2.18(d), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

 

 

 

 

 

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SECTION 2.19.  Mitigation Obligations; Replacement of Lenders.  (a)  If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, 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 in any material respect 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 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender,
then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement (other than any outstanding Competitive Loans held by it) to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans (other than Competitive Loans), accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

SECTION 2.20.  Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for
so long as such Lender is a Defaulting Lender:

(a)            fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.12;

 

(b)            the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section
9.02), provided that any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender which affects such Defaulting Lender differently than other affected Lenders, or that would (i) increase or extend the Commitment of a Defaulting Lender or subject such Defaulting Lender to any additional obligations, (ii) change this Section

 

 

 

 

 

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2.20 or Section 9.02, (iii) reduce the principal amount of any Loan made by a Defaulting Lender or reduce the rate of the interest thereon, or reduce any fees payable to a Defaulting Lender hereunder, (iv) postpone the scheduled date of payment of the principal amount of any Loan made by a Defaulting Lender, or any interest thereon, or
any fees payable hereunder to a Defaulting Lender or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any commitment of a Defaulting Lender or (v) change any provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any right hereunder or make any determination or grant any consent hereunder, shall in each case require the consent of such Defaulting Lender;

 

(c)            any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.18 but excluding Section 2.19) may, in lieu
of being distributed to such Defaulting Lender, be applied by the Administrative Agent (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement and (iii) third,
to such Defaulting Lender; provided that if such payment is (x) a prepayment of the principal amount of any Loans and (y) made at a time when the conditions set forth in Section 4.02 are satisfied, such payment shall be applied solely to prepay the Loans of all non-Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans of any Defaulting Lender.

 

In the event that the Administrative Agent and the Borrower each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Competitive Loans) as the Administrative shall determine
may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

 

SECTION 2.21.  Proceeds.  The proceeds of the Loans made by the Lenders to the Borrower shall be used for acquisitions, repurchases of capital stock of the Borrower, the funding of dividends
payable to shareholders of the Borrower and for general corporate purposes of the Borrower (including commercial paper back-up).

 

ARTICLE III

 

Representations and Warranties

 

The Borrower represents and warrants to the Lenders that the following statements are true, correct and complete:

 

SECTION 3.01.  Organization, Powers and Good Standing.  (a)  Each of the Loan Parties is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization.  Each Loan Party has all requisite power and authority (i) to own and operate its properties and to carry on its business as now conducted and proposed to be conducted, except where the lack of power and authority would not have a Material Adverse Effect and (ii)

 

 

 

 

 

36

 

 

to enter into this Agreement and to carry out the transactions contemplated hereby and, in the case of the Borrower, to issue the Notes.

 

(b)           Each Loan Party is in good standing wherever necessary to carry on its present business and operations, except in jurisdictions in which the failure to be in good standing would not have a Material Adverse Effect.

 

(c)           All of the Material Subsidiaries of the Borrower, as of the Effective Date, are identified in Schedule 3.01 annexed hereto.  Each Material Subsidiary of the Borrower is validly existing and in good standing under the laws of its respective jurisdiction of organization
and has all requisite power and authority to own and operate its properties and to carry on its business as now conducted except where failure to be in good standing or a lack of power and authority would not have a Material Adverse Effect.

 

SECTION 3.02.  Authorization of Borrowing, etc.  (a)  The execution, delivery and performance of this Agreement (including by execution and delivery of any Joinder Agreement) by
each of the Loan Parties, and in the case of the Borrower, the issuance, delivery and payment of the Notes and the borrowing of the Loans, have been duly authorized by all necessary corporate action.

 

(b)           The execution, delivery and performance by each Loan Party of this Agreement, and the issuance, delivery and performance of the Notes by the Borrower and the borrowing of the Loans by the Borrower, do not and will not (i) violate any provision of law applicable to such Loan
Party or any of its Material Subsidiaries, (ii) violate the certificate of incorporation or bylaws of such Loan Party or any of its Material Subsidiaries, (iii) violate any order, judgment or decree of any court or other agency of government binding on such Loan Party or any of its Material Subsidiaries, conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any contractual obligation of such Loan Party or any of its Material Subsidiaries, result in or require
the creation or imposition of any Lien upon any of the material properties or assets of such Loan Party or any of its Material Subsidiaries or require any approval of stockholders or any approval or consent of any Person under any contractual obligation of such Loan Party or any of its Material Subsidiaries other than such approvals and consents which have been or will be obtained on or before the Effective Date; except for any violation, conflict, default, breach, lien or lack of approval the existence of which
would not have a Material Adverse Effect.

 

(c)           The execution, delivery and performance by each Loan Party of this Agreement, and in the case of the Borrower, the issuance, delivery and performance by the Loan Parties of the Notes, will not require on the part of such Loan Party any registration with, consent or approval
of, or notice to, or other action to, with or by, any federal, state or other governmental authority or regulatory body other than any such registration, consent, approval, notice or other action which has been duly made, given or taken.

 

(d)           This Agreement is and each of the Notes when executed and delivered by the Borrower, will be a legally valid and binding obligation of each Loan Party that is party thereto enforceable against such Loan Party in accordance with its respective terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar

 

 

 

 

 

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laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

 

SECTION 3.03.  Financial Condition.  The Borrower has delivered to the Administrative Agent the following materials:  (i) audited consolidated financial statements of the Borrower
and its Subsidiaries for the year ended December 31, 2008 and (ii) unaudited consolidated financial statements of the Borrower and its Subsidiaries for the Fiscal Quarters ended March 31, 2009 and June 30, 2009 (collectively, the “Financial Statements”).  All such Financial Statements were prepared in accordance with GAAP except for the preparation of footnote disclosures for the unaudited statements.  All such Financial
Statements fairly present the consolidated financial position of the Borrower and its Subsidiaries as at the respective dates thereof and the consolidated statements of income and changes in financial position of the Borrower and its Subsidiaries for each of the periods covered thereby, subject, in the case of any unaudited interim financial statements, to changes resulting from normal year-end adjustments.

 

SECTION 3.04.  No Adverse Material Change.  Since December 31, 2008, there has been no change in the business, operations, properties, assets or financial condition of the Borrower or any
of its Subsidiaries, which has been, either in any case or in the aggregate, materially adverse to the Borrower and its Subsidiaries taken as a whole.

 

SECTION 3.05.  Litigation.  Except as disclosed in the Borrower’s Reports on Form 10-K for the year ended December 31, 2008 and the Borrower’s Reports on Form 10-Q for the
quarters ended March 31, 2009 and June 30, 2009 or in Schedule 3.05 to this Agreement, there is no action, suit, proceeding, governmental investigation (including, without limitation, any of the foregoing relating to laws, rules and regulations relating to the protection of the environment, health and safety) of which the Borrower has knowledge or arbitration (whether or not purportedly on behalf of the Borrower or any of its Subsidiaries) at law or in equity or before or by any Governmental Authority, domestic
or foreign, pending or, to the knowledge of the Borrower, threatened against the Borrower or any of its Subsidiaries or affecting any property of the Borrower or any of its Subsidiaries which (i) challenges the validity of this Agreement or any Note or (ii) could reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.06.  Payment of Taxes.  Except to the extent permitted by Section 5.03 hereof, the Borrower has paid or caused to be paid all taxes, assessments, fees and other governmental charges
upon the Borrower and each of its Subsidiaries and upon their respective properties, assets, income and franchises, except for any taxes the failure of which to pay would not have a Material Adverse Effect (provided that no Tax Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted with respect to any such Tax, fee or other charge) or which are not yet due and payable or which are being contested in good faith.  The Borrower does not know of any proposed tax assessment
against the Borrower or such Subsidiary that would have a Material Adverse Effect, which is not being contested in good faith by the Borrower or such Subsidiary; provided that such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor.

 

SECTION 3.07.  Governmental Regulation.  The Borrower is not an “investment company” or a company “controlled” by an “investment company,” within the meaning
of the Investment Company Act of 1940, as amended.

 

 

 

 

 

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SECTION 3.08.  Securities Activities.  The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock.

 

SECTION 3.09.  ERISA.  Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) the Borrower and each of its ERISA Affiliates is
in compliance with the applicable provisions of ERISA and the provisions of the Code relating to Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event has occurred or is reasonably expected to occur; and (iii) all amounts required by applicable law with respect to, or by the terms of, any retiree welfare benefit arrangement maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate has an obligation to contribute have been accrued in accordance
with Statement of Financial Accounting Standards No. 106.

 

(b)           Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (i) all employer and employee contributions required by applicable law or by the terms of any Foreign Benefit Arrangement or Foreign
Plan have been made, or, if applicable, accrued in accordance with normal accounting practices; (ii) the accrued benefit obligations of each Foreign Plan (based on those assumptions used to fund such Foreign Plan) with respect to all current and former participants do not exceed the assets of such Foreign Plan; (iii) each Foreign Plan that is required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities; and (iv) each Foreign Benefit Arrangement
and Foreign Plan is in compliance (A) with all material provisions of applicable law and all material applicable regulations and published interpretations thereunder with respect to such Foreign Benefit Arrangement or Foreign Plan and (B) with the terms of such arrangement or plan.

 

SECTION 3.10.  Disclosure.  As of the Closing Date, neither the Confidential Information Memorandum dated July 29, 2009, nor any of the other reports, financial statements, certificates or
other information furnished by or on behalf of the Borrower 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.

 

ARTICLE IV­

 

Conditions

 

SECTION 4.01.  Effective Date.  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 9.02):

 

(a)           The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy or e-mail

 

 

 

 

 

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transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

(b)           The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Kenneth M. Vittor, General Counsel to the Borrower, substantially in the form of Exhibit C, and covering such
other matters relating to the Loan Parties, this Agreement or the Transactions as the Required Lenders shall reasonably request.

 

(c)           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 Loan Parties, the authorization of the Transactions and any other
legal matters relating to the Loan Parties, this Agreement or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.

 

(d)           The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a financial officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02.

 

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

 

(f)           The Administrative Agent shall have received evidence satisfactory to it that the Existing Facility has been terminated and all amounts, if any, owing by the Borrower thereunder have been paid in full.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.  Notwithstanding the foregoing, the obligations of the Lenders to make Loans hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section
9.02) at or prior to 3:00 p.m., New York City time, on September 11, 2009 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

 

SECTION 4.02.  Each Credit Event.  The obligation of each Lender to make a Revolving Loan or convert a Revolving Loan to a Term Loan on the occasion of any Borrowing is subject to the satisfaction
of the following conditions:

 

(a)           The representations and warranties of the Borrower set forth in this Agreement (other than in Section 3.04 and Section 3.05(ii) for any Loan made after the Effective Date) shall be true and correct in all material respects on and as of the date of such Borrowing, except
to the extent that such representations and warranties specifically relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date.

 

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

 

 

 

 

 

40

 

 

Each Borrowing and the conversion of the Revolving Loans into Term Loans pursuant to Sections 2.04 and 2.05 shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.

 

ARTICLE V

 

Affirmative Covenants

 

Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lenders that:

 

SECTION 5.01.  Financial Statements and Other Reports.  The Borrower and each of its Subsidiaries will maintain a system of accounting established and administered in accordance with sound
business practices to permit preparation of consolidated financial statements in conformity with GAAP and the Borrower will deliver to the Administrative Agent (which will deliver copies thereof to the Lenders) (except to the extent otherwise expressly provided below in subsection 5.01(b)(ii)):

 

(a)           (i)           as soon as practicable and in any event within 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year ending after the Effective Date the consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at the end of such period, and the related consolidated statements of income and shareholders’ equity and cash flows of the Borrower and its consolidated Subsidiaries in each case certified by the chief financial officer or controller of the Borrower that they fairly present the financial condition of the Borrower and its consolidated Subsidiaries as at the dates indicated and the results of their operations and changes in their financial position, subject to
changes resulting from audit and normal year-end adjustments, based on the Borrower’s normal accounting procedures applied on a consistent basis (except as noted therein);

 

(ii)       as soon as practicable and in any event within 90 days after the end of each Fiscal Year the consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such year and the related consolidated statements of income and shareholders’ equity and cash flows
of the Borrower and its consolidated Subsidiaries for such Fiscal Year, accompanied by a report thereon of an Independent Public Accountant which report shall be unqualified as to (w) the accuracy of all numbers or amounts set forth in such financial statements, (x) the inclusion or reflection in such financial statements of all amounts pertaining to contingencies required to be included or reflected therein in accordance with GAAP, (y) going concern and (z) scope of audit and shall state that such consolidated
financial statements present fairly the financial position of the Borrower and its consolidated Subsidiaries as at the dates indicated and the results of their operations and changes in their financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as noted in such report and approved by such Independent Public Accountant) and that the examination by such Independent Public Accountant in connection with such

 

 

 

 

 

41

 

 

consolidated financial statements has been made in accordance with generally accepted auditing standards;

 

The Borrower will be deemed to have complied with the requirements of Section 5.01(a)(i) hereof if within 45 days after the end of each Fiscal Quarter (other than the final Fiscal Quarter) of each of its Fiscal Years, a copy of the Borrower’s Form 10-Q as filed with the Securities and Exchange Commission with respect to such Fiscal
Quarter is furnished to the Administrative Agent, and the Borrower will be deemed to have complied with the requirements of Section 5.01(a)(ii) hereof if within 90 days after the end of each of its Fiscal Years, a copy of the Borrower’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission with respect to such Fiscal Year is furnished to the Administrative Agent:

 

(b)           (i)           together with each delivery of financial statements of the Borrower and its consolidated Subsidiaries pursuant to subdivisions (a)(i) and (a)(ii) above, (x) an Officer’s Certificate of the Borrower
stating that the signer has reviewed the terms of this Agreement and has made, or caused to be made under such signer’s supervision, a review in reasonable detail of the transactions and condition of the Borrower and its consolidated Subsidiaries during the accounting period covered by such financial statements and that such review has not disclosed the existence during or at the end of such accounting period, and that the signer does not have knowledge of the existence as at the date of the Officers’
Certificate, of any condition or event which constitutes an Event of Default or Default, or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Borrower has taken, is taking and proposes to take with respect thereto; and (y) an Officer’s Certificate demonstrating in reasonable detail compliance with the restrictions contained in Section 6.03 hereof as of the last day of the accounting period covered by such financial statements (a
“Compliance Certificate”) and, in addition, a written statement of the chief accounting officer, chief financial officer, any vice president or the treasurer or any assistant treasurer of the Borrower describing in reasonable detail the differences between the financial information contained in such financial statements and the information contained in the Officer’s Certificate relating to compliance with Section 6.03 hereof;

 

(ii)         promptly upon their becoming available but only to the extent requested by the Administrative Agent, copies of all publicly available financial statements, reports, notices and proxy statements sent by the Borrower to its security holders, all regular and periodic reports and all
registration statements and prospectuses, if any, filed by the Borrower with any securities exchange or with the Securities and Exchange Commission;

 

(iii)         promptly upon (and in no event later than three days after) any of the chairman of the board, the chief executive officer, the president, the chief accounting officer, the chief financial officer or the treasurer of the Borrower obtaining actual knowledge (x) of any condition or
event which constitutes an Event of Default or Default, or (y) of a Material Adverse Effect, an Officer’s Certificate specifying the nature and period of existence of any such condition or event, or specifying the notice given or action taken by such holder or Person and the nature of such claimed Default, Event of Default, event or condition, and what action, if any, the Borrower has taken, is taking and proposes to take with respect thereto; and

 

 

 

 

 

42

 

 

(iv)         with reasonable promptness, such other information and data with respect to the Borrower or any of its Subsidiaries as from time to time may be reasonably requested by any Lender.

 

SECTION 5.02.  Corporate Existence.  Except as may result from a transaction permitted by Section 6.01 hereof, the Borrower will, and will cause each other Loan Party to, maintain its corporate
existence in good standing and qualify and remain qualified to do business as a foreign corporation in each jurisdiction in which the character of the properties owned or leased by it therein or in which the transaction of its business is such that the failure to qualify would have a Material Adverse Effect.

 

SECTION 5.03.  Payment of Taxes.  The Borrower will, and will cause each of its Subsidiaries to, pay all taxes, assessments and other governmental charges imposed upon it or any of its properties
or assets or in respect of any of its franchises, business, income or property when due which are material to the Borrower and its Subsidiaries, taken as a whole, provided, that no such amount need be paid if being contested in good faith by appropriate proceedings diligently conducted and if such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor.

 

SECTION 5.04.  Maintenance of Properties; Insurance.  The Borrower will maintain or cause to be maintained in good repair, working order and condition (ordinary wear and tear excepted) all
material properties and equipment used or useful in its business.  The foregoing sentence shall not be construed as to prohibit or restrict the sale or disposition of any assets of the Borrower or any of its Subsidiaries.  The Borrower will maintain or cause to be maintained, with financially sound and reputable insurers, insurance with respect to its material properties and business and the material properties and business of its Subsidiaries against loss or damage of the kinds customarily
insured against by corporations of established reputation engaged in the same or similar businesses and similarly situated, of such types and in such amounts as are customarily carried under similar circumstances by such other corporations.

 

SECTION 5.05.  Compliance with Laws.  The Borrower and its Subsidiaries shall exercise all due diligence in order to comply in all material respects with the requirements of all applicable
laws, rules, regulations and orders of any Governmental Authority (including, without limitation, laws, rules and regulations relating to the disposal of hazardous wastes and asbestos in the environment), noncompliance with which would have a Material Adverse Effect.

 

SECTION 5.06.  Notices of ERISA Event.  The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the occurrence of any ERISA Event that, alone or together
with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $50,000,000.

 

SECTION 5.07.  Inspection Rights.  The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender,
upon reasonable prior notice and at reasonable times, to visit and inspect its properties, to examine and make extracts from its books, and to discuss its affairs, finances and condition with its officers and, in the presence of its officers, its independent accountants.

 

 

 

 

 

43

 

 

ARTICLE VI

 

Negative Covenants

 

Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full, the Borrower covenants and agrees with the Lenders that:

 

SECTION 6.01.  Fundamental Changes.  The Borrower will not consolidate with or merge with or into, or transfer all or substantially all, or any substantial portion, of its properties and assets
to one or more Persons in one or a series of related transactions unless (i) if the Borrower is the surviving entity in any such consolidation or merger, after giving effect to such transaction, there would not exist any Default or Event of Default hereunder, (ii) if the Borrower is not the surviving entity in any such consolidation or merger, each of the Lenders (or in the case of any such consolidation or merger which is in the nature of an internal corporate reorganization of only the Borrower and its Subsidiaries
and does not, in the reasonable judgment of the Required Lenders affect, in any material respect, the creditworthiness of the Borrower, the Required Lenders) consents to such consolidation or merger in advance or (iii) if the Borrower transfers all or substantially all, or any substantial portion, of its properties and assets, the transferee or transferees thereto are wholly owned Subsidiaries (except the transferee or transferees of any substantial portion of its properties and assets, but not all or substantially
all of its properties and assets, shall not be required to be wholly owned Subsidiaries if the transfer is for fair consideration as reasonably determined by the Borrower) and any such transferee that is a domestic Subsidiary becomes a Loan Guarantor hereunder pursuant to a Joinder Agreement substantially in the form of Exhibit D (it being understood that the Borrower and the Administrative Agent, on behalf of the Lenders, may agree to amendments hereto solely to provide for such guarantor arrangements as it
may reasonably determine are necessary or useful).  For the purposes of this Section, “Subsidiary” of the Borrower shall include any partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers thereof are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by the Borrower.

 

SECTION 6.02.  Liens.  The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to
any property or asset (including any document or instrument in respect of goods or accounts receivable) of the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, or any income or profits therefrom, except:

 

(a)           Liens in existence on the date hereof and set forth on Schedule 6.02 hereto;

 

(b)           Permitted Liens;

 

 

 

 

 

44

 

 

(c)           Purchase money security interests (including mortgages, conditional sales, Capitalized Leases and any other title retention or deferred purchase devices) in real or tangible personal property of the Borrower or any of its Subsidiaries existing or created at the time of acquisition
thereof or within 90 days thereafter, and the renewal, extension or refunding of any such security interest in an amount not exceeding the amount thereof remaining unpaid immediately prior to such renewal, extension or refunding; provided, however, that the principal amount of Indebtedness and Capitalized Lease Obligations secured by each such security interest in each item of property shall not exceed the cost (including all such Indebtedness secured thereby, whether or not assumed) of the item subject thereto
and that such security interests shall attach solely to the particular item of property so acquired;

 

(d)           Liens on property of a Person existing at the time such Person is merged into or consolidated with the Borrower or any Subsidiary of the Borrower or becomes a Subsidiary of the Borrower; provided that such
Liens were not created in contemplation of such merger, consolidation or acquisition and do not extend to any assets other than those of the Person so merged into or consolidated with the Borrower or such Subsidiary or acquired by the Borrower or such Subsidiary; and

 

(e)           In addition to Liens permitted by clauses (a) through ­(d), the Borrower and its Subsidiaries may have attachment or judgment Liens and Liens securing the payment of Indebtedness, which Liens secure in the aggregate not more than $200,000,000.

 

SECTION 6.03.  Financial Covenants.  The Borrower shall not permit the Indebtedness to Cash Flow Ratio for each Determination Date which is the last day of a Fiscal Quarter of the Borrower
to be greater than 4.0:1.0 at any time.

 

SECTION 6.04.  Use of Proceeds.  No portion of the proceeds of any borrowing under this Agreement shall be used by the Borrower in any manner which would cause the borrowing or the application
of such proceeds to violate Regulation U, Regulation T, or Regulation X of the Board or any other regulation of the Board or to violate the Exchange Act, in each case as in effect on the date or dates of such borrowing and such use of proceeds.

 

ARTICLE VII

 

Events of Default

 

If any of the following conditions or events (“Events of Default”) shall occur and be continuing:

 

SECTION 7.01.  Failure to Make Payments When Due.  Failure to pay any installment of principal of any Loan when due, whether at stated maturity, by acceleration, by notice of prepayment or
otherwise; or failure to pay any other amount due under this Agreement (including, without limitation, the fees described in Section 2.11 hereof) or to pay interest on any Loan, in either case within three Business Days after the date when due.

 

SECTION 7.02.  Default in Other Agreements.  (a)  Failure of the Borrower or any of its Material Subsidiaries to pay when due, after giving effect to any applicable grace period
and to any waiver or extension granted thereunder, any principal or interest on any

 

 

 

 

 

45

 

 

Indebtedness of the Borrower or any Material Subsidiary (other than Indebtedness referred to in subsection 7.01) and Capital Lease Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more.

 

(b)           The breach or default of the Borrower or any of its Subsidiaries with respect to any other term of any Indebtedness or Capital Lease Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more or any loan agreement, mortgage, indenture or
other agreement relating thereto, if such failure, default or breach results in such Indebtedness or Capital Lease Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more becoming or being declared by the holders thereof to be due and payable prior to its stated maturity; provided that if the Borrower or any of its Material Subsidiaries enters into or is a party to (as a borrower, guarantor or other obligor) any such loan agreement, mortgage, indenture or other agreement and
such instrument contains a provision in the nature of a “cross-default” clause (whether as a default provision, a covenant or otherwise), such provision is hereby incorporated by reference in this Agreement, mutatis mutandis, for the benefit of the Lenders and the Administrative Agent (and without giving effect to any amendment, modification or waiver unless such amendment, modification or waiver is intended solely to cure any ambiguity, omission, defect or inconsistency (which intention shall be
determined in good faith by the Chief Financial Officer of the Borrower)); provided, further, that notwithstanding anything contained in this Agreement to the contrary, this Section 7.02 shall not be applicable to any Indebtedness of, or Capitalized Lease Obligation (or loan agreement, mortgage, indenture or other agreement relating thereto) entered into by, a partnership (a “Partnership”) of which any Subsidiary of the Borrower is a
general partner (a “General Partner”) provided that (i) such General Partner’s only asset is its interest in the Partnership and (ii) such Indebtedness and/or Capitalized Lease Obligation, as the case may be, (A) is with recourse only to such asset, the assets of the Partnership and any asset or assets of any general partner or other entity that is not an Affiliate of the General Partner and (B) is without recourse to the Borrower
and any of its other Subsidiaries.

 

SECTION 7.03.  Breach of Certain Covenants.  Failure of the Borrower to perform or comply with any term or condition contained in Section 5.02 or Article 6 of this Agreement.

 

SECTION 7.04.  Breach of Warranty.  Any material representation or warranty made by the Borrower in this Agreement or in any statement or certificate at any time given by the Borrower in writing
pursuant hereto or thereto or in connection herewith or therewith shall be false in any material respect on the date as of which made or deemed to be made.

 

SECTION 7.05.  Other Defaults Under Agreement.  The Borrower shall default in the performance of or compliance with any term contained in this Agreement (other than any default described in
any other provision of Section 7 hereof) and such default shall not have been remedied or waived within 30 days after receipt by the Borrower of notice from the Agent or any Lender of such default.

 

SECTION 7.06.  Change In Control.  (a)  The acquisition (other than from the Borrower) by any Person or any “group”, within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act (excluding, for this purpose, the Borrower or its Subsidiaries or any employee

 

 

 

 

 

46

 

 

benefit plan of the Borrower or its Subsidiaries) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either the then outstanding shares of common stock or the combined voting power of the Borrower’s then outstanding voting securities entitled to vote generally in the election
of directors; or (b) individuals who, as of the date hereof, constitute the board of directors of the Borrower (the “Incumbent Board”) cease for any reason to constitute at least a majority of the board, provided that any person becoming a director subsequent to the date hereof, whose election, or nomination for election by the Borrower’s shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Borrower, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall be, for purposes of this provision, considered a member of the Incumbent Board.

 

SECTION 7.07.  Involuntary Bankruptcy; Appointment of Receiver, etc.  (a)  A court having jurisdiction in the premises shall enter a decree or order for relief in respect of the
Borrower or any of its Material Subsidiaries in an involuntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state law and is not stayed.

 

(b)           An involuntary case is commenced against the Borrower or any of its Material Subsidiaries under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment
of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the Borrower or any of its Material Subsidiaries, or over all or a substantial part of its property, shall have been entered; or an interim receiver, trustee or other custodian of the Borrower or any of its Material Subsidiaries for all or a substantial part of the property of the Borrower or any of its Material Subsidiaries is involuntarily appointed; or a warrant of attachment, execution or similar process
is issued against any substantial part of the property of the Borrower or any of its Material Subsidiaries; and the continuance of any such events in subpart (b) for 90 days unless dismissed, bonded or discharged.

 

SECTION 7.08.  Voluntary Bankruptcy; Appointment of Receiver, etc.  The Borrower or any of its Material Subsidiaries shall have an order for relief entered with respect to it or commence a
voluntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; the making by the Borrower or any of its Material Subsidiaries of any assignment
for the benefit of creditors generally; or the inability or failure of the Borrower or any of its Material Subsidiaries, or the admission by the Borrower or any of its Material Subsidiaries in writing of its inability to pay its debts as such debts become due; or the Board of Directors of the Borrower or any Material Subsidiary (or any committee thereof) adopts any resolution or otherwise authorizes action to approve any of the foregoing; or

 

 

 

 

 

47

 

 

SECTION 7.09.  Judgments and Attachments.  Any money judgment, writ or warrant of attachment, or similar process involving individually or at any one time in the aggregate an amount in excess
of $200,000,000 (calculated net of insurance coverage, so long as such coverage has been accepted by the relevant insurance company or companies) shall be entered or filed against the Borrower or any of its Subsidiaries or any of its assets and shall remain undischarged, unvacated, unbonded or unstayed, as the case may be, for a period of 90 days or in any event later than five days prior to the date of any announced sale thereunder; or

 

SECTION 7.10.  Involuntary Dissolution.  Any order, judgment or decree shall be entered against the Borrower or any of its Material Subsidiaries decreeing the dissolution or split up of the
Borrower or any of its Material Subsidiaries and such order shall remain undischarged or unstayed for a period in excess of 60 days; or

 

SECTION 7.11.  ERISA Event.   (a)  An ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected
to result in a Material Adverse Effect;

 

THEN (i) upon the occurrence of any Event of Default described in the foregoing subsection 7.07 or 7.08, the unpaid principal amount of and accrued interest on the Loans and any fees and other amounts owing by the Borrower under this Agreement and the Notes shall automatically become immediately due and payable, without presentment, demand,
protest or other requirements of any kind, all of which are hereby expressly waived by the Borrower and the obligation of each Lender to make any Loans shall thereupon terminate, and (ii) upon the occurrence of any other Event of Default, the Administrative Agent, as directed by the Required Lenders, may, by written notice to the Borrower, declare all of the unpaid principal amount of and accrued interest on the Loans and any fees and other amounts owing by the Borrower under this Agreement and the Notes to be,
and the same shall forthwith become immediately, due and payable, together with accrued interest thereon, and the obligation of each Lender to make any Loan hereunder shall thereupon terminate.  Nevertheless, if at any time within 60 days after acceleration of the maturity of the Loans the Borrower shall pay all arrears of interest and all payments on account of the principal which shall have become due otherwise than by acceleration (with interest on principal and, to the extent permitted by law, on
overdue interest, at the rates specified in this Agreement or the Notes) and all other fees or expenses then owed hereunder and all Events of Default and Defaults (other than non-payment of principal of and accrued interest on the Loans and the Notes due and payable solely by virtue of acceleration) shall be remedied or waived pursuant to Section 9.02 hereof, then the Required Lenders by written notice to the Borrower may (in their sole discretion) rescind and annul the acceleration and its consequences; but
such action shall not affect any subsequent Event of Default or Default or impair any right consequent thereon.

 

ARTICLE VIII

 

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

 

 

 

 

 

48

 

 

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 the Borrower or any of its Subsidiaries that is communicated
to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or, if so specified by this Agreement, all Lenders) or in the absence of its own gross negligence or wilful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given
to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (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.

 

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 the Borrower), 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 its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties.  The
exculpatory

 

 

 

 

 

49

 

 

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, in consultation with the Borrower, 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 9.03 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Administrative Agent.

 

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.

 

It is agreed that the Syndication Agent shall have no duties, responsibilities or liabilities hereunder in its capacity as such.

 

ARTICLE IX

 

MISCELLANEOUS

 

SECTION 9.01.  Notices.  Except in the case of notices and other communications expressly permitted to be given by telephone or as contemplated below, all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 

(a)           if to any Loan Party, to the Borrower at:

 

The McGraw-Hill Companies, Inc.

 

 

 

 

 

50

 

 

1221 Avenue of the Americas

New York, New York 10020

	 	
Attention:
	
Elizabeth O’ Melia

Treasurer

(Telecopy No. (212) 512-6052)

with a copy to:

 

1221 Avenue of the Americas

New York, New York 10020

	 	
Attention:
	
Kenneth M. Vittor

Executive Vice President and General Counsel

(Telecopy No. (212) 512-4827)

 

(b)           if to the Administrative Agent, to:

 

JPMorgan Chase Bank, N.A.

1111 Fannin, Floor 10

Houston, Texas 77002

Attention:  Maryann Bui

(Telecopy No. (713) 750-2858)

with a copy to:

 

JPMorgan Chase Bank, N.A.

270 Park Avenue, 4th Floor

New York, New York 10017

Attention:  Sharon Bazbaz

(Telecopy No. (212) 270-5127)

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

 

Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communications (including e-mail and internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant
to Article II or to certificates delivered pursuant to Section 5.01(b) unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower (on behalf of the Loan Parties) 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.  All such notices
and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if not given during the normal business hours of the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day for the recipient.  All
other notices and

 

 

 

 

 

51

 

 

communications given to any party hereto in accordance with the provisions of this Agreement and delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy shall be deemed to have been given on the date of receipt, provided that
if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient.  Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto.

 

SECTION 9.02.  Waivers; Amendments.  (a)  No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement or consent to any departure by the
Borrower 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 Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required
Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon, or reduce any fees 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,
or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender or (v) 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.

 

 

 

 

 

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SECTION 9.03.  Expenses; Indemnity; Damage Waiver.  (a)  The Borrower shall pay (i) all reasonable and actual out-of-pocket expenses incurred by the Administrative Agent and its
Affiliates, including the reasonable and actual 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 or 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 actual out-of-pocket expenses incurred by the Administrative Agent
or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made hereunder, including in connection with any workout, restructuring or negotiations in respect thereof.

 

(b)           The Borrower shall indemnify the Administrative Agent and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related 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 actual or alleged presence or release of hazardous materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any environmental liability related in any way to the Borrower or any of its Subsidiaries, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses resulted from the gross negligence or wilful misconduct of such Indemnitee or any of its Affiliates.

 

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

 

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

 

(e)           The Borrower shall not be liable for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements which 

 

 

 

 

 

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may be imposed on, incurred by or asserted against an Indemnitee that is a Lender by another Lender or any entity which has purchased or otherwise acquired a participation in any Loan, Commitment or interest herein or in a Note of such Indemnitee to the extent such relate solely to or arise solely out of actions taken or not taken by
the Indemnitee Lender in connection with matters that are of an “interbank nature”.  To the extent that the undertaking to indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy or otherwise, the Borrower shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all indemnified liabilities incurred by the Indemnitees or any of
them.

 

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

 

(g)           Each Loan Party agrees that neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to such Loan Party arising out of or in connection with this Agreement, and the relationship between the Administrative Agent and the Lenders, on the one
hand, and the Loan Parties on the other hand, in connection herewith or therewith is solely that of debtor and creditor.

 

SECTION 9.04.  Successors and Assigns.  (a)  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns permitted hereby, except that (i) the Borrower may not 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 the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants (to the extent provided in paragraphs (e) and (f) of this Section) 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)           (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with
the prior written consent (such consent not to be unreasonably withheld) of (A) the Borrower; provided that no consent of the Borrower shall be required for an assignment to a Lender, Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee and (B) the Administrative Agent, provided that no consent of the Administrative Agent
shall be required for an assignment of all or any portion of a Competitive Loan to a Lender, an Affiliate of a Lender or an Approved Fund, (ii) Assignments shall be subject to the following additional conditions:  (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans 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 $10,000,000 or, in the case of a Competitive Loan, $1,000,000 

 

 

 

 

 

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unless each of the Borrower and the Administrative Agent otherwise consent provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing; (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, except that this clause (iii) shall not apply to rights in respect of outstanding Competitive Loans, (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 in which the assignee
designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its related parties) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including Federal and state securities laws.  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 2.16, 2.17, 2.18 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (e) of this Section.

 

(c)           The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in 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 Commitment
of, and 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 absent manifest error, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
to the contrary.  The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time, upon reasonable prior notice.

 

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

 

(e)           Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”)

 

 

 

 

 

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in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the 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 9.02(b) that affects such Participant.  Subject to paragraph (f) of this Section, the Borrower agrees that each Lender shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 for the account of any Participant from such Lender to the extent that (i) such Lender would
have been entitled to such benefits had it not sold a participation to such Participant and (ii) such Participant has suffered the same disadvantage as such Lender would have suffered had it not sold such participation.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans
or other obligations under this Agreement (the “Participant Register”).  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(f)           A Participant shall not be entitled to receive any greater payment under Section 2.15, 2.16 or 2.17 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless (solely with respect to Sections 2.15 and
2.16) the sale of the participation to such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.17(f) 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, 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 Federal Reserve Bank for such Lender as a party hereto.

 

SECTION 9.05.  Survival.  All covenants, agreements, representations and warranties made by the Loan 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

 

 

 

 

 

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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  and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16,
2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof.

 

SECTION 9.06.  Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute
an original, but all of which when taken together shall constitute a single contract.  This Agreement and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have
been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof 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 or e-mail shall be effective as delivery of a manually executed counterpart of this Agreement.

 

SECTION 9.07.  Severability.  Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 9.08.  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 time held and other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower against any of and all the obligations of the Borrower now or hereafter existing under this Agreement held by such Lender or any of its Affiliates, 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 9.09.  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 Loan 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

 

 

 

 

 

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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 Loan Party or its properties in the courts of any jurisdiction.

 

(c)           Each Loan 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 9.01.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

SECTION 9.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (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 9.11.  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 9.12.  Confidentiality.  (a)  The Lenders shall hold all non-public information obtained pursuant to this Agreement which has been identified as such by the Borrower in accordance
with their customary procedures for handling confidential information of this nature and in accordance with safe and sound banking practices and in any event may make disclosure reasonably required by any bona fide transferee or participant, or relevant credit default or swap counterparty, in connection with the contemplated transfer of any Note, Loan or Commitment or participation therein, to its employees, directors, agents, attorneys, accountants and other professional advisors or those of any of its affiliates
on a confidential basis or as required or requested by any governmental agency or representative thereof or pursuant to legal 

 

 

 

 

 

 

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process; provided that, unless specifically prohibited by applicable law or court order, each Lender shall notify the Borrower of any request by any governmental agency or representative thereof (other than any such request in connection with an examination of the financial condition of such Lender by such governmental agency) or request
pursuant to legal process for disclosure of any such non-public information prior to disclosure of such information so that either or both of them may seek an appropriate protective order; and further, provided that in no event shall any Lender be obligated or required to return any materials furnished by the Borrower or any of its Subsidiaries.

 

(b)           EACH LENDER ACKNOWLEDGES THAT INFORMATION FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE
PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

 

(c)           ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH
MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES.  ACCORDINGLY, EACH LENDER ACKNOWLEDGES TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

 

SECTION 9.13.  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.

 

ARTICLE X

 

Loan Guaranty

 

SECTION 10.01. Guaranty.  Each Loan Guarantor hereby agrees that it is jointly and severally liable for, and, as primary obligor and not merely as surety, absolutely and unconditionally
guarantees to the Lenders and other holders of Obligations from time to time the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Obligations and all costs and expenses including, without limitation, all

 

 

 

 

 

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court costs and attorneys’ fees and expenses paid or incurred by the Administrative Agent and the Lenders and such other holders in endeavoring to collect all or any part of the Obligations from, or in prosecuting any action against, the Borrower, any Loan Guarantor or any other guarantor of all or any part of the Obligations (such
costs and expenses, together with the Obligations, collectively the “Guaranteed Obligations”). Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.

 

SECTION 10.02. Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Guarantor waives any right to require the Administrative Agent
or any Lender or other holder of obligations to sue the Borrower, any Loan Guarantor, any other guarantor, or any other Person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.

SECTION 10.03. No Discharge or Diminishment of Loan Guaranty.  (a) Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional and
absolute and not subject to any reduction, limitation, impairment, discharge, termination, or otherwise affected by for any reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any waiver or modification of or supplement to any provision of any agreement relating to the Guaranteed
Obligations; (iii) any change in the corporate existence, structure or ownership of the Borrower or any other guarantor of or other person liable for any of the Guaranteed Obligations; (iv) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated Party, or their assets or any resulting release or discharge of any obligation of any Obligated Party; (v) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of the Borrower for all
or any part of the Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any of the Guaranteed Obligations; (vi) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time against any Obligated Party, the Administrative Agent, any Lender, or any other person, whether in connection herewith or in any unrelated transactions; (vii) the failure of the Administrative Agent or any Lender or other holder of Obligations to assert any claim
or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (viii) any action or failure to act by the Administrative Agent or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (ix) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Loan Guarantor
or that would otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of the Guaranteed Obligations).

 

(b)           The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise, or 

 

 

 

 

 

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any provision of applicable law or regulation purporting to prohibit payment by any Loan Guarantor, of the Guaranteed Obligations or any part thereof.

 

SECTION 10.04. Rights of Subrogation.  No Loan Guarantor will assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or
indemnification that it has against any Obligated Party, or any collateral, until the Loan Parties and the Loan Guarantors have fully performed all their obligations to the Administrative Agent and the Lenders.

 

SECTION 10.05. Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of the Guaranteed Obligations is rescinded or must otherwise be restored or returned
upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise, each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though the payment had not been made and whether or not the Administrative Agent and the Lenders are in possession of this Loan Guaranty. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts
otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Lender.

 

SECTION 10.06. Maximum Liability.  The provisions of this Loan Guaranty are severable, and in any action or proceeding involving any state corporate law, or any state, federal
or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Loan Guarantor under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable on account of the amount of such Loan Guarantor’s liability under this Loan Guaranty, then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such liability shall, without any further action by the Loan Guarantors or
the Lenders, be automatically limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant Loan Guarantor’s “Maximum Liability”.  Each Loan Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum Liability of each Loan Guarantor without impairing this Loan
Guaranty or affecting the rights and remedies of the Lenders hereunder, provided that, nothing in this sentence shall be construed to increase any Loan Guarantor’s obligations hereunder beyond its Maximum Liability.

 

 

 

 

 

 

 

 

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.

 

 

 

	 	THE McGRAW-HILL COMPANIES, INC.	 
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Robert J. Bahash	 
	 	 	Name:  	Robert J. Bahash	 
	 	 	Title:  	Executive Vice President-
Chief Financial Officer
	 

 

 

 

	 	STANDARD & POOR’S FINANCIAL SERVICES LLC, as Guarantor	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Elizabeth O’Melia	 
	 	 	Name:  	Elizabeth O’Melia	 
	 	 	Title:  	Vice President and Treasurer	 

 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	
JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and as a Lender
	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Sharon Bazbaz	 
	 	 	Name:  	Sharon Bazbaz	 
	 	 	Title:  	Vice President	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

	 	

BANK OF AMERICA, N.A.,

as Syndication Agent and as a Lender

	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Prayes Majmudar	 
	 	 	Name:  	Prayes Majmudar	 
	 	 	Title:  	Vice President	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

	 	

DEUTSCHE BANK AG NEW YORK BRANCH, 

as a Documentation Agent and as a Lender

	 
	 	 	 	 	 

 

	 	By:	/s/ Yvonne Tilden	 
	 	 	Name:  	Yvonne Tilden	 
	 	 	Title:  	Director	 

 

	 	By:	/s/ Anca Trifan	 
	 	 	Name:  	Anca Trifan	 
	 	 	Title:  	Director	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

	 	

THE ROYAL BANK OF SCOTLAND PLC,

as a Documentation Agent and as a Lender

	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Tyler J. McCarthy	 
	 	 	Name:  	Tyler J. McCarthy	 
	 	 	Title:  	Director	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

	 	

CITIBANK, N.A.,

as a Documentation Agent and as a Lender

	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Humberto M. Salomon	 
	 	 	Name:  	Humberto M. Salomon	 
	 	 	Title:  	Vice President	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

THE GOVERNOR AND COMPANY OF

THE BANK OF IRELAND

	 

 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Elaine Crowley	 
	 	 	Name:  	Elaine Crowley	 
	 	 	Title:  	Authorised Signatory	 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Carla Ryan	 
	 	 	Name:  	Carla Ryan	 
	 	 	Title:  	Authorised Signatory	 

  

 

 

 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

BARCLAYS BANK PLC

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Alicia Borys	 
	 	 	Name:  	Alicia Borys	 
	 	 	Title:  	Assistant Vice President	 

 

 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

THE BANK OF NOVA SCOTIA

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Brenda S. Insull	 
	 	 	Name:  	Brenda S. Insull	 
	 	 	Title:  	Authorised Signatory	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

THE BANK OF TOKYO-MITSUBISHI

UFJ, LTD.

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Jose Carlos	 
	 	 	Name:  	Jose Carlos	 
	 	 	Title:  	Authorised Signatory	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

THE NORTHERN TRUST COMPANY

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Ashish S. Bhagwat	 
	 	 	Name:  	Ashish S. Bhagwat	 
	 	 	Title:  	Senior Vice President	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

U.S. BANK NATIONAL ASSOCIATION

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Susan Bader	 
	 	 	Name:  	Susan Bader	 
	 	 	Title:  	Vice President	 

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

  

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

WELLS FARGO BANK, N.A.

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Donald Schwartz	 
	 	 	Name:  	Donald Schwartz	 
	 	 	Title:  	Senior Vice President	 

  

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

THE BANK OF NEW YORK MELLON

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Thomas J. Tarasovich, Jr.	 
	 	 	Name:  	Thomas J. Tarasovich, Jr.	 
	 	 	Title:  	Vice President	 

  

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

MORGAN STANLEY BANK, N.A.

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Melissa James	 
	 	 	Name:  	Melissa James	 
	 	 	Title:  	Authorized Signatory	 

  

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

SIGNATURE PAGE TO

MCGRAW-HILL 364-DAY

CREDIT AGREEMENT (2009)

 

	 	Name of Institution: 	

UNION BANK, N.A. 

	 

 

 

	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/ Erik Allen	 
	 	 	Name:  	Erik Allen	 
	 	 	Title:  	Vice President	 

  

 
 

 

[Signature page to McGraw-Hill 364-Day Credit Agreement]

 

 

 

 

 

Schedule 2.01

COMMITMENTS

	
NAME OF LENDER
	
COMMITMENT

	
JPMORGAN CHASE BANK, N.A.
	
$45,000,000.00

	
BANK OF AMERICA, N.A.
	
$45,000,000.00

	
DEUTSCHE BANK AG NEW YORK BRANCH
	
$40,000,000.00

	
THE ROYAL BANK OF SCOTLAND PLC
	
$40,000,000.00

	
CITIBANK, N.A.
	
$35,000,000.00

	
THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND
	
$25,000,000.00

	
BARCLAYS BANK PLC
	
$25,000,000.00

	
THE BANK OF NOVA SCOTIA
	
$25,000,000.00

	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	
$25,000,000.00

	
THE NORTHERN TRUST COMPANY
	
$25,000,000.00

	
U.S. BANK NATIONAL ASSOCIATION
	
$25,000,000.00

	
WELLS FARGO BANK, N.A.
	
$25,000,000.00

	
THE BANK OF NEW YORK MELLON
	
$21,666,666.67

	
MORGAN STANLEY BANK, N.A.
	
$16,666,666.67

	
UNION BANK, N.A.
	
$15,000,000.00

	
Total
	
$433,333,333.34

 

 

 

 

 

Schedule 3.01

MATERIAL SUBSIDIARIES

Standard & Poor’s Financial Services LLC

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 3.05

MATERIAL LITIGATION

None

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule 6.02

EXISTING LIENS

None

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A

 

[FORM OF]

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of
Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below  (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date
inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits,
causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

	
1. 
	
Assignor:  
	
______________________________

	
2.
	
Assignee: 
	
______________________________

	
 
	

[and is an Affiliate/Approved Fund of [identify Lender]2]

	
3.
	
Borrower(s):
	
______________________________

	
4.
	
Administrative Agent: 
	
______________________, as the administrative agent under the Credit Agreement

	
5.
	
Credit Agreement: 
	
The 364-Day Credit Agreement dated as of August 14, 2009 among The McGraw-Hill Companies, Inc., the Loan Guarantors party thereto, the Lenders parties thereto, Bank of America, N.A., as Syndication Agent, Deutsche Bank AG New York Branch, Morgan Stanley MUFG Loan

 

 

2 Select as applicable.

 

 

 

 

	
 
	
 
	
Partners, LLC, The Royal Bank of Scotland, plc and Citibank, N.A., as Documentation Agents, JPMorgan Chase Bank, N.A, as Administrative Agent and the other agents parties thereto.

 

	
6. 
	
Assigned Interest:

 

	
Facility Assigned
	
Aggregate Amount of 

Commitment/Loans for all 

Lenders
	
Principal Amount 

Assigned (and identifying 

information as to 

individual Competitive 

Loans)
	
Percentage Assigned of 

Facility/Commitment (set 

forth, to at least 9 

decimals, as a percentage 

of the Facility and the 

aggregate Commitments of 

all Lenders thereunder)

	
 

Commitment Assigned:
	
$
	
$
	
%   

	
 

Revolving Loans:
	
$
	
$
	
%   

	
 

Competitive Loans:
	
$
	
$
	
%   

	
 

Term Loans:
	
$
	
$
	
%   

Effective Date:   _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

If the Assignee is not already a Lender under the Credit Agreement, the Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain material
non-public information about the Borrower and its Related Parties) will be made available and who may receive such information in accordance with the Assignee’s compliance procedures and applicable laws, including Federal and state securities laws.

The [Assignee/Assignor] shall pay the fee payable to the Administrative Agent pursuant to Section 9.04(b) of the Credit Agreement.

The terms set forth in this Assignment and Assumption are hereby agreed to:

 

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

 

A-2

 

Consented to and Accepted:

 

 

	THE MCGRAW-HILL COMPANIES, INC.	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

 

 

	
JPMORGAN CHASE BANK, N.A., as 

Administrative Agent
	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

 

 

 

 

 

 

A-3

 

 

ANNEX 1

to EXHIBIT A

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.  Representations and Warranties.

1.1   Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance
or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any collateral thereunder, (iii)
the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of the Credit Agreement or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under the Credit Agreement.

1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate
the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy
of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, 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 Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of Section 2.17(f) of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor 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, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.

2.   Payments.    From and after the Effective Date, the Administrative 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 but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.

3.  General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may
be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

 

 

 

 

 

EXHIBIT B

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

 

Reference is made to the 364-Day Credit Agreement, dated as of August 14, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The McGraw-Hill Companies, Inc. (the “Borrower”), the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as syndication
agent (in such capacity, the “Syndication Agent”) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative 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 “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.17(f) of the Credit Agreement.

 

Pursuant to the provisions of Section 2.17(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a “bank” within the meaning of Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iii) it is not a “10-percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower
and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

 
 

 

	
[NAME OF LENDER]
	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

Date:  _______, ___, 20[ ]

 

 

 

 

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

 

Reference is made to the 364-Day Credit Agreement, dated as of August 14, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The McGraw-Hill Companies, Inc. (the “Borrower”), the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as syndication
agent (in such capacity, the “Syndication Agent”) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative 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 “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.17(f) of the Credit Agreement.

 

Pursuant to the provisions of Section 2.17(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such Loan(s) (as well
as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its partners/members is a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iv) none of its partners/members is a “10-percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its partners/members
is a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished the Administrative Agent and the Borrower with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN (or other applicable form) from each of its partners/members claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that
(1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
[NAME OF LENDER]
	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

Date:  _______, ___, 20[ ]

 

 

B-2

 

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

 

Reference is made to the 364-Day Credit Agreement, dated as of August 14, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The McGraw-Hill Companies, Inc. (the “Borrower”), the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as syndication
agent (in such capacity, the “Syndication Agent”) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative 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 “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.17(f) of the Credit Agreement.

 

Pursuant to the provisions of Section 2.17(f)  of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iii) it is not a “10-percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Foreign Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Foreign Lender
in writing (2) the undersigned shall have at all times furnished such Foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
[NAME OF PARTICIPANT]
	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

Date:  _______, ___, 20[ ]

 

 

B-3

 

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

 

Reference is made to the 364-Day Credit Agreement, dated as of August 14, 2009 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The McGraw-Hill Companies, Inc. (the “Borrower”), the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as syndication
agent (in such capacity, the “Syndication Agent”) and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative 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 “Non-U.S. Lender”) is providing this certificate pursuant to Section 2.17(f) of the Credit Agreement.

 

Pursuant to the provisions of Section 2.17(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners
of such participation, (iii) with respect to such participation, neither the undersigned nor any of its partners/members is a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iv) none of its partners/members is a “10-percent shareholder” of the Borrower within the meaning of  Section 871(h)(3)(B) of the Code, (v) none of its partners/members is a “controlled foreign corporation” related to
the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished its participating Foreign Lender with Internal Revenue Service Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN (or other applicable form) from each of its partners/members claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if
the information provided on this certificate changes, the undersigned shall promptly so inform such Foreign Lender and (2) the undersigned shall have at all times furnished such Foreign Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

 

	
[NAME OF PARTICIPANT]
	 	 	 	 
	 	 	 
	 	 	 
	By:   	
 
	 	 
	 	
Name:
	 	 
	 	
Title: 
	 	 

Date:  _______, ___, 20[ ]

 

B-4

 

 

EXHIBIT C

FORM OF OPINION OF GENERAL COUNSEL OF BORROWER

 

 

 

 

 

 

 

 

 

 

 

 

C-1

 

EXHIBIT D

[FORM OF]

JOINDER AGREEMENT

THIS JOINDER AGREEMENT (this “Agreement”), dated as of __________, ____, 20__, is entered into between ________________________________, a _________________ (the “New Subsidiary”) and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the “Administrative
Agent”) under that certain 364-Day Credit Agreement, dated as of August 14, 2009 among The McGraw-Hill Companies (the “Borrower”), the Loan Guarantors party thereto, the Lenders party thereto and the Administrative Agent (as the same may be amended, modified, extended or restated from time to time, the “Credit Agreement”).  All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement.

The New Subsidiary and the Administrative Agent, for the benefit of the Lenders, hereby agree as follows:

1.     The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a “Loan Guarantor” for all purposes of the Credit Agreement and shall
have all of the obligations of a Loan Guarantor thereunder as if it had executed the Credit Agreement.  The New Subsidiary hereby agrees to be bound by all of the guaranty obligations set forth in Article X of the Credit Agreement.  Without limiting the generality of the foregoing terms of this paragraph 1, the New Subsidiary, subject to the limitations set forth in Section 10.06 of the Credit Agreement, hereby guarantees, jointly and severally with any other Loan Guarantor, to the Administrative Agent
and the Lenders, as provided in Article X of the Credit Agreement, the prompt payment and performance of the Guaranteed Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof and agrees that if any of the Guaranteed Obligations are not paid or performed in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise), the New Subsidiary will, jointly and severally together
with any other Loan Guarantor, promptly pay and perform the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the terms of such extension or renewal.

2.     If required, the New Subsidiary is, simultaneously with the execution of this Agreement, executing and delivering such other documents and instruments as requested by the Administrative Agent in accordance with the Credit Agreement.

3.     The address of the New Subsidiary for purposes of Section 9.01 of the Credit Agreement is as follows:

 

 

 

 

 

 

4.     The New Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of the guaranty by the New Subsidiary upon the execution of this Agreement by the New Subsidiary.

 

 

D-1

 

 

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

6.     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its authorized officer, and the Administrative Agent, for the benefit of the Lenders, has caused the same to be accepted by its authorized officer, as of the day and year first above written.

 

 

	 	[NEW SUBSIDIARY]	 
	 	 	 	 	 	 
	 	By: 	 	 	 	 
	 	Name:  	 	 	 
	 	Title: 	 	 	 

 

 

	 	Acknowledged and accepted:	 
	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as Administrative
Agent
	 
	 	 	 	 	 	 
	 	By: 	 	 	 	 
	 	Name:  	 	 	 
	 	Title: 	 	 	 

 

 

 

 

 

 

 

D-2exv4w6

Exhibit 4.6

CENTEX CORPORATION SAVING FOR RETIREMENT PLAN

(As Amended and Restated Effective January 1, 2009)

I N D E X

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II ADMINISTRATION OF THE PLAN
	 	 	10	 
	 
	 	 	 	 
	2.1 Allocation of Responsibility Among Fiduciaries for Plan and Trust Administration

	 	 	10	 
	2.2 The Committee
	 	 	10	 
	2.3 Records and Reports
	 	 	11	 
	2.4 Other Committee Powers and Duties
	 	 	11	 
	2.5 Rules and Decisions
	 	 	12	 
	2.6 Committee Procedure
	 	 	12	 
	2.7 Authorization of Benefit Payments
	 	 	12	 
	2.8 Payment of Expenses
	 	 	13	 
	2.9 Application and Forms for Benefits
	 	 	13	 
	2.10 Committee Liability
	 	 	13	 
	2.11 Statements
	 	 	13	 
	2.12 Annual Audit
	 	 	13	 
	2.13 Investment Policy
	 	 	14	 
	2.14 Allocation and Delegation of Committee Responsibilities
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III PARTICIPATION AND SERVICE
	 	 	15	 
	 
	 	 	 	 
	3.1 Eligibility for Participation
	 	 	15	 
	3.2 Notification of Eligible Employees
	 	 	15	 
	3.3 Applications by Employees
	 	 	15	 
	3.4 Years of Service for Participation
	 	 	15	 
	3.5 Years of Vesting Service
	 	 	16	 
	3.6 Transferred Participants
	 	 	17	 
	3.7 Beneficiary Upon Death
	 	 	17	 
	3.8 Qualified Election
	 	 	18	 
	3.9 Qualified Military Service
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IV CONTRIBUTIONS AND FORFEITURES
	 	 	19	 
	 
	 	 	 	 
	4.1 Pre-Tax Contributions
	 	 	19	 
	4.2 Employer Matching Contributions
	 	 	22	 
	4.3 Employer Profit Sharing Contributions
	 	 	22	 
	4.4 After-Tax Contributions
	 	 	22	 

 

	 	 	 	 	 
	 	 	 	Page	 
	4.5 Qualified Non-Elective Contributions
	 	 	23	 
	4.6 Payment and Deductions of Pre-Tax and After-Tax Contributions
	 	 	23	 
	4.7 Employer Matching Contributions, Employer Profit Sharing Contributions, and Pre-Tax
Contributions to be Tax Deductible
	23	 
	4.8 Change of Elections and Suspension of Allotments
	 	 	23	 
	4.9 Application of Funds
	 	 	23	 
	4.10 Disposition of Forfeitures
	 	 	24	 
	4.11 Rollover Accounts
	 	 	24	 
	4.12 Refunds to Employer
	 	 	25	 
	 
	 	 	 	 
	ARTICLE V PARTICIPANT ACCOUNTS
	 	 	26	 
	 
	 	 	 	 
	5.1 Individual Accounts
	 	 	26	 
	5.2 Account Allocations and Adjustments
	 	 	26	 
	5.3 Limitations on Contributions
	 	 	27	 
	5.4 Valuation of Trust Fund
	 	 	29	 
	5.5 Recognition of Different Funds
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VI VOLUNTARY WITHDRAWALS
	 	 	31	 
	 
	 	 	 	 
	6.1 Withdrawal from After-Tax Contribution Account
	 	 	31	 
	6.2 Withdrawal from Pre-Tax Contribution Account
	 	 	31	 
	6.3 Withdrawal from Employer Contribution Account
	 	 	31	 
	6.4 Hardship Withdrawals
	 	 	32	 
	6.5 Rollover Account
	 	 	33	 
	6.6 In-Service Withdrawal of Vested Account Balance
	 	 	34	 
	6.7 Loans to Participants
	 	 	34	 
	 
	 	 	 	 
	ARTICLE VII PARTICIPANTS’ BENEFITS
	 	 	35	 
	 
	 	 	 	 
	7.1 Normal Retirement Date
	 	 	35	 
	7.2 Disability of Participants
	 	 	35	 
	7.3 Early Retirement Date
	 	 	35	 
	7.4 Death of Participants
	 	 	35	 
	7.5 Other Termination of Service
	 	 	35	 
	7.6 Valuation Dates Determinative of Participant’s Rights
	 	 	39	 
	7.7 In-Service Distributions
	 	 	39	 
	 
	 	 	 	 
	ARTICLE VIII PAYMENT OF BENEFITS
	 	 	41	 
	 
	 	 	 	 
	8.1 Time of Payment
	 	 	41	 
	8.2 Method of Payment
	 	 	42	 
	8.3 Deferral of Payments in the Case of Non-Employee and Non-Eligible Employee
Participants
	 	 	42	 
	8.4 Cash Out or Automatic Rollover of Vested Account Balance
	 	 	43	 
	8.5 Direct Rollover Distributions
	 	 	43	 
	8.6 Non-Spouse Beneficiary Rollovers
	 	 	45	 
	8.7 Required Minimum Distributions
	 	 	45	 

 

	 	 	 	 	 
	 	 	 	Page	 
	8.8 Election to Commence Benefits
	 	 	46	 
	8.9 Claims for Benefits
	 	 	47	 
	8.10 Claims Review Procedure
	 	 	48	 
	8.11 Disputed Benefits
	 	 	48	 
	8.12 Optional Forms of Benefits
	 	 	49	 
	 
	 	 	 	 
	ARTICLE IX TRUST AGREEMENT INVESTMENT FUNDS; COMPANY STOCK FUND; INVESTMENT DIRECTIONS
	50	 
	 
	 	 	 	 
	9.1 Trust Agreement
	 	 	50	 
	9.2 Investment Funds and Company Stock Fund
	 	 	50	 
	9.3 Investment Directions of Participants
	 	 	50	 
	9.4 Change of Investment Directions
	 	 	50	 
	9.5 Benefits Paid Solely from Trust Fund
	 	 	51	 
	9.6 Committee Directions to Trustee
	 	 	51	 
	9.7 Authority to Designate Investment Manager
	 	 	51	 
	9.8 Voting of Company Stock
	 	 	51	 
	9.9 Voting of Investment Funds
	 	 	51	 
	 
	 	 	 	 
	ARTICLE X ADOPTION OF PLAN BY OTHER ORGANIZATIONS; SEPARATION OF THE TRUST FUND; AMENDMENT
AND TERMINATION OF THE PLAN; DISCONTINUANCE OF CONTRIBUTIONS TO THE TRUST FUND
	 	 	52	 
	 
	 	 	 	 
	10.1 Adoptive Instrument
	 	 	52	 
	10.2 Separation of the Trust Fund
	 	 	52	 
	10.3 Voluntary Separation
	 	 	53	 
	10.4 Amendment of the Plan
	 	 	53	 
	10.5 Acceptance of Amendment by Employers
	 	 	54	 
	10.6 Termination of the Plan
	 	 	54	 
	10.7 Liquidation and Distribution of Trust Fund Upon Termination
	 	 	55	 
	10.8 Effect of Termination or Discontinuance of Contributions
	 	 	55	 
	10.9 Merger of Plan with Another Plan
	 	 	56	 
	10.10 Consolidation or Merger with Another Employer
	 	 	56	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS PROVISIONS
	 	 	57	 
	 
	 	 	 	 
	11.1 Terms of Employment
	 	 	57	 
	11.2 Controlling Law
	 	 	57	 
	11.3 Invalidity of Particular Provisions
	 	 	57	 
	11.4 Non-Alienation of Benefits
	 	 	57	 
	11.5 Payments in Satisfaction of Claims of Participants
	 	 	57	 
	11.6 Payments Due Minors and Incompetents
	 	 	58	 
	11.7 Impossibility of Diversion of Trust Fund
	 	 	58	 
	11.8 Litigation Against the Trust
	 	 	58	 
	11.9 Evidence Furnished Conclusive
	 	 	58	 
	11.10 Copy Available to Participants
	 	 	58	 
	11.11 Unclaimed Benefits
	 	 	58	 

 

	 	 	 	 	 
	 	 	 	Page	 
	11.12 Headings for Convenience Only
	 	 	59	 
	11.13 Successors and Assigns
	 	 	59	 
	 
	 	 	 	 
	ARTICLE XII TOP-HEAVY PLAN REQUIREMENTS
	 	 	60	 
	 
	 	 	 	 
	12.1 General Rule
	 	 	60	 
	12.2 Vesting Provisions
	 	 	60	 
	12.3 Minimum Contribution Percentage
	 	 	60	 
	12.4 Limitation on Compensation
	 	 	61	 
	12.5 Coordination With Other Plans
	 	 	61	 
	12.6 Distributions to Certain Key Employees
	 	 	62	 
	12.7 Determination of Top-Heavy Status
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XIII TESTING OF CONTRIBUTIONS
	 	 	66	 
	 
	 	 	 	 
	13.1 Definitions
	 	 	66	 
	13.2 Actual Deferral Percentage Test
	 	 	68	 
	13.3 QNECs and QMACs
	 	 	69	 
	13.4 Excess Contributions
	 	 	69	 
	13.5 Actual Contribution Percentage Test
	 	 	70	 
	13.6 Excess Aggregate Contributions
	 	 	71	 
	 
	 	 	 	 
	APPENDIX A
	 	 	 	 

 

CENTEX CORPORATION SAVING FOR RETIREMENT PLAN

(As Amended and Restated Effective January 1, 2009)

RECITALS

          WHEREAS, Centex Corporation (the “Company”), to aid eligible employees accumulate capital for
their future economic security, previously established and maintains the Profit Sharing and
Retirement Plan of Centex Corporation, as amended and restated effective as of January 1, 2001, and
subsequently amended thereafter (the “Plan”). The Plan is intended to constitute a qualified
profit sharing plan that includes a cash or deferred arrangement, within the meaning of Sections
401(a) and 401(k) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).

          WHEREAS, the Plan was timely amended to comply with (i) the applicable provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001, (ii) the final regulations issued under
Section 401(k) and 401(m) of the Code and (iii) other interim amendments.

          WHEREAS, effective as of January 1, 2008, the Company authorized the amendment and restatement
of the Plan in order to (i) incorporate all prior amendments, (ii) reflect the final regulations
under Section 415 of the Code, (iii) add an eligible automatic contribution arrangement under
Section 414(w) of the Code; (iv) to make certain other administrative design and law changes, and
(iii) rename the Plan the Centex Corporation Saving for Retirement Plan.

          WHEREAS, effective as of January 1, 2009, the Administrative Committee, pursuant to its
authority under the Plan, authorized the amendment and restatement of the Plan solely in order to
(i) adopt applicable changes required under the Pension Protection Act of 2006 to maintain the
Plan’s qualified status and (ii) incorporate all prior amendments to the Plan.

          WHEREAS, the Plan and underlying trust are intended to meet the requirements of Internal
Revenue Code Sections 401(a), 401(k) and 501(a) and the Employee Retirement Income Security Act of
1974, as either may be amended from time to time, and the provisions of the Plan shall apply to a
Participant who continues his Service (as herein defined) after January 1, 2009 and, except as
otherwise expressly set forth herein, the rights and benefits, if any, of a Participant who
terminated his Service prior to January 1, 2009, shall be determined under the provisions of the
Plan in effect on the date his Service terminated.

          NOW, THEREFORE, the Plan is hereby amended, restated and continued in the form of this Plan,
effective as of January 1, 2009, except as otherwise provided herein, to read as follows:

 

ARTICLE I

DEFINITIONS

          As used in the Plan, the following words and phrases shall have the following meanings unless
the context clearly requires a different meaning:

          Account.  Any of the accounts or subaccounts maintained for a Participant pursuant to
Section 5.1, or all such accounts and subacccounts collectively, as the context requires.

          Affiliate.  A corporation or other trade or business which is not an Employer under
the Plan but which, together with the Company, is “under common control” within the meaning of Code
Section 414(b) or (c); any organization (whether or not incorporated) which together with the
Company, is a member of an “affiliated service group” within the meaning of Code Section 414(m);
and any other entity required to be aggregated with the Company pursuant to regulations under Code
Section 414(o).

          After-Tax Contribution.  An after-tax amount contributed to the Trust Fund by a
Participant from his Compensation pursuant to Section 4.4.

          After-Tax Contribution Account.  An Account maintained for a Participant to record his
After-Tax Contributions to the Plan and adjustments relating thereto.

          Beneficiary.  A Participant’s surviving spouse, or if no surviving spouse exists or if
a qualified election has been made pursuant to Section 3.8, such other natural person or persons,
or the trustee of an inter vivos trust for the benefit of natural persons, entitled to benefits
hereunder following a Participant’s death.

          Board.  The board of directors of the Company.

          Break in Service.  Any Plan Year during which an Employee or Participant does not
complete more than 500 Hours of Service with all the Employers and Affiliates, determined as of the
end of the Plan Year.

          Catch-Up Contribution. A Pre-Tax Contribution made pursuant to Section 4.1 in
accordance with, and subject to the limitations of, Code Section 414(v).

          Code.  The Internal Revenue Code of 1986, as amended from time to time.

          Committee.  The Administrative Committee as described in Section 2.2 and, in regard to
any provision of the Plan under which an agent has been appointed by the Administrative Committee
pursuant to Article II to administer such provision of the Plan, such agent. Where applicable,
“Committee” shall include any designee thereof.

          Company.  Centex Corporation, a Nevada corporation, and its successors.

          Company Stock.  The common stock of the Company.

-2-

 

          Company Stock Fund.  The investment fund established to hold and invest in shares of
Company Stock.

          Compensation.  All salaries and wages that are paid for personal services rendered in
the course of employment with the Employer, including, but not limited to, commissions paid to
salespeople, compensation for services on the basis of a percentage of profits, commissions on
insurance premiums, tips, bonuses or other special pay payable in cash, and including foreign
earned income (other than foreign service premium hardship allowance or non-incentive types of
payments for foreign employment), any amounts that would otherwise be included in Compensation but
which are deferred pursuant to a Participant’s election under a deferred compensation plan
sponsored by an Employer, and any amounts by which his normal remuneration is reduced pursuant to a
voluntary salary reduction plan qualified under Section 125 of the Code, by the amount of any
qualified transportation fringe benefit under Section 132(f)(4) of the Code or cash or deferred
arrangement under Section 401(k) of the Code, but excluding amounts realized from the exercise of a
non-qualified stock option, or amounts realized from the sale, exchange or other distribution of
stock under an incentive stock option, and other amounts that receive special tax benefits, and
awards, prizes, employer or employee discounts, reimbursements or advances for travel, automobile
allowances, or any other expense incurred, and any form of insurance, including, but not limited
to, life, health, accident or disability, provided by the Employer; provided, however, that:

     (a) For purposes of (1) Pre-Tax Contributions, (2) After-Tax Contributions, and (3)
Employer Matching Contributions, a Participant’s Compensation shall also include any
year-end bonus, contractual bonus, bonus by formula, and discretionary bonus or
discretionary commission; and

     (b) For purposes of Employer Profit Sharing Contributions, a Participant’s Compensation
shall exclude any year-end bonus, contractual bonus, bonus by formula, and discretionary
bonus or discretionary commission.

For purposes of determining contributions or allocations under the Plan, (i) Compensation shall
only include those amounts paid through the end of the payroll period immediately following
termination of employment, and (ii) Compensation attributable to periods during a Plan Year in
which the Employee was not an Eligible Employee shall not be taken into account. Compensation
taken into account under the Plan for any Plan Year shall not exceed the limitation amount provided
in Code Section 401(a)(17), as adjusted for cost-of-living increases pursuant to Code Section
401(a)(17)(B), but shall not be limited to the earliest payments made to or on behalf of a
Participant with respect to a Plan Year. If an Employee is employed by more than one Employer, his
Compensation shall be the aggregate compensation received from the Employers.

          Contribution.  Any amount contributed to the Trust Fund pursuant to the provisions of
the Plan by an Employer or by a Participant in the form of an After-Tax Contribution, Pre-Tax
Contribution, Employer Matching Contribution or Employer Profit Sharing Contribution.

-3-

 

          Default Investment Fund. An Investment Fund or Funds, specified by the Committee from
time to time, that satisfies the requirements of a “qualified default investment alternative” under
the regulations and other guidance issued by the Department of Labor under ERISA Sections 404(c)
and 514(e).

          Early Retirement Date.  The date an Employee has attained age 55 and completed at
least 15 Years of Service.

          Effective Date.  January 1, 2009, except (i) as otherwise provided in specific
provisions of the Plan and (ii) that provisions of the Plan required to have an earlier effective
date by application of statute and/or regulation shall be effective as of the required effective
date in such statute and/or regulation.

          Eligible Employee.  An Employee who is compensated by his Employer (a) on an
hourly-rated basis, (b) in fixed amounts at regular intervals without regard to the number of hours
worked (that is, he is compensated on a basis other than an hourly-rated basis), or (c) on the
basis of commissions.

Notwithstanding anything herein to the contrary, the term “Eligible Employee” excludes any person
(i) who performs services for an Employer pursuant to an arrangement wherein the person is
designated, compensated or otherwise classified or treated by the Employer as a consultant,
independent contractor or leased employee, (ii) who is a Leased Employee, (iii) who is a
non-resident alien without U.S. source income, or (iv) whose employment is covered by a collective
bargaining agreement.

          Employee.  Any person who receives remuneration from the Company, an Employer or an
Affiliate for personal services (or would be receiving remuneration if not on a Leave of Absence),
including Leased Employees.

          Employer.  The Company and any organization that has adopted the Plan pursuant to the
provisions of Article X, and the successors, if any, to such organization.

          Employer Contribution Account.  A Participant’s Employer Profit Sharing Contribution
Account and/or Employer Matching Contribution Account, as applicable.

          Employer Matching Contribution.  An amount contributed to the Trust Fund by the
Employer pursuant to Section 4.2.

          Employer Matching Contribution Account.  An Account maintained for a Participant to
record his Employer Matching Contributions and adjustments relating thereto.

          Employer Profit Sharing Account.  An Account maintained for a Participant to record
his Employer Profit Sharing Contributions and adjustments relating thereto.

          Employer Profit Sharing Contribution.  An amount contributed to the Trust Fund by the
Employer pursuant to Section 4.3.

-4-

 

          Employment Commencement Date. The date upon which an Employee first performs an Hour
of Service for the Employer.

          Entry Date.  The first day of the month following 12 continuous months of Service for
purposes of Employer Profit Sharing Contributions.

          ERISA.  The Employee Retirement Income Security Act of 1974, as amended from time to
time.

          Fiduciary.  The Committee, the Trustee, and any other person designated as a Fiduciary
with respect to the Plan or the Trust Agreement, but only with respect to the specific
responsibilities of each as described in Article II.

          Forfeiture.  The portion of a Participant’s Employer Matching Contribution Account
and/or Employer Profit Sharing Account that is forfeited because of termination of Service before
full vesting pursuant to Article VII.

          Hour of Service.  Each hour for which an Employee or Participant is either directly or
indirectly paid or entitled to payment by the Employer or an Affiliate for the performance of
duties or for reasons (such as vacation, holiday, sickness, incapacity, temporary layoff, jury
duty, military duty, or Leave of Absence) other than for the performance of duties (irrespective of
whether the employment relationship has terminated), and each hour for which back pay, irrespective
of mitigation of damages, has been awarded to the Employee or Participant or agreed to by the
Employer. In the case of Employees or Participants whose compensation is determined on an hourly
basis, such Employees or Participants shall be credited with Hours of Service on the basis of Hours
of Service they actually become entitled to under this Section. All other Employees or
Participants shall be credited with Hours of Service as follows: (1) an Employee or Participant
who is paid on a daily basis shall be credited with 10 Hours of Service for each day he performs an
Hour of Service for the Employer or an Affiliate; (2) an Employee or Participant who is paid on a
weekly basis shall be credited with 45 Hours of Service for each week he performs an Hour of
Service for the Employer or an Affiliate; (3) an Employee or Participant who is paid on a
semi-monthly basis shall be credited with 95 Hours of Service for each semi-monthly period in which
he performs an Hour of Service for the Employer or an Affiliate; and (4) an Employee or Participant
who is paid on a monthly basis shall be credited with 190 Hours of Service for each month he
performs an Hour of Service for the Employer or an Affiliate. Hour of Service also includes any
hour of service performed for an Affiliate that would be an Hour of Service under this Section if
performed for or creditable with respect to the Employer.

          The number of Hours of Service to be credited to an Employee or Participant who is entitled to
payment for a period during which the Employee or Participant did not perform any duties shall be
determined in accordance with Section 2530.200b-2(b) of the Department of Labor Regulations and
this Section. An Employee or Participant shall not be credited with more than 501 Hours of Service
during any computation period for any single, continuous period during which the Employee or
Participant performs no duties. The Committee shall credit Hours of Service with respect to any
Employee or Participant in the following manner:

-5-

 

     (i) Hours of Service for which an Employee or Participant is either directly or
indirectly paid or entitled to payment by the Employer for the performance of duties shall
be credited for the Plan Year in which the Employee performs the duties; and

     (ii) Hours of Service for which an Employee or Participant is either directly or
indirectly paid or entitled to payment by the Employer for reasons (such as vacation,
holiday, sickness, incapacity, temporary layoff, jury duty, military duty, or Leave of
Absence) other than for the performance of duties shall be credited as follows:

     A. If payment for such Hours of Service is calculated on the basis of units of
time (such as hours, days, weeks, or months), such Hours of Service shall be
credited to the Plan Year(s) in which the period during which no duties are
performed occurs, beginning with the first unit of time to which the payment
relates; and

     B. If payment for such Hours of Service is not calculated on the basis of units
of time, such Hours of Service shall be credited to the Plan Year in which the
period during which no duties are performed occurs, or, if the period during which
no duties are performed extends beyond one Plan Year, such Hours of Service shall be
allocated between not more than the first 2 Plan Years on any reasonable basis which
is consistently applied; and

     C. An Employee or Participant shall not be credited with Hours of Service for a
period during which the Employee does not perform any duties and is entitled to
payment solely because of compliance with applicable workers’ compensation,
unemployment compensation, or disability insurance laws; and

     (iii) Hours of Service for which back pay has been awarded to an Employee or
Participant or agreed to by the Employer shall be credited for the Plan Year(s) in which the
award or the agreement pertains rather than for the Plan Year in which the award, agreement,
or payment is made.

          The Committee shall credit Hours of Service under only one of the immediately preceding
paragraphs. Furthermore, if the Committee is to credit Hours of Service to an Employee or
Participant for the initial 12 month period commencing with the Employee’s or Participant’s
Employment Commencement Date, then that 12 month period shall be substituted for the term “Plan
Year” wherever the latter term appears in this Section.

          For purposes of determining whether an Employee or Participant has incurred a Break in Service
under the Plan with respect to a termination of Service occurring prior to the Effective Date, a
Break in Service shall be determined in accordance with the “break in service” provisions of the
Prior Plan.

          For purposes of determining whether an Employee or Participant has incurred a Break in Service
under the Plan with respect to a termination of Service occurring on or after the Effective Date,
an Employee or Participant shall be credited with 8 hours for each day (to a maximum of 40 hours
per week) that the Employee or Participant is on any unpaid Leave of Absence. In no event shall
hours credited under the preceding sentence be counted as Hours of

-6-

 

Service for purposes of computing a Participant’s vesting percentage under Article VII
attributable to Employer contributions or for purposes of determining whether a Participant is
eligible to share in the allocation of Employer Contributions and Forfeitures under Article V. An
Employee or Participant on “Parental Absence” shall be treated as an Employee or Participant on an
unpaid Leave of Absence for purposes of the first sentence of this paragraph; provided, however,
that Hours of Service credited to an Employee or Participant as a result of a Parental Absence
shall be credited only in the year in which such Parental Absence commences if the Employee or
Participant would incur a Break in Service during such year without being credited with Hours of
Service for such Parental Absence. If the Employee or Participant would not incur a Break in
Service during such year, then the Hours of Service shall be credited for the year immediately
following the year in which the Parental Absence commences. For purposes of the immediately
preceding sentence, the term “year” shall mean the periods of computation used hereunder to
determine an Employee’s or Participant’s Years of Service for purposes of eligibility and Years of
Vesting Service for purposes of vesting. For purposes of this paragraph, the term “Parental
Absence” shall mean an absence (i) by reason of the pregnancy of the Employee or Participant,
(ii) by reason of the birth of a child of the Employee or Participant, (iii) by reason of the
placement of a child with the Employee or Participant in connection with the adoption of such child
by such Employee or Participant or (iv) for purposes of caring for such child for a period
beginning immediately following such birth or placement. In order for the absence of a Participant
or an Employee to qualify as a Parental Absence, the Employee or Participant must furnish the
Committee in a timely manner, with such information and documentation as the Committee shall
reasonably require to establish that the absence from work is for the reasons referred to above and
the number of days for which there was such absence. The Hours of Service to be credited in
connection with such Parental Absence shall be the Hours of Service that would otherwise have been
credited to the Employee or Participant but for such absence or, in any case in which the Committee
is unable to determine the number of Hours of Service that would otherwise have been credited to
such Employee or Participant, 8 Hours of Service per day of absence, provided that the total number
of hours so treated as Hours of Service for any period of Parental Absence shall not exceed 501
Hours of Service.

          The Committee shall resolve any ambiguity with respect to the crediting of an Hour of Service
in favor of the Employee.

          Income of the Trust Fund.  The net gain or loss of the Trust Fund from investments, as
reflected by interest payments, dividends, realized and unrealized gains and losses on securities
and other investment transactions and expenses paid from the Trust Fund.

          Investment Fund.  One or more investment alternatives designated by the Committee
pursuant to the Plan and Trust Agreement as alternatives in which Participants may elect to invest
their Accounts, subject to the provisions and restrictions in Article IX. The foregoing
notwithstanding, the term “Investment Fund” shall not include, or refer to, the Company Stock Fund.

          Leased Employee.  Each person who is not an employee of the Employer or an Affiliate
but who performs services for the Employer or an Affiliate pursuant to a leasing agreement (oral or
written) between the Employer or an Affiliate and any leasing organization, provided that such
person has performed such services for the Employer or an Affiliate or for

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related persons (within the meaning of Section 144(a)(3) of the Code) on a substantially full
time basis for a period of at least one year and such services are performed under primary
direction or control by the Employer or an Affiliate. The term “Leased Employee” shall also
include any individual who is deemed to be an employee of the Employer under Section 414(o) of the
Code. Notwithstanding the preceding sentences, the term “Leased Employee” shall not include
individuals described in Section 414(n)(5) of the Code.

          Leave of Absence.  Any leave of absence required by law or granted by an Employer on
account of service in military or governmental branches described in any applicable statute
granting reemployment rights to employees who entered such branches, or any other military or
governmental branch designated by the Employer; or any other authorized absence from active
employment with an Employer including, but not limited to, vacations, illness, temporary layoff,
temporary disability, or other absence for good cause which is not treated by the Employer as a
termination of employment. If an Employee or Participant does not return to work with an Employer
(or an Affiliate which is not an Employer) on or before termination of a Leave of Absence, he will
be considered to have terminated Service on the date his Leave of Absence expires, unless he
actually terminated Service before the expiration of his Leave of Absence.

          Normal Retirement Date.  The date of the 65th birthday of a Participant.

          Participant.  An Eligible Employee who, pursuant to the provisions of Article III, has
met the eligibility requirements for participation in the Plan and is participating in the Plan.

          Plan.  The Centex Corporation Saving for Retirement Plan (formerly known as the Profit
Sharing and Retirement Plan of Centex Corporation), set forth herein, and as hereafter amended from
time to time.

          Plan Year.  The 12-month period commencing on January 1 and ending on December 31.

          Pre-Tax Contribution.  An amount contributed to the Trust Fund pursuant to the
Participant’s deferral election by the Employer in accordance with Section 4.1.

          Pre-Tax Contribution Account.  An Account maintained for a Participant to record his
Pre-Tax Contributions (including Catch-Up Contributions) to the Plan and adjustments relating
thereto.

          Prior Plan.  The Profit Sharing and Retirement Plan of Centex Corporation, as amended
and restated effective January 1, 2008 and as thereafter amended and in effect on December 31,
2008.

          Required Commencement Date.  The April 1st of the calendar year following the calendar
year in which the Participant attains age 701/2 or, if later in the case of a Participant who is not
a 5% owner (as defined in Section 416(i) of the Code) in the year in which he attains age 701/2, the
April 1 first following the calendar year in which the Participant retires.

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          Rollover Account.  An Account maintained for a Participant to record his Rollover
Amount and adjustments relating thereto.

          Rollover Amount.  One or more distributions to an Employee of all or any portion of
the pre-tax balance to the credit of an Employee in a qualified defined contribution plan or
qualified defined benefit plan as described in Section 401(a) of the Code that meet the
requirements of Eligible Rollover Distributions as defined in Section 8.5 of the Plan that is
contributed to the Trust Fund, subject to the conditions and limits in Section 4.11 of the Plan.

          Service.  An Employee’s or Participant’s period of employment, including any period
the Employee is on Leave of Absence, with an Employer or Affiliate as determined in accordance with
Article III. A “Year of Service” shall have the meaning set forth in Article III.

          Trust Agreement.  The Trust Agreement provided for in Article IX, as amended from time
to time.

          Trust Fund.  The Investment Funds and Company Stock Fund held by the Trustee under the
trust pursuant to the Trust Agreement, together with all income, profits or increments thereon.

          Trustee.  The trustee under the Trust Agreement.

          Valuation Date.  Any date on which the United States financial markets are open and
any date on which the value of the assets of the Trust Fund is determined by the Trustee pursuant
to Section 5.4.

          Vesting Service.  The period of a Participant’s Service considered in the
determination of his vesting percentage for benefits under the Plan as determined in accordance
with Article III. A “Year of Vesting Service” shall have the meaning set forth in Article III.

          Words used in the Plan and in the Trust Agreement in the singular shall include the plural and
in the plural the singular, and the gender of words used shall be construed to include whichever
may be appropriate under any particular circumstances of the masculine, feminine or neuter genders.

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ARTICLE II

ADMINISTRATION OF THE PLAN

     2.1 Allocation of Responsibility Among Fiduciaries for Plan and Trust Administration.  The
Board, the Committee and the Trustee (hereinafter collectively referred to as the “Fiduciaries”)
shall have only those specific powers, duties, responsibilities and obligations as are specifically
given them under the Plan or the Trust Agreement. The Board, in its capacity as a Fiduciary, shall
have the sole responsibility to appoint and remove the Trustee. The Committee, in its capacity as
a Fiduciary, shall have the sole responsibility (i) to establish and carry out the investment
policy and method of the Plan insofar as such investment policy and method involves the investment
of Plan assets, to appoint and remove any investment manager which may be provided for under the
Trust Agreement and to monitor the performance of the Trustee and any such investment manager,
which responsibilities are specifically described in the Trust Agreement; and (ii) to administer
the Plan, which responsibilities are more specifically described in the Plan and the Trust
Agreement. The Trustee, in its capacity as a Fiduciary, shall have the sole responsibility for the
administration of the Trust Fund and shall have exclusive authority and discretion to manage and
control the Trust Fund, except to the extent that the authority to manage, acquire and dispose of
assets of the Trust Fund is delegated to an investment manager, all as more specifically provided
in the Trust Agreement. Neither the Board nor any committee of the Board shall have any
discretionary authority, control or responsibility with respect to the administration or management
of the Plan or the disposition of the Plan’s assets. Each Fiduciary warrants that any directions
given, information furnished, or action taken by it shall be in accordance with the provisions of
the Plan or the Trust Agreement, as the case may be, authorizing or providing for such direction,
information or action. Furthermore, each Fiduciary may rely upon any such direction, information
or action of another Fiduciary as being proper under the Plan or the Trust Agreement, and is not
required under the Plan or the Trust Agreement to inquire into the propriety of any such direction,
information or action. It is intended under the Plan and the Trust Agreement that each Fiduciary
shall be responsible for the proper exercise of its own powers, duties, responsibilities and
obligations under the Plan and the Trust Agreement and shall not be responsible for any act or
failure to act of another Fiduciary. No Fiduciary guarantees the Trust Fund in any manner against
investment loss or depreciation in asset value.

     2.2 The Committee.  The Plan shall be administered by the Administrative Committee (the
“Committee”), which members shall consist of (a) the Director of Employee Services (or, if there is
no Director of Employee Services, then such person as the Senior Vice President — Human Resources
of the Company has directed to perform such functions), who shall serve as the Chairperson of the
Committee, and (b) as designated by the Chairperson, (i) a Senior Manager or Vice President of
Finance, (ii) a Centex Financial Services/Centex Mortgage Title & Insurance Group representative,
(iii) a Director or Vice President of Human Resources, and (iv) one or more Centex Homes division
presidents or managers, subject in each case to acceptance of such designation. The Committee
shall serve in the capacity of the “plan administrator” within the meaning of Section 404 of ERISA
and which shall be a “named fiduciary” for purposes of ERISA. The members of the Committee shall
not receive compensation with respect to their services for the Committee. All usual and
reasonable expenses of the Committee may be paid in whole or in part by the Company, and any
expenses not paid by the Company shall be

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paid by the Trustee out of the Trust Fund. The Company shall pay the premiums on any bond secured
for the performance of the duties of the Committee members described hereunder. The Company shall
be entitled to reimbursement by other Employers for their proportionate shares of any such costs
paid in whole or in part by the Company.

     2.3 Records and Reports.  The Committee shall exercise such authority and responsibility as
it deems appropriate in order to comply with ERISA and any governmental regulations issued
thereunder relating to records of Participants’ Service, Account balances, the percentage of such
Account balances which are non-forfeitable under the Plan, and notifications to Participants. The
Committee shall file or cause to be filed with the appropriate office of the Internal Revenue
Service and the Department of Labor all reports, returns, notices and other information required of
plan administrators under ERISA, including, but not limited to, the summary plan description,
annual reports and amendments thereof. The Committee shall make available to Participants and
their Beneficiaries for examination, during business hours, such records of the Plan as pertain to
the examining person and such documents relating to the Plan as are required by ERISA.

     2.4 Other Committee Powers and Duties.  The Committee shall have such powers as may be
necessary to discharge its duties hereunder, including, but not by way of limitation, the following
powers and duties:

     (a) To construe and interpret the Plan, decide all questions of eligibility and
determine the amount, manner and time of payment of any benefits hereunder;

     (b) To prescribe procedures to be followed by Participants or Beneficiaries filing
applications for benefits;

     (c) To receive from the Employers and from Employees such information as shall be
necessary for the proper administration of the Plan;

     (d) To prepare and distribute, in such manner as the Committee determines to be
appropriate, information explaining the Plan;

     (e) To furnish the Employers, upon request, such annual reports with respect to the
administration of the Plan as are reasonable and appropriate;

     (f) To give written directions to the Trustee, on behalf of Participants, as to the
investment and reinvestment of the Trust Fund;

     (g) To receive and review reports of the financial condition, and of the receipts and
disbursements, of the Trust Fund from the Trustee and any investment manager;

     (h) To appoint or employ individuals to assist in the administration of the Plan and
any other agents it deems advisable, including legal and actuarial counsel;

     (i) To interpret and construe all terms, provisions, conditions and limitations of the
Plan and to reconcile any inconsistency or supply any omitted detail that may

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appear in the Plan in such manner and to such extent, consistent with the general terms
of the Plan; and

     (j) In the event of any share split, share dividend or combination of outstanding
shares of Company Stock, to determine the appropriate allocation of shares of Company Stock
to the portion of the Accounts maintained for Participants that are invested in the Company
Stock Fund and to determine the appropriate number of shares distributable to a Participant
under Section 6.5 hereof immediately following such share split, share dividend or
combination so as to effectuate the intent and purpose of the Plan; provided, however, that
the Committee shall not be authorized or otherwise able to (i) amend, modify, restrict,
suspend or limit investment in, or terminate, the Company Stock Fund or (ii) amend, modify
or terminate any provision of the Plan or Trust related to the administration or
availability for investment of the Company Stock Fund.

Except as otherwise provided in Article X, the Committee shall have no power to add to, subtract
from or modify any of the terms of the Plan, nor to change or add to any benefits provided by the
Plan, nor to waive or fail to apply any requirements of eligibility for a benefit under the Plan.
Notwithstanding the foregoing limitations on the Committee’s powers, the Board shall nonetheless
have said powers as provided in Article X.

     2.5 Rules and Decisions.  The Committee may adopt such rules for the administration of the
Plan as it deems necessary, desirable or appropriate. All rules and decisions of the Committee
shall be uniformly and consistently applied to all Employees in similar circumstances. The
judgment of the Committee and each member thereof on any question arising hereunder shall be
binding, final and conclusive on all parties concerned. When making a determination or
calculation, the Committee shall be entitled to rely upon information furnished by a Participant or
Beneficiary, the Employer, the legal counsel of the Employer or the Trustee.

     2.6 Committee Procedure.  The Committee may act at a meeting or in writing without a
meeting. The Committee shall appoint a secretary, who may or may not be a member of the Committee,
and shall advise the Trustee of such actions in writing. The secretary of the Committee shall keep
a record of all meetings and forward all necessary communications to the Employer or the Trustee.
The Committee may adopt such bylaws and regulations as it deems desirable for the conduct of its
affairs. All decisions of the Committee shall be made by the vote of the majority including
actions taken in writing without a meeting. A dissenting Committee member who, within a reasonable
time after he has knowledge of any action or failure to act by the majority, registers his dissent
in writing delivered to the other Committee members, the Employer and the Trustee shall not be
responsible for any such action or failure to act. The Committee shall designate one of its
members as agent of the Plan and of the Committee for service of legal process at the principal
office of the Company.

     2.7 Authorization of Benefit Payments.  Except with respect to loans, as described in
Section 6.7, the Committee shall issue directions to the Trustee concerning all benefits which are
to be paid from the Trust Fund pursuant to the provisions of the Plan. Alternatively, the
Committee, in its sole discretion, may authorize that in-service withdrawals, as further described
in Article VI, may be made upon request of the Participant through a voice response system,

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internet, intranet or such other manner and procedures prescribed by the Committee. The Committee
shall keep on file, in such manner as it may deem convenient or proper, all reports from the
Trustee.

     2.8 Payment of Expenses.  Expenses incident to the administration, termination or
protection of the Plan and Trust Fund, including, but not limited to, legal, accounting, investment
manager and Trustee fees shall be paid by the Trust, except where required by law or regulation to
be paid by the Company or where the Company elects to pay such expenses.

     2.9 Application and Forms for Benefits.  The Committee may require an Employee or
Participant to complete and file with the Committee an application for a benefit and all other
forms approved by the Committee, and to furnish all pertinent information requested by the
Committee. The Committee may rely on such information so furnished it, including the Employee’s or
Participant’s current mailing address.

     2.10 Committee Liability.  Except to the extent that such liability is created by ERISA, no
member of the Committee, or any designee thereof, shall be liable for any act or omission of any
other member of the Committee, nor for any act or omission on his own part except for his own gross
negligence or willful misconduct, nor for the exercise of any power or discretion in the
performance of any duty assumed by him hereunder. The Company shall indemnify and hold harmless
each member of the Committee, and any designee thereof, from any and all claims, losses, damages,
expenses (including counsel fees approved by the Committee), and liabilities (including any amounts
paid in settlement with the Committee’s approval but excluding any excise tax assessed against any
member or members of the Committee pursuant to the provisions of Section 4975 of the Code) arising
from any act or omission of such member in connection with duties and responsibilities under the
Plan, except when the same is judicially determined to be due to the gross negligence or willful
misconduct of such member.

     2.11 Statements.  No less frequently than annually, the Committee (or its delegate) shall
prepare and deliver to each Participant a statement reflecting as of the Valuation Date provided in
the statement:

     (a) Such information applicable to contributions by and for each such Participant and
the increase or decrease thereof as a consequence of valuation adjustments; and

     (b) The balance in his Account as of that Valuation Date.

     2.12 Annual Audit.  The Committee shall engage, on behalf of all Participants, an
independent Certified Public Accountant who shall conduct an annual examination of any financial
statements of the Plan and Trust Fund and of other books and records of the Plan and Trust Fund as
the Certified Public Accountant may deem necessary to enable him to form and provide a written
opinion as to whether the financial statements and related schedules required to be filed with the
Department of Labor or furnished to each Participant are presented fairly and in conformity with
generally accepted accounting principles applied on a basis consistent with that of the preceding
Plan Year. If, however, the statements required to be submitted as part of the reports to the
Department of Labor are prepared by a bank or similar institution or insurance

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carrier regulated and supervised and subject to periodic examination by a state or federal agency
and if such statements are certified by the preparer as accurate and if such statements are, in
fact, made a part of the annual report to the Department of Labor and no such audit is required by
ERISA, then the audit required by the foregoing provisions of this Section shall be optional with
the Committee.

     2.13 Investment Policy.  The Committee shall, at a meeting duly called for such purpose,
establish and maintain an investment policy and method consistent with the objectives of the Plan.
The Committee shall meet at least annually to review such investment policy and method. In
establishing and reviewing such investment policy and method, the Committee shall endeavor to
determine the Plan’s short-term and long-term objectives and financial needs, taking into account
the need for liquidity to pay benefits and the need for investment growth.

     2.14 Allocation and Delegation of Committee Responsibilities.  Upon the approval of a
majority of the members of the Committee, the Committee may (i) allocate among any of the members
of the Committee any of the responsibilities of the Committee under the Plan and Trust Agreement
and/or (ii) designate any person, firm or corporation that is not a member of the Committee to
carry out any of the responsibilities of the Committee under the Plan and Trust Agreement. Any
such allocation or designation shall be made pursuant to a written instrument executed by a
majority of the members of the Committee.

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ARTICLE III

PARTICIPATION AND SERVICE

     3.1 Eligibility for Participation.  Each Eligible Employee who was a Participant in the
Prior Plan immediately preceding the Effective Date, shall continue as an active Participant in the
Plan if he is employed by the Employer as of the Effective Date. Each other Employee who is an
Eligible Employee shall become eligible to participate in the Plan for purposes of Pre-Tax
Contributions under Section 4.1, Employer Matching Contributions under Section 4.2, and After-Tax
Contributions under Section 4.4, and for purposes of allocating such contributions pursuant to
Section 5.2, on his Employment Commencement Date. Each Eligible Employee who was not a Participant
in the Plan as of the Effective Date or who was a Participant but had not completed one Year of
Service, shall become a Participant in the Plan for purposes of receiving Employer Profit Sharing
Contributions pursuant to Section 4.3, and for purposes of allocating such contributions pursuant
to Section 5.2, on the applicable Entry Date coinciding with or next following the date the
Employee completes one Year of Service.

     3.2 Notification of Eligible Employees.  The Committee, which shall be the sole judge of
the eligibility of an Employee to participate under the Plan, shall notify each Employee of his
initial eligibility to participate in the Plan pursuant to its terms.

     3.3 Applications by Employees.  An Eligible Employee who desires to make Pre-Tax
Contributions and/or After-Tax Contributions to the Plan shall, in the form and manner prescribed
by the Committee, (i) elect to make and designate the amount of his Pre-Tax Contributions and/or
After-Tax Contributions to the Plan, (ii) elect the Investment Funds and/or Company Stock Fund
pursuant to Section 9.3 in which to invest the amounts in his Accounts under the Plan, (iii)
authorize payroll deductions for his Pre-Tax Contributions and/or After-Tax Contributions, and (iv)
provide any other information the Committee considers necessary or desirable to administer the
Plan. The foregoing notwithstanding, if an Eligible Employee fails to timely make an affirmative
election whether or not to participate in the Plan, Pre-Tax Contributions shall automatically be
contributed to the Plan from his Compensation pursuant to the Eligible Automatic Contribution
Arrangement in Section 4.1(b).

     3.4 Years of Service for Participation.  For purposes of determining an Employee’s Service
for eligibility to participate in the Plan, an Employee shall (i) with respect to periods of time
prior to the Effective Date, be given credit for a Year of Service for each “year of service” with
which he was credited pursuant to the Prior Plan, and (ii) with respect to periods of time on or
after the Effective Date, be given credit for a Year of Service if he:

     (a) Completes not less than 1,000 Hours of Service within the 12 consecutive month
period beginning with his Employment Commencement Date; and

     (b) Remains employed during that entire 12 month period.

In addition, an Employee shall be given credit for a Year of Service for each Plan Year, commencing
with the Plan Year that includes the first anniversary date of his Employment Commencement Date,
during which he completes not less than 1,000 Hours of Service.

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          In the case of an Employee who separates from Service and then resumes Service, but not as a
Re-Employed Employee (as defined below), after his number of consecutive Breaks in Service equals
or exceeds the greater of 5 or his Years of Service, his Years of Service, defined herein, prior to
his resumption of employment shall be disregarded. For purposes of this Section, in the case of
such an Employee, his Employment Commencement Date shall mean the date on which the Employee first
performs an Hour of Service for the Employer following the close of the last Plan Year in which the
Employee incurred a Break in Service.

          In the case of an Employee who separates from Service and then resumes Service as a
Re-Employed Employee, such Re-Employed Employee shall re-enter the Plan as a Participant on the
later of:

          (x) The day he performs his first Hour of Service as a result of his resumption of
Service; or

          (y) The date his participation would have commenced had there been no separation from
Service unless he separates from Service subsequent to his resumption of Service, but before
such date.

For purposes of the Plan, a Re-Employed Employee shall mean an Employee who separated from Service
with the Employer or an Affiliate (1) with a vested interest in Employer Contributions under the
Plan or employee contributions under any other defined contribution plan maintained by the Company
or an Affiliate (“Related Plan”), or (2) without a vested interest in Employer Contributions under
the Plan or employer contributions under a Related Plan but who resumes Service before his number
of consecutive Breaks in Service equals or exceeds the greater of 5 or his number of Years
of Service (as defined in this Section).

          Any other Employee whose Service terminates and who is subsequently re-employed and resumes
Service shall commence participation in accordance with the provisions of Section 3.1.

     3.5 Years of Vesting Service.  For purposes of determining an Employee’s vesting under
Section 7.5, an Employee shall (i) with respect to periods of time prior to the Effective Date, be
credited with a Year of Vesting Service for each “year of service” with which he was credited for
vesting purposes pursuant to the Prior Plan, and (ii) with respect to periods of time on and after
the Effective Date, be given credit for a Year of Vesting Service for any Plan Year during which he
is continuously employed by the Employer or during which the Employee completes not less than 1,000
Hours of Service.

          In the case of an Employee who separates from Service and who then resumes Service with the
Employer, but is not a Re-Employed Employee (as defined in Section 3.4), except that the reference
to Years of Service shall mean Years of Vesting Service as defined in this Section, Years of
Vesting Service prior to his resumption of Service shall be disregarded. If a Participant incurs 5
consecutive Breaks in Service, Vesting Service after such Breaks in Service shall not increase the
Participant’s vested percentage in his Account balance attributable to Employer contributions that
were made prior to such 5 consecutive Breaks in Service.

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     3.6 Transferred Participants.  If a Participant is transferred to an Affiliate, or to an
employment classification with an Employer which is not covered by the Plan, his participation
shall be suspended until he is subsequently re-employed by an Employer in an employment
classification covered by the Plan; provided, however, that during such suspension period (i) such
Participant shall be credited with Service in accordance with Section 3.4 and 3.5, (ii) he shall
not be entitled or required to make contributions under Section 4.1 or 4.4, (iii) his Employer
Matching Contribution Account and Employer Profit Sharing Account shall receive no Employer
Contribution allocations except to the extent provided in Sections 4.2, 4.3 and 5.2 and (iv) his
Account shall continue to share proportionately in Income of the Trust Fund as provided in Article
V. If an Employee is transferred from an employment classification with an Employer that is not
covered by the Plan to an employment classification that is so covered, or from an Affiliate to an
employment classification with an Employer that is so covered, his period of Service prior to the
date of transfer shall be considered for purposes of determining his eligibility to become a
Participant under Section 3.1 and for purposes of vesting under Section 7.5.

          In the event an employee of a domestic Affiliate is transferred to employment with an Employer
in an employment classification covered by the Plan and such Affiliate provides a thrift, savings
or profit-sharing plan of like nature and intent as the Plan in which the Employee was a
participant immediately preceding his transfer, such employee’s account balance in a domestic
Affiliate’s defined contribution plan qualified under Section 401(a) of the Code, determined on the
Valuation Date coincident with or next following the date of the employee’s transfer, may, subject
to the approval and in the sole discretion of the Committee, be transferred to the Trust Fund held
under the Plan and allocated among the Investment Funds and the Company Stock Fund, as applicable,
in accordance with the provisions of Section 9.3; provided, however, that such plan otherwise
permits and approves of such transfer. In the event a Participant under the Plan is transferred to
employment with an Affiliate and such Affiliate provides a thrift, savings or profit-sharing plan
of like nature and intent as the Plan in which the Participant will be eligible to participate as
an employee of such Affiliate, such Participant’s account balances in the Plan, determined as of
the Valuation Date coincident with or next following the date of the Participant’s transfer, may,
subject to the approval of the plan administrator of the Affiliate’s plan and the Committee, in its
sole discretion, be transferred to such plan and allocated between the investment funds held
thereunder in accordance with the provisions thereof. For purposes of this paragraph, all
references to “Affiliate” shall include employment classifications with an Employer.

     3.7 Beneficiary Upon Death.  Upon the death of a Participant, his Account shall be
distributed to the Participant’s surviving spouse, but if there is no surviving spouse, or if the
surviving spouse has already consented by a qualified election pursuant to Section 3.8, to the
Beneficiary or Beneficiaries designated by the Participant in a written designation filed with his
Employer, or if no such designation shall have been so filed, to his estate. No designation of any
Beneficiary other than the Participant’s surviving spouse shall be effective unless in writing and
received by the Participant’s Employer, and in no event shall it be effective as of a date prior to
such receipt. The former spouse of a Participant shall be treated as a surviving spouse to the
extent provided under a qualified domestic relations order as described in Section 414(p) of the
Code. As soon as possible after an Employee has become a Participant he shall file with the
Committee a designation, in the form prescribed by the Committee, of the Beneficiary to receive
benefits payable hereunder upon his death. The Participant may at any time change or cancel

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any such designation on a form prescribed by the Committee. The last such designation received by
the Committee shall be controlling over any testamentary or other disposition; provided, however,
that no designation or change or cancellation thereof shall be effective prior to the Participant’s
death, and in no event shall it be effective as of a date prior to such receipt. If the Committee
shall be in doubt as to the right of any Beneficiary designated by a deceased Participant to take
the interest of such decedent, the Committee may direct the Trustee to take any action it deems
appropriate under the circumstances, including, but not limited to, filing an interpleader action
or paying the amount in question to the estate of such Participant, in which event the Trustee, the
Employer, the Committee and any other person in any manner connected with the Plan shall have no
further liability in respect of the amount so paid.

     3.8 Qualified Election.  The Participant’s spouse may waive the right to receive the
Participant’s full vested Account balance. The election to waive the Participant’s full vested
Account balance must designate a Beneficiary which may not be changed without spousal consent (or
the consent of the spouse must expressly permit designation by the Participant without any
requirement of further consent of the spouse). A consent that permits designations by the
Participant without any requirement of further consent by the spouse must acknowledge that the
spouse has the right to limit consent to a specific beneficiary and that the spouse voluntarily
elects to relinquish such right. The waiver must be in writing and the Participant’s spouse must
acknowledge the effect of the waiver. The spouse’s consent to a waiver must be witnessed by a Plan
representative or a notary public. The Participant may file a waiver without the spouse’s consent
if it is established to the satisfaction of the Committee that such written consent may not be
obtained because there is no spouse or the spouse cannot be located. Any consent under this
Section will be valid only with respect to the spouse who signs the consent. Additionally, a
revocation of a prior waiver may be made by a Participant without the consent of the spouse at any
time before the distribution of the Account. The number of revocations shall not be limited.

     3.9 Qualified Military Service.  Notwithstanding any provision of the Plan to the contrary,
contributions, benefits and service credit with respect to Qualified Military Service will be
provided in accordance with Section 414(u) of the Code. Qualified Military Service shall mean any
service in the uniformed services, as defined in Chapter 43 of Title 38 of the United States Code,
by any individual who is entitled to re-employment rights under such chapter with respect to such
service.

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ARTICLE IV

CONTRIBUTIONS AND FORFEITURES

     4.1  Pre-Tax Contributions.

     (a) Deferral Elections. Each Eligible Employee who elects to make Pre-Tax
Contributions for a Plan Year may defer each payroll period a portion of his Compensation in
whole percentages of between (a) 1% and (b) 100% or such lesser percentage designated by the
Committee of his Compensation and, unless otherwise provided by the Committee, an additional
deferral from the last pay check of any calendar quarter; provided, however, that his total
Pre-Tax Contributions under this Section for any Plan Year shall not exceed (i) 100% or such
lesser percentage designated by the Committee of a Participant’s Compensation for the Plan
Year or (ii) the annual limit under Code Section 402(g) for the Plan Year (as adjusted by
the Secretary of the Treasury to reflect increases in the cost of living), except, to the
extent permitted under this Section with respect to Catch-Up Contributions.

     Notwithstanding the foregoing paragraph of this Section, each Eligible Employee who may
elect to make Pre-Tax Contributions under this Section and who has attained age 50 before
the close of the Plan Year shall be eligible to elect to make Catch-Up Contributions, in the
form and manner prescribed by the Committee. Catch-Up Contributions shall not be taken into
account for purposes of the provisions of the Plan implementing the required limitations of
Code Sections 402(g) and 415. The Plan shall not be treated as failing to satisfy the
provisions of the Plan implementing the requirements of Code Sections 401(k)(3), 410(b) or
416, as applicable, by reason of the making of such Catch-Up Contributions.

     Each Participant’s Pre-Tax Contribution shall be contributed to the Trust Fund by the
Employer. Each such election shall be made pursuant to the provisions of Section 3.3 and
shall continue in effect during subsequent Plan Years unless the Participant shall notify
the Committee in the manner hereinafter provided of his election to change or discontinue
his Pre-Tax Contribution rate as provided in Section 4.8. Each Participant’s Pre-Tax
Contribution Account shall be fully vested and non-forfeitable at all times.

     In the event a Participant’s Pre-Tax Contributions exceed the applicable limit
described in the first paragraph of this Section, or in the event the Participant submits a
written claim to the Committee, at the time and in the manner prescribed by the Committee,
specifying an amount of Pre-Tax Contributions that will exceed the applicable limit of
Section 402(g) of the Code when added to amounts deferred by the Participant in other plans
or arrangements, such excess (the “Excess Deferrals”), plus any income and minus any loss
attributable thereto for the Plan Year in which the Excess Deferral occurred, shall be
returned to the Participant no later than required under the Code and applicable regulations
thereunder during the following year. The amount of any Excess Deferrals to be distributed
to a Participant for a taxable year shall be reduced by excess Pre-Tax Contributions
previously recharacterized or distributed pursuant to Article XIII for the Plan Year
beginning in such taxable year. The income or loss

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attributable to the Participant’s Excess Deferral for the Plan Year shall be determined
by multiplying the income or loss attributable to the Participant’s Pre-Tax Contribution
Account balance for the Plan Year (or relevant portion thereof) by a fraction, the numerator
of which is the Excess Deferral and the denominator of which is the Participant’s total
Pre-Tax Contribution Account balance as of the Valuation Date next preceding the date of
return of the Excess Deferral. For these purposes, distribution of an Excess Deferral on or
before the 15th day of a calendar month shall be treated as having been made on the last day
of the preceding month, and a distribution made thereafter shall be treated as having been
made on the first day of the next month. Excess Deferrals shall be treated as Annual
Additions under Article V of the Plan.

     (b) Eligible Automatic Contribution Arrangement. Notwithstanding the
provisions of Section 4.1(a), an Eligible Employee who is initially employed (or is
reemployed) by an Employer on or after the Effective Date (an “Automatic Enrollment
Employee”) shall automatically be enrolled in the Plan to make Pre-Tax Contributions
effective as soon as administratively practicable beginning 30 days (or such other period
(not less than 30 days) prescribed by the Committee) after the Automatic Enrollment Employee
has been provided an Automatic Contribution Notice of such enrollment by the Committee, in
the form and manner prescribed by the Committee (such period, the “Automatic Contribution
Notice Period”). The “Automatic Contribution Notice” is intended to comply with the notice
requirements under Code Section 414(w)(4) and any regulations or guidance issued thereunder
and the automatic contributions made pursuant to this Section 4.1(b) are intended to meet
the requirements of an “Eligible Automatic Contribution Arrangement” under Code Section
414(w).

     Automatic Contribution Percentage. An Automatic Enrollment Employee who is
automatically enrolled in the Plan pursuant to this Section 4.1(b) shall be deemed to have
elected to defer, as Pre-Tax Contributions to the Trust Fund (“Automatic Contributions”), in
an amount equal to the following percentages of his Compensation on a payroll period basis:

	 	(i)	 	3% during the period beginning on the date the Automatic
Enrollment Employee commences making Automatic Contributions and ending on the
first May 31st (or such other date designated by the Committee) occurring not
less than 12 months after such commencement date (“Initial Automatic
Contribution Period”);
	 
	 	(ii)	 	4% during the 12-month period (or such other period designated
by the Committee) beginning on the date immediately following the end of the
Initial Automatic Contribution Period;
	 
	 	(iii)	 	5% during the 12-month period (or such other period designated
by the Committee) beginning on the date immediately following the end of the
period in clause (ii) above; and
	 
	 	(iv)	 	6% thereafter beginning on the date immediately following the
end of the period in clause (iii) above.

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     If the Automatic Enrollment Employee has not provided any investment direction pursuant
to Section 9.3 of the Plan with respect to his Automatic Contributions, such contributions
(and any Employer Matching Contributions made thereon) shall automatically be invested in
the Default Investment Fund.

     Election Out of Automatic Enrollment. The foregoing notwithstanding, if an Automatic
Enrollment Employee affirmatively elects, in the form and manner prescribed by the
Committee, during the Automatic Contribution Notice Period:

	 	(i)	 	not to make any Pre-Tax Contributions to the Plan; or
	 
	 	(ii)	 	to make Pre-Tax Contributions in any alternative
percentage under Section 4.1(a) and/or After-Tax Contributions in any
percentage under Section 4.4;

then no Automatic Contributions shall be made by such Automatic Enrollment Employee. An
Automatic Enrollment Employee who elects not to make Automatic Contributions or elects to
cease such contributions to the Plan may elect at any time thereafter to defer a percentage
of his Compensation as Pre-Tax Contributions or After-Tax Contributions in accordance with
Sections 4.1(a) or 4.4, respectively, in the form and manner prescribed by the Committee for
such contributions, provided he is eligible to participate in the Plan pursuant to Section
3.1. Once an Automatic Enrollment Employee’s Automatic Contributions commence, such
contributions shall continue in effect until the Automatic Enrollment Employee gives timely
notice of his election to cease making the contribution or to make Pre-Tax Contributions at
a different percentage of his Compensation as provided in the foregoing paragraph.

     Permissible Withdrawal. An Automatic Enrollment Employee who has Automatic
Contributions made under Section 4.1(b) may elect to make a withdrawal of such Automatic
Contributions (“Permissible Withdrawal”), provided that such election must be made no later
than 90 days after the date that the Automatic Enrollment Employee’s first Automatic
Contribution would otherwise have been included in his gross income. The effective date of
an Automatic Enrollment Employee’s Permissible Withdrawal election will not be later than
the earlier of (i) the pay date for the second payroll period that begins after the date the
election is made and (ii) the first pay date that occurs at least 30 days after the election
is made. The amount distributed under this paragraph shall be equal to the amount of the
Automatic Enrollment Employee’s Automatic Contributions through the effective date of the
election, adjusted for allocable gains and losses to the date of distribution, and reduced
by any generally applicable fees, if any, provided that any fee charged under this paragraph
shall not be higher than a fee that would apply to any other distribution of cash from the
Plan.

     The amount of a Permissible Withdrawal (as adjusted under the preceding sentence) shall
be included in the Employee’s gross income for the taxable year in which such distribution
is made, but shall not be subject to the 10% early withdrawal tax under Code Section 72(t).
Any Employer Matching Contributions (adjusted for allocable gains

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and losses) made with respect to the Automatic Contributions subject to the Permissible
Withdrawal election shall be forfeited.

     4.2 Employer Matching Contributions.  During a Plan Year, an Employer shall make an
Employer Matching Contribution (subject to adjustment for limitations provided elsewhere in the
Plan) to the Trust Fund on behalf of Participants employed by such Employer in cash in an amount
equal to 50% of the first 6% of each such Participant’s Pre-Tax Contributions (including Pre-Tax
Contributions made as Automatic Contributions under Section 4.1(b)) on a payroll period basis. The
foregoing notwithstanding, with respect to a Participant who defers his Compensation for one or
more payroll periods during a Plan Year at a rate in excess of that percentage of his Compensation
eligible for Employer Matching Contributions for such Plan Year, if any, and who ceases or reduces
the rate of his Pre-Tax Contributions for any reason (including suspension due to a withdrawal)
that prevents him from receiving the maximum available Employer Matching Contribution for such Plan
Year but for such cessation or reduction based on his Compensation deferred on an annualized basis,
Employer Matching Contributions to his Employer Matching Contribution Account may be made by his
Employer not later than the time prescribed by law for filing the federal income tax return of the
Employer, including any extensions granted for the filing of such tax return after the close of
such Plan Year in question for such Plan Year in such an amount that the aggregate of such
contributions for such Plan Year is equal to 50% of the first 6% of such Participant’s Pre-Tax
Contributions; provided, however, that such Participant is in the active Service of the Employer
(or, to the extent required by applicable law, on Leave of Absence) as of the last day of the
applicable Plan Year, subject to adjustment for non-discrimination testing and limitations under
the Plan.

     4.3 Employer Profit Sharing Contributions.  Each Employer may, in its sole discretion,
elect to make an Employer Profit Sharing Contribution to the Trust Fund for any Plan Year in cash
in such amount as the Board, in its sole discretion, may authorize and direct from time to time as
it deems appropriate or advisable, on behalf of Participants (a) who are Eligible Employees with
respect to Employer Profit Sharing Contributions during a Plan Year for which the Employer elects
to make such a contribution and (b) who (i) are in the Service of an Employer as of the last day of
such Plan Year or (ii) terminated Service during such Plan Year due to death, retirement (within
the meaning of Sections 7.1, 7.3 and 7.4) or disability (within the meaning of Section 7.2) and
have not received a lump sum distribution of their benefit under the Plan. Such contribution, if
any, shall be deemed made on account of a Plan Year if the Board determines and approves the amount
of such Employer Profit Sharing Contribution by appropriate action and designates such amount in
writing to the Trustee as payment on account of such Plan Year. All Employer Profit Sharing
Contributions of the Employer shall be paid to the Trustee not later than the time prescribed by
law for filing the federal income tax return of the Employer, including any extension which has
been granted for the filing of such tax return. The Committee shall be immediately advised in
writing of the amount of such contribution.

     4.4 After-Tax Contributions.  Each Eligible Employee may elect to make After-Tax
Contributions to the Trust Fund from his Compensation to contribute in whole percentages of between
(a) 1% and (b) 10% of his Compensation each payroll period and, unless otherwise provided by the
Committee, an additional contribution from the last pay check of any calendar quarter; provided,
however, that the total After-Tax Contributions under this Section for any Plan Year shall not
exceed 10% of his Compensation for the Plan Year (subject to adjustment for

-22-

 

limitations provided elsewhere in the Plan). None of the After-Tax Contributions will be deemed
deductible for federal income tax purposes.

     4.5 Qualified Non-Elective Contributions.  The Employer may, in its sole discretion, make
qualified non-elective contributions, as defined in Treasury Regulation Sections 1.401(k) and
1.401(m) (“QNECs”), for a Plan Year in any amount necessary to satisfy or help to satisfy the
Actual Deferral Percentage limit in Section 13.2 of the Plan or the Contribution Percentage limit
in Section 13.5 of the Plan. QNECs may be used in lieu of, or in conjunction with, the reductions
described in Sections 13.4 and 13.6 of the Plan. QNECs shall be allocated in a manner determined
by the Employer among the Accounts of non-Highly Compensated Employees who were eligible to make
Pre-Tax Contributions during the Plan Year for which the QNECs are made. QNECs may be made at any
time during the Plan Year or no later than 12 months after the end of the Plan Year. QNECs shall
be considered Pre-Tax Contributions and shall be subject to the same limitations as to withdrawal
and distribution as Pre-Tax Contributions. QNECs shall be nonforfeitable and 100% vested at all
times. For any portion of a QNEC taken into account for purposes of the Actual Contribution
Percentage limit, such portion may not be taken into account for purposes of the Actual Deferral
Percentage limit.

     4.6 Payment and Deductions of Pre-Tax and After-Tax Contributions.  A Participant’s
deferrals and contributions under Section 4.1 and Section 4.4 shall be deducted by his Employer on
each pay period from the Compensation paid to such Participant for that period and paid to the
Trustee as soon as administratively feasible after the end of the pay period for which the deferral
or contribution relates.

     4.7 Employer Matching Contributions, Employer Profit Sharing Contributions, and Pre-Tax
Contributions to be Tax Deductible.  Employer Matching Contributions, Employer Profit Sharing
Contributions and Pre-Tax Contributions shall not be made in excess of the amount deductible under
applicable federal law now or hereafter in effect limiting the allowable deduction for
contributions to profit-sharing plans. The Employer Matching Contributions, Employer Profit
Sharing Contributions, and Pre-Tax Contributions to the Plan when taken together with all other
contributions made by the Employer to other qualified retirement plans shall not exceed the maximum
amount deductible under Section 404 of the Code.

     4.8 Change of Elections and Suspension of Allotments.  Any Participant may increase or
decrease the percentage of his Compensation designated as Pre-Tax Contributions or After-Tax
Contributions, or suspend his Pre-Tax Contributions and/or After-Tax Contributions entirely, with
any such change to be effective as soon as reasonably practicable following receipt of the change
of elections, in the manner prescribed by the Committee in its sole discretion. In the case of
total suspension of Pre-Tax Contributions and/or After-Tax Contributions, if applicable, the
Employer Matching Contribution will automatically cease. Pre-Tax Contributions and/or After-Tax
Contributions which are not made during a period of suspension shall not be made retroactively.

     4.9 Application of Funds.  The Trustee shall hold or apply the Contributions so received by
it subject to the provisions of the Plan; and no part thereof (except as otherwise provided in the
Trust Agreement) shall be used for any purpose other than the exclusive benefit of the Participants
or their Beneficiaries.

-23-

 

     4.10 Disposition of Forfeitures.  In any case in which a Participant is not entitled to the
full amount in his Employer Profit Sharing Account or Employer Matching Contribution Account, the
amount to which he is not entitled shall be forfeited, and shall be allocated in the following
order:

     (a) First, such Forfeitures shall be allocated to reinstate any Employer Matching
Contribution Accounts and Employer Profit Sharing Accounts of Participants who return to
Service and are entitled to account reinstatement in accordance with Section 7.5.

     (b) Second, such Forfeitures shall be applied to restore any amounts forfeited under
the unclaimed benefits provisions of Section 11.11.

     (c) Third, such Forfeitures shall be applied against the next succeeding Employer
Matching Contribution and/or Employee Profit Sharing Contributions and/or pay expenses of
the Plan.

     4.11 Rollover Accounts.  An Eligible Employee may file with the Committee a written request
that the Trustee accept a Rollover Amount from such Employee. The acceptance of a Rollover Amount
under this Section shall be subject to the following conditions:

     (a) The Rollover Amount shall be in cash only.

     (b) No Rollover Amount may be transferred to the Plan without the prior procedural
approval of the Committee or its delegate. The Committee or its delegate shall develop such
procedures and may require such information from an Employee desiring to make such a
transfer as it deems necessary or desirable. The Committee or its delegate may act in its
sole discretion in determining whether to accept the transfer, and shall act in a uniform,
non-discriminatory manner in this regard.

     (c) Upon approval by the Committee or its delegate, a Rollover Amount shall be paid to
the Trustee to be held in the Trust Fund.

     (d) A separate Rollover Account shall be established and maintained for each Employee’s
Rollover Amount. A Rollover Account shall be invested in the Investment Funds and/or the
Company Stock Fund as elected by the Employee (or the Default Investment Fund if such
Employee fails to make a proper investment election).

     (e) The Employee’s interest in his Rollover Account shall be fully vested and
non-forfeitable. If an Eligible Employee who has not begun making Pre-Tax Contributions
and/or After-Tax Contributions under Sections 4.1 and 4.4 of the Plan, respectively, or
receiving Employer Matching Contributions and/or Employer Profit Sharing Contributions under
Sections 4.2 and 4.3 of the Plan, respectively, makes a Rollover Amount to the Plan, his
Rollover Account shall represent his sole interest in the Plan.

     (f) The Committee or its delegate shall be entitled to rely on the representation of
the Employee that the Rollover Amount is an “eligible rollover

-24-

 

distribution” within the meaning of Code Section 402(c)(4). If, however, it is
determined that a transfer received from or on behalf of an Employee failed to qualify as an
eligible rollover distribution, then the balance in the Employee’s Rollover Account
attributable to the ineligible transfer shall, along with any earnings thereon, as soon as
is administratively practicable, be:

     (1) segregated from all other Plan assets;

     (2) treated as a non-qualified trust established by and for the benefit of the
Participant; and

     (3) distributed to the Employee.

Such an ineligible transfer shall be deemed never to have been a part of the Plan or
Trust.

     (g) A rollover of after-tax contributions or Roth contributions pursuant to Code
Section 402A, and the earnings thereon, is not permitted.

          The Rollover Account shall not share in Employer Matching Contribution or Employer Profit
Sharing Contribution allocations. Upon termination of employment, the Rollover Account shall be
distributed in accordance with Article VIII. Notwithstanding anything in the Plan to the contrary,
no such transfer of a Rollover Amount shall include a transfer of benefits from a defined benefit
plan or from a defined contribution plan subject to Code Section 412.

     4.12 Refunds to Employer.  Once Contributions are made to the Plan by the Employer on
behalf of the Participants, they are not refundable to the Employer unless a Contribution:

     (a) was made by mistake of fact; or

     (b) was made conditioned upon the contribution being allowed as a deduction and such
deduction was disallowed.

          Any Contribution made by the Employer during any Plan Year in excess of the amount deductible
or any Contribution attributable to a good faith mistake of fact shall be refunded to the Employer.
The amount which will be returned to the Employer is the excess of the amount contributed over the
amount that would have been contributed had there not occurred a mistake of fact or the excess of
the amount contributed over the amount deductible, as applicable. A Contribution made by reason of
a mistake of fact may be refunded only within one year following the date of payment. Any
Contribution to be refunded because it was not deductible under Section 404 of the Code may be
refunded only within one year following the date the deduction was disallowed. Earnings
attributable to any such excess Contribution may not be withdrawn, but losses attributable thereto
must reduce the amount to be returned. In no event may a refund be due which would cause the
Account balance of any Participant to be reduced to less than the Participant’s Account balance
would have been had the mistaken amount, or the amount determined to be non-deductible, not been
contributed.

-25-

 

ARTICLE V

PARTICIPANT ACCOUNTS

     5.1 Individual Accounts.  The Committee shall create and maintain adequate records to
disclose the interest in the Trust Fund and in its component Investment Funds and the Company Stock
Fund of each Participant, former Participant and Beneficiary. Such records shall be in the form of
individual Accounts and credits and charges shall be made to such Accounts in the manner herein
described. A Participant may have up to 5 separate categories of Accounts, as follows: (i)
Pre-Tax Contribution Account, (ii) After-Tax Contribution Account, (iii) Employer Profit Sharing
Account, (iv) Employer Matching Contribution Account, and (v) Rollover Account. The maintenance of
individual Accounts is only for accounting purposes, and a segregation of the assets of the Trust
Fund to each Account shall not be required. Distribution and withdrawals made from an Account
shall be charged to the Account as of the date paid.

          If a Participant incurs 5 consecutive Breaks in Service and subsequently reenters the Plan as
a Re-Employed Employee (as defined in Section 3.4) prior to the time that he has received a
distribution or been deemed to have received a distribution hereunder equal to 100% of his vested
Account balance, determined as of the last day of the Plan Year in which he incurred the last of
such 5 consecutive Breaks in Service, the Committee may, in its discretion, maintain, or cause to
be maintained, separate Employer Contribution Accounts for the Participant’s pre-Breaks in Service
Account balances attributable to Employer Contributions and Forfeitures, and separate Employer
Contribution Accounts for his post-Breaks in Service Account balances attributable to the Employer
Contributions and Forfeitures unless the Participant’s entire Account balance under the Plan is
100% vested at the time he incurs the last of such 5 consecutive Breaks in Service.

     5.2 Account Allocations and Adjustments.  

     (a) Pre-Tax Contributions and After-Tax Contributions. Pre-Tax Contributions
and After-Tax Contributions received in the Trust Fund since the preceding Valuation Date
shall be credited to the respective Pre-Tax Contribution Accounts and After-Tax Contribution
Accounts of the Participants, and invested in the Investment Funds and Company Stock Fund in
accordance with their instructions pursuant to Section 9.3.

     (b) Employer Matching Contributions. Employer Matching Contributions received
in the Trust Fund since the preceding Valuation Date shall be allocated to an eligible
Participant’s Employer Matching Accounts based on the percentage of each such Participant’s
eligible Pre-Tax Contributions as determined pursuant to Section 4.2, and invested in the
Investment Funds and Company Stock Fund in accordance with the Participant’s instructions
pursuant to Section 9.3.

     (c) Employer Profit Sharing Contributions. Employer Profit Sharing
Contributions received in the Trust Fund for a Plan Year shall be allocated and credited to
the Employer Profit Sharing Account of the eligible Participant for such Plan Year, as
defined in Section 4.3, as of the last day of such Plan Year in the ratio that the sum of

-26-

 

each eligible Participant’s total Compensation for the Plan Year bears to the total
Compensation of all eligible Participants for such Plan Year (provided, however, that (i)
Compensation shall not include any Compensation earned prior to the Participant’s Entry Date
and (ii) in the case of reemployment during such Plan Year, for that Plan Year, Compensation
shall include only Compensation earned during the period of employment commencing with his
reemployment and ending with the last day of such Plan Year).

     (d) Forfeitures. Forfeitures which have become available for reallocation or
restoration shall be applied pursuant to Section 4.10.

     (e) Adjustments. As of each Valuation Date, all payments and distributions
made under the Plan since the immediately preceding Valuation Date to or for the benefit of
a Participant or his Beneficiary and any withdrawals by a Participant pursuant to Article
VIII will be charged to the proper Account of such Participant unless previously charged.

     5.3 Limitations on Contributions.  

     (a) Maximum Permissible Amount and Incorporation of Code Section 415 by
Reference. Notwithstanding any provision of this Plan to the contrary, except as
otherwise provided in this Section, total Annual Additions made to the Account of a
Participant for a Limitation Year shall not exceed the “Maximum Permissible Amount,” which
is the lesser of:

	 	(1)	 	$40,000, as adjusted pursuant to Code Section 415(d) and
Treasury Regulation Section 1.415(d)-1(b); or
	 
	 	(2)	 	100% of the Participant’s Compensation for the Limitation Year.

     For purposes of determining whether the Annual Additions under this Plan exceed the
Maximum Permissible Amount, all defined contribution plans of the Employer are to be treated
as one defined contribution plan.

     In accordance with Treasury Regulation Section 1.415(a)-1(d)(3), the Plan incorporates
by reference the limitations on contributions under Code Section 415 and as provided under
Treasury Regulation Section 1.415(c)-1 et seq. (as may be revised or amended from time to
time by the Internal Revenue Service). Unless otherwise provided in this Section, the
default rules under Code Section 415 Treasury Regulations shall apply with respect to the
limitations under this Section.

     For purposes of determining a Participant’s Maximum Permissible Amount for any
Limitation Year, in addition to amounts of Compensation included for the Limitation Year in
accordance with the timing rules under the provisions in Treasury Regulation Section
1.415-2(e), such Participant’s Compensation for the Limitation Year shall include amounts
paid after a Participant’s severance from employment:

     (i) for services during the Participant’s regular working hours or outside the
Participant’s regular working hours (such as overtime or shift differential), commissions,

-27-

 

bonuses, or other similar payments if (A) such Compensation would have been paid to the
Participant prior to his severance from employment if he had continued in employment with
the Employer and (B) such Compensation is paid by the later of 21/2 months after the
Participant’s severance from employment with the Employer or the end of the Limitation Year
that includes the date of such severance from employment; and

     (ii) for unused accrued bona fide sick, vacation, or other leave, but only if the
Participant would have been able to use the leave if his employment had continued, or
amounts paid to the Participant pursuant to a nonqualified unfunded deferred compensation
plan, but only if the amounts would have been paid to the Participant at the same time if
the Participant had continued in employment with the Employer and only to the extent that
the payment is includible in the Participant’s gross income for the year of severance from
employment, provided that such amounts (A) are paid by the later of 21/2 months after
severance from employment with the Employer or the end of the Limitation Year that includes
the date of such severance from employment; and (B) would have been included in the
definition of Compensation if they were paid prior to the Participant’s severance from
employment with the Employer.

     (b) Definitions. For purposes of this Section, the following terms shall have
the following meanings:

     (i) Employer: The Company and any other Employer that adopts this
Plan; provided, however, that in the case of a group of employers which constitutes
a controlled group of corporations (as defined in Code Section 414(b), as modified
by Code Section 415(h)) or which constitutes trades and businesses (whether or not
incorporated) which are under common control (as defined in Code Section 414(c), as
modified by Code Section 415(h)) or an affiliated service group (as defined in Code
Section 414(m)), all such employers shall be considered a single employer for
purposes of applying the limitations of this Section for any portion of a Limitation
Year during which such employers were so controlled or affiliated.

     (ii) Limitation Year: A 12 consecutive month period ending on December
31.

     (iii) Compensation: For purposes of determining the Maximum
Permissible Amount, a Participant’s Compensation shall be amounts included in the
safe harbor compensation definition under Treasury Regulation Section
1.415(c)-2(d)(4) (i.e, Form W-2 safe harbor compensation definition). The foregoing
notwithstanding, for purposes of this Section, Compensation shall not exceed the
limitation under Code Section 401(a)(17)(A), as adjusted for cost-of-living
increases pursuant to Code Section 401(a)(17)(B), but shall not be limited to the
earliest payments made to or on behalf of a Participant with respect to a Limitation
Year.

     (iv) Annual Additions: With respect to each Limitation Year, to the
extent allocated to a Participant’s Account in accordance with the timing rules of

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Treasury Regulation Section 1.415(c)-1(b)(6), the total of the Participant’s
Employer Profit Sharing Contributions, Employer Matching Contributions, Pre-Tax
Contributions, After-Tax Contributions, Forfeitures, amounts described in Code
Sections 415(l) and 419A(d)(2), and amounts allocated to a Participant’s Account
under a corrective amendment that complies with the requirements of Treasury
Regulation Section 1.401(a)(4)-11(g); but excluding Catch-Up Contributions made
pursuant to Section 4.1, Rollover Amounts contributed pursuant to Section 4.11,
restorative payments described in Treasury Regulation Section
1.415(c)-1(b)(2)(ii)(C), Excess Deferrals distributed in accordance with Section 4.1
and Treasury Regulation Section 1.402(g)-1(e)(2) or (3), and such other amounts
specifically excluded under Treasury Regulation Section 1.415(c)-1(b)(3).
Contributions made with respect to Qualified Military Service in accordance with
Section 3.9 shall be considered an Annual Addition for the Limitation Year to which
the Contribution relates.

     (c) Prospective Reduction of Participant Contributions. If during a Limitation
Year the Committee determines that the Maximum Permissible Amount will be exceeded for the
Limitation Year, the Pre-Tax and/or After-Tax Contribution elections of affected
Participants may be (but is not required to be) reduced by the Committee on a temporary and
prospective basis in such manner as the Committee will determine.

     (d) Excess Amounts and EPCRS. To the extent a Participant’s Annual Additions
for a Limitation Year exceed the Participant’s Maximum Permissible Amount, except as
otherwise permitted under the Treasury Regulations or other guidance issued by the Internal
Revenue Service, such result shall be corrected in accordance with procedures available
under the Internal Revenue Service’s Employee Plans Compliance Resolution System in effect
at the time of the correction.

     5.4 Valuation of Trust Fund.  A valuation of the Trust Fund shall be made as of each
Valuation Date and on any other date during the Plan Year that the Committee deems a valuation to
be advisable. Any such interim valuation shall be exercised on a uniform and non-discriminatory
basis. For the purposes of each valuation, the assets of the Trust Fund shall be valued at the
respective current market values, and the amount of any obligations for which the Trust Fund may be
liable, as shown on the books of the Trustee, shall be deducted from the total value of the assets.
For the purposes of maintenance of books of account in respect of properties constituting the
Trust Fund, and of making any such valuation, the Trustee shall account for the transactions of the
Trust Fund on a modified cash basis.

     5.5 Recognition of Different Funds.  As provided in Article IX, Investment Funds and the
Company Stock Fund shall be established, and each Participant shall direct, within the limitations
set forth in Sections 9.3 and 9.4, what portion of the balance in his Accounts shall be deposited
in each Investment Fund and the Company Stock Fund. Consequently, when appropriate, a Participant
shall have a Pre-Tax Contribution Account, an After-Tax Contribution Account, an Employer Matching
Contribution Account, Employer Profit Sharing Account, and a Rollover Account in each such
Investment Fund and the Company Stock Fund and the allocations described in Section 5.2 shall be
adjusted in such manner as is appropriate to recognize the existence of the Investment Funds and
the Company Stock Fund. Because

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Participants have a choice of Investment Funds and the Company Stock Fund, any reference in the
Plan to a Pre-Tax Contribution Account, an After-Tax Contribution Account, an Employer Matching
Contribution Account, an Employer Profit Sharing Account or a Rollover Account shall be deemed to
mean and include all accounts of a like nature which are maintained for the Participant under each
Investment Fund and the Company Stock Fund.

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ARTICLE VI

VOLUNTARY WITHDRAWALS

     6.1 Withdrawal from After-Tax Contribution Account.  A Participant who is an Employee shall
be entitled to withdraw, in accordance with such administrative procedures adopted by the Committee
in its sole discretion, all or a portion of the amounts in his After-Tax Contribution Account
(valued as of the Valuation Date immediately preceding the distribution date of such withdrawal
from the Trust Fund). Payments of any amounts withdrawn pursuant to an election made under this
Section will be made in cash to the Participant as soon as practicable after notice of such
election is received by the Committee or its delegate. Upon making such a withdrawal, a
Participant shall not be eligible to make future After-Tax Contributions during a 6-month period
following the date of such withdrawal.

     6.2 Withdrawal from Pre-Tax Contribution Account. A Participant who is an Employee and has
attained age 591/2 shall be entitled to withdraw, in accordance with such administrative procedures
adopted by the Committee in its sole discretion, all or a portion of the amounts in his Pre-Tax
Contribution Account (valued as of the Valuation Date next preceding the distribution date of such
withdrawal from the Trust Fund). A withdrawal from the Pre-Tax Contribution Account under this
Section shall not affect the Participant’s remaining rights hereunder.

     6.3 Withdrawal from Employer Contribution Account.

          (a) Employer Contributions Made Prior to 2008 Plan Year. A Participant who is an
Employee may elect to withdraw, in accordance with administrative procedures adopted by the
Committee in its sole discretion, no more frequently than once every six months, a portion of the
amounts in his Employer Matching Account and/or Employer Profit Sharing Contribution Account
attributable to Employer Matching Contributions and/or Employer Profit Sharing Contributions
contributed to the Plan for Plan Years beginning prior to January 1, 2008 (i.e., pre-2008 Plan
Years) in accordance with the following provisions:

     (i) A Participant who has completed less than 11 Years of Vesting Service, may not
withdraw any amounts then credited to his Employer Contribution Account;

     (ii) A Participant who has completed 11 or more Years of Vesting Service, but less than
16 Years of Vesting Service, may elect to withdraw an amount not greater than 15% of his
Employer Contribution Account balance, determined as of the Valuation Date immediately
preceding the distribution date of such withdrawal, less an amount equal to the sum of all
of his prior withdrawals from this Section; and

     (iii) A Participant who has completed 16 Years of Vesting Service or more, may elect to
withdraw an amount not greater than 30% of his Employer Contribution Account balance,
determined as of the Valuation Date immediately preceding the distribution date of such
withdrawal, less an amount equal to the sum of all of his prior withdrawals from this
Section.

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Payments of any amounts withdrawn pursuant to an election made under this Section 6.3(a) will be
made to the Participant as soon as practicable after notice of such election is received by the
Committee. A Participant shall not be permitted to recontribute to or redeposit in his Accounts
any portion of the amounts withdrawn pursuant to this Section.

          (b) Employer Contributions Made After the 2007 Plan Year. A Participant who is an
Employee shall not be permitted to withdraw any portion of his Employer Matching Account and/or
Employer Profit Sharing Contribution Account attributable to Employer Matching Contributions and/or
Employer Profit Sharing Contributions contributed to the Plan for Plan Years beginning on or after
January 1, 2008 (i.e., post-2007 Plan Years) (except as provided Sections 6.6 and 6.7).

     6.4 Hardship Withdrawals.  A Participant may, in accordance with such administrative
procedures as may be adopted by the Committee in its sole discretion, at any time file with the
Committee an appropriate written request for a hardship withdrawal from his Pre-Tax Contribution
Account excluding any Income of the Trust Fund allocated to his Pre-Tax Contribution Account (under
the Plan or the Prior Plan) on or after January 1, 1989. The approval or disapproval of such
request shall be within the sole discretion of the Committee. A Participant must first withdraw
any available amount credited to his Employer Matching Contribution Account, Employer Profit
Sharing Account, After-Tax Contribution Account, if any, and Rollover Account, if any, in order to
be permitted to make a hardship withdrawal from his Pre-Tax Contribution Account and must also have
taken all distributions and loans otherwise available under the Plan and all employee plans
maintained by the Participant’s Employer to the extent such loans would not themselves cause an
immediate and substantial financial need. The Participant must certify that he is facing a
hardship creating an immediate and substantial financial need and that the resources necessary to
satisfy that financial need are not reasonably available from other sources available to the
Participant. The amount of the hardship withdrawal shall be limited to that amount which the
Committee determines to be required to meet the immediate financial need created by the hardship
including anticipated federal and state income taxes and penalties resulting from the distribution.
The hardship withdrawal distribution shall be made in cash as soon as practicable after the
Participant submits the hardship request and the dollar amount withdrawn shall be determined by
reference to the Pre-Tax Contribution Account as of the Valuation Date immediately preceding the
date of withdrawal. A Participant who receives a hardship withdrawal shall be prohibited from
making pre-tax contributions and employee contributions to the Plan and any other plan maintained
by the Employer (except “welfare plans” as defined in Section 3(1) of ERISA) for the 6-month period
following the date of distribution. The following standards (or such other standards as may be
acceptable under Treasury Regulations issued pursuant to Section 401(k) of the Code) shall be
applied by the Committee on a uniform and non-discriminatory basis in determining the existence of
such a hardship:

     (i) To be considered a hardship for purposes of this Section, the event giving rise to
the need for funds must relate to financial hardship resulting from:

     (1) medical expenses (described in Code Section 213(d)) previously incurred by
the Participant or the Participant’s spouse, dependents (as defined in Code
Section 152) or designated primary Beneficiary or necessary for those

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persons to obtain medical care as evidenced by a written estimate thereof
(determined without regard to whether the expenses exceed 7.5% of adjusted gross
income);

     (2) costs directly related to the purchase (excluding mortgage payments) of a
principal residence for the Participant;

     (3) payment for tuition for the next 12 months of post-secondary education for
the Participant or the Participant’s spouse, children, dependents (as defined in
Code Section 152 without regard to Code Section 152(b)(1), (b)(2) and (d)(1)(B)) or
designated primary Beneficiary;

     (4) payment necessary to prevent the eviction of the Participant from his
principal residence or foreclosure on the mortgage of the Participant’s principal
residence;

     (5) payment for burial or funeral expenses for the Participant’s deceased
parent, spouse, children, dependents (as defined in Code Section 152 without regard
to Code Section 152(d)(1)(B)) or designated primary Beneficiary;

     (6) expenses for the repair of damage to the Participant’s principal residence
that would qualify for the casualty deduction under Code Section 165 (determined
without regard to whether the loss exceeds 10% of adjusted gross income); or

     (7) any other event described by the Internal Revenue Service to be deemed to
be a heavy and financial need.

          Except as otherwise noted above, a person shall be considered to be dependent on the
Participant if the Participant certifies that he reasonably expects to be entitled to claim
that person as a dependent for Federal income tax purposes for a calendar year coinciding
with the Plan Year in which the certification of hardship is made. For purposes of this
Section 6.4, a person shall be considered to be a Participant’s “designated primary
Beneficiary” if such person is designated by the Participant as a primary Beneficiary in the
form and manner prescribed by the Committee, in accordance with Section 3.7 as of the date
of the withdrawal.

     (ii) A financial need shall be considered immediate if it must be satisfied in
substantial part within a period of 12 months from the date on which the Participant
certifies his eligibility for a hardship withdrawal.

     6.5 Rollover Account.  As of any Valuation Date, a Participant may withdraw an amount not
in excess of the balance in his Rollover Account by requesting such a withdrawal in accordance with
administrative procedures adopted by the Committee in its sole discretion. The actual payment of
the amount to be withdrawn shall occur as soon as administratively practicable following the filing
of the request with the Committee. The Valuation Date immediately preceding the distribution date
of the withdrawal shall determine the Participant’s balance in his Rollover Account.

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     6.6 In-Service Withdrawal of Vested Account Balance.  A Participant who has attained age
701/2 may withdraw any or all of his vested Account balance, determined as of the Valuation Date on
which the withdrawal is made, by requesting such a withdrawal in accordance with the administrative
procedures adopted by the Committee in its sole discretion.

     6.7 Loans to Participants.  Any Participant who is an Employee (including any such
Participant on a Leave of Absence) may make application to borrow from his vested Accounts in the
Trust Fund. In addition to Participants who are Employees (including any such Participant on Leave
of Absence), loans shall be available to any “alternate payee” with respect to a Participant, but,
if and only if, such person is a “party in interest” with respect to the Plan within the meaning of
ERISA Section 3(14) and who must be eligible to obtain a Plan loan in order for exemptions set
forth in Department of Labor Regulation Section 2550.408b-1 to apply to the Plan (herein, together
with Participants who are Employees and those on Leave of Absence, collectively referred to as
“Borrower”). Upon receipt of a loan application from a Borrower, the Committee may in its
discretion direct the Trustee to make a loan to such Borrower. Such loans shall be granted in a
uniform and non-discriminatory manner pursuant to the terms and conditions of a written loan
procedure that shall be established by the Committee and subject to amendment from time to time and
at any time by the Committee, with such written procedure hereby incorporated by reference as a
part of the Plan. The amount of the loan when added to the amount of any outstanding loan or loans
to the Borrower from any other plan of the Employer or an Affiliate which is qualified under Code
Section 401(a) shall not exceed the lesser of (i) $50,000, reduced by the excess, if any, of the
highest outstanding balance of loans from all such plans during the one year period ending on the
day before the date on which such loan was made over the outstanding balance of loans from the Plan
on the date on which such loan was made, and further reduced by the amount of any prior loan that
is deemed distributed under Code Section 72(p) and Treasury Regulation § 1.72(p)-1 and that has not
been repaid (such as by a plan loan offset), or (ii) 50% of the present value of Borrower’s vested
Account balances under the Plan.

          In the event that a Participant takes a distribution from his vested Account under Section
8.1(d) in connection with a severance from employment related to his performance of service in the
uniformed services, and such Participant has an outstanding loan under this Section 6.7, such
Participant will only be entitled to receive a total distribution amount that is equal to the
vested portion of such Participant’s Account balance, minus the total balance of such outstanding
loan. Such Participant’s outstanding loan will be deemed to have been repaid as of the date of a
distribution of the Participant’s vested Account balance that is equal to such amount. If a
Participant elects to take a distribution under the provisions of Section 8.1(d) that is less than
such amount, the Participant will not be required to repay his loan in full at the time of the
distribution and loan repayments will continue to be suspended in accordance with Section 414(u) of
the Code; provided, however, that such Participant will not be entitled to withdraw the remaining
vested portion of his Account balance until all outstanding loan amounts have been repaid to the
Plan.

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ARTICLE VII

PARTICIPANTS’ BENEFITS

     7.1 Normal Retirement Date.  Any Participant who terminates his Service on or after his
Normal Retirement Date shall be vested in and entitled to receive the entire amount of his Account
balance under the Plan. Upon termination of Service on or after his Normal Retirement Date for any
reason, the Committee shall direct the Trustee to make payment of the entire balance of the
Participant’s Account to him at such time and in such manner as provided in Article VIII.

     7.2 Disability of Participants.  If a Participant satisfies the definition of “Disability”
under the Company’s or an Employer’s long-term disability plan (as applicable, the “LTD Plan”) and
commences to receive disability benefits thereunder, such Participant (a) to the extent not vested,
shall be fully vested in the entire amount of his Account as of the date of the Disability and (b)
shall be entitled to receive such amount at such time and in such manner as provided in Article
VIII. The determination of whether a Participant has become “Disabled” under the LTD Plan by such
disability plan’s administrator shall be final and binding on all parties concerned.

     7.3 Early Retirement Date.  A Participant who terminates his Service on or after his Early
Retirement Date may apply for an early retirement benefit with the Committee, in the manner
prescribed by the Committee in its sole discretion. Upon a Participant’s early retirement under
this Section, the Committee shall direct the Trustee to make payment of the entire amount of the
Participant’s Account balance to him at such times and in such manner as provided in Article VIII.

     7.4 Death of Participants.  In the event of the termination of Service of any Participant
by death, and after receipt by the Committee of acceptable proof of death, in the form and manner
determined by the Committee in its sole discretion, his Beneficiary shall be entitled to receive
the entire amount in the Participant’s Account balance under the Plan, with such Account balance
fully vested as of the date of the Participant’s death. Payment of benefits due under this Section
shall be made at such time and in such manner as provided in Article VIII.

     7.5 Other Termination of Service.

     (a) Distributions: In the event of termination of Service of any Participant
for any reason other than as provided in Section 7.1, 7.2, 7.3 or 7.4, a Participant shall,
subject to the further provisions of the Plan, be entitled to receive the entire amount
credited to his After-Tax Contribution Account, Pre-Tax Contribution Account, and Rollover
Account and the vested portion of his Employer Profit Sharing Account and Employer Matching
Contribution Account, in accordance with the following schedules:

     (1) Employer Profit Sharing Contributions:

     (i) Post-2007 Plan Years. For Employer Profit Sharing
Contributions made to a Participant’s Employer Profit Sharing
Account for Plan Years beginning on or after January 1, 2008 (i.e.,

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post-2007 Plan Years), vesting shall be based upon the number of
Years of Vesting Service as follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 1
	 	 	0	%
	1
	 	 	20	%
	2
	 	 	40	%
	3
	 	 	60	%
	4
	 	 	80	%
	5 or more
	 	 	100	%

     (ii) 2006 and 2007 Plan Years. For Employer Profit Sharing
Contributions made to a Participant’s Employer Profit Sharing
Account for Plan Years beginning on or after January 1, 2006 but
prior to January 1, 2008 (i.e., 2006 and 2007 Plan Years), vesting
shall be based upon the number of Years of Vesting Service as
follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 2
	 	 	0	%
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	80	%
	6 or more
	 	 	100	%

     (iii) Prior to 2006 Plan Year. For Employer Profit Sharing
Contributions made to a Participant’s Employer Profit Sharing
Account for Plan Years beginning prior to January 1, 2006 (i.e.,
pre-2006 Plan Years), vesting shall be based upon the number of
Years of Vesting Service as follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 2
	 	 	0	%
	2
	 	 	10	%
	3
	 	 	20	%
	4
	 	 	40	%
	5
	 	 	60	%
	6
	 	 	80	%
	7 or more
	 	 	100	%

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     (2) Employer Matching Contributions:

     (i) Post-2007 Plan Years. For Employer Matching Contributions
made to a Participant’s Employer Matching Contribution Account for
Plan Years beginning on or after January 1, 2008 (i.e., post-2007
Plan Years), vesting shall be based upon the number of Years of
Vesting Service as follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 1
	 	 	0	%
	1
	 	 	20	%
	2
	 	 	40	%
	3
	 	 	60	%
	4
	 	 	80	%
	5 or more
	 	 	100	%

     (ii) 2002 through 2007 Plan Years Appendix A Employer Matching
Contributions. For Employer Matching Contributions made to a
Participant’s Employer Matching Contribution Account pursuant to
Appendix A hereto, with such appendix hereby incorporated by
reference as a part of the Plan, for Plan Years beginning on or
after January 1, 2002 but prior to January 1, 2008 (i.e., 2002
through 2007 Plan Years), vesting shall be based upon the number of
Years of Vesting Service as follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 2
	 	 	0	%
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	80	%
	6 or more
	 	 	100	%

     (iii) Pre-2002 Plan Years Appendix A Employer Matching
Contributions. For Employer Matching Contributions made to a
Participant’s Employer Matching Contribution Account pursuant to
Appendix A hereto prior to January 1, 2002 (i.e., pre-2002 Plan
Years), vesting shall be based upon the number of Years of Vesting
Service as follows:

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	Years of Vesting Service	 	Vested Percent
	Less than 2
	 	 	0	%
	2
	 	 	10	%
	3
	 	 	20	%
	4
	 	 	40	%
	5
	 	 	60	%
	6
	 	 	80	%
	7 or more
	 	 	100	%

     (iv) Pre-2007 Plan Years Non-Appendix A Employer Matching
Contributions. For Employer Matching Contributions made to a
Participant’s Employer Matching Contribution Account that are not
made pursuant to Appendix A hereto and are made prior to January 1,
2008 (i.e., pre-2007 Plan Years), vesting shall be based upon the
number of Years of Vesting Service as follows:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 1
	 	 	0	%
	1
	 	 	20	%
	2
	 	 	40	%
	3
	 	 	60	%
	4
	 	 	80	%
	5 or more
	 	 	100	%

If a Participant terminates Service and, at the time of such termination, the present value
of the Participant’s vested Account balance is zero, the Participant will be deemed to have
received a distribution of such vested benefit as of the last day of the Plan Year in which
he first incurs a Break in Service.

     (b) Forfeitures: This Section does not apply to Participants who are fully
vested at the time of termination of Service.

          (i) Forfeitures of Non-Vested Account Balance. With respect to a Participant
who terminates employment with the Employer with a vested interest (as determined under
Section 7.5(a)) in his Employer Contribution Account that is less than 100% and receives a
distribution from the Plan of the balance of his vested interest in his Employer
Contribution Account in the form of a lump sum distribution by the close of the second Plan
Year following the Plan Year in which his employment was terminated, the non-vested portion
of such terminated Participant’s Employer Contribution Account as of the Valuation Date
preceding the distribution date of his Employer Contribution Account shall become a
Forfeiture as of the date his Account balances are distributed (or as of his date of
termination of employment if he has no vested interest in his Employer Contribution Account
and thus is deemed to have received a distribution of zero dollars on his date of
termination of employment (“deemed distribution”)).

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          With respect to a Participant who terminates employment with the Employer with a vested
interest in his Employer Contribution Account less than 100% and who is not otherwise
subject to the forfeiture provision of the foregoing paragraph, because he has not received
or been deemed to have received a distribution, the non-vested portion of his Employer
Contribution Account shall be forfeited as of the earlier of (1) the last day of the Plan
Year in which the Participant first incurs 5 consecutive Breaks in Service as the result of
the termination of his Service, or (2) the date of the terminated Participant’s death.

          (ii) Restoration of Forfeited Account Balance. In the event that the
non-vested portion of a terminated Participant’s Employer Contribution Account becomes a
Forfeiture pursuant to Section 7.5(b)(i) above, the terminated Participant shall, upon
subsequent reemployment with the Employer prior to incurring 5 consecutive Breaks in
Service, have the forfeited amount restored to such Participant’s Employer Contribution
Account (i.e., Employer Profit Sharing Account and/or Employer Matching Contribution
Account, as applicable), unadjusted by any subsequent gains or losses of the Trust Fund;
provided, however, that such restoration shall only be made if such Participant repays in
cash an amount equal to the amount so distributed to him prior to the earlier of (a)
the last day of the Plan Year in which the Participant incurs 5 consecutive Breaks in
Service; or (b) 5 years after the date of the Participant’s reemployment with the Employer
(provided that the Participant must be an Employee at the time of repayment). Such
restoration shall be made as soon as administratively feasible following the date of
repayment. If a Participant who has received a deemed distribution as described in Section
7.5(b)(i) thereafter resumes Service under the Plan before incurring 5 consecutive Breaks in
Service, he shall have the forfeited amounts reinstated to such applicable Accounts as soon
as administratively feasible after his recommencement of participation in the Plan.
Additionally, in the event that it is determined that all or a portion of the non-vested
portion of a terminated Participant’s Employer Contribution Account was improperly
forfeited, such improperly forfeited amounts shall be reinstated to the applicable Accounts
from Forfeitures as soon as administratively feasible after such determination is made.
Notwithstanding anything to the contrary in the Plan, any forfeited amounts to be restored
by the Employer pursuant to this Section shall be charged against and deducted from
Forfeitures for the Plan Year in which such amounts are restored that would otherwise be
available for allocation in accordance with Section 4.10. If such Forfeitures otherwise
available are not sufficient to provide such restoration, the portion of such restoration
not provided by Forfeitures shall be provided by an additional Employer contribution (which
shall be subject to current or accumulated earning and profits).

     7.6 Valuation Dates Determinative of Participant’s Rights.  In the case of any Participant
whose Service is terminated for any reason, the amount to which such Participant or his Beneficiary
is entitled upon such termination of Service shall be determined as of the Valuation Date
coinciding with or next following his termination of Service.

     7.7 In-Service Distributions.  Except as provided in Section 6.2, no distribution or
withdrawal of any portion of a Pre-Tax Contribution Account under the Plan shall be permitted prior
to the Participant’s “separation from employment, death or disability” within the meaning of Code
Section 401(k) and the regulations thereunder other than a distribution authorized under the

-39-

 

Plan upon the occurrence of an event described in, and made in accordance with, Code Section
401(k)(10), any successor provision of the Code or any regulations thereunder. Notwithstanding the
foregoing, if there is a transfer of Plan assets and liabilities relating to any portion of a
Participant’s Account under the Plan to a plan being maintained or created by such Participant’s
new employer (other than a rollover or elective transfer), then such Participant has not
experienced a “severance from employment” for purposes of the Plan.

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ARTICLE VIII

PAYMENT OF BENEFITS

     8.1 Time of Payment.

     (a) Normal Retirement. In the event of normal retirement, within the meaning
of Section 7.1, payment of a Participant’s Account balance under the Plan shall be made as
soon as practicable following the Committee’s receipt of notice of the Participant’s
termination of Service, provided the Participant has filed an election to begin his benefit
in accordance with Section 8.8. Except as otherwise is provided in Section 8.4, a
Participant who continues in the Service of the Employer after his Normal Retirement Date
may elect to defer the payment of his Account balance until the earlier of his (1)
termination of Service with the Employer or (2) Required Commencement Date. The value of
the Participant’s Account balance shall be determined as of the Valuation Date that
immediately precedes the date payment of the Participant’s benefit is to begin.

     (b) Early Retirement. Except as is otherwise provided in Section 8.4, in the
event of early retirement, within the meaning of Section 7.3, payment of a Participant’s
Account balance under the Plan shall be made as soon as practicable following the
Committee’s receipt of notice of the Participant’s termination of Service, provided the
Participant has filed an election to begin his benefit in accordance with Section 8.8. The
foregoing notwithstanding, the Participant may elect to defer commencement of his benefit
under this Section until his Required Commencement Date. The value of the Participant’s
Account balance shall be determined as of the Valuation Date that immediately precedes the
date payment of the Participant’s benefit is to begin.

     (c) Death. Except as is otherwise provided in Sections 8.4 and 8.6, in the
event of a Participant’s termination of Service due to death, within the meaning of Section
7.4, payment of the Participant’s entire vested Account balance under the Plan shall be paid
to his Beneficiary in a lump sum distribution under Section 8.2 within 5 years after the
date of the Participant’s death; provided, however, if the Beneficiary is the Participant’s
surviving spouse, the deceased Participant’s interest shall be distributed to such surviving
spouse on or before the date on which the Participant would have attained age 701/2; provided
further that if the surviving spouse dies before distribution commences to the spouse,
distribution of the deceased Participant’s interest shall begin on or before the date
determined as if the surviving spouse were the Participant. The value of the Participant’s
Account balance shall be determined as of the Valuation Date that immediately precedes the
date payment of the Participant’s benefit is to be paid. If a Participant’s distributions
under the Plan commenced prior to his date of death, any remaining portion of the deceased
Participant’s interest in the Plan shall be distributed at least as rapidly as such interest
would have been distributed to him under the method of payment in effect immediately prior
to his death.

-41-

 

     (d) Other Termination of Service. Except as is otherwise provided in Section
8.4, upon a Participant’s termination of Service pursuant to Section 7.5, payment of the
Participant’s vested Account balance shall be made as soon as practicable following the
Participant’s termination of Service, provided the Participant has filed an election to be
paid or begin his benefit in accordance with Section 8.8, subject to Section 8.7. The value
of the Participant’s vested Account balance shall be determined as of the Valuation Date
that immediately precedes the date payment of the Participant’s vested Account balance is to
begin. A “termination of Service” for purposes of this Section 8.1(d) will include a
“severance from employment” under Section 401(k)(2) of the Code that occurs as a result of a
Participant’s performance of service in the uniformed services (as defined in chapter 43 of
title 38, United States Code) while on active duty for a period of more than 30 days, as
provided in Section 3401(h) of the Code; provided, however, that a Participant who elects to
receive a distribution of his vested Account in connection with a “termination of Service”
occurring as a result of his performance of service in the uniformed services may not make
Pre-Tax Contributions (including Catch-Up Contributions) to the Plan at any time during the
six (6) month period beginning on the date of such distribution.

     (e) Limitation on Time of Payment. Notwithstanding any provision contained
herein to the contrary, unless the Participant elects otherwise, the Trustee shall make
payment of the Participant’s vested Account benefit not later than 60 days after the latest
of the following events occurs:

     (i) The end of the Plan Year in which the Participant attains age 65;

     (ii) The end of the Plan Year in which the Participant terminates Service with
the Employer; or

     (iii) The end of the Plan Year in which occurs the 10th anniversary of the year
in which the Participant commenced participation in the Plan.

A Participant may elect to defer the payment of his benefits beyond the dates specified
above by submitting a written statement to the Committee describing his benefit and the date
on which the payment of such benefits shall be made, at the time and in the manner
prescribed by the Committee in its sole discretion.

     8.2 Method of Payment. After any and all required adjustments, the Trustee, in accordance
with the direction of the Committee, shall make any payment due under Section 8.1 of a
Participant’s vested Account balance in a cash lump sum payment, except that the portion of the
Participant’s Accounts invested in Company Stock, if any, shall be distributed in cash or in whole
shares of Company Stock plus the cash value of any partial shares of Company Stock, as elected by
the Participant (or, if applicable under Section 8.1(c), the Beneficiary).

     8.3 Deferral of Payments in the Case of Non-Employee and Non-Eligible Employee
Participants.  If a Participant’s Accounts are retained in the Trust after the date on which he
ceases to be an Employee or an Eligible Employee, such Accounts shall continue to be treated as a
part of the Trust Fund. The Accounts of such a non-Employee and non-Eligible Employee

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Participant will be credited (or debited) with their share of the net income (or loss) attributable
to the investments of such Accounts but shall not be credited with any further (i) Employer
contributions or (ii) Participant contributions.

     8.4 Cash Out or Automatic Rollover of Vested Account Balance.  Notwithstanding any other
provision of this Article VIII, if upon termination of a Participant’s Service or thereafter the
value of the Participant’s vested Account balance does not exceed $1,000, the Committee shall
direct the Trustee to (i) distribute the value of the Participant’s vested Account balance to the
Participant or the Participant’s Beneficiary in a lump sum cash payment or (ii) if the Participant
or Beneficiary so timely elects, rollover such amount to an Eligible Retirement Plan (as defined in
Section 8.5(b)). In the event that a Participant’s vested Account balance exceeds $1,000, but does
not exceed $5,000, if the Participant does not timely elect to have such benefit paid directly to
an Eligible Retirement Plan specified by the Participant or to receive the distribution directly,
then the Committee will pay the distribution to an individual retirement plan designated by the
Committee.

     8.5 Direct Rollover Distributions.  Notwithstanding any provision of the Plan to the
contrary that would otherwise limit a Distributee’s election under Section 8.2, a Distributee may
elect, at the time and in the manner prescribed by the Committee, to have any portion of an
Eligible Rollover Distribution greater than $200 paid directly to an Eligible Retirement Plan
specified by the Distributee in a Direct Rollover. For the purposes of this section the following
definitions shall apply:

          (a) “Eligible Rollover Distribution” shall mean any distribution of all or any portion of the
balance to the credit of the Distributee other than:

     (i) any distribution that is one of a series of substantially equal periodic
payments (not less frequently than annually) made for the life (or life expectancy)
of the Distributee or the joint lives (or joint life expectancies) of the
Distributee and the Distributee’s designated beneficiary, or for a specific period
of 10 years or more;

     (ii) any distribution to the extent such distribution is required under Section
401(a)(9) of the Code;

     (iii) the portion of any distribution that is not includable in gross income
(determined without regard to the exclusion for net unrealized appreciation with
respect to employer securities); provided, however, that an Eligible Rollover
Distribution may include the portion of any distribution that is not includable in
gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities), provided that such portion may
only be rolled over to an individual retirement account described in Section 408(a)
of the Code, an individual retirement annuity described in Section 408(b) of the
Code or a qualified defined contribution plan described in Section 401(a) or 403(a)
of the Code, a qualified defined benefit plan described in Section 401(a) of the
Code, or a Section 403(b) annuity contract that agrees to separately account for
amounts so rolled over, including separately accounting for the

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portion of the distribution which is includable in gross income and the portion
of such distribution which is not so includable;

     (iv) any distribution which is made upon hardship;

     (v) a loan treated as a distribution under Section 72(p) of the Code and not
excepted by Section 72(p)(2) of the Code or a loan in default that is a deemed
distribution;

     (vi) any corrective distribution provided in Article XIII (regarding Excess
Contributions and Excess Aggregate Contributions as such terms are defined in
Section 13.1); or

     (vii) any other distribution so designated by the Internal Revenue Service in
revenue rulings, notices, and other guidance of general applicability.

          (b) “Eligible Retirement Plan” shall mean (i)(1) an individual retirement account described in
Section 408(a) of the Code or Section 408A of the Code, (2) an individual retirement annuity
described in Section 408(b) of the Code, (3) an annuity plan described in Section 403(a) of the
Code, and (4) a qualified plan described in Section 401(a) of the Code that accepts the
Distributee’s Eligible Rollover Distribution and (ii)(1) an annuity contract described in Section
403(b) of the Code and (2) an eligible plan under Section 457(b) of the Code which is maintained by
a state, political subdivision of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts transferred into such
plan from the Plan. The definition of Eligible Retirement Plan shall also apply in the case of a
distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee
under a qualified domestic relation order, as defined in Section 414(p) of the Code and a
non-spouse beneficiary to the extent provided in Section 829 of the Pension Protection Act of 2006
as provided in Section 8.6.

          (c) “Distributee” shall mean a Participant or former Participant of the Plan. In addition,
the Participant’s or former Participant’s surviving spouse and the Participant’s or former
Participant’s spouse or former spouse who is the alternate payee under a qualified domestic
relations order, as defined in Section 414(p) of the Code, are Distributees with regard to the
interest of the spouse or former spouse.

          (d) “Direct Rollover” shall mean a payment by the Plan to the Eligible Retirement Plan
specified by the Distributee.

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     8.6 Non-Spouse Beneficiary Rollovers.  Notwithstanding any provision of the Plan to the
contrary, to the extent provided in Section 829 of the Pension Protection Act of 2006, in the case
of a designated Beneficiary (within the meaning of Section 401(a)(9) of the Code) who is a person
or trust other than the Participant’s spouse, the Beneficiary may elect to have all or part of the
Participant’s Account distributed in a direct trustee-to-trustee transfer to an inherited
individual retirement account described in Section 408(a) or (b) or Section 408A of the Code (an
“Inherited IRA”) if the following requirements are satisfied:

     (a) The Committee (or its delegate) is provided a timely request to make the direct
trustee-to-trustee transfer to the Inherited IRA by the Beneficiary, in the form and manner
prescribed by the Committee, prior to the date the Participant’s Account balance is
distributed pursuant to Section 8.1(c).

     (b) The Beneficiary represents to the Committee in writing that an Inherited IRA has
been established for the purpose of receiving the distribution on behalf of such designated
Beneficiary in a manner that identifies the IRA as an IRA with respect to the deceased
Participant and also identifies the designated Beneficiary.

     (c) The amount distributed in a trustee-to-trustee transfer to an IRA satisfies the
requirements for an Eligible Rollover Distribution as set forth in Section 8.5 other than
the requirement that the designated Beneficiary satisfies the definition of “Distributee” in
Section 8.5(c).

     (d) The transfer otherwise meets all other requirements of Code Section 402(c)(11) and
any regulations and guidance issued thereunder.

     8.7 Required Minimum Distribution.  

          (a) General. Notwithstanding any provisions of the Plan to the contrary, for a
Participant attaining age 701/2, any benefits to which a Participant is entitled shall commence not
later than the April 1 of the calendar year following the later of (i) the calendar year in which
the Participant attains age 701/2 or (ii) the calendar year in which the Participant’s employment
terminates (provided, however, that clause (ii) of this sentence shall not apply in the case of a
Participant who is a 5% owner (as defined in Section 416(i) of the Code) with respect to the Plan
Year ending in the calendar year in which such Participant attains age 701/2 (such date the “Required
Beginning Date”). All distributions required under this Section 8.7 will be made in accordance
with the Treasury Regulations under Code Section 401(a)(9) and shall apply for purposes of
determining required minimum distributions. The requirements under Code Section 401(a)(9) will
take precedence over any inconsistent provisions of the Plan.

          (b) Timing and Manner of Distributions. The Participant’s entire interest will be
distributed, or begin to be distributed, to the Participant no later than the Participant’s
Required Beginning Date. Upon the death of the Participant distributions will be made to the
Beneficiary in accordance with Section 8.1(c) of the Plan.

          (c) Calculation of Required Minimum Distribution. During the Participant’s lifetime,
the minimum amount that will be distributed for each Distribution Calendar Year is the quotient
obtained by dividing the Participant’s Account Balance by the distribution period in the

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Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using
the Participant’s age as of the Participant’s birthday in the Distribution Calendar Year. Required
minimum distributions will be determined beginning with the first Distribution Calendar Year and up
to and including the Distribution Calendar Year that includes the Participant’s date of death.

          (d) Required Minimum Distributions After or Before Participant’s Death. If the
Participant dies after or before his Required Beginning Date, his Account balance will be
distributed to his Beneficiary as provided in Section 8.1 of the Plan.

          (e) Definitions.

     (i) Designated Beneficiary. The individual who is designated as the
Beneficiary under Section 3.7 of the Plan and is the Designated Beneficiary
under Section 401(a)(9) of the Code and Section 1.401(a)(9)-1, Q&A-4, of the
Treasury Regulations.

     (ii) Distribution Calendar Year. A calendar year for which a minimum
distribution is required. For distributions beginning before the
Participant’s death, the first Distribution Calendar Year is the calendar
year immediately preceding the calendar year which contains the
Participant’s Required Beginning Date. For distributions beginning after
the Participant’s death, the first Distribution Calendar Year is the
calendar year in which distributions are required to begin under Section
8.7(d). The required minimum distribution for the Participant’s first
Distribution Calendar Year will be made on or before the Participant’s
Required Beginning Date. The required minimum distribution for other
distribution calendar years, including the required minimum distribution for
the Distribution Calendar Year in which the Participant’s Required Beginning
Date occurs, will be made on or before December 31 of that Distribution
Calendar Year.

     (iii) Participant’s Account Balance. The account balance as of the
last valuation date in the calendar year immediately preceding the
Distribution Calendar Year (valuation calendar year) increased by the amount
of any contributions made and allocated or forfeitures allocated to the
account balance as of dates in the valuation calendar year after the
valuation date and decreased by distributions made in the valuation calendar
year after the valuation date. The account balance for the valuation
calendar year includes any amounts rolled over or transferred to the Plan
either in the valuation calendar year or in the distribution calendar year
if distributed or transferred in the valuation calendar year.

     8.8 Election to Commence Benefits.  

          (a) General. Except in the case of early retirement under Section 7.3, prior to or
upon becoming entitled to receive a benefit hereunder, a Participant or Beneficiary shall file a

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claim for such benefit with the Committee at the time and in the manner prescribed by the
Committee in its sole discretion.

          (b) Early Retirement Benefits. A Participant who is eligible to apply for an early
retirement benefit under Section 7.3 and elects to do so shall file an application therefor with
the Committee at the time and in the manner prescribed by the Committee in its sole discretion.

     8.9 Claims for Benefits.  Any Participant or Beneficiary of any deceased Participant, or
authorized representative (designated in the manner required by the Committee) of such Participant
or Beneficiary (collectively, the “Claimant”), may submit a written claim to the Committee for the
payment of any benefit asserted to be due him under the Plan, including, but not limited to
administrative and statement errors, which shall set forth the nature of the claim and such other
information as the Committee may reasonably request. Upon the receipt of any claim for benefits
required by this Section, the Committee shall determine whether or not the Claimant is entitled to
a benefit hereunder and, if so, the amount thereof, and shall notify the Claimant of its findings.
The Committee, in its sole discretion, may establish reasonable time periods within which any claim
for benefits or other cause of action must be submitted to the Committee.

          The Committee shall notify the Claimant of its benefits determination within a reasonable
time, not to exceed 90 days, after receipt of the claim, unless the Committee determines that
special circumstances require an extension of time, not to exceed 90 days from the end of the
initial 90-day period, for processing the claim. If such an extension of time is required, written
notice of the extension shall be furnished to the Claimant prior to the end of the initial 90-day
period indicating the special circumstances requiring an extension of time and the date by which
the Committee expects to render its final decision. The initial 90-day period shall commence at
the time the claim is filed with the Committee, regardless of whether or not all information
necessary for the Committee to make its determination accompanies the filing. If an extension of
the 90-day period is required due to the Claimant’s failure to submit such necessary information,
such period shall be tolled from the date on which the extension notice is sent to the Claimant
until the date the Claimant provides such additional information.

          The Committee shall provide the Claimant with written or electronic notice of its decision to
deny a claim, in whole or in part, and such notice shall set forth, in a manner calculated to be
understood by the Claimant:

     (a) the specific reason or reasons for the denial;

     (b) specific reference to the pertinent Plan provisions on which the denial is based;

     (c) a description of any additional material or information necessary for the Claimant
to perfect the claim and an explanation of why such material or information is necessary;
and

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     (d) a description of the claims review procedure set forth in Section 8.9 hereof and
the applicable time limits, including the Claimant’s right to bring a civil action under
Section 502(a) of ERISA following a denial on review.

     8.10 Claims Review Procedure. If the Committee denies the benefits claim filed by a
Claimant under Section 8.9, either in whole or in part, such Claimant shall have the right, to be
exercised by written application filed with the Committee within 60 days after receipt of notice of
the denial of his claim to request a review of his claim and entitlement to the benefit applied for
and the denial of such benefits. The Claimant may submit written comments, documents, records and
other information relating to his claim for benefits. Upon request, and free of charge, the
Claimant shall be provided reasonable access to, and copies of, all documents, records and other
information relevant to his claim for benefits. The Committee shall reconsider the claim in light
of all such comments, documents and other information submitted by the Claimant, without regard to
whether such information had been submitted or considered in the initial review process under
Section 8.8. If deemed necessary by the Committee, in its sole discretion, the Committee may hold
a formal hearing on the benefits claim.

          The Committee shall conduct a full and fair review of the claim and provide the Claimant with
written or electronic notice of its final determination within a reasonable time, not to exceed 60
days, after receipt of the Claimant’s application for review, unless the Committee determines that
special circumstances require an extension of time, not to exceed 60 days from the end of the
initial 60-day period, to review the claim (such as the need to hold a formal hearing). If such an
extension of time is required, written notice of the extension shall be furnished to the Claimant
prior to the end of the initial 60-day period indicating the special circumstances requiring such
an extension and the date by which the Committee expects to render its decision. The initial
60-day period shall commence at the time the application for review is filed with the Committee,
regardless of whether or not all information necessary for the Committee to make its determination
accompanies the filing. If an extension of the 60-day period is required due to the Claimant’s
failure to submit such necessary information, such period shall be tolled from the date on which
the extension notice is sent to the Claimant until the date the Claimant provides such additional
information.

          If the Committee denies the claim on review, either in whole or in part, the notice of final
determination shall set forth, in a manner calculated to be understood by the Claimant, the
specific reasons for the denial and specific references to the pertinent provisions of the Plan
upon which the denial is based, the Claimant’s right to receive upon request, free of charge,
reasonable access to, and copies of, all relevant documents, records and other information to his
claim and the Claimant’s right to bring a civil action under Section 502(a) of ERISA.
Notwithstanding the foregoing or any provision of the Plan to the contrary, no action at Law or
Equity shall be brought to recover under the Plan until the Claimant’s appeal rights set forth in
Section 8.9 and this Section have been denied in whole or in part. Benefits under the Plan will
only be paid if the Committee decides in its discretion that the Claimant is entitled to them.

     8.11 Disputed Benefits. If any dispute still exists between a Participant or a Beneficiary
and the Committee after a review of the claim or in the event any uncertainty shall develop as to
the person to whom payment of any benefit hereunder shall be made, the Trustee may withhold the
payment of all or any part of the benefits payable hereunder to the Participant

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or Beneficiary until such dispute has been resolved by a court of competent jurisdiction or settled
by the parties involved.

     8.12 Optional Forms of Benefits.  Notwithstanding anything in the Plan to the contrary, all
optional forms of benefits which are “Section 411(d)(6) protected benefits,” as described in
Treasury Regulations Section 1.411(d)-4, shall continue to be optional forms of benefits for
Participants to whom the optional forms apply, notwithstanding any subsequent amendment of the Plan
purporting to revise or delete any such optional form of benefit and notwithstanding any contrary
provision of Article VI or this Article VIII, unless otherwise permitted by applicable law.

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ARTICLE IX

TRUST AGREEMENT; INVESTMENT FUNDS;

COMPANY STOCK FUND; INVESTMENT DIRECTIONS

     9.1 Trust Agreement.  The Company has entered into a Trust Agreement governing the
administration of the Trust with the Trustee, the provisions of which are herein incorporated by
reference as fully as if set out herein. The assets held under said Trust Agreement on behalf of
the Plan shall constitute the Trust Fund.

     9.2 Investment Funds and Company Stock Fund.  The Trustee shall divide the Trust Fund into
the Company Stock Fund and such Investment Funds as may be selected from time to time by the
Committee. Contributions shall be paid into the Investment Fund or Funds and/or Company Stock Fund
(collectively, for purposes of this Article IX, the “Funds”), pursuant to the directions of the
Participants given in accordance with the provisions of Sections 9.3 and 9.4 as certified to the
Trustee by the Committee. Except as otherwise provided herein, interest, dividends and other
income and all profits and gains produced by each such Fund shall be paid into such Fund, and such
interest, dividends and other income or profits and gains, without distinction between principal
and income, may be invested and reinvested but only in the property hereinabove specified for the
particular Fund. Subject to Section 9.3, the Committee shall have the right to add and/or delete
Investment Funds from time to time and at any time.

     9.3 Investment Directions of Participants.  Each Participant may direct the investment of
the amounts credited to his Account among the Investment Funds available under the Plan; provided
that a Participant may direct the investment of Contributions, including Rollover Amounts, to his
Account in the Company Stock Fund only in an amount equal to between 1% and 15% (in whole
percentages) of such Contributions and Rollover Amounts credited to his Account. The Participant
shall file such direction with the Committee in accordance with procedures adopted by the
Committee, in its sole direction, which shall specify the allocation of Contributions among such
Funds.

     9.4 Change of Investment Directions.  Except as provided in Section 9.3, a Participant or
former Participant may modify his investment direction among the various Funds in increments of 1%
(in whole percentages totaling in the aggregate 100% among the Funds (subject to the 15% limitation
for the Company Stock Fund described in Section 9.3 with respect to Contributions and Rollover
Amounts)) with respect to (i) future Contributions and Rollover Amounts (ii) the future investment
of prior Contributions and Rollover Amounts, or (iii) both, by providing notice of the new
investment direction to the Committee, in accordance with applicable procedures. Such change in
investment direction shall become effective as soon as administratively practicable. The Committee
shall establish an administrative procedure to allow for prompt communication of the investment
directions and changes thereto of each Participant to the Trustee. In the event a Participant
fails to direct the manner of investing his Account as provided in Sections 9.3 and 9.4, such
Account shall be invested by the Trustee in the Default Investment Fund.

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     9.5 Benefits Paid Solely from Trust Fund.  All benefits under the Plan shall be paid
exclusively from the Trust Fund.

     9.6 Committee Directions to Trustee.  The Trustee shall make only such distributions and
payments out of the Trust Fund as may be directed by the Committee. The Trustee shall not be
required to determine or make any investigation to determine the identity or mailing address of any
person entitled to any distributions and payments out of the Trust Fund and shall have discharged
its obligation in that respect when it shall have sent certificates and checks or other papers by
ordinary mail to such persons and addresses as may be certified to it by the Committee.

     9.7 Authority to Designate Investment Manager.  The Committee may appoint an investment
manager or managers to manage (including the power to acquire and dispose of) any assets of the
Trust Fund in accordance with the terms of the Trust Agreement and ERISA.

     9.8 Voting of Company Stock.  Unless otherwise required by law and except as provided
herein, the Trustee shall vote the Company Stock held in the Trust Fund for the respective Accounts
of the Plan Participants. On issues where Participants are required to vote the Company Stock
allocated to their Accounts or in connection with a tender offer, the Participants shall be
entitled to direct the Trustee as to the manner in which the Company Stock shall be voted or
whether the such Company Stock shall be tendered. Any such Participant directions may be certified
to the Trustee by the Committee or any agent designated thereby in accordance with such
administrative procedures as the Committee may, in its sole discretion, adopt. Company Stock with
respect to which no such direction shall be received and fractional shares shall be voted by the
Trustee in the same proportions as are shares of Company Stock as to which voting instructions have
been received or shall be voted or tendered in accordance with the provisions of the Trust
Agreement as then in effect. Voting, tender, and similar rights with respect to any other
investment option provided under the Plan shall also be passed through to the Participant to the
extent that the Participant’s Account is invested in such option. Any Participant directions with
respect to voting, tender or similar rights may be credited to the Trustee by the Committee or any
agent designated thereby in accordance with such administrative procedures as the Committee may, in
its sole and absolute discretion, adopt. The portion of an investment option with respect to which
the Trustee receives no Participant direction shall be voted or tendered, as applicable, in
accordance with the provisions of the Trust Agreement as then in effect.

     9.9 Voting of Investment Funds.  Voting, tender, and similar rights with respect to any
Investment Funds provided under the Plan shall be passed through to Participants to the extent that
the Participant’s Account is invested in such Fund. Any Participant directions with respect to
voting, tender or similar rights may be credited to the Trustee by the Committee or any agent
designated thereby in accordance with such administrative procedures as the Committee may, in its
sole and absolute discretion, adopt.

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ARTICLE X

ADOPTION OF PLAN BY OTHER ORGANIZATIONS;

SEPARATION OF THE TRUST FUND;

AMENDMENT AND TERMINATION OF THE PLAN;

DISCONTINUANCE OF CONTRIBUTIONS TO THE TRUST FUND

     10.1 Adoptive Instrument.  Any corporation or other organization with employees, now in
existence or hereafter formed or acquired which is not already an Employer under the Plan and which
is otherwise legally eligible, may, with the approval of the Company by action of the Committee,
adopt and become an Employer under the Plan by executing and delivering to the Company and the
Trustee an adoptive instrument specifying the classification of its Employees who are to be
eligible to participate in the Plan and by agreeing to be bound as an Employer by all the terms of
the Plan with respect to its Eligible Employees. The adoptive instrument may contain such changes
and variations in the terms of the Plan as may be acceptable to the Company by action of the
Committee. Any such approved organizations which shall adopt the Plan shall designate the Company
as its agent to act for it in all transactions affecting the administration of the Plan and shall
designate the Committee to act for such Employer and its Participants in the same manner in which
the Committee may act for the Company and its Participants hereunder. The adoptive instrument
shall specify the effective date of such adoption of the Plan and shall become, as to such adopting
Employer and its Employees, a part of the Plan. The Company may, in its absolute discretion,
terminate an adopting Employer’s participation at any time when in its judgment such adopting
Employer fails or refuses to discharge its obligations under the Plan.

          It is a condition of adopting the Plan that each adopting entity agree (i) to make Employer
Matching Contributions as specified in Section 4.2, (ii) if elected by the Board, to make the
Employer Profit Sharing Contributions, if any, for a Plan Year, as specified in Section 4.3, (iii)
to allow its Eligible Employees to elect to defer the amounts of Compensation specified in Section
4.1, (iv) to allow its Eligible Employees to elect to make After-Tax Contributions in the amounts
specified in Section 4.4, and (v) to allow its Eligible Employees to make rollover contributions to
the Plan pursuant to Section  4.11. The administrative powers and control granted to the Company
under the Plan, as now or hereafter provided, including the sole right of amendment of the Plan and
Trust and of appointment and removal of the Committee and its successors, shall not be diminished
by reason of the participation of any such adopting entity in the Plan and Trust.

     10.2 Separation of the Trust Fund.  A separation of the Trust Fund as to the interest
therein of the Participants of any particular Employer may be requested by an Employer at any time
pursuant to the procedures set forth in Section 10.3. In the event such a separation is approved,
as provided in Section 10.3, the Trustee shall set apart that portion of the Trust Fund which shall
be allocated to such Participants pursuant to a valuation and allocation of the Trust Fund made in
accordance with the procedures set forth in Sections 5.2 and 5.4, but as of the date when such
separation of the Trust Fund shall be effective. Such portion may in the Trustee’s discretion be
set apart in cash or in kind out of the properties of the Trust Fund. That portion of the Trust
Fund so set apart shall continue to be held by the Trustee as though such Employer had entered into
the Trust Agreement as a separate trust agreement with the Trustee. Such Employer

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may in such event designate a new trustee of its selection to act as trustee under such separate
trust agreement. Such Employer shall thereupon be deemed to have adopted the Plan as its own
separate plan, and shall subsequently have all such powers of amendment or modification of such
plan as are reserved herein to the Company.

     10.3 Voluntary Separation.  If any Employer shall desire to separate its interest in the
Trust Fund under Section 10.2, it shall request such a separation in a notice in writing to the
Company, the Committee and the Trustee. Any such separation shall not be permitted or effective
unless and until consented to and approved by the Committee, in its sole discretion. If the
Committee so consents to and approves of the separation, such separation shall then be made as of
the date established by the Committee, and only then shall such separation be accomplished in the
manner set forth in Section 10.2.

     10.4 Amendment of the Plan:  Except as otherwise expressly provided in this Section,
(i) the Board, in its settlor capacity, shall have the exclusive right (except as provided below)
to amend or modify the Plan and the Trust Agreement (with the consent of the Trustee, if required)
at any time and from time to time to the extent that it may deem advisable and (ii) the Committee
shall have the right to modify the administrative provisions of the Plan and to change the
Investment Funds offered under the Plan. In addition, the Committee shall have the limited right
(along with the Board) to amend or modify the Plan and the Trust Agreement (with the consent of the
Trustee, if required) solely for any changes required by applicable law or by the Internal Revenue
Service to maintain the qualified status of the Plan and related Trust at any time and from time to
time to the extent that it may deem advisable, so long as the change is consistent with the general
compensation policies of the Company. The Board alone, in its settlor capacity, shall have the
sole and exclusive right and power to (i) amend, modify, restrict or limit investment in, or
terminate the Company Stock Fund and (ii) amend, modify or terminate any provision of the Plan or
Trust Agreement related to the administration of the Company Stock Fund. Any such amendment or
modification shall be set out in an instrument in writing duly authorized by the Board or the
Committee, as the case may be, and executed by an appropriate officer of the Company or member of
the Committee. Upon delivery by the Company of such an instrument amending the Plan to the
Trustee, the Plan shall be deemed to have been amended or modified in such manner and to such
extent and effective as of the date therein set forth, and thereupon any and all Participants
whether or not they shall have become such prior to such amendment or modification shall be bound
thereby. No such amendment or modification shall, however, increase the duties or responsibilities
of the Trustee without its consent thereto in writing, or have the effect of transferring to or
vesting in any Employer any interest or ownership in any properties of the Trust Fund, or of
permitting the same to be used for or diverted to purposes other than for the exclusive benefit of
the Participants and their Beneficiaries. No such amendment shall decrease the Account of any
Participant or shall decrease any Participant’s vested interest in his Account. No amendment shall
directly or indirectly reduce a Participant’s non-forfeitable vested percentage in his benefits
under Section 7.5 of the Plan, unless each Participant having not less than three years of Service
is permitted to elect to have his non-forfeitable vested percentage in his benefits computed under
the provisions of Section 7.5 without regard to the amendment. Such election shall be available
during an election period, which shall begin on the date such amendment is adopted, and shall end
on the latest of (i) the date 60 days after such amendment is adopted, (ii) the date 60 days after
such amendment is effective, or (iii) the date 60 days after such Participant is issued written
notice of the amendment

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by the Committee or the Employer. Notwithstanding anything herein to the contrary, the Plan
or the Trust Agreement may be amended in such manner as may be required at any time to make it
conform to the requirements of the Code or of any United States statutes with respect to employees’
trusts, or of any amendment thereto, or of any regulations or rulings issued pursuant thereto, and
no such amendment shall be considered prejudicial to any then existing rights of any Participant or
his Beneficiary under the Plan.

     10.5 Acceptance of Amendment by Employers.  The Company shall deliver to each other
Employer any amendment to the Plan or the Trust Agreement by the Company or the Committee. Each
such Employer will be deemed to have consented to such amendment upon the Company’s execution
thereof.

     10.6 Termination of the Plan.  The Plan may be terminated, in its entirety, pursuant to the
provisions of, and as of any subsequent date specified in, an instrument in writing executed by the
Company, and approved and authorized by the Board, and which said instrument shall be delivered to
the Trustee. A termination of the Plan as to any particular Employer (and only as to any such
particular Employer) shall occur under the following circumstances:

          (a) The Plan may be terminated by the delivery to the Committee of an instrument in writing
approved and authorized by the board of directors of such Employer and the consent to and approval
of such termination by the Committee upon the recommendation of the Board. In such event,
termination of the Plan shall be effective as of any subsequent date specified in such instrument
or such other date consented to by the Committee and approval and authorized by the board of
directors of such Employer in a written instrument.

          (b) Except as otherwise provided in this Article X, the Plan shall terminate effective at the
expiration of 60 days following the merger into another corporation or dissolution of any Employer,
or following any final legal adjudication of any Employer as a bankrupt or an insolvent, unless
within such time a successor organization approved by the Company shall deliver to the Trustee a
written instrument certifying that such organization has (i) become the Employer of more than 50%
of those Employees of such Employer who are then Participants under the Plan and (ii) adopted the
Plan as to its Employees. In any such event the interest in the Plan of any Participant whose
employment may not be continued by the successor shall be fully vested as of the date of
termination of his Service, and shall be payable in cash or in kind within 6 months from the date
of termination of his Service.

          (c) In the event of termination of the Plan as herein provided, any amounts attributable to a
Participant’s Pre-Tax Contributions may not be distributed earlier than upon one of the following
events:

     (i) The Participant’s retirement, death, disability or separation from
Service;

     (ii) The termination of the Plan without establishment or maintenance
of another defined contribution plan (other than an ESOP or SEP);

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     (iii) The Participant’s attainment of age 591/2, or the Participant’s
hardship;

     (iv) The sale or other disposition by an Employer to an unrelated
corporation of substantially all of the assets used in a trade or business,
but only with respect to Employees who continue employment with the
acquiring corporation and the acquiring corporation does not maintain the
Plan after the disposition; and

     (v) The sale or other disposition by an Employer of its interest in a
subsidiary to an unrelated entity but only with respect to Employees who
continue employment with the subsidiary and the acquiring entity does not
maintain the Plan after the disposition.

          A distribution may be made pursuant to the provisions of subparagraphs (iv) and (v) of this
Section 10.6(c) only if the Employer continues to maintain the Plan after the disposition. A
distribution may be made pursuant to subparagraphs (ii), (iv) and (v) of this Section 10.6(c) only
if the distribution is a lump-sum distribution.

     10.7 Liquidation and Distribution of Trust Fund Upon Termination.  In the event a complete
or partial termination of the Plan in respect of any Employer shall occur, a separation of the
Trust Fund in respect of the affected Participants of such Employer shall be made as of the
effective date of such termination of the Plan in accordance with the procedure set forth in
Section 10.2. Following separation of the Trust Fund in respect of the Participants of any
Employer as to whom the Plan has been terminated, the assets and properties of the Trust Fund so
set apart, other than Company Stock, shall be reduced to cash as soon as may be expeditious under
the circumstances. Any administrative costs or expenses incurred incident to the final liquidation
of such separate trust funds shall be paid by the Employer, except that in the case of bankruptcy
or insolvency of such Employer any such costs shall be charged against the Trust Fund. Following
such partial reduction of such Trust Fund to cash, the Accounts of the Participants shall then be
valued as provided in Sections 5.2 and 5.4 and shall be fully vested, whereupon each such
Participant shall become entitled to receive the entire amount in his Account in cash and/or
Company Stock, as directed by the Committee. The terminating Employer shall promptly advise the
appropriate District Director of the Internal Revenue Service of such complete or partial
termination. Any distribution due to the termination of the Plan will be made in accordance with
the requirements of Code Sections 401(a)(11), 411(d)(6) and 417.

     10.8 Effect of Termination or Discontinuance of Contributions.  If any Employer shall
terminate or partially terminate the Plan as to its Employees, then all amounts credited to the
Accounts of the Participants of such Employer with respect to whom the Plan has terminated shall
become fully vested and non-forfeitable. If any Employer shall completely discontinue its
Contributions to the Trust Fund or suspend its Contributions to the Trust Fund under such
circumstances as to constitute a complete discontinuance of Contributions within the meaning of
Section 1.401-6(c) of the regulations under the Code, then all amounts credited to the Accounts of
the Participants of such Employer shall become fully vested and non-forfeitable, and throughout any
such period of discontinuance of Contributions by an Employer all other

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provisions of the Plan shall continue in full force and effect with respect to such Employer other
than the provisions for Contributions by such Employer.

     10.9 Merger of Plan with Another Plan.  In the event of any merger or consolidation of the
Plan with, or transfer in whole or in part of the assets and liabilities of the Trust Fund to
another trust fund held under, any other plan of deferred compensation maintained or to be
established for the benefit of all or some of the Participants of the Plan, the assets of the Trust
Fund applicable to such Participants shall be transferred to the other trust fund only if:

          (a) Each Participant would (if either the Plan or the other plan then terminated) receive a
benefit immediately after the merger, consolidation or transfer which is equal to or greater than
the benefit he would have been entitled to receive immediately before the merger, consolidation or
transfer (if the Plan had then terminated);

          (b) Resolutions of the board of directors of the Employer under the Plan, or of any new or
successor employer of the affected Participants, shall authorize such transfer of assets, and, in
the case of the new or successor employer of the affected Participants, its resolutions shall
include an assumption of liabilities with respect to such Participants’ inclusion in the new
employer’s plan; and

          (c) Such other plan and trust are qualified under Sections 401(a) and 501(a) of the Code.

     10.10 Consolidation or Merger with Another Employer.  Notwithstanding any provision of this
Article X to the contrary, upon the consolidation or merger of two or more Employers under the Plan
with each other, the surviving Employer or organization shall automatically succeed to all the
rights and duties under the Plan and Trust of the Employers involved, and their shares of the Trust
Fund shall, subject to the provisions of Section 10.9, be merged and thereafter be allocable to the
surviving Employer or organization for its Participants and their Beneficiaries.

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ARTICLE XI

MISCELLANEOUS PROVISIONS

     11.1 Terms of Employment.  The adoption and maintenance of the provisions of the Plan shall
not be deemed to constitute a contract between any Employer and Employee, or to be a consideration
for, or an inducement or condition of, the employment of any person. Nothing herein contained
shall be deemed to give to any Employee the right to be retained in the employ of an Employer or to
interfere with the right of an Employer to discharge an Employee at any time, nor shall it be
deemed to give to an Employer the right to require any Employee to remain in its employ, nor shall
it interfere with any Employee’s right to terminate his employment at any time.

     11.2 Controlling Law.  Subject to the provisions of ERISA, the Plan shall be construed,
regulated and administered under the laws of the State of Texas.

     11.3 Invalidity of Particular Provisions.  In the event any provision of the Plan shall be
held illegal or invalid for any reason, said illegality or invalidity shall not affect the
remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and
enforced as if said illegal or invalid provisions had never been inserted herein.

     11.4 Non-Alienation of Benefits.  Except as otherwise provided below and with respect to
certain judgments and settlements pursuant to Section 401(a)(13) of the Code, no benefit which
shall be payable out of the Trust Fund to any person (including a Participant or Beneficiary) shall
be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or change, and any attempt to anticipate, alienate, sell, transfer assign, pledge,
encumber or charge the same shall be voided and no such benefit shall in any manner be liable for,
or subject to attachment or legal process for or against such person, and the same shall not be
recognized by the Trustee, except to the extent as may be required by law.

          This provision shall not apply to a “qualified domestic relations order” defined in Code
Section 414(p), and those other domestic relations orders permitted to be so treated by the
Committee under the provisions of the Retirement Equity Act of 1984. The Committee shall establish
a written procedure to determine the qualified status of domestic relations orders and to
administer distributions under such qualified orders. Further, to the extent provided under a
“qualified domestic relations order,” a former spouse of a Participant shall be treated as the
spouse or surviving spouse for all purposes of the Plan. If the Committee receives a qualified
domestic relations order with respect to a Participant, the Committee may authorize the immediate
distribution of the amount assigned to the Participant’s former spouse pursuant to such order, to
the extent vested and permitted by law, from the Participant’s Accounts.

     11.5 Payments in Satisfaction of Claims of Participants.  Any payment or distribution to
any Participant or his legal representative or any Beneficiary in accordance with the provisions of
the Plan shall be in full satisfaction of all claims under the Plan against the Trust Fund, the
Trustee and the Employer. The Trustee may require that any distributee execute and deliver to the
Trustee a receipt and a full and complete release as a condition precedent to any payment or
distribution under the Plan.

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     11.6 Payments Due Minors and Incompetents.  If the Committee determines that any person to
whom a payment is due hereunder is a minor or is incompetent by reason of physical or mental
disability, the Committee shall have the power to cause the payments becoming due such person to be
made to another for the benefit of such minor or incompetent, without the Committee or the Trustee
being responsible to see to the application of such payment. To the extent permitted by ERISA,
payments made pursuant to such power shall operate as a complete discharge of the Committee, the
Trustee and the Employer.

     11.7 Impossibility of Diversion of Trust Fund.  Notwithstanding any provision herein to the
contrary, no part of the corpus or the income of the Trust Fund shall ever be used for or diverted
to purposes other than for the exclusive benefit of the Participants or their Beneficiaries or for
the payment of expenses of the Plan. No part of the Trust Fund shall ever directly or indirectly
revert to any Employer.

     11.8 Litigation Against the Trust.  If any legal action filed against the Trustee, the
board of directors of any Employer, the Committee, or against any member or members of the
Committee or its designees, by or on behalf of any Participant or Beneficiary, has a result adverse
to such Participant or to such Beneficiary, the Trustee shall reimburse itself, the applicable
board(s) of directors, the Committee and any member or members of the Committee or its designees or
the applicable board(s) of directors, all costs and fees expended by it or them by surcharging all
costs and fees against the sums payable under the Plan to such Participant or Beneficiary, but only
to the extent a court of competent jurisdiction specifically authorizes and directs any such
surcharges and only to the extent permitted under Section 401(a)(13) of the Code.

     11.9 Evidence Furnished Conclusive.  The Employer, the Committee and any person involved in
the administration of the Plan or management of the Trust Fund shall be entitled to rely upon any
certification, statement or representation made or evidence furnished by a Participant or
Beneficiary with respect to facts required to be determined under any of the provisions of the
Plan, and shall not be liable on account of the payment of any monies or the doing of any act or
failure to act in reliance thereon. Any such certification, statement, representation or evidence,
upon being duly made or furnished, shall be conclusively binding upon such Participant or
Beneficiary but not upon the Employer or the Committee or any other person involved in the
administration of the Plan or management of the Trust Fund. Nothing herein contained shall be
construed to prevent any of such parties from contesting any such certification, statement,
representation or evidence or to relieve the Participant or Beneficiary from the duty of submitting
satisfactory proof of such fact.

     11.10 Copy Available to Participants.  A copy of the Plan, and of any and all future
amendments thereto, shall be provided to the Committee and shall be available to Participants and,
in the event of the death of a Participant, to his Beneficiary, for inspection at the offices of
the Company during its regular office hours.

     11.11 Unclaimed Benefits.  If at, after or during the time when a benefit hereunder is
payable to any Participant, Beneficiary or other distributee, the Committee, upon request of the
Trustee, or at its own instance, shall mail by registered or certified mail to such Participant,
Beneficiary or other distributee at his last known address a written demand for his then address

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or for satisfactory evidence of his continued life, or both, and if such Participant, Beneficiary
or distributee shall fail to furnish the same to the Committee within a reasonable period of time
not to exceed 2 years from the mailing of such demand, then the Committee may, in its sole
discretion, determine that such Participant, Beneficiary or other distributee has forfeited his
right to such benefit and may declare such benefit, or any unpaid portion thereof, terminated as if
the death of the distributee (with no surviving Beneficiary) had occurred on the date of the last
payment made thereon, or on the date such Participant, Beneficiary or distributee first became
entitled to receive benefit payments, whichever is later; provided, however, that such forfeited
benefit shall be reinstated if a claim for the same is made by the Participant, Beneficiary or
other distributee at any time thereafter. Such reinstatement shall be made out of the Forfeitures
for the Plan Year during which such claim was filed with the Committee (as provided in
Section 4.10); and, if Forfeitures for the Plan Year are insufficient to reinstate such amounts, by
the mandatory contribution by the Employer allocated solely to such reinstatement.

     11.12 Headings for Convenience Only.  The headings and subheadings herein are inserted for
convenience of reference only and are not to be used in construing this instrument or any provision
thereof.

     11.13 Successors and Assigns.  This agreement shall bind and inure to the benefit of the
successors and assigns of the Employers.

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ARTICLE XII

TOP-HEAVY PLAN REQUIREMENTS

     12.1 General Rule.  For any Plan Year for which the Plan is a Top-Heavy Plan, as defined in
Section 12.7, despite any other provisions of the Plan to the contrary, the Plan shall be subject
to the provisions of this Article XII.

     12.2 Vesting Provisions.  Each Participant who has completed an “hour of service” (within
the meaning of Department of Labor Regulation Section 2530.200b-2(a)(1)) after the Plan becomes
top-heavy and while the Plan is top-heavy and who has completed the vesting service specified in
the following table shall be vested in his Account under the Plan at least as rapidly as is
provided in the following schedule; except that the vesting provisions set forth in Section 7.5
shall be used at any time in which it provides for more rapid vesting:

	 	 	 	 	 
	Years of Vesting Service	 	Vested Percent
	Less than 1 year
	 	 	0	%
	1
	 	 	10	%
	2
	 	 	20	%
	3
	 	 	45	%
	4
	 	 	70	%
	5 or more
	 	 	100	%

If an Account becomes vested by reason of the application of the preceding schedule, it may not
thereafter be forfeited by reason of re-employment after retirement pursuant to a suspension of
benefits provision, by reason of withdrawal of any mandatory employee contributions to which
Employer Contributions were keyed, or for any other reason. If the Plan subsequently ceases to be
top-heavy, the preceding schedule shall continue to apply with respect to any Participant who had
at least three years of service (as defined in Treasury Regulation Section 1.411(a)-8T(b)(3)) as of
the close of the last year that the Plan was top-heavy, except that each Participant whose vested
percentage in his Account is determined under such amended schedule and who has completed at least
three years of service with the Employer, may elect, during the election period, to have the vested
percentage in his Account determined without regard to such amendment if his vested percentage
under the Plan as amended is, at any time, less than such percentage determined without regard to
such amendment. For all other Participants, the vested percentage of their Accounts prior to the
date the Plan ceases to be top-heavy shall not be reduced, but future increases in the vested
percentage shall be made only in accordance with the vesting provisions set forth in Section 7.5.

     12.3 Minimum Contribution Percentage.  Each Participant who is (i) a Non-Key Employee, as
defined in Section 12.7, and (ii) employed on the last day of the Plan Year shall be entitled to
have contributions and forfeitures (if applicable) allocated to his Account of not less than 3%
(the “Minimum Contribution Percentage”) of the Participant’s Compensation. This minimum allocation
percentage shall be provided without taking a Non-Key Employee’s Pre-Tax Contributions into
account. Even a Non-Key Employee who has completed less than 1,000

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hours of service shall receive a Minimum Contribution Percentage, provided that such Non-Key
Employee has not terminated Service by the last day of the Plan Year. A Non-Key Employee may not
fail to receive a Minimum Contribution Percentage because of a failure to receive a specified
minimum amount of compensation or a failure to make mandatory employee or elective contributions.
This Minimum Contribution Percentage will be reduced for any Plan Year to the percentage at which
contributions (including Pre-Tax Contributions and Forfeitures if applicable) are made or are
required to be made under the Plan for the Plan Year for the Key Employee for whom such percentage
is the highest for such Plan Year. For this purpose, the percentage with respect to a Key Employee
will be determined by dividing the Contributions (including Pre-Tax Contributions and Forfeitures
if applicable) made for such Key Employee by his total compensation (as defined in
Section 415(c)(3) of the Code) not in excess of the compensation limit under Code Section
401(a)(17), with such amount automatically adjusted in the same manner as the amount set forth in
Section 12.4 below.

          Contributions considered under the first paragraph of this Section 12.3 shall include Employer
Contributions under the Plan and under all other defined contribution plans required to be included
in an Aggregation Group (as defined in Section 12.7), but will not include Employer Contributions
under any plan required to be included in such aggregation group if the plan enables a defined
benefit plan required to be included in such group to meet the requirements of the Code prohibiting
discrimination as to contributions in favor of employees who are officers, shareholders, or the
highly compensated or prescribing the minimum participation standards. If the highest rate
allocated to a Key Employee for a year in which the Plan is top heavy is less than 3%, amounts
contributed as a result of a salary reduction agreement must be included in determining
Contributions made on behalf of Key Employees.

          Employer Matching Contributions shall be taken into account for purposes of satisfying the
Minimum Contribution Percentage of this Section. The preceding sentence shall apply with respect
to matching contributions under the Plan or, if the Plan provides that the Minimum Contribution
Percentage shall be met in another plan, such other plan. Employer Matching Contributions that are
used to satisfy the Minimum Contribution Percentage shall be treated as matching contributions for
purposes of the actual contribution percentage test and other requirements of Section 401(m) of the
Code.

          Contributions considered under this Section 12.3 shall not include any contributions under the
Social Security Act or any other federal or state law.

     12.4 Limitation on Compensation.  The annual compensation of a Participant taken into
account under this Section for purposes of computing benefits under the Plan shall not exceed the
compensation limit in Code Section 401(a)(17), with such amount adjusted automatically for each
Plan Year to the amount prescribed by the Secretary of the Treasury or his delegate pursuant to
Section 401(a)(17)(B) of the Code and regulations for the calendar year in which such Plan Year
commences.

     12.5 Coordination With Other Plans.  In the event that another defined contribution or
defined benefit plan maintained a Considered Company provides contributions or benefits on behalf
of Participants in the Plan, such other plan shall be treated as a part of the Plan pursuant to
principles prescribed by applicable Treasury Regulations or Internal Revenue Service rulings to

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determine whether the Plan satisfies the requirements of Sections 12.2, 12.3 and 12.4 and to avoid
inappropriate omissions or inappropriate duplication. If a Participant is covered both by a
top-heavy defined benefit plan and a top-heavy defined contribution plan, a comparability analysis
(as prescribed by Revenue Ruling 81-202 or any successor ruling) shall be performed in order to
establish that the plans are providing benefits at least equal to the defined benefit minimum.
Such determination shall be made upon the advice of counsel by the Committee which shall, if
necessary, cause benefits or contributions to be made sufficient.

     12.6 Distributions to Certain Key Employees.  Notwithstanding any other provision of the
Plan to the contrary, the entire interest in the Plan of each Participant who is a Key Employee and
a “5% Owner” (as defined in Section 12.7(d)) in the calendar year in which such individual attains
age 701/2 shall be distributed to such Participant not later than April 1 following the calendar year
in which such individual attains 

age 701/2.

     12.7 Determination of Top-Heavy Status.  The Plan shall be a Top-Heavy Plan for any Plan
Year if, as of the Determination Date, the aggregate of the accounts under the Plan (determined as
of the Valuation Date) for Participants (including former Participants) who are Key Employees
exceeds 60% of the aggregate of the accounts of all Participants, excluding former Key Employees,
or if the Plan is required to be in an Aggregation Group, any such Plan Year in which such Group is
a Top-Heavy Group. In determining Top-Heavy status, if an individual has not performed one hour of
service for any Considered Company at any time during the 1-year period ending on the Determination
Date, any accrued benefit for such individual and the aggregate accounts of such individual shall
not be taken into account.

          For purposes of this Section, the capitalized words have the following meanings:

          (a) “Aggregation Group” means the group of plans, if any, that includes both the group of
plans required to be aggregated and the group of plans permitted to be aggregated. The group of
plans required to be aggregated (the “required aggregation group”) includes:

     1. Each plan of a Considered Company in which a Key Employee is a
participant in the Plan Year containing the Determination Date; and

     2. Each other plan, including collectively bargained plans, of a
Considered Company which, during this period, enables a plan in which a Key
Employee is a participant to meet the requirements of Section 401(a)(4) or
410 of the Code.

The group of plans that are permitted to be aggregated (the “permissive aggregation group”)
includes the required aggregation group plus one or more plans of a Considered Company that
is not part of the required aggregation group and that the Considered Company certifies as a
plan within the permissive aggregation group. Such plan or plans may be added to the
permissive aggregation group only if, after the addition, the aggregation group as a whole
continues to satisfy the requirements of Sections 401(a)(4) and 410 of the Code.

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          (b) “Considered Company” means the Company, the Employer or an Affiliate.

          (c) “Determination Date” means the last day of the immediately preceding Plan Year.

          (d) “Key Employee” means any Employee or former Employee (including any deceased Employee)
under the Plan who, at any time during the Plan Year that includes the Determination Date, is or
was one of the following:

     1. An officer of a Considered Company having an annual compensation
greater than $130,000 (as adjusted under Section 416(i)(1) of the Code);

     2. A person who owns (or is considered as owning, within the meaning of
the constructive ownership rules of Section 416(i)(1)(B)(iii) of the Code)
more than 5% of the outstanding stock of a Considered Company or stock
possessing more than 5% of the combined voting power of all stock of the
Considered Company (a “5% Owner”); or

     3. A person who has an annual compensation from the Considered Company
of more than $150,000 and who owns (or is considered as owning within the
meaning of the constructive ownership rules of Section 416(i)(1)(B) of the
Code) more than 1% of the outstanding stock of the Considered Company or
stock possessing more than 1% of the total combined voting power of all
stock of the Considered Company (a “1% Owner”).

For purposes of this subsection (d), (i) whether an individual is an officer shall be
determined by the Considered Company on the basis of all the facts and circumstances, such
as an individual’s authority, duties, and term of office, not on the mere fact that the
individual has the title of an officer, (ii) for any Plan Year, no more than 50 Employees
(or if less, the greater of 3 or 10% of the Employees) shall be treated as officers, (iii) a
Beneficiary of a Key Employee shall be treated as a Key Employee; (iv) in the case of a 5%
or 1% Owner determination, each Considered Company is treated separately in determining
ownership percentages, but all such Considered Companies shall be considered a single
employer in determining the amount of compensation, and (v) compensation means all items
includable as compensation for purpose of applying the limitations on annual additions to a
Participant’s account in a defined contribution plan and the maximum benefit payable under a
defined benefit plan under Section 415(c)(3) of the Code. The determination of who is a Key
Employee shall be made in accordance with Section 416(i)(1) of the Code and the applicable
regulations and other guidance issued thereunder.

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          (e) “Non-Key Employee” means any Employee (and any Beneficiary of an Employee) who is not a
Key Employee. In any case where an individual is a Non-Key Employee with respect to an applicable
plan but was a Key Employee with respect to such plan for any prior Plan Year, any accrued benefit
and any account of such Employee shall be altogether disregarded.

          (f) “Top-Heavy Group” means the Aggregation Group if, as of the applicable Determination Date,
the sum of the present value of the cumulative accrued benefits for Key Employees under all defined
benefit plans included in the Aggregation Group plus the aggregate of the accounts of Key Employees
under all defined contribution plans included in the Aggregation Group exceeds 60% of the sum of
the present value of the cumulative accrued benefits for all employees (excluding former Key
Employees), as provided in paragraph (i) below, under all such defined benefit plans plus the
aggregate accounts for all employees (excluding former Key Employees), as provided in paragraph
(i) below, under all such defined contribution plans. In determining Top-Heavy status, if an
individual has not performed one hour of service for any Considered Company at any time during the
1-year period ending on the Determination Date, any accrued benefit for such individual and the
aggregate accounts of such individual shall not be taken into account. If the Aggregation Group
that is a Top-Heavy Group is a required aggregation group, each plan in the group will be a
Top-Heavy Plan. If the Aggregation Group that is a Top-Heavy Group is a permissive aggregation
group, only those plans that are part of the required aggregation group will be treated as
Top-Heavy Plans. If the Aggregation Group is not a Top-Heavy Group, no plan within such group will
be a Top-Heavy Plan.

          In determining whether the Plan constitutes a Top-Heavy Plan, the Committee (or its
agent) will make the following adjustments:

     (1) When more than one plan is aggregated, the Committee shall
determine separately for each plan as of each plan’s Determination Date the
present value of the accrued benefits (for this purpose using the actuarial
assumptions set forth in the applicable plan) or account balance, including
distributions to Key Employees and all employees. The results shall then be
aggregated by adding the results of each plan as of the Determination Dates
for such plans that fall within the same calendar year. The combined
results shall indicate whether or not the plans so aggregated are Top-Heavy
Plans.

     (2) In determining the present value of the cumulative accrued benefit
(for this purpose using the actuarial assumptions set forth in the
applicable pension plan) or the amount of the account of any employee, such
present value or account balance shall be increased by the amount in dollar
value of the aggregate distributions made with respect to the employee under
the Plan and any plan aggregated with the Plan under Section 416(g)(2) of
the Code during the 1-year period ending on the Determination Date. The
preceding sentence shall also apply to distributions under a terminated plan
which, had it not been terminated, would have been aggregated with the Plan
under Section 416(g)(2)(A)(i)

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of the Code. In the case of a distribution made for a reason other
than severance from employment, death, or disability, this provision shall
be applied by substituting “5-year period” for “1-year period.” The amounts
will include distributions to employees representing the entire amount
credited to their accounts under the applicable plan. The accrued benefits
and accounts of any individual who has not performed services for a
Considered Company during the 1-year period ending on the Determination Date
shall not be taken into account.

     (3) Further, in making such determination, such present value or such
account balance shall include any rollover contribution (or similar
transfer), as follows:

     (i) If the Rollover Contribution (or similar transfer)
is “unrelated” (both initiated by the employee and made to
or from a plan maintained by another employer who is not a
Considered Company), the plan providing the distribution
shall include such distribution in the present value of such
account; the plan accepting the distribution shall not
include such distribution in the present value of such
account unless the plan accepted it before December 31,
1983; and

     (ii) If the Rollover Contribution (or similar transfer)
is “related” (either not initiated by the employee or made
from a plan maintained by another Considered Company), the
plan making the distribution shall not include the
distribution in the present value of such account; and the
plan accepting the distribution shall include such
distribution in the present value of such account.

          (g) “Valuation Date” means for purposes for determining the present value of an accrued
benefit as of the Determination Date, the date determined as of the most recent valuation date
which is within a 12-month period ending on the Determination Date. For the first plan year of a
plan, the accrued benefit for a current employee shall be determined either (i) as if the
individual terminated service as of the Determination Date or (ii) as if the individual terminated
service as of the Valuation Date, but taking into account the estimated accrued benefit as of the
Determination Date. The Valuation Date shall be determined in accordance with the principles set
forth in Q&A. T-25 of Treasury Regulation Section 1.416-1.

Except as otherwise provided in this Section, for purposes of this Article, “Compensation” shall
have the meaning given to it in Section 5.3 of the Plan.

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ARTICLE XIII

TESTING OF CONTRIBUTIONS

     13.1 Definitions.  For purposes of this Article XIII, the following terms, when
capitalized, shall be defined as:

     (a) “Actual Contribution Percentage” or “ACP” shall mean, with respect to a Plan Year,
for a specified group of Employees (either Highly Compensated Employees or Non-Highly
Compensated Employees) the average of the ratios, calculated separately for each Employee,
of:

     (i) The sum of the Aggregate Contributions paid under the Plan on behalf of
each Employee for a Plan Year that are made on account of the Employee’s
Contributions for the Plan Year, which are allocated to the Employee’s Account
during such Plan Year, and are paid to the Trust no later than the end of the next
following Plan Year, over

     (ii) The Employee’s Compensation for such Plan Year.

An Employee’s Actual Contribution Percentage shall be determined after determining his
Excess Deferrals and Excess Contributions, if any. The Actual Contribution Percentage of an
eligible Employee who does not have any Aggregate Contributions for a Plan Year is zero.
The individual ratios and Actual Contribution Percentages shall be calculated to the nearest
1/100 of 1% of an Employee’s Compensation.

     (b) “Actual Deferral Percentage” or “ADP” shall mean, with respect to a Plan Year, for
a specified group of Employees (either Highly Compensated Employees or Non-Highly
Compensated Employees) the average of the ratios, calculated separately for each Employee,
of:

     (i) The amount of Employer Contributions actually paid to the Plan on behalf of
each such Employee for a Plan Year that relate to Compensation that either (1) would
have been received by the Employee in such Plan Year but for the deferral election
or (2) is attributable to services performed by the Employee in the Plan Year and
would have been received by the Employee within 21/2 months after the close of the
Plan Year but for the deferral election and which are allocated to the Employee’s
Account and are paid to the Trust no later than the end of the next following Plan
Year, over

     (ii) The Employee’s Compensation for such Plan Year.

The Actual Deferral Percentage of an eligible Employee who does not have any Employer
Contributions for a Plan Year is zero. The individual ratios and Actual Deferral
Percentages shall be calculated to the nearest 1/100 of 1% of an Employee’s Compensation.

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     (c) “Aggregate Contributions” shall mean, as applicable, any of the following: (i)
After-Tax Contributions; (ii) Employer Matching Contributions; (iii) QNECs and QMACs that
have not been included in the ADP test; (iv) Pre-Tax Contributions that are not needed to
satisfy the ADP test, provided such test is satisfied before and after such Pre-Tax
Contributions have been included in the ACP test for the current Plan Year; and (v) with
respect to Highly Compensated Employees, Excess Contributions that have been recharacterized
as After-Tax Contributions. Aggregate Contributions shall not include (i) Employer Matching
Contributions that are forfeited either to correct Excess Aggregate Contributions or because
the contributions to which they relate are Excess Deferrals, Excess Contributions or Excess
Aggregate Contributions or (ii) Employer Matching Contributions or After-Tax Contributions
made pursuant to Code Section 414(u) by reason of a Participant’s qualified military
service.

     (d) “Compensation” shall mean compensation as defined in Treas. Reg. Section
1.414(s)-1(c) for services rendered to an Employer during the Plan Year.

     (e) “Employee” shall mean each Employee eligible to participate in the Plan in
accordance with Section 3.1 of the Plan, including those eligible Employees who do not elect
to make Pre-Tax and/or After-Tax Contributions, and who is an “eligible employee” as defined
in Treasury Regulation Section 1.401(k)-6.

     (f) “Employer Contributions” shall mean, as applicable, any of the following: (i)
Pre-Tax Contributions, including any Excess Deferrals made by Highly Compensated Employees,
but excluding Catch-Up Contributions and any Pre-Tax Contributions made pursuant to Code
Section 414(u) by reason of a Participant’s qualified military service; and (ii) QNECs and
QMACs that have not been used to satisfy the ACP test for the current Plan Year.

     (g) “Excess Aggregate Contributions” shall mean, with respect to any Plan Year, the
excess of:

     (i) The sum of the Aggregate Contributions actually taken into account in
computing the ACP of Highly Compensated Employees for such Plan Year, minus

     (ii) The maximum amount of Aggregate Contributions permitted by the ACP test
for the Plan Year (determined by hypothetically reducing contributions made on
behalf of Highly Compensated Employees in order of their ACP beginning with the
highest of such percentages).

     (h) “Excess Contributions” shall mean, with respect to any Plan Year, the excess of:

     (i) The sum of the Employer Contributions actually taken into account in
computing the ADP of Highly Compensated Employees for such Plan Year, minus

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     (ii) The maximum amount of such Employer Contributions permitted by the ADP
test for the Plan Year (determined by hypothetically reducing contributions made on
behalf of Highly Compensated Employees in order of their ADP, beginning with the
highest of such percentages).

     (i) “Excess Deferrals” shall have the meaning provided in Section 4.1 of the Plan.

     (j) “Highly Compensated Employee” shall mean any Employee and any employee of an
Affiliate who is a highly compensated employee under Section 414(q) of the Code, including
any Employee and any employee of an Affiliate who:

     (i) was a 5% owner during the current Plan Year or prior Plan Year; or

     (ii) received Compensation during the prior Plan Year (as defined in Section
5.3) in excess of $100,000 or such other dollar amount as may be prescribed by the
Secretary of the Treasury or his delegate, excluding Employees described in Code
Section 414(q)(8).

In determining an Employee’s status as a Highly Compensated Employee within the meaning of
Section 414(q), the entities set forth in Treasury Regulation Section 1.414(q)-1T
Q&A-6(a)(1) through (4) must be taken into account as a single employer. A former Employee
shall be treated as a Highly Compensated Employee if (1) such former Employee was a Highly
Compensated Employee when he separated from Service, or (2) such former Employee was a
Highly Compensated Employee in Service at any time after attaining age 55.

     (k) “Non-Highly Compensated Employee” shall mean an Employee who is not a Highly
Compensated Employee.

     (l) “QNECs” shall have the meaning provided in Section 4.5 of the Plan.

     (m) “QMACs” shall mean qualifying matching contributions, as defined under Treasury
Regulation Section 1.401(k)-6 and 1.401(m)-5, which are Employer Matching Contributions that
are allocated to eligible Participants for a Plan Year in which the Plan failed to satisfy
the ADP test or ACP test and which satisfy the non-forfeitability and distribution
requirements for Pre-Tax Contributions when contributed to the Plan in accordance with
Treasury Regulation Section 1.401(k)-5 and satisfy the requirements of Treasury Regulation
Sections 1.401(k)-2 and 1.401(m)-2. QMACs used in applying the ADP test may not be used in
applying the ACP test.

     13.2 Actual Deferral Percentage Test.  The ADP for the eligible Highly Compensated
Employees for the Plan Year shall not exceed the greater of:

     (a) The ADP for the eligible Non-Highly Compensated Employees times 1.25; or

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     (b) The lesser of (i) the ADP for the eligible Non-Highly Compensated Employees times
2.0, or (ii) the ADP for the eligible Non-Highly Compensated Employees plus 2%.

          The Plan applies the Actual Deferral Percentage test using (i) the “current year testing
method” described in Treasury Regulation Section 1.401(k)-2 for Highly Compensated Employees and
Non-Highly Compensated Employees. The ADP for any Highly Compensated Employee who is eligible to
have Pre-Tax Contributions allocated to his account under two or more plans described in Section
401(k) of the Code that are maintained by an Employer or an Affiliate in addition to the Plan shall
be determined as if the total of all such contributions were made under a single plan. If a Highly
Compensated Employee participates in two or more plans that have different plan years, all Pre-Tax
Contributions made during the Plan Year under all such arrangements shall be aggregated. In the
event the Plan satisfies the requirements of Code Section 401(k), 401(a)(4), or 410(b) only if
aggregated with one or more other plans, or if one or more other plans satisfy the requirements of
such sections of the Code only if aggregated with the Plan, then this Section shall be applied by
determining the ADP of Employees as if all such plans were a single plan. Plans may be aggregated
in order to satisfy Code Section 401(k) only if they have the same plan year and use the same ADP
testing method.

     13.3 QNECs and QMACs.  The Company, in its sole discretion, may elect to make QNECs or
QMACs for any Plan Year in any amount it determines is necessary to satisfy or contribute to
satisfying the Actual Deferral Percentage test or the Actual Contribution Percentage test. QNECs
and QMACs may be used in lieu of, or in conjunction with, the distributions or recharacterizations
described in Section 13.4 or the forfeitures or distributions described in Section 13.6 of the
Plan. QNECs and QMACs shall be allocated in a manner determined by the Company, in accordance with
Treasury Regulation Section 1.401(a)(4)-2, among the Pre-Tax Contribution Accounts of Non-Highly
Compensated Employees who were eligible to make Pre-Tax Contributions during the Plan Year for
which the QNECs are made at any time during the Plan Year or no later than 12 months after the end
of the Plan Year. Any portion of the QNECs or QMACs taken into account for purposes of the Actual
Contribution Percentage test in Section 13.5, may not be taken into account for purposes of the
Actual Deferral Percentage test in Section 13.2. QNECs must satisfy the non-disproportionate
contributions requirements of Treasury Regulation Sections 1.401(k)-2(a)(6)(iv) and
1.401(m)-2(a)(6)(iv).

     13.4 Excess Contributions.  If neither of the tests described in (a) or (b) of Section 13.2
are satisfied, and the Company decides not to make QNECs or QMACs as a corrective measure, then
Excess Contributions, plus any income and minus any loss attributable thereto, of certain Highly
Compensated Employees will be recharacterized or distributed and shall be considered taxable income
to such Highly Compensated Employees. Excess Contributions are allocated to the Highly Compensated
Employees with the largest amount of Pre-Tax Contributions taken into account in calculating the
ADP test for the year in which the excess arose, beginning with the Highly Compensated Employee
with the largest amount of such Pre-Tax Contributions and continuing in descending order until all
of the Excess Contributions have been allocated. To the extent a Highly Compensated Employee has
not reached his Catch-Up Contribution limit under the Plan, Excess Contributions shall be allocated
to such Highly Compensated Employee as Catch-Up Contributions (not to exceed the Catch-Up
Contribution limit) and such contributions

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will not be treated as Excess Contributions. Excess Contributions shall be treated as Annual
Additions under the Plan even if distributed.

          If, in lieu of distribution, the Committee decides, in its discretion, to correct Excess
Contributions through recharacterization of such as After-Tax Contributions, then such amounts
recharacterized as After-Tax Contributions, plus any income and minus any loss, shall be
transferred to the After-Tax Contribution Accounts of those affected Highly Compensated Employees
who have been allocated with Excess Contributions. The amount to be recharacterized will be
further reduced by the amount of any Excess Deferrals which may have previously been distributed to
the Highly Compensated Employee. Recharacterized amounts will remain nonforfeitable. Amounts may
not be recharacterized to the extent that such amount in combination with other After-Tax
Contributions made by certain Highly Compensated Employees would exceed the stated limits provided
in Section 4.4 of the Plan. Recharacterization must occur no later than the date specified by
applicable regulations and guidance issued under Code Sections 401(k) and 401(m), and is deemed to
occur no earlier than the date the last affected Highly Compensated Employee is informed in writing
of the amount recharacterized and the consequences thereof.

          If recharacterization is not possible due to Plan limits or if, in its discretion, the
Committee decides to correct Excess Contributions through distribution, the amount of Excess
Contributions allocated to each Highly Compensated Employee, plus any income and minus any losses
through the last day of the Plan Year to which such Excess Contributions relate, and minus the
amount of any Excess Deferrals previously distributed, will be distributed to the affected Highly
Compensated Employee as soon as administratively feasible but in no event later than 12 months
following the end of such Plan Year during which the Excess Contributions were made.

          The income or loss attributable to a Highly Compensated Employee’s Excess Contributions for
the Plan Year shall be the income or loss attributable to the Highly Compensated Employee’s Pre-Tax
Contributions Account for the Plan Year multiplied by a fraction, the numerator of which is the
Excess Contributions and the denominator of which is the amount of the Highly Compensated
Employee’s Pre-Tax Contributions Account balance as of the beginning of the Plan Year plus the
Employee’s Pre-Tax Contributions to the Account during the Plan Year.

          If distributions or recharacterizations are made under this Section 13.4, the Actual Deferral
Percentage is treated as meeting the nondiscrimination test of Section 401(k)(3) of the Code,
regardless of whether the Actual Deferral Percentage, if recalculated after such distributions or
recharacterizations, would satisfy Section 401(k)(3) of the Code. The above procedures are used
for purposes of distributing Excess Contributions under Section 401(k)(8)(A)(i) of the Code.
Excess Contributions shall be treated as Annual Additions under Section 5.3 of the Plan.

     13.5 Actual Contribution Percentage Test.  The Contribution Percentage for the eligible
Employees for any Plan Year who are Highly Compensated Employees shall not exceed the greater of:

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     The ACP for the eligible Non-Highly Compensated Employees times 1.25;
or

     The lesser of (i) the ACP for the eligible Non-Highly Compensated
Employees times 2.0, or (ii) the ACP for Non-Highly Compensated Employees
plus 2%.

          The Plan applies the Actual Contribution Percentage test using the “current year testing
method” described in Treasury Regulation Section 1.401(m)-2 for Highly Compensated Employees and
Non-Highly Compensated Employees. In computing the Actual Contribution Percentage, the Company may
elect to take into account Pre-Tax Contributions and QNECs and QMACs made under the Plan or any
other plan of the Company to the extent that (i) Pre-Tax Contributions and/or QNECs and QMACs are
not used for purposes of calculating the ADP test, and (ii) Pre-Tax Contributions, including those
treated as Aggregate Contributions for purposes of calculating the Actual Contribution Percentage,
satisfy the requirements of Code Section 401(k)(3). The ACP for any Highly Compensated Employee
who is eligible to have Aggregate Contributions allocated to his account under two or more plans
described in Section 401(a) or 401(k) of the Code that are maintained by an Employer or an
Affiliate in addition to the Plan shall be determined as if the total of all such contributions
were made under a single plan. If a Highly Compensated Employee participates in two or more such
plans or arrangements that have different plan years, all Aggregate Contributions made during the
Plan Year under all such plans and arrangements shall be aggregated.

          For purposes of determining whether the ACP limits of this Section 13.5 are satisfied, all
Aggregate Contributions that are made under two or more plans that are aggregated for purposes of
Code Section 401(a)(4) or 410(b) are to be treated as made under a single plan and if two or more
plans are permissively aggregated for purposes of Code Section 401(m) the aggregated plans must
also satisfy Code Sections 401(a)(4) and 410(b) as though they were a single plan. Plans may be
aggregated in order to satisfy Code Section 401(m) only if they have the same Plan Year and use the
same ACP testing method.

     13.6 Excess Aggregate Contributions.  If neither of the tests described in (a) or (b) of
Section 13.5 are satisfied, and the Company decides not to make QNECs or QMACs as a corrective
measure, Excess Aggregate Contributions, plus any income and minus any loss attributable thereto,
shall be forfeited, or if not forfeitable, shall be distributed no later than 12 months after the
close of a Plan Year to Participants to whose accounts such Excess Aggregate Contributions were
allocated. Excess Aggregate Contributions are allocated to the Highly Compensated Employees with
the largest Aggregate Contributions taken into account in calculating the ACP test for the year in
which the excess arose, beginning with the Highly Compensated Employee with the largest amount of
such Aggregate Contributions and continuing in descending order until all the Excess Aggregate
Contributions have been allocated. Excess Aggregate Contributions shall be treated as Annual
Additions under the Plan even if distributed.

          The income or loss attributable to the Highly Compensated Employee’s Excess Aggregate
Contributions for the Plan Year shall be the income or loss attributable to the Highly Compensated
Employee’s Employer Matching and After-Tax Contribution Accounts for the Plan Year multiplied by a
fraction, the numerator of which is the Excess Aggregate Contribution, and

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the denominator of which is the amount of the Highly Compensated Employee’s Employer Matching
Contribution and After-Tax Contribution Accounts without regard to any income or loss occurring
during such Plan Year.

          Any forfeiture of Excess Aggregate Contributions shall be applied to reduce Employer Matching
Contributions for the Plan Year in which the excess arose. Should the amount of forfeited Excess
Aggregate Contributions exceed the amount of Employer Matching Contributions needed for the Plan
Year, such forfeitures shall be allocated, after all other forfeitures under the Plan, to the
Employer Matching Contribution Accounts of each Non-Highly Compensated Employee who made Pre-Tax
Contributions to the Plan, in the ratio that each such Employee’s Pre-Tax Contributions for the
Plan Year bears to the total Pre-Tax Contributions of all such Employees for such Plan Year.

          If forfeitures or distributions are made under this Section, the Actual Contribution
Percentage test is treated as meeting the nondiscrimination test of Section 401(m)(2) of the Code,
regardless of whether the Actual Contribution Percentage, if recalculated after such forfeitures
and/or distributions, would satisfy Section 401(m)(2) of the Code. Excess Aggregate Contributions
shall be treated as Annual Additions under Section 5.3 of the Plan.

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          IN WITNESS WHEREOF, the Administrative Committee, pursuant to Section 10.4 of the Plan, has
caused these presents to be executed by it duly authorized member in a number of copies, all of
which shall constitute one and the same instrument, which may be sufficiently evidenced by any
executed copy thereof, this 22nd day of May, 2009, but effective as of January 1, 2009.

	 	 	 	 	 
	 	CENTEX CORPORATION

 	 
	 	By:  	/s/ Cyndie Ewert
 	 
	 	Name:  	Cyndie Ewert 	 
	 	Title:  	Vice President, Benefits and 

Employee Services 	 

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CENTEX CORPORATION SAVING FOR RETIREMENT PLAN

(As Amended and Restated Effective January 1, 2009)

 

 

CENTEX CORPORATION SAVING FOR RETIREMENT PLAN

(As Amended and Restated January 1, 2009)

APPENDIX A

Vesting [UPDATE]

          This Appendix A forms part of the Centex Corporation Saving for Retirement Plan, amended and
restated effective January 1, 2009 (the “Plan”). Terms used in this Appendix A shall have the
meanings ascribed to them in the Plan, unless the context clearly indicates otherwise. The
provisions of this Appendix A govern vesting in Employer Matching Contributions under Section
7.5(a)(2) of the Plan, as follows:

     A.1 Section 7.5(a)(2)(ii) and (iii) of the Plan provide that Employer Matching
Contributions shall vest in accordance with the vesting schedule set forth therein to the
extent provided under this Appendix A. The vesting schedule in Section 7.5(a)(2)(ii) and
(iii) shall apply with respect to Employer Matching Contributions allocated to:

	 	(a)	 	Eligible Employees of Commerce Title Company (formerly
Benefit Land Title Company);
	 
	 	(b)	 	Eligible Employees of Westwood Insurance Agency, Inc.;
	 
	 	(c)	 	Effective July 1, 2001, new Eligible Employees of
Centex Title and Ancillary Services, Inc.;
	 
	 	(d)	 	Effective July 1, 2001, new Eligible Employees of
Commerce Land Title, Inc.; and
	 
	 	(e)	 	Effective July 1, 2001, new Eligible Employees of
Metropolitan Title & Guaranty, Inc.

     A.2 Section 7.5(a)(2)(iv) shall also apply to any Employer Matching Contributions made
to Eligible Employees of an Employer that elects that such Employer Matching Contributions
shall be subject to the vesting schedule set forth in Section 7.5(a)(2); provided, however,
that if such Employer has previously made Employer Matching Contributions subject to the
vesting schedule set forth in Section 7.5(a)(2)(iv), then the change in vesting schedule
shall be treated as an amendment to the vesting schedule with respect to Eligible Employees
of such Employer and the provisions of Section 10.4, regarding amendments to a vesting
schedule, shall apply. An Employer’s election pursuant to this Appendix A shall be
effective only with the consent and approval of the Committee.

A-1

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