Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

 

 

Published CUSIP Number: 726504AF0

364-DAY CREDIT AGREEMENT

PLAINS ALL AMERICAN PIPELINE, L.P., as Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent,

DNB NOR BANK ASA and JPMORGAN CHASE BANK NA,

as Co-Syndication Agents,

SUNTRUST BANK and WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Co-Documentation Agents,

and CERTAIN FINANCIAL INSTITUTIONS, as Lenders

$500,000,000 364-Day Revolving Credit Facility

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

DNB NOR MARKETS, INC. and J.P. MORGAN SECURITIES LLC,

as Joint Lead Arrangers and Joint Book Managers

January 3, 2011

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 
	 	 	 	 
	ARTICLE I. — Definitions and References	 	 	1	 
	   Section 1.1.
	 	Defined Terms

	 	 	1	 
	   Section 1.2.
	 	Exhibits and Schedules; Additional Definitions

	 	 	19	 
	   Section 1.3.
	 	Amendment of Defined Instruments

	 	 	19	 
	   Section 1.4.
	 	References and Titles

	 	 	19	 
	   Section 1.5.
	 	Calculations and Determinations

	 	 	19	 
	 	 	 
	 	 	 	 
	ARTICLE II. — The Loans	 	 	20	 
	   Section 2.1.
	 	Commitments to Lend; Notes

	 	 	20	 
	   Section 2.2.
	 	Requests for Loans

	 	 	20	 
	   Section 2.3.
	 	Continuations and Conversions of Existing Loans

	 	 	21	 
	   Section 2.4.
	 	Use of Proceeds

	 	 	23	 
	   Section 2.5.
	 	Interest Rates and Fees

	 	 	23	 
	   Section 2.6.
	 	Optional Prepayments

	 	 	24	 
	   Section 2.7.
	 	Mandatory Prepayments

	 	 	24	 
	   Section 2.8.
	 	Defaulting Lenders

	 	 	24	 
	 	 	 
	 	 	 	 
	ARTICLE III. — Payments to Lenders	 	 	26	 
	   Section 3.1.
	 	General Procedures

	 	 	26	 
	   Section 3.2.
	 	Capital Reimbursement

	 	 	28	 
	   Section 3.3.
	 	Increased Cost of Eurodollar Loans

	 	 	28	 
	   Section 3.4.
	 	Notice; Change of Applicable Lending Office

	 	 	29	 
	   Section 3.5.
	 	Illegality

	 	 	29	 
	   Section 3.6.
	 	Inability to Determine Rates; Market Disruption

	 	 	30	 
	   Section 3.7.
	 	Funding Losses

	 	 	30	 
	   Section 3.8.
	 	Reimbursable Taxes

	 	 	31	 
	   Section 3.9.
	 	Replacement of Lenders

	 	 	32	 
	   Section 3.10.
	 	Currency Conversion and Indemnity

	 	 	33	 
	 	 	 
	 	 	 	 
	ARTICLE IV. — Conditions Precedent to Lending	 	 	33	 
	   Section 4.1.
	 	Documents to be Delivered

	 	 	33	 
	   Section 4.2.
	 	Additional Conditions Precedent

	 	 	35	 
	 	 	 
	 	 	 	 
	ARTICLE V. — Representations and Warranties	 	 	36	 
	   Section 5.1.
	 	No Default

	 	 	36	 
	   Section 5.2.
	 	Organization and Good Standing

	 	 	36	 
	   Section 5.3.
	 	Authorization

	 	 	36	 
	   Section 5.4.
	 	No Conflicts or Consents

	 	 	36	 
	   Section 5.5.
	 	Enforceable Obligations

	 	 	37	 
	   Section 5.6.
	 	Initial Financial Statements

	 	 	37	 
	   Section 5.7.
	 	Other Obligations and Restrictions

	 	 	37	 
	   Section 5.8.
	 	Full Disclosure

	 	 	37	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 
	 	 	 	 
	   Section 5.9.
	 	Litigation

	 	 	37	 
	   Section 5.10.
	 	ERISA Plans and Liabilities

	 	 	38	 
	   Section 5.11.
	 	Compliance with Permits, Consents and Law

	 	 	38	 
	   Section 5.12.
	 	Environmental Laws

	 	 	38	 
	   Section 5.13.
	 	Borrower’s Subsidiaries

	 	 	39	 
	   Section 5.14.
	 	Title to Properties

	 	 	39	 
	   Section 5.15.
	 	Government Regulation

	 	 	39	 
	   Section 5.16.
	 	Insider

	 	 	39	 
	   Section 5.17.
	 	Solvency

	 	 	39	 
	 	 	 
	 	 	 	 
	ARTICLE VI. — Affirmative Covenants	 	 	40	 
	   Section 6.1.
	 	Payment and Performance

	 	 	40	 
	   Section 6.2.
	 	Books, Financial Statements and Reports

	 	 	40	 
	   Section 6.3.
	 	Other Information and Inspections

	 	 	41	 
	   Section 6.4.
	 	Notice of Material Events

	 	 	42	 
	   Section 6.5.
	 	Maintenance of Existence, Qualifications and Assets

	 	 	43	 
	   Section 6.6.
	 	Payment of Taxes, etc.

	 	 	43	 
	   Section 6.7.
	 	Insurance

	 	 	43	 
	   Section 6.8.
	 	Compliance with Agreements and Law

	 	 	43	 
	   Section 6.9.
	 	Guaranties of Subsidiaries

	 	 	44	 
	 	 	 
	 	 	 	 
	ARTICLE VII. — Negative Covenants	 	 	44	 
	   Section 7.1.
	 	Subsidiary Indebtedness

	 	 	44	 
	   Section 7.2.
	 	Limitation on Liens

	 	 	45	 
	   Section 7.3.
	 	Limitation on Mergers

	 	 	47	 
	   Section 7.4.
	 	Limitation on New Businesses

	 	 	47	 
	   Section 7.5.
	 	Transactions with Affiliates

	 	 	48	 
	   Section 7.6.
	 	Limitation on Distributions

	 	 	48	 
	   Section 7.7.
	 	Restricted Contracts

	 	 	48	 
	   Section 7.8.
	 	Debt Coverage Ratio

	 	 	49	 
	   Section 7.9.
	 	Unrestricted Subsidiaries

	 	 	51	 
	   Section 7.10.
	 	No Negative Pledges

	 	 	52	 
	 	 	 
	 	 	 	 
	ARTICLE VIII. — Events of Default and Remedies	 	 	52	 
	   Section 8.1.
	 	Events of Default

	 	 	52	 
	   Section 8.2.
	 	Remedies

	 	 	54	 
	 	 	 
	 	 	 	 
	ARTICLE IX. — Administrative Agent	 	 	54	 
	   Section 9.1.
	 	Appointment and Authority

	 	 	54	 
	   Section 9.2.
	 	Rights as a Lender

	 	 	55	 
	   Section 9.3.
	 	Exculpatory Provisions

	 	 	55	 
	   Section 9.4.
	 	Reliance by Administrative Agent

	 	 	56	 
	   Section 9.5.
	 	Delegation of Duties

	 	 	56	 
	   Section 9.6.
	 	Resignation of Administrative Agent

	 	 	56	 
	   Section 9.7.
	 	Non-Reliance on Administrative Agent and Other Lenders

	 	 	57	 
	   Section 9.8.
	 	No Other Duties, Etc.

	 	 	57	 
	   Section 9.9.
	 	Guaranty Matters

	 	 	57	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 
	 	 	 	 
	   Section 9.10.
	 	Indemnification

	 	 	57	 
	   Section 9.11.
	 	Sharing of Set-Offs and Other Payments

	 	 	58	 
	   Section 9.12.
	 	Investments

	 	 	59	 
	 	 	 
	 	 	 	 
	ARTICLE X. — Miscellaneous	 	 	59	 
	   Section 10.1.
	 	Waivers and Amendments; Acknowledgments

	 	 	59	 
	   Section 10.2.
	 	Survival of Representations, Warranties and Agreements;
Cumulative Nature

	 	 	61	 
	   Section 10.3.
	 	Notices; Effectiveness; Electronic Communication

	 	 	62	 
	   Section 10.4.
	 	Expenses; Indemnity; Damage Waiver

	 	 	63	 
	   Section 10.5.
	 	Successors and Assigns

	 	 	65	 
	   Section 10.6.
	 	Treatment of Certain Information; Confidentiality

	 	 	68	 
	   Section 10.7.
	 	Governing Law; Submission to Process

	 	 	69	 
	   Section 10.8.
	 	Limitation on Interest

	 	 	70	 
	   Section 10.9.
	 	Right of Offset

	 	 	71	 
	   Section 10.10.
	 	Termination; Limited Survival; Payments Set Aside

	 	 	71	 
	   Section 10.11.
	 	Severability

	 	 	72	 
	   Section 10.12.
	 	Counterparts

	 	 	72	 
	   Section 10.13.
	 	Waiver of Jury Trial

	 	 	72	 
	   Section 10.14.
	 	No Advisory or Fiduciary Responsibility

	 	 	72	 
	   Section 10.15.
	 	Electronic Execution of Assignments and Certain Other Documents

	 	 	73	 
	   Section 10.16.
	 	USA PATRIOT Act Notice

	 	 	73	 

Schedules and Exhibits:

Schedule I — Commitment Fees and Applicable Margin

Schedule II — Commitments and Percentage Shares

Schedule III — Disclosure Schedule

Schedule 10.3 — Addresses for Notices

Exhibit A — Note

Exhibit B — Borrowing Notice

Exhibit C — Continuation/Conversion Notice

Exhibit D —  Certificate Accompanying Financial Statements

Exhibit E-1 — Opinion of In-House Counsel for Restricted Persons

Exhibit E-2 — Opinion of Fulbright & Jaworski L.L.P., Counsel for Restricted Persons

Exhibit E-3 — Opinion of Bennett Jones, Canadian Counsel for Restricted Persons

Exhibit F — Assignment and Assumption Agreement

iii

 

364-DAY CREDIT AGREEMENT

     THIS 364-DAY CREDIT AGREEMENT is made as of January 3, 2011, by and among PLAINS ALL AMERICAN
PIPELINE, L.P., a Delaware limited partnership (“Borrower”), BANK OF AMERICA, N.A., as
administrative agent (in such capacity, “Administrative Agent”), DNB NOR BANK ASA and
JPMORGAN CHASE BANK NA, as co-syndication agents (in such capacity, “Co-Syndication
Agents”), SUNTRUST BANK and WELLS FARGO BANK, NATIONAL ASSOCIATION, as co-documentation agents
(in such capacity, “Co-Documentation Agents”), MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED, DNB NOR MARKETS, INC. and J.P. MORGAN SECURITIES LLC as joint lead arrangers and
joint book managers, and the Lenders referred to below. In consideration of the mutual covenants
and agreements contained herein the parties hereto agree as follows:

WITNESSETH

     In consideration of the mutual covenants and agreements contained herein and in consideration
of the loans which may hereafter be made by Lenders and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I. — Definitions and References

     Section 1.1. Defined Terms. As used in this Agreement, each of the following terms has the meaning given to such term in
this Section 1.1 or in the sections and subsections referred to below:

     “Acquisition Period” means the period beginning, at the election of Borrower, with the
funding date of the purchase price for a Specified Acquisition and ending on the earliest of (a)
the third following Fiscal Quarter end, (b) Borrower’s receipt of proceeds of a Specified Equity
Offering; and (c) Borrower’s election in writing to terminate such Acquisition Period
(provided, at the time of such election, the Debt Coverage Ratio shall not, on a pro forma
basis, exceed 4.75 to 1.00); provided, however, if the Debt Coverage Ratio exceeds
4.75 to 1.00 at the end of the Fiscal Quarter ending next following such funding date, then the
Acquisition Period shall be deemed to have commenced as of such funding date; provided,
further, during any Acquisition Period, no additional Acquisition Period shall commence,
nor shall such Acquisition Period be extended, by any subsequent Specified Acquisition until the
current Acquisition Period shall have expired and Borrower shall be in compliance with Section
7.8(ii).

     “Administrative Agent” means Bank of America, N.A., as Administrative Agent hereunder,
and its successors in such capacity.

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

     “Affiliate” means, as to any Person, each other Person that directly or indirectly
(through one or more intermediaries or otherwise) controls, is controlled by, or is under common
control

1

 

with, such Person. A Person shall be deemed to be “controlled by” any other Person if such
other Person possesses, directly or indirectly, power to direct or cause the direction of the
management and policies of such Person whether by contract or otherwise.

     “Agreement” means this Credit Agreement.

     “Applicable Lending Office” means, for each Lender and for each Type of Loan, the
“Lending Office” of such Lender (or of an Affiliate of such Lender) designated for such Type of
Loan on such Lender’s Administrative Questionnaire or such other office of such Lender (or an
Affiliate of such Lender) as such Lender may from time to time specify to Administrative Agent and
Borrower by written notice in accordance with the terms hereof as the office by which its Loans of
such Type are to be made and maintained.

     “Applicable Margin” means, as to any Type of Loan, the percent per annum set forth on
Schedule I as the “Applicable Margin” for such Type of Loan, based on the Applicable Rating Level
in effect on such date. Changes in the Applicable Margin will occur automatically without prior
notice as changes in the Applicable Rating Level occur. Administrative Agent will give notice
promptly to Borrower and Lenders of changes in the Applicable Margin.

     “Applicable Rating Level” means for any day, the level set forth below that
corresponds to the PAA Debt Rating by the Ratings Agencies applicable on such day;
provided, in the event the PAA Debt Rating by the Ratings Agencies differs by one level,
the higher PAA Debt Rating shall apply; provided further, in the event the PAA Debt
Rating by the Ratings Agencies differs by more than one level, the PAA Debt Rating one level above
the lower PAA Debt Rating shall apply. As used in this definition,
“≥” means a rating equal to or
more favorable than and “<” means a rating less favorable than.

	 	 	 	 	 	 	 	 	 
	Rating Level	 	S&P	 	Moody’s
	 
	Level I
	 	 	≥ A-	 	 	 	≥ A3	 
	Level II
	 	BBB+	 	Baa1
	Level III
	 	BBB	 	Baa2
	Level IV
	 	BBB-	 	Baa3
	Level V
	 	≤ BB+	 	≤ Ba1

If either of the Rating Agencies shall not have in effect a PAA Debt Rating or if the rating system
of either of the Rating Agencies shall change, or if either of the Rating Agencies shall cease to
be in the business of rating corporate debt obligations, Borrower and Majority 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, but until such an agreement shall be reached,
the Applicable Rating Level shall be based only upon the PAA Debt Rating by the remaining Rating
Agency.

2

 

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

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee, and accepted by Administrative Agent, in substantially the form of
Exhibit F.

     “Bankruptcy and Insolvency Act (Canada)” means the Bankruptcy and Insolvency Act, S.C.
1992, c. 27, including the regulations made and, from time to time, in force under that Act.

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

     “Base Rate Loan” means a Loan which does not bear interest at a rate based upon the
Eurodollar Rate.

     “Board” shall have the meaning given that term in clause (i) of the definition of the
term “Change of Control.”

     “Borrower” means Plains All American Pipeline, L.P., a Delaware limited partnership,
and its successors and assigns.

     “Borrowing” means (i) a borrowing of new Loans of a single Type pursuant to Section
2.2 or (ii) a Continuation or Conversion of existing Loans into a single Type (and, in the case of
Eurodollar Loans, with the same Interest Period) pursuant to Section 2.3.

     “Borrowing Notice” means a written or telephonic request, or a written confirmation,
made by Borrower which meets the requirements of Section 2.2.

     “Business Day” means any day, other than a Saturday, Sunday or day which shall be in
New York, New York a legal holiday or day on which banking institutions are required or authorized
to close. Any Business Day in any way relating to Eurodollar Loans (such as the day on which an
Interest Period begins or ends) must also be a day on which commercial banks settle payments in
London.

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

3

 

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

     “Cash and Carry Purchases” means purchases of Petroleum Products for physical storage
or in storage or in transit in pipelines which has been hedged by either a NYMEX contract, an OTC
contract, an Intercontinental Exchange contract, or a contract for physical delivery.

     “Cash Equivalents” means Investments in:

     (a) marketable obligations, maturing within 12 months after acquisition thereof, issued or
unconditionally guaranteed by the United States of America or the federal government of Canada or
an instrumentality or agency thereof and entitled to the full faith and credit of the United States
of America or the federal government of Canada, as the case may be;

     (b) demand deposits and time deposits (including certificates of deposit) maturing within 12
months from the date of deposit thereof, (i) with any office of any Lender or (ii) with a domestic
office of any national, state or provincial bank or trust company which is organized under the Laws
of the United States of America or any state therein, or the federal government of Canada or any
province therein, which has capital, surplus and undivided profits of at least $500,000,000, and
whose long term certificates of deposit are rated at least Aa3 by Moody’s or AA- by S&P;

     (c) repurchase obligations with a term of not more than seven days for underlying securities
of the types described in subsection (a) above entered into with (i) any Lender or (ii) any other
commercial bank meeting the specifications of subsection (b) above;

     (d) open market commercial paper, maturing within 270 days after acquisition thereof, which
are rated at least P-1 by Moody’s or A-1 by S&P; and

     (e) money market or other mutual funds substantially all of whose assets comprise securities
of the types described in subsections (a) through (d) above.

     “Change of Control” means the occurrence of any of the following events:

     (i) the acquisition of more than 50% of the Equity Interest in the general partner of Plains
AAP by a Person that is not a Current Owner if (x) the Equity Interest held by such Person gives
such Person the right to elect more than half of the members of the Board, (y) such Person
exercises its right to elect more than half of the members of the Board and (z) giving effect to
such election, more than half of the members of the Board are not Continuing Directors;

     (ii) the general partner of Plains AAP shall cease to be, directly or indirectly, the
beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as
amended) of a majority of the general partner interests of Plains AAP;

     (iii) Plains AAP shall cease to be, directly or indirectly, the beneficial owner of a majority
of the limited liability company interests of General Partner; or

4

 

     (iv) General Partner shall cease to be, directly or indirectly, the beneficial owner of a
majority of the general partner interest of the Borrower.

As used herein, “Board” means the board of directors or equivalent body of the general
partner of Plains AAP; “Continuing Directors” means the members of the Board elected,
appointed or otherwise designated by a Current Owner or by the Current Owners; “Current
Owner” means an (i) owner, as of the effective date of this Agreement, of an Equity Interest in
the general partner of Plains AAP and (ii) any Affiliate of such owner; and “Equity
Interest” means shares of the capital stock, partnership interests, membership interests in a
limited liability company, beneficial interests in a trust or other equity interests in any Person,
or any warrants, options or other rights to acquire such interests.

     “Closing Date” means the first date all the conditions precedent in Section 4.1 are
satisfied or waived in accordance with Section 10.1.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, together
with all rules and regulations promulgated with respect thereto.

     “Commitment” means, as to each Lender, its obligations to make Loans to Borrower
pursuant to Section 2.1, in an aggregate principal amount at any one time outstanding not to exceed
the amount set forth opposite such Lender’s name on Schedule II, or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable. The Commitments
may be reduced from time to time pursuant to Section 2.5(b).

     “Commitment Fee Rate” means the percent per annum set forth on the Pricing Grid as the
“Commitment Fee”, based on the Applicable Rating Level in effect on such date. Changes in the
Commitment Fee Rate will occur automatically without prior notice as changes in the Applicable
Rating Level occur. Administrative Agent will give notice promptly to Borrower and Lenders of
changes in the Commitment Fee Rate.

     “Commitment Period” means the period from and including the Closing Date through and
until the Maturity Date (or, if earlier, the day on which the obligation of Lenders to make Loans
to Borrower hereunder pursuant to Section 2.1 has been terminated or the day on which any of the
Notes first becomes due and payable in full).

     “Companies’ Creditors Arrangement Act (Canada)” means the Companies’ Creditors
Arrangement Act, R.S.C. 1985, c. C-36, including the regulations made and from time to time in
force under that Act.

     “Consolidated” refers to the consolidation of any Person, in accordance with GAAP,
with its properly consolidated subsidiaries. References herein to a Person’s Consolidated
financial statements, financial position, financial condition, liabilities, etc. refer to the
consolidated financial statements, financial position, financial condition, liabilities, etc. of
such Person and its properly consolidated subsidiaries.

5

 

     “Consolidated EBITDA” means, for any period, the sum of (1) the Consolidated Net
Income during such period, plus (2) all interest expense that was deducted in determining
such Consolidated Net Income for such period, plus (3) all income taxes (including any
franchise taxes to the extent based upon net income) that were deducted in determining such
Consolidated Net Income, plus (4) all depreciation, amortization (including amortization of
good will and debt issue costs) and other non-cash charges (including any provision for the
reduction in the carrying value of assets recorded in accordance with GAAP) which were deducted in
determining such Consolidated Net Income, minus (5) all non-cash items of income which were
included in determining such Consolidated Net Income.

     “Consolidated Funded Indebtedness” means as of any date, the sum of the following
(without duplication): (i) the outstanding principal amount of all Indebtedness which is
classified as “long-term indebtedness” on a consolidated balance sheet of Borrower and its
Consolidated Subsidiaries (excluding Unrestricted Subsidiaries) prepared as of such date in
accordance with GAAP (subject to year-end audit adjustments with respect to non-year end periods)
and any current maturities and other principal amount in respect of such Indebtedness due within
one year but which was classified as “long-term indebtedness” at the creation thereof; (ii) the
outstanding principal amount of Indebtedness for borrowed money of Borrower and its Consolidated
Subsidiaries (excluding Unrestricted Subsidiaries) outstanding under a revolving credit, term or
similar agreement (and renewals and extensions thereof); and (iii) the outstanding principal amount
of Indebtedness in respect of Capital Leases of Borrower and its Consolidated Subsidiaries
(excluding Unrestricted Subsidiaries); provided, however, Consolidated Funded
Indebtedness shall not, if otherwise applicable, include (x) Indebtedness in respect of letters of
credit, (y) Indebtedness incurred to finance Cash and Carry Purchases or (z) margin deposits.

     “Consolidated Net Income” means, for any period, Borrower’s and its Subsidiaries’
(excluding Unrestricted Subsidiaries) gross revenues for such period, including any cash dividends
or distributions actually received from any other Person during such period, minus Borrower’s and
its Subsidiaries’ (excluding Unrestricted Subsidiaries) expenses and other proper charges against
income (including taxes on income, to the extent imposed), determined on a Consolidated basis after
eliminating earnings or losses attributable to outstanding minority interests and excluding the net
earnings of any Person other than a Subsidiary in which Borrower or any of its Subsidiaries
(excluding Unrestricted Subsidiaries) has an ownership interest. Consolidated Net Income shall not
include (i) any gain or loss from the sale of assets, (ii) any extraordinary gains or losses, or
(iii) any non-cash gains or losses resulting from mark to market activity as a result of the
implementation of SFAS 133 or EITF 98-10. In addition, Consolidated Net Income shall not include
the cost or proceeds of purchasing or selling options which are used to hedge future activity,
until the period in which such hedged future activity occurs.

     “Consolidated Tangible Net Worth” means the remainder of (i) all Consolidated assets,
as determined in accordance with GAAP, of Borrower and its Subsidiaries (excluding Unrestricted
Subsidiaries) minus (ii) the sum of (a) Borrower’s Consolidated liabilities (excluding (1)
liabilities of Unrestricted Subsidiaries, to the extent included therein, and (2) Hybrid Securities
up to an aggregate amount of 15% of Consolidated Total Capitalization) as determined in accordance
with GAAP, (b) the book value of any equity interests in any of Borrower’s Subsidiaries (excluding
Unrestricted Subsidiaries) which equity interests are owned

6

 

by a Person other than Borrower or a Wholly Owned Subsidiary of Borrower; and (c) the net book
value of all assets that would be treated as intangible under GAAP, including goodwill, trademarks,
trade names and service marks, excluding fifty percent (50%) of goodwill attributed to the PPX
Acquisition. The effect of any increase or decrease of net worth in any period as a result of
items of income or loss not reflected in the determination of net income but reflected in the
determination of comprehensive income (to the extent provided under GAAP as in effect on the date
hereof) shall be excluded in determining Consolidated Tangible Net Worth.

     “Consolidated Net Worth” means, at any date of determination, the sum of (i) preferred
stock (if any), (ii) par value of common stock, (iii) capital in excess of par value of common
stock, (iv) partners’ capital or equity, and (v) retained earnings, less treasury stock (if any),
of such Person, all as determined on a consolidated basis.

     “Consolidated Total Capitalization” means the sum of (i) Consolidated Funded
Indebtedness and (ii) Borrower’s Consolidated Net Worth.

     “Continue”, “Continuation” and “Continued” shall refer to the
continuation pursuant to Section 2.3 of a Eurodollar Loan as a Eurodollar Loan from one Interest
Period to the next Interest Period.

     “Continuation/Conversion Notice” means a written or telephonic request, or a written
confirmation, made by Borrower which meets the requirements of Section 2.3.

     “Convert”, “Conversion” and “Convert” refers to a conversion pursuant
to Section 2.3 of one Type of Loan into another Type of Loan.

     “Debt Coverage Ratio” shall have the meaning given that term in Section 7.8.

     “Default” means any Event of Default and any default, event or condition which would,
with the giving of any requisite notices and the passage of any requisite periods of time,
constitute an Event of Default.

     “Defaulting Lender” means, subject to Section 2.8(b), any Lender that, as determined
by the Administrative Agent, (a) has failed to perform any of its funding obligations hereunder in
respect of its Loans, within three Business Days of the date required to be funded by it hereunder,
(b) has notified the Borrower or the Administrative Agent that it does not intend to comply with
its funding obligations or has made a public statement to that effect with respect to its funding
obligations hereunder or under other agreements in which it commits to extend credit, (c) has
failed, within three Business Days after request by the Administrative Agent, to confirm in a
manner satisfactory to the Administrative Agent that it will comply with its funding obligations,
or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a
proceeding under any bankruptcy, insolvency or other similar Law of any jurisdiction now or
hereafter in effect, including the federal Bankruptcy Code, (ii) had a receiver, conservator,
trustee, administrator, assignee for the benefit of creditors or similar Person charged with
reorganization or liquidation of its business or a custodian appointed for it, or (iii) taken any
action in furtherance of, or indicated its consent to, approval of or acquiescence in any such

7

 

proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue
of the ownership or acquisition of any equity interest in that Lender or any direct or indirect
parent company thereof by a Governmental Authority; provided, further, that such ownership interest
does not result in or provide such Person with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of attachment on its assets or permit
such Person (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any
contracts or agreements made by such Person.

     “Default Rate” means, at the time in question, two percent (2%) per annum plus:

     (a) the Eurodollar Rate plus the Applicable Margin then in effect for each Eurodollar
Loan (up to the end of the applicable Interest Period), or

     (b) the Base Rate plus the Applicable Margin then in effect for each Base Rate Loan;

provided, however, the Default Rate shall never exceed the Highest Lawful Rate.

     “Default Rate Period” means (i) any period during which an Event of Default, other
than pursuant to Section 8.1(a) or (b), is continuing, provided that such period shall not begin
until notice of the commencement of the Default Rate has been given to Borrower by Administrative
Agent upon the instruction by Majority Lenders and (ii) any period during which any Event of
Default pursuant to Section 8.1(a) or (b) is continuing unless Borrower has been notified otherwise
by Administrative Agent upon the instruction by Majority Lenders.

     “Disclosure Schedule” means Schedule III hereto.

     “Distribution” means (a) any dividend or other distribution (whether in cash or other
property, but excluding dividends or other distributions payable in equity interests in Borrower)
with respect to any equity interest of Borrower, (b) any payment (whether in cash or other
property, but excluding dividends or other distributions payable in equity interests in Borrower),
including any sinking fund or similar deposit, on account of the retirement, redemption, purchase,
cancellation, termination or other acquisition for value of any equity interest of Borrower or (c)
any other payment by Borrower to any holder of equity interests of Borrower with respect to such
equity interests held thereby other than payments made with equity interests in Borrower.

     “Dollar Equivalent” of any amount of any currency at any date means (i) if such
currency is Dollars, the amount of such currency, or (ii) if such currency is Canadian Dollars, the
equivalent in Dollars of such amount of such currency based upon the rate of exchange for such
conversion as quoted by the Bank of Canada at approximately 12:00 noon, Toronto time (or, if not so
quoted, the spot rate of exchange quoted for wholesale transactions made by Administrative Agent)
on the date on or as of which such amount is to be determined.

     “Dollars” and “$” means the lawful currency of the United States of America,
except where otherwise specified.

8

 

     “Eligible Assignee” means (a) a Lender, and (b) any other Person (other than a natural
person), including Affiliates of Lenders and Approved Funds, approved by (i) Administrative Agent,
and (ii) unless an Event of Default is continuing, Borrower (each such approval not to be
unreasonably withheld or delayed); provided, that notwithstanding the foregoing, “Eligible
Assignee” shall not include Borrower or any of Borrower’s Affiliates or Subsidiaries or, unless an
Event of Default is continuing, any Person who, at the relevant time of determination, is a
Defaulting Lender or an Affiliate of a Defaulting Lender; provided further, an
Eligible Assignee of any Lender shall include only those Persons which, through their respective
Lending Offices, are capable of lending Dollars to Borrower without the imposition of any
withholding taxes on interest or principal owed to such Persons, and Loans by such Eligible
Assignee shall be made through such Lending Office.

     “Environmental Laws” means any and all Laws relating to the environment or to
emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, or
industrial, toxic or hazardous substances or wastes into the environment including ambient air,
surface water, ground water, or land, 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, together with all rules and regulations promulgated with respect thereto.

     “ERISA Affiliate” means each Restricted Person and all members of a controlled group
of corporations and all trades or businesses (whether or not incorporated) under common control
that, together with such Restricted Person, are treated as a single employer under Section 414 of
the Code.

     “ERISA Plan” means any employee pension benefit plan subject to Title IV of ERISA
maintained by any ERISA Affiliate with respect to which any Restricted Person has a fixed or
contingent liability.

     “Eurodollar Loan” means a Loan that bears interest at a rate based upon the Eurodollar
Rate.

     “Eurodollar Market Index Rate” means, for any day, the rate per annum equal to the BBA
LIBOR, as published by Reuters (or other commercially available source providing quotations of BBA
LIBOR as designated by Administrative Agent from time to time) at approximately 11:00 a.m., London
time, for such day for Dollar deposits with a term equivalent to seven days. If such rate is not
available at such time for any reason, then the “Eurodollar Market Index Rate” shall be the rate
per annum determined by the Administrative Agent to be the rate at which deposits in Dollars in
same day funds in the approximate amount of the Base Rate Loan being made by the Reference Bank and
with a term of one month would be offered by the Reference Bank’s London Branch to major banks in
the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time)
on such day.

9

 

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

     “Event of Default” has the meaning given to such term in Section 8.1.

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

     “Fee Letter” means the letter agreement of even date herewith between Borrower and
Administrative Agent.

     “Fiscal Quarter” means a three-month period ending on March 31, June 30, September 30
or December 31 of any year.

     “Fiscal Year” means a twelve-month period ending on December 31 of any year.

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

     “GAAP” means those generally accepted accounting principles and practices which are
recognized as such by the Financial Accounting Standards Board (or any generally recognized
successor) and which, in the case of Borrower and its Consolidated Subsidiaries, are applied for
all periods after the date hereof in a manner consistent with the manner in which such principles
and practices were applied to the Initial Financial Statements. If any change in any accounting
principle or practice is required by the Financial Accounting Standards Board (or any such

10

 

successor) in order for such principle or practice to continue as a generally accepted accounting
principle or practice, all reports and financial statements required hereunder with respect to
Borrower or with respect to Borrower and its Consolidated Subsidiaries may be prepared in
accordance with such change, but all calculations and determinations to be made hereunder may be
made in accordance with such change only after notice of such change is given to each Lender and
Majority Lenders agree to such change insofar as it affects the accounting of Borrower or of
Borrower and its Consolidated Subsidiaries.

     “General Partner” means PAA GP LLC, a Delaware limited liability company, in its
capacity as the sole general partner of Borrower.

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

     “GP LLC” means Plains All American GP LLC, a Delaware limited liability company.

     “Guarantors” means, as of the date hereof, any of Borrower’s Subsidiaries that now or
hereafter executes and delivers a guaranty of the Obligations to Administrative Agent pursuant to
Section 6.9.

     “Hazardous Materials” means any substances regulated under any Environmental Law,
whether as pollutants, contaminants, or chemicals, or as industrial, toxic or hazardous substances
or wastes, or otherwise.

     “Hedged Inventory Credit Agreement” means that certain Second Restated Credit
Agreement dated November 6, 2008, as amended by First Amendment to Second Restated Credit Agreement
dated October 27, 2009 and Second Amendment to Second Restated Credit Agreement dated October 25,
2010, and as further amended from time to time, among Plains Marketing, Bank of America, N.A., as
administrative agent, and the lenders named therein.

     “Highest Lawful Rate” means, with respect to each Lender Party to whom Obligations are
owed, the maximum nonusurious rate of interest that such Lender Party is permitted under applicable
Law to contract for, take, charge, or receive with respect to such Obligations. All determinations
herein of the Highest Lawful Rate, or of any interest rate determined by reference to the Highest
Lawful Rate, shall be made separately for each Lender Party as appropriate to assure that the Loan
Documents are not construed to obligate any Person to pay interest to any Lender Party at a rate in
excess of the Highest Lawful Rate applicable to such Lender Party.

     “Hybrid Securities” means any trust preferred securities, or deferrable interest
subordinated debt with a maturity of at least 20 years, which provides for the optional or
mandatory deferral of interest or distributions, issued by Borrower, or any business trusts,
limited liability companies, limited partnerships or similar entities (i) substantially all of the
common

11

 

equity, general partner or similar interests of which are owned (either directly or indirectly
through one or more wholly owned Restricted Subsidiaries) at all times by Borrower or any of its
Restricted Subsidiaries, (ii) that have been formed for the purpose of issuing trust preferred
securities or deferrable interest subordinated debt, and (iii) substantially all the assets of
which consist of (A) subordinated debt of Borrower or a Restricted Subsidiary of Borrower, and (B)
payments made from time to time on the subordinated debt.

     “Indebtedness” of any Person means each of the following:

     (a) its obligations for the repayment of borrowed money,

     (b) its obligations to pay the deferred purchase price of property or services (excluding
trade account payables arising in the ordinary course of business), other than contingent purchase
price or similar obligations incurred in connection with an acquisition and not yet earned or
determinable,

     (c) its obligations evidenced by a bond, debenture, note or similar instrument,

     (d) its obligations, as lessee, constituting principal under Capital Leases,

     (e) its direct or contingent reimbursement obligations with respect to the face amount of
letters of credit pursuant to the applications or reimbursement agreements therefor,

     (f) its obligations for the repayment of outstanding banker’s acceptances, whether matured or
unmatured,

     (g) its obligations under any synthetic lease, tax retention operating lease, off-balance
sheet loan or similar off-balance sheet financing if the obligation under such synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance sheet financing is
considered indebtedness for borrowed money for tax purposes but is classified as an operating lease
in accordance with GAAP (excluding, to the extent included herein, operating leases entered into in
the ordinary course of business), or

     (h) its obligations under guaranties of any obligations of any other Person described in the
foregoing clauses (a) through (g).

     “Initial Financial Statements” means (i) the audited Consolidated financial statements
of Borrower as of December 31, 2009, and (ii) the unaudited consolidated balance sheet and income
statement of Borrower as of September 30, 2010.

     “Interest Expense” means, with respect to any period, the sum (without duplication) of
the following (in each case, eliminating all offsetting debits and credits between Borrower and its
Subsidiaries (excluding Unrestricted Subsidiaries) and all other items required to be eliminated in
the course of the preparation of Consolidated financial statements of Borrower and its Subsidiaries
(excluding Unrestricted Subsidiaries) in accordance with GAAP): (a) all interest and facility or
commitment fees in respect of Indebtedness of Borrower or any of its Subsidiaries (excluding
Unrestricted Subsidiaries) (including imputed interest on Capital Lease Obligations)

12

 

which are accrued during such period and whether expensed in such period or capitalized; plus (b)
all fees in respect of letters of credit issued for the account of Borrower or any of its
Subsidiaries, which are accrued during such period and whether expensed in such period or
capitalized.

     “Interest Payment Date” means (a) with respect to each Base Rate Loan, the last day of
each March, June, September and December beginning March 31, 2011, and (b) with respect to each
Eurodollar Loan, the last day of the Interest Period that is applicable thereto and, if such
Interest Period is six, or twelve months in length, the dates specified by Administrative Agent,
which are approximately three, six, and nine months (as appropriate) after such Interest Period
begins; provided that the last Business Day of each calendar month shall also be an Interest
Payment Date for each such Loan so long as any Event of Default exists under Section 8.1 (a) or
(b).

     “Interest Period” means, with respect to each particular Eurodollar Loan in a
Borrowing, the period specified in the Borrowing Notice or Continuation/Conversion Notice
applicable thereto, beginning on and including the date specified in such Borrowing Notice or
Continuation/Conversion Notice (which must be a Business Day), and ending one, two, three, six or
twelve months (if twelve months is available for each Lender) thereafter (and, as to Loans, ending
on a date less than 30 days thereafter as may be specified by Borrower, if such lesser period is
available for each Lender making such Loans), as Borrower may elect in such notice; provided that:
(a) any Interest Period which would otherwise end on a day which is not a Business Day shall be
extended to the next succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding Business Day; (b) any
Interest Period (other than an Interest Period ending on a date less than 30 days after the
beginning thereof as may be specified by Borrower and otherwise permitted hereunder) which begins
on the last Business Day in a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall end on the last
Business Day in a calendar month; and (c) notwithstanding the foregoing, no Interest Period may be
selected for a Loan to Borrower that would end after the Maturity Date

     “Investment” means any investment made, directly or indirectly in any Person, whether
by acquisition of shares of capital stock, indebtedness or other obligations or securities or by
loan, advance, capital contribution or otherwise, and whether made in cash, by the transfer of
property or by any other means.

     “Law” means any statute, law, regulation, ordinance, rule, treaty, judgment, order,
decree, permit, concession, franchise, license, agreement or other governmental restriction of the
United States or Canada or any state, province, or political subdivision thereof or of any foreign
country or any department, state, province or other political subdivision thereof.

     “Lender Parties” means Administrative Agent and all Lenders.

     “Lenders” means each signatory hereto designated as a Lender, and the successors and
permitted assigns of each such party as holder of a Note.

13

 

     “Liabilities” means, as to any Person, all indebtedness, liabilities and obligations
of such Person, whether matured or unmatured, liquidated or unliquidated, primary or secondary,
direct or indirect, absolute, fixed or contingent, and whether or not required to be considered
pursuant to GAAP.

     “Lien” means, with respect to any property or assets, any right or interest therein of
a creditor to secure Liabilities owed to it or any other arrangement with such creditor which
provides for the payment of such Liabilities out of such property or assets or which allows such
creditor to have such Liabilities satisfied out of such property or assets prior to the general
creditors of any owner thereof, including any lien, mortgage, security interest, pledge, deposit,
production payment, rights of a vendor under any title retention or conditional sale agreement or
lease substantially equivalent thereto, tax lien, mechanic’s or materialman’s lien, or any other
charge or encumbrance for security purposes, whether arising by Law or agreement or otherwise, but
excluding any right of offset which arises without agreement in the ordinary course of business.
“Lien” also means any filed financing statement, any registration of a pledge (such as with an
issuer of uncertificated securities), or any other arrangement or action which would serve to
perfect a Lien described in the preceding sentence, regardless of whether such financing statement
is filed, such registration is made, or such arrangement or action is undertaken before or after
such Lien exists.

     “Loan Documents” means this Agreement, the Notes, the written Borrowing Notices and
all other agreements, certificates, documents, instruments and writings at any time delivered in
connection herewith or therewith (exclusive of term sheets and commitment letters).

     “Loans” means loans by Lenders to Borrower pursuant to Section 2.1.

     “Majority Lenders” means Lenders who have in the aggregate more than fifty percent
(50%) of the Total Committed Amount; provided that the Commitment of, and the portion of
the Total Committed Amount held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Majority Lenders.

     “Material Adverse Change” means (a) a material and adverse change in (i) Borrower’s
Consolidated financial condition, (ii) Borrower’s Consolidated operations, properties or prospects,
considered as a whole, or (iii) Borrower’s ability to timely pay its Obligations, or (b) a material
adverse effect on the enforceability of the material terms of any Loan Document.

     “Maturity Date” means the earlier of (i) the closing date of any extension,
restatement, refinancing or replacement of the US/Canada Credit Agreement, and (ii) the date 364
days after the Closing Date, unless terminated earlier in accordance with Section 8.1 or Section
10.1

     “Moody’s” means Moody’s Investor Service, Inc., or its successor.

     “Notes” has the meaning given such term in Section 2.1 hereof.

     “Obligations” means all Liabilities from time to time owing by any Restricted Person
to any Lender Party under or pursuant to any of the Loan Documents. “Obligation” means any
part of the Obligations.

14

 

     “Outstanding Amount” means on any date the aggregate outstanding principal amount of
Loans after giving effect to any borrowings and prepayments or repayments of such Loans occurring
on such date.

     “PAA Debt Rating” means the rating then in effect by a Rating Agency with respect to
the long term senior unsecured non-credit enhanced debt of Borrower.

     “Participant” has the meaning specified in Section 10.5(d).

     “Percentage Share” means:

     (a) at any time the Commitments remain outstanding, a fraction (expressed as a
percentage, carried out to the sixth decimal place), the numerator of which is the
amount of the Commitment of such Lender at such time and the denominator of which is
the amount of the Total Committed Amount at such time; and

     (b) upon the termination of the Commitments pursuant to Section 8.1, a fraction
(expressed as a percentage, carried out to the sixth decimal place), the numerator
of which is the Outstanding Amount of Loans of such Lender and the denominator of
which is the Total Outstanding Amount.

The initial Percentage Share of each Lender is set forth opposite the name of such Lender on
Schedule II or in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable.

     “Permitted Lien” has the meaning given to such term in Section 7.2.

     “Person” means an individual, corporation, partnership, limited liability company,
association, joint stock company, trust or trustee thereof, estate or executor thereof,
unincorporated organization or joint venture, Governmental Authority, or any other legally
recognizable entity.

     “Petroleum Products” means crude oil, condensate, natural gas, natural gas liquids
(NGL’s), liquefied petroleum gases (LPG’s), refined petroleum products or any blend thereof.

     “Plains AAP” means Plains AAP, L.P., a Delaware limited partnership, and its
successors and assigns.

     “Plains Marketing” means Plains Marketing, L.P., a Texas limited partnership.

     “Plains Midstream Canada” means Plains Midstream Canada ULC, an Alberta unlimited
liability company.

     “Plains Pipeline” means Plains Pipeline, L.P., a Texas limited partnership.

     “PNGS” means PAA Natural Gas Storage, L.P., a Delaware limited partnership.

15

 

     “Principal Property” means, whether owned or leased on the date hereof or hereafter
acquired:

     (a) any pipeline assets of any Restricted Person, including any related facilities employed in
the transportation, distribution, terminalling, gathering, treating, processing, marketing or
storage of crude oil or refined petroleum products, natural gas, natural gas liquids, fuel
additives or petrochemicals; and

     (b) any processing or manufacturing plant or terminal owned or leased by any Restricted
Person;

except, in the case of either clause (a) or (b): (i) any such assets consisting of inventories,
furniture, office fixtures and equipment, including data processing equipment, vehicles and
equipment used on, or useful with, vehicles, and (ii) any such asset, plant or terminal which, in
the good faith opinion of the Board, is not material in relation to the activities of Borrower and
its Subsidiaries, taken as a whole.

     “Rating Agency” means either S&P or Moody’s.

     “Reference Bank” means, at any time, the financial institution serving as
Administrative Agent.

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve
System as from time to time in effect.

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

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of Borrower, General Partner or GP LLC, as the case may
be. Any document delivered hereunder that is signed by a Responsible Officer of Borrower shall be
conclusively presumed to have been authorized by all necessary partnership and/or other action on
the part of Borrower, and such Responsible Officer shall be conclusively presumed to have acted on
behalf of Borrower.

     “Restricted Person” means any of Borrower and each Subsidiary of Borrower, including
but not limited to Plains Marketing, Plains Pipeline and Plains Midstream Canada, and each
Subsidiary of Plains Marketing, Plains Pipeline and Plains Midstream Canada, but excluding, for the
avoidance of doubt, Unrestricted Subsidiaries.

     “Restriction Exception” means (i) any applicable Law or any instrument governing
Indebtedness or equity interests, or any applicable Law or any other agreement relating to any
property, assets or operations of a Person whose capital stock or other equity interests are
acquired, in whole or part, by a Restricted Person pursuant to an acquisition (whether by merger,
consolidation, amalgamation or otherwise), as such instrument or agreement is in effect at the time
of such acquisition (except with respect to Indebtedness incurred in connection with, or in

16

 

contemplation of, such acquisition), or such applicable Law is then or thereafter in effect (as
applicable), which is not applicable to the acquiring Restricted Person, or the property, assets or
operations of the acquiring Restricted Person, other than the acquired Person, or the property,
assets or operations of such acquired Person or such acquired Person’s Subsidiaries;
provided that in the case of Indebtedness, the incurrence of such Indebtedness is not
prohibited hereunder, (ii) provisions with respect to the disposition or distribution of assets in
joint venture agreements or other similar agreements entered into in the ordinary course of
business, (iii) (a) a lease, license or similar contract, which restricts in a customary manner the
subletting, assignment, encumbrance or transfer of any property or asset that is subject thereto or
the assignment, encumbrance or transfer of any such lease, license or other contract, (b)
mortgages, deeds of trust, pledges or other security instruments, the entry into which does not
result in a Default, securing indebtedness of a Restricted Person, which restricts the transfer of
the property subject to such mortgages, deeds of trust, pledges or other security instruments, or
(c) customary provisions restricting disposition of, or encumbrances on, real property interests
set forth in any reciprocal easements of any Restricted Person, (iv) restrictions imposed pursuant
to this Agreement and the other Loan Documents, (v) restrictions on the transfer or encumbrance of
property or assets which are imposed by the holder of Liens on property or assets of a Restricted
Person, provided that neither the incurrence of such Lien nor any related Indebtedness
results in a Default, (vi) any agreement to, directly or indirectly, sell or otherwise dispose of
assets or equity interests to any Person pending the closing of such sale, provided that
such sale is consummated in compliance with any applicable provisions of this Agreement, (vii) net
worth provisions in leases and other agreements entered into by any Restricted Person in the
ordinary course of business, (viii) an agreement governing Indebtedness incurred to refinance the
Indebtedness issued, assumed or incurred pursuant to an agreement referred to in clauses (iv) and
(v) above, and (ix) Hybrid Securities or an indenture, document, agreement or security entered into
or issued in connection with a Hybrid Security or otherwise constituting a restriction or condition
on the payment of dividends or distributions by an issuer of a Hybrid Security; provided,
however, that the provisions relating to such encumbrance or restriction contained in any
such Indebtedness are no less favorable to the such Restricted Person in any material respect as
determined by the Board in its reasonable and good faith judgment than the provisions relating to
such encumbrance or restriction contained in agreements referred to in such clauses (iv) and (v).

     “S&P” means Standard & Poor’s Ratings Group (a division of McGraw Hill, Inc.) or its
successor.

     “Significant Restricted Persons” means Borrower, Plains Marketing, Plains Pipeline,
Plains Midstream Canada and Subsidiaries of Borrower that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Exchange
Act of 1934 and the Securities Act of 1933, each as amended.

     “Specified Acquisition” means one or more acquisitions of assets or entities or
operating lines or divisions in any rolling 12-month period for an aggregate purchase price of not
less than $50,000,000.

17

 

     “Specified Equity Offering” means one or more issuances of equity by Borrower
for aggregate net cash proceeds of not less than fifty percent (50%) of the aggregate purchase
price of the Specified Acquisition.

     “Subsidiary” means, with respect to any Person, any corporation, association,
partnership, limited liability company, joint venture, or other business or corporate entity,
enterprise or organization which is directly or indirectly (through one or more intermediaries)
controlled or owned more than fifty percent by such Person (other than Settoon Towing, LLC, a
Delaware limited liability company, and its subsidiaries); provided, however, that
no Unrestricted Subsidiary shall be deemed a “Subsidiary” of any Restricted Person for purposes of
any Loan Document except as provided in Section 7.9.

     “Termination Event” means (a) the occurrence with respect to any ERISA Plan of (i) a
reportable event described in Sections 4043(c)(5) or (6) of ERISA or (ii) any other reportable
event described in Section 4043(c) of ERISA other than a reportable event not subject to the
provision for 30-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by
such corporation under Section 4043(a) of ERISA, or (b) the withdrawal of any ERISA Affiliate from
an ERISA Plan during a plan year in which it was a “substantial employer” as defined in Section
4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate any ERISA Plan or the
treatment of any ERISA Plan amendment as a termination under Section 4041 of ERISA, or (d) the
institution of proceedings to terminate any ERISA Plan by the Pension Benefit Guaranty Corporation
under Section 4042 of ERISA, or (e) any other event or condition which might constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer,
any ERISA Plan.

     “Total Committed Amount” means, at any time, the sum of the aggregate amount of the
Commitments at such time.

     “Total Outstanding Amount” means, at any time, the Outstanding Amount of all Loans at
such time.

     “Type” means, with respect to any Loans, the characterization of such Loans as Base
Rate Loans or Eurodollar Loans.

     “Unrestricted Subsidiary” means (i) PNGS and Subsidiaries of PNGS and (ii) one or more
Subsidiaries that are not Guarantors which, so long as no Default or Event of Default has occurred
and is continuing, and after giving effect to such designation, no Default or Event of Default
would result therefrom, are designated as unrestricted Subsidiaries by Borrower or any Wholly Owned
Subsidiary of Borrower, and each Subsidiary of such designated unrestricted Subsidiaries.

     “US/Canada Credit Agreement” means that certain Second Amended and Restated Credit
Agreement [US/Canada Facilities] dated July 31, 2006, as amended by First Amendment to Second
Amended and Restated Credit Agreement [US/Canada Facilities] dated July 31, 2007, and as further
amended from time to time, among Borrower, PMC (Nova Scotia) Company, Plains Midstream Canada ULC
(successor-by-amalgamation to Plains Marketing Canada, L.P.),

18

 

Bank of America, N.A., as administrative agent, Bank of America, N.A., acting through its
Canada Branch, as Canadian administrative agent, and the lenders named therein, as from time to
time amended.

     “Wholly Owned Subsidiary” means any Subsidiary of a Person, all of the issued and
outstanding stock, limited liability company membership interests, or partnership interests of
which (including all rights or options to acquire such stock or interests) are directly or
indirectly (through one or more Subsidiaries) owned by such Person.

     Section 1.2. Exhibits and Schedules; Additional Definitions.
All Exhibits and Schedules attached to this Agreement are a part hereof for all purposes.

     Section 1.3. Amendment of Defined Instruments. Unless the context otherwise requires or unless otherwise provided herein the terms defined in
this Agreement which refer to a particular agreement, instrument or document also refer to and
include all renewals, extensions, modifications, amendments and restatements of such agreement,
instrument or document, provided that nothing contained in this section shall be construed to
authorize any such renewal, extension, modification, amendment or restatement.

     Section 1.4. References and Titles. All references in this Agreement to Exhibits, Schedules, articles, sections, subsections and
other subdivisions refer to the Exhibits, Schedules, articles, sections, subsections and other
subdivisions of this Agreement unless expressly provided otherwise. Titles appearing at the
beginning of any subdivisions are for convenience only and do not constitute any part of such
subdivisions and shall be disregarded in construing the language contained in such subdivisions.
The words “this Agreement,” “this instrument,” “herein,” “hereof,” “hereby,” “hereunder” and words
of similar import refer to this Agreement as a whole and not to any particular subdivision unless
expressly so limited. The phrases “this section” and “this subsection” and similar phrases refer
only to the sections or subsections hereof in which such phrases occur. The word “or” is not
exclusive, and the word “including” (in its various forms) means “including without limitation.”
Pronouns in masculine, feminine and neuter genders shall be construed to include any other gender,
and words in the singular form shall be construed to include the plural and vice versa, unless the
context otherwise requires. References to an “officer” or “officers” of the General Partner or any
Restricted Person shall mean and include officers of such Person or the controlling management
entity of such Person as provided in such Person’s organizational documents, as applicable.

     Section 1.5. Calculations and Determinations. All calculations under the Loan Documents of interest chargeable with respect to Eurodollar
Loans and of fees shall be made on the basis of actual days elapsed (including the first day but
excluding the last) and a year of 360 days. All other calculations of interest made under the Loan
Documents shall be made on the basis of actual days elapsed (including the first day but excluding
the last) and a year of 365 or 366 days, as appropriate. Each determination by a
Lender Party of amounts to be paid under Article III or any other matters which are to be
determined hereunder by a Lender Party (such as any Eurodollar Rate, Business Day or Interest
Period) shall, in the absence of manifest error, be conclusive and binding. Unless otherwise
expressly provided herein or unless Majority Lenders otherwise consent all financial statements and
reports furnished to any Lender Party hereunder

19

 

shall be prepared and all financial computations
and determinations pursuant hereto shall be made in accordance with GAAP.

ARTICLE II. — The Loans

     Section 2.1. Commitments to Lend; Notes. Subject to the terms and conditions hereof, each Lender agrees to make Loans to Borrower upon
Borrower’s request from time to time during the Commitment Period, provided that (a) subject to
Sections 3.3, 3.4, 3.5 and 3.6, all Lenders are requested to make Loans of the same Type in
accordance with their respective Percentage Shares and as part of the same Borrowing, (b) after
giving effect to such Loans, the Total Outstanding Amount does not exceed the Total Committed
Amount determined as of the date on which the requested Loans are to be made, and (c) after giving
effect to such Loans, the Outstanding Amount of Loans by each Lender does not exceed such Lender’s
Commitment. The aggregate amount of all Loans in any Borrowing must be equal to $1,000,000 or any
higher integral multiple of $1,000,000. The obligation of Borrower to repay to each Lender the
aggregate amount of all Loans made by such Lender to Borrower, together with interest accruing in
connection therewith, shall be evidenced by a single promissory note (herein called such Lender’s
“Note”) made by Borrower payable to the order of such Lender in the form of Exhibit A with
appropriate insertions. The amount of principal owing on any Lender’s Note at any given time shall
be the aggregate amount of all Loans theretofore made by such Lender to Borrower minus all payments
of principal theretofore received by such Lender on such Note. Interest on each Note shall accrue
and be due and payable as provided herein and therein. Each Note shall be due and payable as
provided herein and therein, and shall be due and payable in full on the Maturity Date. Subject to
the terms and conditions of this Agreement, Borrower may borrow, repay, and reborrow under this
Section 2.1. Borrower may have no more than seven Borrowings of Eurodollar Loans outstanding at
any time. All payments of principal and interest on the Loans made pursuant to this Section 2.1
shall be made in Dollars.

     Section 2.2. Requests for Loans.

     (a) Borrower must give to Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of any requested Borrowing. Each such notice constitutes a “Borrowing
Notice” hereunder and must:

     (i) specify (A) the aggregate amount of such Borrowing and the date on which Base Rate
Loans are to be advanced, or (B) the aggregate amount of any such Borrowing of new
Eurodollar Loans, the date on which such Eurodollar Loans are to be
advanced (which shall be the first day of the Interest Period which is to apply
thereto), and the length of the applicable Interest Period; and

     (ii) be received by Administrative Agent not later than 11:00 a.m., New York, New York
time, on (A) the day on which any such Base Rate Loans, are to be made, or (B) the third
Business Day preceding the day on which any such Eurodollar Loans are to be made.

20

 

Each such written request or confirmation must be made in the form and substance of the “Borrowing
Notice” attached hereto as Exhibit B, duly completed. Each such telephonic request shall be deemed
a representation, warranty, acknowledgment and agreement by Borrower as to the matters which are
required to be set out in such written confirmation. Upon receipt of any such Borrowing Notice,
Administrative Agent shall give each Lender prompt notice of the terms thereof. If all conditions
precedent to such new Loans have been met, each Lender will on the date requested promptly remit to
Administrative Agent at its office in New York, New York, the amount of such Lender’s new Loan in
immediately available funds, and upon receipt of such funds, unless to its actual knowledge any
conditions precedent to such Loans have been neither met nor waived as provided herein,
Administrative Agent shall promptly make such Loans available to Borrower. All Borrowings of Loans
shall be advanced in Dollars.

     (b) Funding by Lenders; Presumption by Administrative Agent. Unless Administrative
Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of
Eurodollar Loans (or, in the case of any Borrowing of Base Rate Loans, prior to 12:00 noon, New
York, New York time, on the date of such Borrowing) that such Lender will not make available to
Administrative Agent such Lender’s Percentage Share of such Borrowing, Administrative Agent may
assume that such Lender has made such share available on such date in accordance with this Section
2.2 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share
available in accordance with and at the time required by this Section 2.2) and may, in reliance
upon such assumption, make available to Borrower a corresponding amount of such Borrowing. In such
event, if a Lender has not in fact made its Percentage Share of the applicable Borrowing available
to Administrative Agent, then such Lender and Borrower severally agree to pay to Administrative
Agent within three days after demand such corresponding amount in immediately available funds with
interest thereon, for each day from and including the date such amount is made available to
Borrower to but excluding the date of payment to Administrative Agent, at (A) in the case of a
payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by
Administrative Agent in accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by Administrative Agent in
connection with the foregoing, and (B) in the case of a payment to be made by Borrower, the
interest rate applicable at the time to the other new Loans made on such date. If Borrower and
such Lender shall pay such interest to Administrative Agent for the same or an overlapping period,
Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by
Borrower for such period. If such Lender pays its Percentage Share of the applicable Borrowing to
Administrative Agent and Administrative Agent makes such amount available to Borrower, then the
amount so paid shall constitute such Lender’s Loan included in such Borrowing. Any payment by
Borrower shall be without prejudice to any claim Borrower may have against a Lender that shall have
failed to
make or timely make such payment to Administrative Agent. A notice of Administrative Agent to
any Lender or Borrower with respect to any amount owing under this subsection (b) shall be
conclusive, absent manifest error.

     Section 2.3. Continuations and Conversions of Existing Loans. Borrower may make the following elections with respect to Loans already outstanding: (i) to
Convert, in whole or in part, Base Rate Loans to Eurodollar Loans, (ii) to Convert, in whole or in
part, Eurodollar Loans to Base Rate Loans on the last day of the Interest Period applicable
thereto, and (iii) to Continue,

21

 

in whole or in part, Eurodollar Loans beyond the expiration of such
Interest Period by designating a new Interest Period to take effect at the time of such expiration.
In making such elections, Borrower may combine existing Loans to Borrower made pursuant to
separate Borrowings into one new Borrowing or divide existing Loans to Borrower made pursuant to
one Borrowing into separate new Borrowings, provided that Borrower may have no more than seven
Borrowings of Eurodollar Loans outstanding at any time. To make any such election, Borrower must
give to Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of
any such Conversion or Continuation of existing Loans, with a separate notice given for each new
Borrowing. Each such notice constitutes a “Continuation/Conversion Notice” hereunder and must:

     (i) specify the existing Loans which are to be Continued or Converted;

     (ii) specify (A) the aggregate amount of any Borrowing of Base Rate Loans into which
such existing Loans are to be Continued or Converted and the date on which such Continuation
or Conversion is to occur, or (B) the aggregate amount of any Borrowing of Eurodollar Loans
into which such existing Loans are to be Continued or Converted, the date on which such
Continuation or Conversion is to occur (which shall be the first day of the Interest Period
which is to apply to such Eurodollar Loans), and the length of the applicable Interest
Period; and

     (iii) be received by Administrative Agent not later than 11:00 a.m. New York, New York
time on (i) the day on which any such Continuation or Conversion to Base Rate Loans is to
occur, or (ii) the third Business Day preceding the day on which any such Continuation or
Conversion to Eurodollar Loans is to occur.

Each such written request or confirmation must be made in the form and substance of the
“Continuation/Conversion Notice” attached hereto as Exhibit C, duly completed. Each such
telephonic request shall be deemed a representation, warranty, acknowledgment and agreement by
Borrower as to the matters which are required to be set out in such written confirmation. Upon
receipt of any such Continuation/Conversion Notice, Administrative Agent shall give each Lender
prompt notice of the terms thereof. Each Continuation/Conversion Notice shall be irrevocable and
binding on Borrower. During the continuance of any Default, Borrower may not make any election to
Convert existing Loans into Eurodollar Loans or Continue existing Loans as Eurodollar Loans beyond
the expiration of their respective and corresponding Interest Period then in effect. If (due to
the existence of a Default or for any other reason) Borrower fails to timely and properly give any
Continuation/Conversion Notice with respect to a Borrowing of
existing Eurodollar Loans at least three days prior to the end of the Interest Period applicable to
such Eurodollar Loans, any such Eurodollar Loans, to the extent not prepaid at the end of such
Interest Period, shall automatically be Converted into Base Rate Loans at the end of such Interest
Period. No new funds shall be repaid by Borrower or advanced by any Lender in connection with any
Continuation or Conversion of existing Loans pursuant to this section, and no such Continuation or
Conversion shall be deemed to be a new advance of funds for any purpose; such Continuations and
Conversions merely constitute a change in the interest rate applicable to such already outstanding
Loans.

22

 

     Section 2.4. Use of Proceeds. Borrower shall use all Loans for fees and expenses related to this Agreement and the
transactions contemplated hereby, capital expenditures of any Restricted Person, working capital
for operations and other general business purposes, including acquisitions. In no event shall the
funds from any Loans be used directly or indirectly by any Person for personal, family, household
or agricultural purposes or for the purpose, whether immediate, incidental or ultimate, of
purchasing, acquiring or carrying any “margin stock” (as such term is defined in Regulation U
promulgated by the Board of Governors of the Federal Reserve System) or to extend credit to others
directly or indirectly for the purpose of purchasing or carrying any such margin stock. Borrower
represents and warrants that it is not engaged principally, or as one of its important activities,
in the business of extending credit to others for the purpose of purchasing or carrying such margin
stock.

     Section 2.5. Interest Rates and Fees.

     (a) Interest Rates.

          (i) Each Loan shall bear interest as follows: (A) unless the Default Rate shall apply, each
Base Rate Loan shall bear interest on each day outstanding at the Base Rate plus the Applicable
Margin in effect on such day, and each Eurodollar Loan shall bear interest on each day during the
related Interest Period at the related Eurodollar Rate plus the Applicable Margin in effect on such
day, and (B) during a Default Rate Period, all Loans shall bear interest on each day outstanding at
the applicable Default Rate.

          (ii) Accrued and unpaid interest on each Loan shall be due and payable on each Interest
Payment Date; provided, during a Default Rate Period, accrued and unpaid interest on all
Loans shall be due and payable within three Business Days following demand therefor by
Administrative Agent to Borrower. If an Event of Default based upon Section 8.1(a), Section 8.1(b)
or, with respect to Borrower, based upon Section 8.1(h)(i), (h)(ii) or (h)(iii) exists and the
Loans are not bearing interest at the Default Rate, the past due principal and past due interest
shall bear interest on each day outstanding at the applicable Default Rate.

          (iii) The interest rate shall change whenever the applicable Base Rate, Eurodollar Rate or
Applicable Margin changes. In no event shall the interest rate on any Loan exceed the Highest
Lawful Rate.

     (b) Commitment Fee; Reduction of Commitments. The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Percentage Share, a
commitment fee equal to the Commitment Fee Rate per annum times the actual daily amount by
which the Total Committed Amount exceeds the Total Outstanding Amount. The commitment fee shall
accrue at all times during the Commitment Period, including at any time during which one or more of
the conditions in Article IV is not met, and shall be due and payable quarterly in arrears
on the last day of each March, June, September and December, commencing with the first such date to
occur after the Closing Date, and on the last day of the Commitment Period. The commitment fee
shall be calculated quarterly in arrears, and if there is any change in the Commitment Fee Rate
during any quarter, the actual daily amount shall be computed and multiplied by the applicable
Commitment Fee Rate separately for each period during such

23

 

quarter that such applicable Commitment
Fee Rate was in effect. Borrower shall have the right from time to time to permanently reduce the
Total Committed Amount, provided that (A) notice of such reduction is given not less than two
Business Days prior to such reduction, (B) the resulting Total Committed Amount is not less than
the Total Outstanding Amount, and (C) each partial reduction shall be in an amount at least equal
to $1,000,000 and in multiples of $1,000,000 in excess thereof.

     (c) Administrative Agent’s Fees. In addition to all other amounts due to
Administrative Agent under the Loan Documents, Borrower will pay to Administrative Agent agent fees
pursuant to the Fee Letter.

     Section 2.6. Optional Prepayments. Borrower may, upon three Business Days’ notice, as to Eurodollar Loans, or same Business
Day’s notice, as to Base Rate Loans, to Administrative Agent (and Administrative Agent will
promptly give notice to the other Lenders) from time to time and without premium or penalty (other
than any amounts due under Section 3.7 hereof with respect to prepayments of any Eurodollar Loans)
prepay the Loans, in whole or in part, so long as the aggregate amounts of all partial prepayments
of principal on (i) Eurodollar Loans equals $2,500,000 or any higher integral multiple of $500,000,
and (ii) Base Rate Loans equals $500,000 or any higher integral multiple of $500,000. Upon receipt
of any such notice, Administrative Agent shall give each Lender prompt notice of the terms
thereof. Each prepayment of principal of a Loan under this section shall be accompanied by all
interest then accrued and unpaid on the principal so prepaid. Any principal or interest prepaid
pursuant to this section shall be in addition to, and not in lieu of, all payments otherwise
required to be paid under the Loan Documents at the time of such prepayment. Following notice by
Borrower pursuant to the foregoing, Borrower shall make such prepayment, and the prepayment amount
specified in such notice shall be due and payable, on the date specified in such notice.

     Section 2.7. Mandatory Prepayments. If at any time the Total Outstanding Amount exceeds the Total Committed Amount (whether due
to a reduction in the Total Committed Amount in accordance with this Agreement, or otherwise),
Borrower shall immediately upon demand prepay the principal of the Loans made to Borrower in an
amount at least equal to such excess. Each prepayment of principal under this
section shall be accompanied by all interest then accrued and unpaid on the principal so
prepaid. Any principal or interest prepaid pursuant to this section shall be in addition to, and
not in lieu of, all payments otherwise required to be paid under the Loan Documents at the time of
such prepayment.

     Section 2.8. Defaulting Lenders.

     (a) Adjustments. Notwithstanding anything to the contrary contained in this Agreement
or any other Loan Document, if any Lender becomes a Defaulting Lender, then, until such time as
that Lender is no longer a Defaulting Lender, to the extent not prohibited by applicable Law:

     (i) Waivers and Amendments. That Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall be
restricted as set forth in Section 10.1.

24

 

     (ii) Reallocation of Payments. Any payment of principal, interest, fees or
other amounts received by Administrative Agent for the account of that Defaulting Lender
(whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise, and
including any amounts made available to the Administrative Agent by that Defaulting Lender
pursuant to Section 10.9), shall, following application by Administrative Agent of any such
payment by or on behalf of Borrower or any Guarantor to the account of such Defaulting
Lender with respect to such Obligation paid (and in lieu of being distributed to such
Defaulting Lender pursuant to Section 3.1 or such other provision of this Agreement
applicable with respect to the distribution thereof), be applied at such time or times as
may be determined by the Administrative Agent as follows: first, to the payment of any
amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second, as
the Borrower may request (so long as no Default or Event of Default exists), to the funding
of any Loan in respect of which that Defaulting Lender has failed to fund its portion
thereof as required by this Agreement, as determined by the Administrative Agent; third, if
so determined by the Administrative Agent and the Borrower, to be held in an interest
bearing deposit account and released in order to satisfy obligations of that Defaulting
Lender to fund Loans under this Agreement; fourth, to the payment of any amounts owing to
the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any
Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its
obligations under this Agreement; fifth, to the payment of any amounts owing to the Borrower
as a result of any judgment of a court of competent jurisdiction obtained by the Borrower
against that Defaulting Lender as a result of that Defaulting Lender’s breach of its
obligations under this Agreement; and sixth, to that Defaulting Lender or as otherwise
directed by a court of competent jurisdiction; provided that, with respect to the
preceding clause sixth, if (x) such payment is a payment of the principal amount of any
Loans in respect of which that Defaulting Lender has not fully funded its appropriate share
and (y) such Loans were made at a time when the conditions set forth in Section 4.2 were
satisfied or waived, such payment shall be applied solely to pay the Loans of all
non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any
Loans of that Defaulting Lender.
Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that
are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section
2.8(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender, and each Lender
irrevocably consents hereto.

     (iii) Certain Fees. That Defaulting Lender shall not be entitled to receive
any commitment fee pursuant to Section 2.5(b) for any period during which that Lender is a
Defaulting Lender and the Borrower shall not be required to pay to the Administrative Agent
for the account of the Defaulting Lender or the Defaulting Lender any such fee, and no such
fees shall accrue for the account of the Defaulting Lender, that otherwise would have been
required to have been paid to that Defaulting Lender.

     (iv) Replacement of Defaulting Lender. The Borrower may replace any Defaulting
Lender in accordance with Section 3.9.

25

 

     (v) Rights Cumulative. The rights and remedies against, and with respect to, a
Defaulting Lender under this Section 2.8 are in addition to, and cumulative and not in
limitation of, all other rights and remedies that the Administrative Agent, any Lender or
Borrower may at any time have against, or with respect to, such Defaulting Lender.

     (b) Defaulting Lender Cure. If the Borrower and the Administrative Agent agree in
writing in their respective sole discretion that a Defaulting Lender should no longer be deemed to
be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of
the effective date specified in such notice and subject to any conditions set forth therein, that
Lender will, to the extent applicable, purchase, at par, that portion of outstanding Loans of the
other Lenders or take such other actions as the Administrative Agent may determine to be necessary
to cause the Loans to be held on a pro rata basis by the Lenders in accordance with their
Percentage Shares, whereupon that Lender will cease to be a Defaulting Lender; provided that no
adjustments will be made retroactively with respect to fees accrued or payments made by or on
behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that
except to the extent otherwise expressly agreed by the affected parties, no change hereunder from
Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder
arising from that Lender’s having been a Defaulting Lender.

ARTICLE III. — Payments to Lenders

     Section 3.1. General Procedures.

     (a) Each Restricted Person shall pay all amounts owing by such Restricted Person with respect
to any Obligations (whether for principal, interest, fees, or otherwise) to Administrative Agent
for the account of the Lender Party to whom such payment is owed in Dollars, without condition or
deduction for any counterclaim, defense, recoupment or setoff, and in immediately available funds.
If any payment is received on account of any Obligation in any currency other than Dollars (whether
voluntarily or pursuant to any order or judgment or the enforcement thereof or the realization of
any security or the liquidation of any Person or otherwise howsoever), such payment shall
constitute a discharge of the liability of a Restricted
Person hereunder and under the other Loan Documents in respect of such Obligation only to the
extent of the amount of Dollars which the relevant Lender Parties are able to purchase with the
amount of the other currency received by it on the Business Day next following such receipt by
Administrative Agent in accordance with its normal procedures and after deducting any premium and
costs of exchange. Each payment under the Loan Documents must be received by Administrative Agent
not later than noon, New York, New York time, on the date such payment becomes due and payable,
unless otherwise expressly provided herein. Any payment received by Administrative Agent after
such time will be deemed to have been made on the next following Business Day. Should any such
payment become due and payable on a day other than a Business Day, the maturity of such payment
shall be extended to the next succeeding Business Day, and, in the case of a payment of principal
or past due interest, interest shall accrue and be payable thereon for the period of such extension
as provided in the Loan Document under which such payment is due. Each payment under a Loan
Document to a Lender Party shall be due and payable at the place provided therein and, if no
specific place of payment is provided, shall be due and payable at the place of payment of
Administrative Agent’s Note.

26

 

     (b) When Administrative Agent collects or receives money on account of the Obligations,
Administrative Agent shall distribute all money so collected or received, and each Lender Party
shall apply all such money so distributed, as follows:

          (i) first, for the payment of all Obligations which are then due (and if such money is
insufficient to pay all such Obligations, first to any reimbursements due Administrative Agent
under Section 10.4 and then to the partial payment of all other Obligations then due in proportion
to the amounts thereof, or as Lender Parties shall otherwise agree);

          (ii) then for the prepayment of amounts owing under the Loan Documents (other than principal
on the Notes) if so specified by Borrower;

          (iii) then for the prepayment of principal on the Notes, together with accrued and unpaid
interest on the principal so prepaid; and

          (iv) last, for the payment or prepayment of any other Obligations.

All payments applied to principal or interest on any Note shall be applied first to any interest
then due and payable, then to principal then due and payable, and last to any prepayment of
principal and accrued interest thereon in compliance with Sections 2.8 and 2.9, as applicable. All
distributions of amounts described in any of subsections (ii), (iii), or (iv) above shall be made
by Administrative Agent pro rata to each Lender Party then owed Obligations described in such
subsection in proportion to all amounts owed to all Lender Parties which are described in such
subsection; provided that if any Lender then owes payments to Administrative Agent under Section
9.10, any amounts otherwise distributable under this section to such Lender shall be deemed to
belong to Administrative Agent to the extent of such unpaid payments, and Administrative Agent
shall apply such amounts to make such unpaid payments rather than distribute such amounts to such
Lender.

     (c) Unless Administrative Agent shall have received notice from Borrower prior to the date on
which any payment is due to Administrative Agent for the account of the Lenders that Borrower will
not make such payment, Administrative Agent may assume that Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute to the
appropriate Lenders the amount due. In such event, if Borrower has not in fact made such payment,
then each of such Lenders severally agrees to repay to Administrative Agent forthwith on demand the
amount so distributed to such Lender, in immediately available funds with interest thereon, for
each day from and including the date such amount is distributed to it to but excluding the date of
payment to Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by
Administrative Agent in accordance with banking industry rules on interbank compensation. A notice
of Administrative Agent to any Lender with respect to any amount owing under this subsection (c)
shall be conclusive, absent manifest error.

     (d) Failure to Satisfy Conditions Precedent. If any Lender makes available to
Administrative Agent funds for any Loan to be made by such Lender as provided in Article II, and
such funds are not made available to Borrower by Administrative Agent because the

27

 

conditions to the
applicable Loan set forth in Article IV are not satisfied or waived in accordance with the terms
hereof, Administrative Agent shall return such funds (in like funds as received from such Lender)
to such Lender, without interest.

     (e) Obligations of Lenders Several. The obligations of Lenders hereunder to make
Loans and to make payments pursuant to Section 10.4(c) are several and not joint. The failure of
any Lender to make any Loan or to make any payment under Section 10.4(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date,
and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to
make its payment under Section 10.4(c).

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

     Section 3.2. Capital Reimbursement. If either (a) the introduction or implementation of or the compliance with or any change in or
in the interpretation of any Law, or (b) the introduction or implementation of or the compliance
with any request, directive or guideline from any central bank or other governmental authority
(whether or not having the force of Law) affects or would affect the amount of capital required or
expected to be maintained by any Lender Party or any corporation controlling any Lender Party,
then, within five Business Days after demand by such Lender Party, Borrower will pay to
Administrative Agent for the benefit of such Lender Party, from time to time as specified by such
Lender Party, such additional amount or amounts which such Lender Party shall determine to be
appropriate to compensate such Lender Party or any corporation controlling such Lender Party in
light of such circumstances, to the extent that such Lender Party reasonably determines that the
amount of any such capital would be increased or the rate of return on any such capital
would be reduced by or in whole or in part based on the existence of the face amount of such Lender
Party’s Loans or commitments under this Agreement.

     Section 3.3. Increased Cost of Eurodollar Loans.
If any applicable Law (whether now in effect or hereinafter enacted or promulgated, including
Regulation D) or any interpretation or administration thereof by any governmental authority charged
with the interpretation or administration thereof (whether or not having the force of Law):

     (a) shall change the basis of taxation of payments to any Lender Party of any principal,
interest, or other amounts attributable to any Eurodollar Loan or otherwise due under this
Agreement in respect of any Eurodollar Loan (other than taxes imposed on, or measured by such
Lender’ Party’s overall net income (however denominated), or capital and franchise taxes {in lieu
of net income taxes} imposed on such Lender Party or any Applicable Lending Office of such Lender
Party by any jurisdiction in which such Lender Party or any such Applicable Lending Office is
located); or

     (b) shall change, impose, modify, apply or deem applicable any reserve, special deposit or
similar requirements in respect of any Eurodollar Loan (excluding those for which

28

 

such Lender Party
is fully compensated pursuant to adjustments made in the definition of Eurodollar Rate) or against
assets of, deposits with or for the account of, or credit extended by, such Lender Party; or

     (c) shall impose on any Lender Party or the interbank Eurocurrency deposit market any other
condition affecting any Eurodollar Loan, the result of which is to increase the cost to any Lender
Party of funding or maintaining any Eurodollar Loan or to reduce the amount of any sum receivable
by any Lender Party in respect of any Eurodollar Loan by an amount deemed by such Lender Party to
be material, then such Lender Party shall promptly notify Administrative Agent and Borrower in
writing of the happening of such event and of the amount required to compensate such Lender Party
for such event (on an after-tax basis, taking into account any taxes on such compensation),
whereupon (i) Borrower shall, within five Business Days after demand therefor by such Lender Party,
pay such amount to Administrative Agent for the account of such Lender Party and (ii) Borrower may
elect, by giving to Administrative Agent and such Lender Party not less than three Business Days’
notice, to Convert all (but not less than all) of any such Eurodollar Loans into Base Rate Loans.

     Section 3.4. Notice; Change of Applicable Lending Office.
A Lender Party shall notify Borrower of any event occurring after the date of this Agreement
that will entitle such Lender Party to compensation under Section 3.2 or 3.3 hereof as promptly as
practicable, but in any event within 180 days, after such Lender Party obtains actual knowledge
thereof; provided, that (i) if such Lender Party fails to give such notice within 180 days after it
obtains actual knowledge of such an event, such Lender Party shall, with respect to compensation
payable pursuant to Section 3.2 or 3.3 in respect of any costs resulting from such event, only be
entitled to payment under Section 3.2 or 3.3 hereof for costs incurred from and
after the date 180 days prior to the date that such Lender Party does give such notice and (ii)
such Lender Party will designate a different Applicable Lending Office for the Loans affected by
such event if such designation will avoid the need for, or reduce the amount of, such compensation
and will not, in the sole opinion of such Lender Party, be disadvantageous to such Lender Party,
except that such Lender Party shall have no obligation to designate an Applicable Lending Office
located in the United States of America. Each Lender Party will furnish to Borrower a certificate
setting forth the basis and amount of each request by such Lender Party for compensation under
Section 3.2 or 3.3 hereof.

     Section 3.5. Illegality.
If any Lender determines that any Law enacted, changed or construed after the Closing Date has
made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such
Lender or its applicable Lending Office to make, maintain or fund Eurodollar Loans, or to determine
or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or to take deposits of,
Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar
Loans or to convert Base Rate Loans to Eurodollar Loans, or, if such notice relates to the
unlawfulness or asserted unlawfulness of charging interest based on the Eurodollar Rate, to make
Base Rate Loans as to which the interest rate is determined with reference to the Eurodollar Rate,
shall be suspended until such Lender notifies Administrative Agent and Borrower that the
circumstances giving rise to such determination no

29

 

longer exist. Upon receipt of such notice,
Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or,
if applicable, convert all Eurodollar Loans of such Lender and Base Rate Loans as to which the
interest rate is determined with reference to the Eurodollar Rate to Base Rate Loans as to which
the rate of interest is not determined with reference to the Eurodollar Rate, either on the last
day of the Interest Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Loans to such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurodollar Loans or Base Rate Loan. Notwithstanding the foregoing and despite the illegality
for such Lender to make, maintain or fund Eurodollar Loans or Base Rate Loans as to which the
interest rate is determined with reference to the Eurodollar Rate, that Lender shall remain
committed to make Base Rate Loans and shall be entitled to recover interest at the Base Rate. Upon
any such prepayment or conversion, Borrower shall also pay accrued interest on the amount so
prepaid or converted.

     Section 3.6. Inability to Determine Rates. If Majority Lenders determine that for any reason in connection with any request for a Loan or a
conversion to or continuation thereof that (i) Dollar deposits are not being offered to banks in
the London interbank eurodollar market for the applicable amount and Interest Period for a
Eurodollar Loan, (ii) adequate and reasonable means do not exist for determining the Eurodollar
Rate for any requested Interest Period with respect to a proposed Eurodollar Loan or in connection
with a Base Rate Loan, or (iii) the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Loan or in connection with a Eurodollar Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Eurodollar Loan,
Administrative Agent will promptly so notify Borrower and each Lender. Thereafter, the obligation
of Lenders to make, convert to or continue Eurodollar Loans for such affected Interest Period or to
make or maintain Base Rate Loans as to which the interest rate is determined with reference to the
Eurodollar Rate, shall be suspended until Administrative Agent (upon the instruction of Majority
Lenders) revokes such notice. Upon receipt of such notice, and until such notice is revoked by
Administrative Agent, Borrower may revoke any pending request for a Borrowing of, conversion to or
continuation of Eurodollar Loans for such affected Interest Period (and, if timely made, request a
Borrowing of, conversion to or continuation of Eurodollar Loans for an unaffected Interest Period)
or, failing that, will be deemed to have converted such request into a request for a Borrowing of
Base Rate Loans in the amount specified therein.

     Section 3.7. Funding Losses. In addition to its other obligations hereunder, with respect to each Commitment, Borrower will
indemnify each Lender Party extending credit pursuant thereto against, and reimburse each Lender
Party on demand for, any loss or expense incurred or sustained by such Lender Party (including any
loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender Party to fund or maintain Eurodollar Loans), as a result of (a) any payment
or prepayment (whether or not authorized or required hereunder) of all or a portion of a Eurodollar
Loan on a day other than the day on which the applicable Interest Period ends, (b) any payment or
prepayment, whether or not required hereunder, of a Loan made after the delivery, but before the
effective date, of a Continuation/Conversion Notice, if such payment or prepayment prevents such
Continuation/Conversion Notice from becoming fully effective, (c) the failure of any Loan to be
made or of any Continuation/Conversion Notice to become effective due to any condition precedent
not being satisfied or due to any other action or inaction of any Restricted Person, or

30

 

(d) any
Conversion (whether or not authorized or required hereunder) of all or any portion of any
Eurodollar Loan into a Base Rate Loan or into a different Eurodollar Loan on a day other than the
day on which the applicable Interest Period ends. Such indemnification shall be on an after-tax
basis, taking into account any taxes imposed on the amounts paid as indemnity.

     Section 3.8. Reimbursable Taxes.
With respect to the Commitments, Borrower covenants and agrees with each Lender Party extending
credit pursuant thereto that:

     (a) Borrower will indemnify each such Lender Party against and reimburse each such Lender
Party for all present and future stamp and other taxes, duties, levies, imposts, deductions,
charges, costs, and withholdings whatsoever imposed, assessed, levied or collected on or in respect
of this Agreement or any Eurodollar Loans (whether or not legally or correctly imposed, assessed,
levied or collected), excluding, however, any taxes imposed on or measured by the overall net
income (however denominated) or capital and franchise taxes (in lieu of income taxes) imposed on
Administrative Agent or such Lender Party or any Applicable Lending Office of such Lender Party by
any jurisdiction in which Administrative Agent or such Lender Party or any such Applicable Lending
Office is located (all such non-excluded taxes, levies, costs and charges being collectively called
“Reimbursable Taxes” in this section). Such indemnification
shall be on an after-tax basis, taking into account any taxes imposed on the amounts paid as
indemnity.

     (b) All payments on account of the principal of, and interest on, each such Lender Party’s
Loans and Notes, and all other amounts payable by Borrower to any such Lender Party hereunder,
shall be made in full without set-off or counterclaim and shall be made free and clear of and
without deductions or withholdings of any nature by reason of any Reimbursable Taxes, all of which
will be for the account of Borrower. In the event of Borrower being compelled or required by Law
to make any such deduction or withholding from any payment to any such Lender Party, Borrower shall
pay on the due date of such payment, by way of additional interest, such additional amounts as are
needed to cause the amount receivable by such Lender Party after such deduction or withholding to
equal the amount which would have been receivable in the absence of such deduction or withholding.
If Borrower should make any deduction or withholding as aforesaid, Borrower shall within 60 days
thereafter forward to such Lender Party an official receipt or other official document evidencing
payment of such deduction or withholding.

     (c) If Borrower is ever required to pay any Reimbursable Tax with respect to any Eurodollar
Loan, Borrower may elect, by giving to Administrative Agent and such Lender Party not less than
three Business Days’ notice, to Convert all (but not less than all) of any such Eurodollar Loan
into a Base Rate Loan, but such election shall not diminish Borrower’s obligation to pay all
Reimbursable Taxes.

     (d) Notwithstanding the foregoing provisions of this section, Borrower shall be entitled, to
the extent it is required to do so by Law, to deduct or withhold (and not to make any
indemnification or reimbursement for) income or other similar taxes imposed by the United States of
America (other than any portion thereof attributable to a change in federal income tax Laws
effected after the date hereof) from interest, fees or other amounts payable hereunder for

31

 

the
account of such Lender Party, other than such a Lender Party (i) who is a US person for Federal
income tax purposes or (ii) who has the Prescribed Forms on file with Administrative Agent (with
copies provided to Borrower) for the applicable year to the extent deduction or withholding of such
taxes is not required as a result of the filing of such Prescribed Forms, provided that if Borrower
shall so deduct or withhold any such taxes, it shall provide a statement to Administrative Agent
and such Lender Party, setting forth the amount of such taxes so deducted or withheld, the
applicable rate and any other information or documentation which such Lender Party may reasonably
request for assisting such Lender Party to obtain any allowable credits or deductions for the taxes
so deducted or withheld in the jurisdiction or jurisdictions in which such Lender Party is subject
to tax. As used in this section, “Prescribed Forms” means such duly executed forms or statements,
and in such number of copies, which may, from time to time, be prescribed by Law and which,
pursuant to applicable provisions of (x) an income tax treaty between the United States and the
country of residence of such Lender Party providing the forms or statements, (y) the Code, or (z)
any applicable rules or regulations thereunder, permit Borrower to make payments hereunder for the
account of such Lender Party free of such deduction or withholding of income or similar taxes.

     Section 3.9. Replacement of Lenders.
If (A) any Lender Party (i) requests compensation under Sections 3.2 or 3.3, (ii) notifies
Borrower pursuant to Section 3.5 that it is unable to make, maintain or fund Eurodollar Loans, or
(iii) is among Majority Lenders determining that any of the matters in Section 3.6(a) exist, (B)
Borrower is required to pay any additional amount to any Lender Party or any Governmental Authority
for the account of any Lender pursuant to Section 3.8, or (C) any Lender Party is a Defaulting
Lender, then Borrower may, at its sole expense (except as otherwise provided hereunder) and effort,
upon notice to such Lender Party and Administrative Agent, require such Lender Party to assign and
delegate (in accordance with and subject to the restrictions contained in, and consents required
by, Section 10.5), all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which assignee may be
another Lender Party, if a Lender Party accepts such assignment), provided that:

     (a) Borrower or such assignee shall have paid to Administrative Agent the assignment fee
specified in Section 10.5(b);

     (b) such Lender Party shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Loan Documents (including any amounts under Section 3.7) from the
assignee (to the extent of such outstanding principal and accrued interest and fees) or Borrower
(in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under Section
3.2 or 3.3, inability to make, maintain or fund Eurodollar Loans under Section 3.5, suspension of
the availability of Eurodollar Loans pursuant to Section 3.6, or payments required to be made
pursuant to Section 3.8, such assignment will result in a reduction in such compensation or
payments or increased availability of Eurodollar Loans; and

     (d) such assignment does not conflict with applicable Laws.

32

 

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling Borrower to require
such assignment and delegation cease to apply.

Notwithstanding the foregoing rights of Borrower under this section, however, Borrower may not
replace any Lender Party which seeks reimbursement for increased costs under Section 3.2 or 3.3
unless Borrower is at the same time replacing all Lender Parties which are then seeking such
compensation.

     Section 3.10. Currency Conversion and Indemnity.

     (a) If, for the purpose of obtaining or enforcing judgment in any court in any jurisdiction,
it becomes necessary to convert into a particular currency (the “Judgment Currency”) any
amount due under a Loan Document in the currency in which it was effected (the “Agreed
Currency”) then the conversion shall be made on the basis of the rate of exchange
prevailing on the Business Day preceding the date such judgment is given and in any event each
Restricted Person obligated to pay such Obligation shall be obligated to pay the relevant Lender
Parties any deficiency in accordance with Section 3.10(b). For the foregoing purposes “rate of
exchange” means the rate at which Administrative Agent in accordance with its normal banking
procedures is able on the relevant date to purchase the Agreed Currency with the Judgment Currency
after deducting any premium and costs of exchange.

     (b) If any Lender Party receives any payment or payments on account of the liability of a
Restricted Person under the Loan Documents pursuant to any judgment or order in any currency other
than the Agreed Currency (an “Other Currency”), and the amount of the Agreed Currency which
the relevant Lender Party is able to purchase on the Business Day next following such receipt with
the proceeds of such payment or payments in accordance with its normal procedures and after
deducting any premiums and costs of exchange is less than the amount of the Agreed Currency due in
respect of such Obligations immediately prior to such judgment or order, then Borrower on demand
shall, and Borrower hereby agrees to, indemnify and save such Lender Party harmless from and
against any loss, cost or expense arising out of or in connection with such deficiency. The
agreement of indemnity provided for in this Section 3.10(b) shall constitute an obligation separate
and independent from all other obligations contained in this Agreement, shall give rise to a
separate and independent cause of action, shall apply irrespective of any indulgence granted by the
Lender Parties or any of them from time to time, and shall continue in full force and effect
notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or
under any judgment or order.

ARTICLE IV.  — Conditions Precedent to Lending

     Section 4.1. Documents to be Delivered.
No Lender has any obligation to make its first Loan unless Administrative Agent shall have
received all of the following, at Administrative Agent’s office in New York, New York, duly
executed and delivered and in form, substance and date satisfactory to Administrative Agent, each
of which was so executed and delivered:

33

 

     (a) This Agreement and any other document that Lenders are to execute in connection herewith.

     (b) Each Note and the guaranty of each Guarantor.

     (c) Certain certificates including:

          (i) An “Omnibus Certificate” of the secretary or assistant secretary and any vice president of
GP LLC, which shall contain the names and signatures of the officers of GP LLC authorized to
execute Loan Documents and which shall certify to the truth, correctness and completeness of the
following exhibits attached thereto: (1) a copy of resolutions duly adopted by the Board and in
full force and effect at the time this Agreement is entered into, authorizing the execution of this
Agreement and the other Loan Documents delivered or to be delivered in connection herewith and the
consummation of the transactions contemplated herein and therein,
(2) a copy of the charter documents of Borrower and all amendments thereto, certified by the
appropriate official of its jurisdiction of organization, and (3) a copy of the agreement of
limited partnership of Borrower;

          (ii) An “Omnibus Certificate” of the secretary or assistant secretary and any vice president
of Plains Marketing GP Inc., which shall contain the names and signatures of the officers of such
company authorized to execute Loan Documents and which shall certify to the truth, correctness and
completeness of the following exhibits attached thereto: (1) a copy of resolutions duly adopted by
the board of directors of such company and in full force and effect at the time this Agreement is
entered into, authorizing the execution of the Loan Documents delivered or to be delivered in
connection herewith and the consummation of the transactions contemplated herein and therein, (2) a
copy of the charter documents of each Significant Restricted Person, other than Plains Midstream
Canada, and all amendments thereto, certified by the appropriate official of its jurisdiction of
organization, and (3) a copy of any bylaws or agreement of limited partnership of each such
Significant Restricted Person;

          (iii) An “Omnibus Certificate” of the secretary or assistant secretary and any vice president
of Plains Midstream Canada, which shall contain the names and signatures of the officers of Plains
Midstream Canada authorized to execute Loan Documents and which shall certify to the truth,
correctness and completeness of the following exhibits attached thereto: (1) a copy of resolutions
duly adopted by the board of directors of Plains Midstream Canada and in full force and effect at
the time this Agreement is entered into, authorizing the execution of the Loan Documents delivered
or to be delivered in connection herewith and the consummation of the transactions contemplated
herein and therein, (2) a copy of the charter documents of Plains Midstream Canada and all
amendments thereto, certified by the appropriate official of its jurisdiction of organization, and
(3) a copy of the company agreement of Plains Midstream Canada; and

          (iv) A certificate of a Responsible Officer of GP LLC, regarding satisfaction of Section 4.2.

34

 

     (d) A certificate (or certificates) of the due formation, valid existence and good standing of
each Significant Restricted Person in its respective jurisdiction of organization, issued by the
appropriate authorities of such jurisdiction.

     (e) Favorable opinions of Tim Moore, Esq., General Counsel for Restricted Persons,
substantially in the form set forth in Exhibit E-1, Fulbright & Jaworski L.L.P., special Texas and
New York counsel to Restricted Persons, substantially in the form set forth in Exhibit E-2, and
Bennett Jones LLP, special Canadian Counsel for Restricted Persons, substantially in the form set
forth in Exhibit E-3.

     (f) Consolidated financial statements of Borrower and its Subsidiaries as of September 30,
2010, reflecting compliance with Section 7.8, together with a certificate by a Responsible Officer
of GP LLC certifying such financial statements.

     (g) No Material Adverse Change shall have occurred since December 31, 2009.

     (h) Administrative Agent shall have received all documents and instruments which
Administrative Agent has then requested (including opinions of legal counsel for Restricted Persons
and Administrative Agent; corporate documents and records; documents evidencing governmental
authorizations, consents, approvals, licenses and exemptions; and certificates of public officials
and of officers and representatives of Borrower and other Persons), as to (i) the accuracy and
validity of or compliance with all representations, warranties and covenants made by any Restricted
Person in this Agreement and the other Loan Documents, (ii) the satisfaction of all conditions
contained herein or therein, and (iii) all other matters pertaining hereto and thereto. All such
additional documents and instruments shall be satisfactory to Administrative Agent in form and
substance.

     (i) Payment of all commitment, facility, agency and other fees required to be paid to
Administrative Agent or any Lender pursuant to any Loan Documents or any commitment agreement
heretofore entered into.

     Without limiting the generality of the provisions of Section 9.4, for purposes of determining
compliance with the conditions specified in this Section 4.1, each Lender that has signed this
Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless Administrative Agent shall have received notice from such Lender
prior to the proposed Closing Date specifying its objection thereto, and Administrative Agent
hereby agrees to promptly provide Borrower with a copy of any such notice received by
Administrative Agent.

     Section 4.2. Additional Conditions Precedent. No Lender has any obligation to make any Loan (including its first) unless the following
conditions precedent have been satisfied:

     (a) All representations and warranties made by any Restricted Person in any Loan Document
shall be true on and as of the date of such Loan as if such representations and warranties had been
made as of the date of such Loan except to the extent that such

35

 

representation or warranty was made
as of a specific date or updated, modified or supplemented as of a subsequent date with the consent
of Majority Lenders, then in each such case, such other date.

     (b) No Default shall exist at the date of such Loan or result from such Loan.

ARTICLE V. — Representations and Warranties

     To confirm each Lender’s understanding concerning Restricted Persons and Restricted Persons’
businesses, properties and obligations and to induce each Lender to enter into this Agreement and
to extend credit hereunder, Borrower represents and warrants to each Lender that:

     Section 5.1. No Default.
No event has occurred and is continuing which constitutes a Default, except as has been waived
in accordance with this Agreement.

     Section 5.2. Organization and Good Standing. Each Significant Restricted Person is duly organized or formed, validly existing and in good
standing under the Laws of its jurisdiction of organization or formation, having all requisite
corporate or similar powers required to carry on its business and enter into and carry out the
transactions contemplated hereby. Each Significant Restricted Person is duly qualified, in good
standing, and authorized to do business in all other jurisdictions wherein the character of the
properties owned or held by it or the nature of the business transacted by it makes such
qualification necessary except where the failure to so qualify would not reasonably be expected to
cause a Material Adverse Change.

     Section 5.3. Authorization.
Each Restricted Person has duly taken all action necessary to authorize the execution and
delivery by it of the Loan Documents to which it is a party and to authorize the consummation of
the transactions contemplated thereby and the performance of its obligations thereunder. Borrower
is duly authorized to borrow funds hereunder.

     Section 5.4. No Conflicts or Consents.
The execution and delivery by each Restricted Person of the Loan Documents to which it is a
party, the performance by it of its obligations, and the consummation of the transactions
contemplated thereby, do not and will not (i) violate any provision of (1) Law applicable to it,
(2) its organizational documents or (3) any judgment, order or material license or permit
applicable to or binding upon it, (ii) result in the acceleration of any Indebtedness owed by it or
(iii) result in or require the creation of any consensual Lien upon any of its material assets or
properties except as expressly contemplated in, or permitted by, the Loan Documents. Except as
expressly contemplated in or permitted by the Loan Documents, disclosed in the Disclosure Schedule
or disclosed pursuant to Section 6.4, no permit, consent, approval, authorization or order of, and
no notice to or filing, registration or qualification with, any Governmental Authority is required
on the part of any Restricted Person a party thereto pursuant to the provisions of any material Law
applicable to it as a condition to its execution, delivery or performance of any Loan Document or
(ii) to consummate any transactions contemplated by the Loan Documents.

36

 

     Section 5.5. Enforceable Obligations.
This Agreement is, and the other Loan Documents when duly executed and delivered will be, legal,
valid and binding obligations of each Restricted Person which is a party hereto or thereto,
enforceable in accordance with their terms except as such enforcement may be limited by bankruptcy,
insolvency or similar Laws of general application relating to the enforcement of creditors’ rights
and general principles of equity.

     Section 5.6. Initial Financial Statements. Borrower has heretofore delivered to each Lender true, correct and complete copies of the
Initial Financial Statements. The Initial Financial Statements fairly present Borrower’s
Consolidated financial position at the date thereof and the Consolidated results of Borrower’s
operations for the periods thereof, and in the case of the annual Initial Financial Statements,
Consolidated cash flows for the period thereof. Except as disclosed pursuant to Section 6.4, since
the date of the annual Initial Financial Statements, no Material Adverse Change has occurred. All
Initial Financial Statements described in clause (i) of that defined term were prepared in
accordance with GAAP.

     Section 5.7. Other Obligations and Restrictions. As of the Closing Date, no Restricted Person has any outstanding payment obligations of any kind
(including contingent obligations, tax assessments and unusual forward or long-term commitments)
which are, in the aggregate, material to Borrower or material with respect to Borrower’s
Consolidated financial condition and not reflected in the Initial Financial Statements, disclosed
in the Disclosure Schedule or otherwise permitted under Section 7.1. Except as disclosed in the
Disclosure Schedule or pursuant to Section 6.4, no Restricted Person is subject to or restricted by
any franchise, contract, deed, charter restriction, or other instrument or restriction which would
reasonably be expected to cause a Material Adverse Change.

     Section 5.8. Full Disclosure. No certificate, statement or other information delivered herewith or heretofore by any
Restricted Person to any Lender in connection with the negotiation of this Agreement or in
connection with any transaction contemplated hereby contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements contained herein or
therein, in light of the circumstances under which they were made, not misleading as of the date
made or deemed made (or if such information expressly relates or refers to an earlier date, as of
such earlier date). All written information furnished after the date hereof by or on behalf of any
Restricted Person to Administrative Agent or any Lender Party in connection with this Agreement and
the other Loan Documents and the transactions contemplated hereby and thereby will be true,
complete and accurate in every material respect in light of the circumstances in which made or
based on reasonable estimates, in each case as of the date on which such information is stated or
certified (or if such information expressly relates or refers to an earlier date, as of such
earlier date). There is no fact known to any Restricted Person that has not been disclosed to each
Lender in writing which would reasonably be expected to cause a Material Adverse Change.

     Section 5.9. Litigation. Except as disclosed in the Initial Financial Statements, in the Disclosure Schedule or pursuant
to Section 6.4: (i) there are no actions, suits or legal, equitable, arbitrative or administrative
proceedings pending, or to the knowledge of any Restricted Person overtly threatened, against any
Restricted Person before any Governmental Authority having

37

 

jurisdiction over it which would
reasonably be expected to cause a Material Adverse Change, and (ii) there are no outstanding
judgments, injunctions, writs, rulings or orders by any such Governmental Authority
having jurisdiction over it against any Restricted Person or, to the knowledge of Borrower, any
Restricted Person’s stockholders, partners, directors or officers which would reasonably be
expected to cause a Material Adverse Change.

     Section 5.10. ERISA Plans and Liabilities. All currently existing ERISA Plans are listed in the Disclosure Schedule or pursuant to Section
6.4. Except as disclosed in the Initial Financial Statements, in the Disclosure Schedule or
pursuant to Section 6.4, no Termination Event has occurred with respect to any ERISA Plan and all
ERISA Affiliates are in compliance with ERISA in all material respects, to the extent that the
non-compliance therewith would not be reasonably expected to cause a Material Adverse Change. No
ERISA Affiliate is required to contribute to, or has any other absolute or contingent liability in
respect of, any “multiemployer plan” as defined in Section 4001 of ERISA. Except as set forth in
the Disclosure Schedule or disclosed pursuant to Section 6.4: (i) no “accumulated funding
deficiency” (as defined in Section 412(a) of the Code) exists with respect to any ERISA Plan,
whether or not waived by the Secretary of the Treasury or his delegate, and (ii) the current value
of each ERISA Plan’s benefits does not exceed the current value of such ERISA Plan’s assets
available for the payment of such benefits by more than $5,000,000.

     Section 5.11. Compliance with Permits, Consents and Law. Except as set forth in the Disclosure Schedule or pursuant to Section 6.4, each Restricted
Person has all permits, licenses and authorizations required in connection with the conduct of its
businesses, except to the extent failure to have any such permit, license or authorization would
not reasonably be expected to cause a Material Adverse Change. Except as set forth in the
Disclosure Schedule or pursuant to Section 6.4, each Restricted Person is in compliance with the
terms and conditions of all such permits, licenses and authorizations, and is also in compliance
with all other limitations, restrictions, conditions, standards, prohibitions, requirements,
obligations, schedules and timetables contained in any Law, including applicable Environmental Law,
or in any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter
issued, entered, promulgated or approved thereunder, except to the extent that non-compliance
therewith would not reasonably be expected to cause a Material Adverse Change or such term,
restriction or otherwise is being contested in good faith or a bona fide dispute exists with
respect thereto.

     Section 5.12. Environmental Laws. Except as set forth in the Disclosure Schedule or disclosed pursuant to Section 6.4, (i)
Borrower and its Subsidiaries are conducting their businesses in material compliance with all
applicable Laws, including Environmental Laws, and have and are in compliance with all licenses and
permits required under any such Laws, unless failure to so comply or have such licenses and permits
would not reasonably be expected to cause a Material Adverse Change; (ii) none of the operations or
properties of Borrower or any of its Subsidiaries is the subject of federal, provincial or local
investigation evaluating whether any material remedial action is needed to respond to a release of
any Hazardous Materials into the environment or to the improper storage or disposal (including
storage or disposal at offsite locations) of any Hazardous
Materials, unless such remedial action would not reasonably be expected to cause a Material Adverse
Change; and (iii) neither Borrower nor any of its Subsidiaries (and to the actual knowledge of
Borrower, no other Person) has filed any notice

38

 

under any Law indicating that any Restricted Person
is responsible for the improper release into the environment, or the improper storage or disposal,
of any material amount of any Hazardous Materials or that any Hazardous Materials have been
improperly released, or are improperly stored or disposed of, upon any property of any such Person,
other than of an alleged improper release, storage or disposal that would not reasonably be
expected to cause a Material Adverse Change.

     Section 5.13. Borrower’s Subsidiaries. Borrower has no Subsidiary and owns no stock in any other corporation or association except as
listed in the Disclosure Schedule or disclosed after the Closing Date to Administrative Agent in
writing. No Restricted Person is a member of any general or limited partnership, limited liability
company, joint venture or association of any type whatsoever except those listed in the Disclosure
Schedule or disclosed after the Closing Date to Administrative Agent in writing. Borrower owns,
directly or indirectly, the equity interest in each of its Subsidiaries which is indicated in the
Disclosure Schedule except as disclosed after the Closing Date to Administrative Agent.

     Section 5.14. Title to Properties. Each Restricted Person has good and defensible title to all of its material properties and
assets, free and clear of all Liens (other than Permitted Liens) and of all impediments to the use
of such properties and assets in such Restricted Person’s business, other than such impediments
that would not reasonably be expected to cause a Material Adverse Change.

     Section 5.15. Government Regulation. Neither Borrower nor any other Restricted Person owing Obligations is subject to regulation
under the Investment Company Act of 1940 (as amended) or any other Law which regulates the
incurring by such Person of Indebtedness, including Laws relating to common contract carriers or
the sale of electricity, gas, steam, water or other public utility services. Neither Borrower nor
any other Restricted Person is subject to regulation under the Federal Power Act which would
violate, result in a default of, or prohibit the effectiveness or the performance of any of the
provisions of the Loan Documents.

     Section 5.16. Insider. No Restricted Person, nor any Person having “control” (as that term is defined in 12 U.S.C. §
375b(9) or in regulations promulgated pursuant thereto) of any Restricted Person, is a “director”
or an “executive officer” or “principal shareholder” (as those terms are defined in 12 U.S.C. §
375b(8) or (9) or in regulations promulgated pursuant thereto) of any Lender, of a bank holding
company of which any Lender is a Subsidiary or of any Subsidiary of a bank holding company of which
any Lender is a Subsidiary.

     Section 5.17. Solvency. Upon giving effect to the issuance of the Notes, the execution of the Loan Documents by Borrower
and each Guarantor and the consummation of the transactions contemplated hereby, (i) Borrower and
each Guarantor will be solvent (as such term is used in applicable bankruptcy, liquidation,
receivership, insolvency or similar Laws), and the sum of Borrower’s and each Guarantor’s absolute
and contingent liabilities, including the Obligations or guarantees thereof, shall not exceed the
fair market value of such Restricted Person’s assets, and (ii) Borrower’s and each Guarantor’s
capital should be adequate for the businesses in which such Restricted Person is engaged and
intends to be engaged. Neither Borrower nor any other Restricted Person has incurred (whether
under the Loan Documents or

39

 

otherwise), nor does any Restricted Person intend to incur or
reasonably foreseeably believes that it will incur, debts which will be beyond its ability to pay
as such debts mature.

ARTICLE VI.  — Affirmative Covenants

     To conform with the terms and conditions under which each Lender is willing to have credit
outstanding to Borrower, and to induce each Lender to enter into this Agreement and extend credit
hereunder, Borrower covenants and agrees that until the full and final payment of the Obligations
and the termination of this Agreement, unless Majority Lenders, or all Lenders as required under
Section 10.1, have previously agreed otherwise:

     Section 6.1. Payment and Performance. Each Restricted Person will pay all amounts due from it pursuant to the provisions of the Loan
Documents to which it is a party in accordance with the terms thereof and will observe, perform and
comply with every covenant, term and condition imposed on it pursuant to the provisions of such
Loan Documents.

     Section 6.2. Books, Financial Statements and Reports. Each Restricted Person will at all times maintain full and accurate books of account and
records. Borrower will maintain and will cause its Subsidiaries to maintain a standard system of
accounting, will maintain its Fiscal Year, and will furnish the following statements and reports to
each Lender at Borrower’s expense:

     (a) Promptly upon the filing thereof, and in any event within ninety (90) days after the end
of each Fiscal Year, a copy of Borrower’s Form 10-K, which report shall include Borrower’s complete
Consolidated financial statements together with all notes thereto, prepared in reasonable detail in
accordance with GAAP, together with an opinion, without material qualification, based on an audit
using generally accepted auditing standards, by PricewaterhouseCoopers LLP, or other independent
certified public accountants selected by General Partner, stating that such Consolidated financial
statements have been so prepared. These financial statements shall contain a Consolidated balance
sheet as of the end of such Fiscal Year and Consolidated statements of earnings for such Fiscal
Year. Such Consolidated financial statements shall set forth in comparative form the corresponding
figures for the preceding Fiscal Year.

     (b) Promptly upon the filing thereof, and in any event within sixty (60) days after the end of
each of the first three Fiscal Quarters of each Fiscal Year, a copy of Borrower’s Form 10-Q, which
report shall include Borrower’s unaudited Consolidated balance sheet as of the end of such Fiscal
Quarter and Consolidated statements of Borrower’s earnings and cash flows for such Fiscal Quarter
and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter. In addition Borrower will, together with each such set of financial statements and each
set of financial statements furnished under subsection (a) of this section, furnish a certificate
in the form of Exhibit D signed by the chief financial officer, principal accounting officer or
treasurer of General Partner stating that such financial statements are accurate and complete in
all material respects (subject to normal year-end adjustments), stating that he has reviewed the
Loan Documents, containing calculations showing compliance (or non-compliance) at the end of such
Fiscal Quarter with the requirements of Section 7.8,

40

 

stating that, to the best of his knowledge, no
Default exists at the end of such Fiscal Quarter or at the time of such certificate or specifying
the nature and period of existence of any such Default, and identifying any Subsidiary designated
as an Unrestricted Subsidiary since the date of the most-recently delivered prior certificate under
this Section 6.2(b).

     (c) Promptly upon their becoming available, copies of all Form 8-K’s filed by Borrower with
any securities exchange, the Securities and Exchange Commission or any similar governmental
authority.

     (d) Promptly upon their becoming available, copies of all financial statements, reports,
notices and proxy statements sent by Borrower to its unit holders and all registration statements
filed by Borrower with any securities exchange, the Securities and Exchange Commission or any
similar governmental authority.

     (e) Prompt notice of any publicly announced change in PAA’s Debt Rating by either Standard &
Poor’s or Moody’s.

Documents required to be delivered pursuant to Section 6.2(a), (b), (c) or (d), (to the extent any
such documents are included in materials otherwise filed with the Securities and Exchange
Commission) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date on which Borrower posts such documents, or provides a link thereto, on
Borrower’s website on the Internet at the website address listed on Schedule 10.3, and notifies
Administrative Agent of such posting or link.

     Section 6.3. Other Information and Inspections. In each case subject to the last sentence of this Section 6.3, each Restricted Person will
furnish to Administrative Agent any information which Administrative Agent or any Lender may from
time to time reasonably request concerning any covenant, provision or condition of the Loan
Documents or any matter in connection with any Restricted Person’s businesses and operations. In
each case subject to the last sentence of this Section 6.3, each Restricted Person will permit
representatives appointed by Administrative Agent (including independent accountants, auditors,
agents, attorneys, appraisers and any other Persons), upon reasonable prior notice, to visit and
inspect during normal business hours any of such Restricted Person’s property, including its
books of account, other books and records, and any facilities or other business assets, and to make
extra copies therefrom and photocopies and photographs thereof, and to write down and record any
information such representatives obtain, and each Restricted Person shall permit Administrative
Agent or its representatives to investigate and verify the accuracy of the information furnished to
Administrative Agent or any Lender in connection with the Loan Documents and to discuss all such
matters with its officers, employees and, upon reasonable prior notice to Borrower, its
representatives. Each of the foregoing inspections and examinations shall be made subject to
compliance with applicable safety standards and the same conditions applicable to any Restricted
Person in respect of property of that Restricted Person on the premises of Persons other than a
Restricted Person or an Affiliate of a Restricted Person, and all information, books and records
furnished or requested to be made, all information to be investigated or verified and all
discussion conducted with any officer, employee or representative of any Restricted Person shall be
subject to any applicable attorney-client privilege exceptions which the Restricted Person

41

 

determines is reasonably necessary and compliance with conditions to disclosures under
non-disclosure agreements between any Restricted Person and Persons other than a Restricted Person
or an Affiliate of a Restricted Person and the express undertaking of each Person acting at the
direction of or on behalf of any Lender Party to be bound by the confidentiality provisions of
Section 10.6 of this Agreement.

     Borrower hereby acknowledges that (a) Administrative Agent will make available to the Lenders
materials and/or information provided by or on behalf of Borrower hereunder (collectively,
“Borrower Materials”) by posting Borrower Materials on IntraLinks or another similar
electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to
Borrower or its securities) (each, a “Public Lender”). If Borrower clearly, conspicuously
and prominently marks the front page of any Borrower Materials furnished by it with the term
“PUBLIC”, then (x) Borrower shall be deemed to have authorized Administrative Agent and the Lenders
to treat such Borrower Materials as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to Borrower or its
securities for purposes of United States Federal and state securities laws; (y) all Borrower
Materials so marked “PUBLIC” are permitted to be made available through a portion of the Platform
designated “Public Investor;” and (z) Administrative Agent shall be entitled to treat any Borrower
Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the
Platform not designated “Public Investor.”

     Section 6.4. Notice of Material Events. Borrower will notify each Lender Party, not later than five (5) Business Days after any
executive officer of Borrower has knowledge thereof, stating that such notice is being given
pursuant to this Agreement, of:

     (a) the (i) occurrence of any Material Adverse Change or (ii) occurrence of any event or
condition that is covered by any of Section 5.6 (next-to-last sentence), 5.7 (last sentence), 5.9,
5.10, 5.11 or 5.12 which would reasonable be expected to cause a Material Adverse Change,

     (b) the occurrence of any Default,

     (c) the acceleration of the maturity of any Indebtedness owed by any Restricted Person or of
any default by any Restricted Person under any indenture, mortgage, agreement, contract or other
instrument to which any of them is a party or by which any of them or any of their properties is
bound, if such acceleration or default would reasonably be expected to cause a Material Adverse
Change,

     (d) the occurrence of any Termination Event,

     (e) any claim under any Environmental Law adverse to a Restricted Person or of potential
liability with respect to such claim, or any other adverse claim asserted against any Restricted
Person or with respect to any Restricted Person’s properties taken as a whole, in each case, which
claim would reasonably be expected to cause a Material Adverse Change, and

42

 

     (f) the filing of any suit or proceeding, or the assertion in writing of a claim against
any Restricted Person or with respect to any Restricted Person’s properties, which would reasonably
be expected to cause a Material Adverse Change.

Upon the occurrence of any of the foregoing the applicable Restricted Person will take all
necessary or appropriate steps to remedy promptly, if applicable, any such Material Adverse Change,
Default, acceleration, default or Termination Event, to protect against any such adverse claim, to
defend any such claim, suit or proceeding, and to resolve all controversies on account of any of
the foregoing.

     Section 6.5. Maintenance of Existence, Qualifications and Assets. Each Significant Restricted Person (i) will maintain and preserve its existence and its rights
(including permits, licenses and other authorizations required under Environmental Laws) and
franchises in full force and effect, (ii) will qualify to do business in all states or
jurisdictions where required by applicable Law, and (iii) keep all of its material assets that are
useful in and necessary to its business in good working order and condition (ordinary wear and tear
and obsoleteness excepted) except, in each case (a) where the failure so to maintain, preserve,
qualify or keep would not be reasonably expected to cause a Material Adverse Change, (b) as
permitted in Section 7.3 or as a result of statutory conversions or (c) as a result of a release
permitted pursuant to Section 6.9. Borrower will notify Administrative Agent in writing of any
changes in its or any other Significant Restricted Person’s name or the location of its or any
other Significant Restricted Person’s chief executive office or principal place of business.

     Section 6.6. Payment of Taxes, etc.
Each Significant Restricted Person will (a) timely file all required tax returns (including
any extensions), (b) timely pay all taxes, assessments, and other governmental charges or levies
imposed upon it or upon its income, profits or property, and (c) maintain appropriate accruals and
reserves for all of the foregoing as required by GAAP, except to the extent that (y) it is in good
faith contesting the validity thereof by appropriate proceedings, if necessary, and has set aside
on its books adequate reserves therefor which are required by GAAP or (z) such non-filing,
non-payment or non-maintenance would not reasonably be expected to cause a Material Adverse Change.

     Section 6.7. Insurance. In accordance with industry standards, each Significant Restricted Person will keep insured (by
responsible and reputable insurance companies or associations) or self-insured, at the option of
Borrower or such Significant Restricted Person, in such amounts and against such risks as are
usually insured by Persons engaged in the same or similar businesses and owning similar properties.
The insurance coverages and amounts will be reasonably determined by Borrower, based on coverages
carried by prudent owners of similar property, and with respect to each Restricted Person, may be
maintained by Borrower.

     Section 6.8. Compliance with Agreements and Law.
 Each Significant Restricted Person will perform all material obligations it is required to
perform under the terms of each indenture, mortgage, deed of trust, security agreement, lease,
franchise and other material agreement, contract or other instrument (including all contractual
obligations and agreements with respect to environmental remediation or other environmental
matters) to which it is a party or by which it or any of its properties is bound to the extent that
non-performance therewith

43

 

would not reasonably be expected to cause a Material Adverse Change.
Each Restricted Person will conduct its business and affairs in compliance, in all material
respects, with all Laws (including Environmental Laws) applicable thereto to the extent
non-compliance therewith
would not reasonably be expected to cause a Material Adverse Change or
such requirement of Law is being contested in good faith or a bona fide dispute exists with respect
thereto.

     Section 6.9. Guaranties of Subsidiaries.
 Each Significant Restricted Person that has outstanding Indebtedness (other than guarantees
hereunder), other than a Significant Restricted Person with assets that are regulated by the
California Public Utility Commission (the “CPUC”) or other similar regulatory body and such
Significant Restricted Person is restricted by the CPUC or such body from providing any guaranties
of Indebtedness, shall execute and deliver to Administrative Agent an absolute and unconditional
guaranty of the timely repayment of the Obligations (in each case for which such Person is not a
borrower, account party or similar primary and direct obligor), which guaranty shall be reasonably
satisfactory to Administrative Agent in form and substance; provided, with respect to any
such Person that is not a Wholly Owned Subsidiary of Borrower, for which consent or approval of
third parties is required for the delivery of such guaranty, such Person shall not be required to
deliver such guaranty, but shall use its commercially reasonable best efforts, as determined by
Administrative Agent, to deliver such guaranty. Notwithstanding any provision contained herein to
the contrary, in no event shall any Unrestricted Subsidiary be required to execute and deliver any
guaranty for, or in respect of, the Obligations, or any part thereof. Borrower will cause each of
its Subsidiaries required to deliver a guaranty pursuant to this Section 6.9 to deliver to
Administrative Agent, simultaneously with its delivery of such a guaranty, written evidence
satisfactory to Administrative Agent that such Subsidiary has taken all corporate, limited
liability company or partnership action necessary to duly approve and authorize its execution,
delivery and performance of such guaranty. Borrower may at any time request the release of one or
more Guarantors from their guaranty of the Obligations, and each such Guarantor shall be so
released upon such request, provided, no Default exists immediately prior thereto or
immediately after giving effect thereto, and either (a) such Guarantor has no outstanding
Indebtedness or guaranties of Indebtedness (other than guaranties hereunder) or (b) the request is
in contemplation of the sale or disposition of such Subsidiary (including all or substantially all
of its assets). Administrative Agent is authorized to execute and deliver to Borrower evidence of
any such release, as reasonably requested by, and at the expense of, Borrower.

ARTICLE VII. — Negative Covenants

     To conform with the terms and conditions under which each Lender is willing to have credit
outstanding to Borrower and to induce each Lender to enter into this Agreement and make the Loans,
Borrower covenants and agrees that until the full and final payment of the Obligations and the
termination of this Agreement, unless Majority Lenders, or all Lenders as required under Section
10.1, have previously agreed otherwise:

     Section 7.1. Subsidiary Indebtedness.
 No Subsidiary of Borrower will incur any Indebtedness other than:

     (a) the Obligations;

44

 

     (b) Guaranties by Guarantors of, and the incurrence of obligations by Guarantors as a
co-obligor on (as distinguished from, and in addition to incurring such obligation as, a guarantor
of), Indebtedness (i) arising under the US/Canada Credit Agreement, or (ii) of Borrower or any
other Restricted Person, the incurrence of which did not result in a Default or an Event of
Default;

     (c) Indebtedness of (i) PMC (Nova Scotia) Company and Plains Midstream Canada pursuant to the
US/Canada Credit Agreement, and (ii) Plains Marketing pursuant to the Hedged Inventory Credit
Agreement;

     (d) Indebtedness of any Restricted Person owing to another Restricted Person;

     (e) Indebtedness of any Subsidiary described in clause (b) of the definition of “Indebtedness”
that is determinable but not yet earned; provided, Borrower reasonably contemplates that
such Indebtedness will be repaid from the proceeds of one or more advances made by Borrower to such
Subsidiary;

     (f) Indebtedness of a Subsidiary acquired (including acquisition by merger, consolidation or
amalgamation) after the date hereof by a Restricted Person, which Indebtedness was incurred by such
Subsidiary before the time of such acquisition, merger, consolidation or amalgamation, and was not
created in contemplation thereof; provided, that contemporaneously with such acquisition,
merger, consolidation or amalgamation, and so long as no adverse tax and/or regulatory consequences
are caused thereby, such Subsidiary shall be a Guarantor subject to the provisions of Section 6.9;
and

     (g) Indebtedness not otherwise described in the foregoing clauses (a) through (f) owing by any
one or more Guarantors in an aggregate principal amount not to exceed at any time outstanding the
greater of (A) $100,000,000 and (B) fifteen percent (15%) of Consolidated Tangible Net Worth.

     Section 7.2. Limitation on Liens.
 No Restricted Person will create, assume or permit to exist any Lien upon any Principal Property
or upon the stock, membership interests, partnership interests or other equity ownership interests
of any Subsidiary of Borrower (other than Unrestricted Subsidiaries), except the following
(“Permitted Liens”):

     (a) Liens securing (i) on a pari passu basis, both (x) the Obligations and (y) the Liabilities
of any Restricted Person arising under the US/Canada Credit Agreement, and (ii) if required, any
related interest hedge rate agreements;

     (b) Liens imposed by any governmental authority for taxes, assessments or charges not yet due
or the validity of which is being contested in good faith and by appropriate proceedings, if
necessary, for which adequate reserves are maintained on the books of any Restricted Person in
accordance with GAAP;

     (c) pledges or deposits of cash or securities under worker’s compensation, unemployment
insurance or other social security legislation;

45

 

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s, or other
like Liens (including without limitation, Liens on property of any Restricted Person in the
possession of storage facilities, pipelines or barges) arising in the ordinary course of business
for amounts which are not more than 60 days past due or the validity of which is being contested in
good faith and, if necessary, by appropriate proceedings, and for which adequate reserves are
maintained on the books of any Restricted Person in accordance with GAAP;

     (e) Liens on cash and Cash Equivalents under or with respect to accounts with brokers or
counterparties with respect to hedging contracts consisting of cash, commodities or futures
contracts, options, securities, instruments, and other like assets securing only hedging contracts;

     (f) deposits of cash or securities to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

     (g) easements, rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business and encumbrances consisting of zoning restrictions, easements,
licenses, restrictions on the use of real property or minor imperfections in title thereto which,
in the aggregate, are not material in amount, and which do not in any case materially detract from
the value of the property subject thereto or interfere with the ordinary conduct of the business of
any Restricted Person;

     (h) Liens in respect of operating leases;

     (i) Liens upon any property or assets directly or indirectly acquired after the date hereof by
a Restricted Person, each of which either (i) existed on such property or asset before the time of
its acquisition and was not created in anticipation thereof, or (ii) was created solely for the
purpose of securing Indebtedness representing, or incurred to
finance, refinance or refund, the cost (including the cost of construction) of such property or asset; provided that no such
Lien shall extend to or cover any property or asset of a Restricted Person other than the property
or asset so acquired (or constructed); and any extension, renewal, refinancing, refunding or
replacement (or successive extensions, renewals, refinancings, refundings or replacements), in
whole or part, of the foregoing, provided, however, that such Liens shall not cover or secure any
additional Indebtedness, obligations, property or asset;

     (j) rights reserved to or vested in any governmental authority by the terms of any right,
power, franchise, grant, license or permit, or by any provision of law, to revoke or terminate any
such right, power, franchise, grant, license or permit or to condemn or acquire by eminent domain
or similar process;

     (k) rights reserved to or vested by Law in any governmental authority to in any manner,
control or regulate in any manner any of the properties of any Restricted Person or the use thereof
or the rights and interests of any Restricted Person therein, in any manner under any and all Laws;

46

 

     (l) rights reserved to the grantors of any properties of any Restricted Person, and the
restrictions, conditions, restrictive covenants and limitations, in respect thereto, pursuant to
the terms, conditions and provisions of any rights-of-way agreements, contracts or other agreements
therewith;

     (m) inchoate Liens in respect of pending litigation or with respect to a judgment which has
not resulted in an Event of Default under Section 8.1;

     (n) Liens securing obligations in an aggregate principal amount not to exceed at any time
outstanding 10% of Borrower’s Consolidated Tangible Net Worth; and

     (o) Liens related to the extension, renewal, refinancing, refunding or replacement (or
successive extensions, renewals, refinancings, refundings or replacements), in whole or in part, of
clauses (a), (b) and (o) of this Section 7.2; provided, however, that such Liens shall not cover or
secure any additional Indebtedness.

     Section 7.3. Limitation on Mergers.
 Except as expressly provided in this section, no Significant Restricted Person (other than (i) a
Guarantor for whom a release has been requested pursuant to an event described in clause (b) of
Section 6.9 and otherwise is so released, or (ii) such other Significant Restricted Person, other
than Borrower, that is the subject of any such event described in such clause (b) of Section 6.9)
will (a) merge or consolidate or amalgamate with any Person, or liquidate, wind up or dissolve or
(b) sell, transfer, lease, exchange or otherwise dispose of, in one transaction or a series of
related transactions, all or substantially all of its business or property, whether now owned or
hereafter acquired, to any Person; provided, any such Significant Restricted Person, other
than Borrower, may (A) merge into or consolidate or amalgamate with, and such business and property
may be disposed of to:

          (i) any other Subsidiary of Borrower; provided, if such Significant Restricted Person
or such Subsidiary is a Guarantor, a Guarantor is the surviving or transferee (as applicable)
business entity,

          (ii) Borrower, so long as Borrower is the surviving or transferee (as applicable) business
entity and after giving effect thereto, no Default exists, or

          (iii) any other Person pursuant or incidental to, or in connection with, any contemporaneous
or substantially contemporaneous acquisition, provided that for purposes of this clause
(iii) such merging, amalgamating, consolidating or transferor Significant Restricted Person is not
Borrower, Guarantor or a Wholly Owned Subsidiary of Borrower, other than a Wholly Owned Subsidiary
that was formed, acquired or created solely for purposes of such acquisition or otherwise conducted
no operations and owned no assets, other than of an inconsequential amount and

(B) dissolve, liquidate or wind up if such dissolution, liquidation and winding up results from
dispositions not prohibited by this Agreement.

     Section 7.4. Limitation on New Businesses.
 No Restricted Person will materially or substantially engage directly or indirectly in any
business or conduct any operations other than

47

 

(i) marketing, gathering, transporting (by barge,
pipeline, ship, truck or other modes of hydrocarbon transportation), terminalling, storing,
producing, acquiring, developing, exploring for, exploiting, producing, processing, dehydrating and
otherwise handling hydrocarbons, including, without limitation, constructing pipeline, platform,
dehydration, processing and other energy-related facilities, (ii) any other business that generates
gross income that constitutes “qualifying income” under Section 7704(d) of the Internal Revenue
Code of 1986, as amended, or (iii) activities or services reasonably related or ancillary thereto,
including entering into hedging obligations to support those businesses.

     Section 7.5. Transactions with Affiliates.
 No Restricted Person will engage in any material transaction with any of its Affiliates except
as follows: (a) transactions among Borrower and its Subsidiaries or between Subsidiaries of
Borrower; (b) if and to the extent any of them constitute transactions with Affiliates,
transactions governed by the Amended and Restated Omnibus Agreement between Plains Resources Inc.,
Borrower, Plains Marketing, GP LLC, Plains Marketing GP, Inc. and Plains Pipeline (and successors
of each) dated July 23, 2004, as amended and in effect; the Administrative Services Agreement
between GP LLC and Vulcan Energy Company dated October 14, 2005, as amended and in effect; the
Amended and Restated Agreement of Limited Partnership of PNGS dated as of April 7, 2010, as amended
and in effect; the Omnibus Agreement dated as of April 7, 2010 among Borrower, GP LLC, PNGS and
PNGS GP, LLC, as amended and in effect, the Tax Sharing Agreement dated as of April 7, 2010 between
Borrower and PNGS, as amended and in effect, or the Amended and Restated Crude Oil Marketing
Agreement among Plains Resources Inc., Calumet Florida, LLC and Plains Marketing dated as of July
23, 2004, as amended and in effect; (c) any employment, equity award, equity option or equity
appreciation agreement or plan
entered into by Borrower or any of its Subsidiaries in the ordinary course of business of Borrower
or such Subsidiary; (d) transactions effected in accordance with the terms of agreements as in
effect on the Closing Date; (e) customary compensation, indemnification and other benefits made
available to officers, directors or employees of Borrower, any of its Subsidiaries or GP LLC,
including reimbursement or advancement of out-of-pocket expenses and provisions of officers’ and
directors’ liability insurance; (f) transactions as contemplated by Borrower’s agreement of limited
partnership; and (g) transactions on terms which are no less favorable to such Restricted Person
than those which would have been obtainable at the time in arm’s-length transactions with Persons
other than such Affiliates.

     Section 7.6. Limitation on Distributions.
 Borrower shall not declare or pay any Distribution so long as any Default or Event of Default
has occurred and is continuing or would result therefrom.

     Section 7.7. Restricted Contracts.
 Except as expressly provided for in the Loan Documents, the US/Canada Credit Agreement and as
described in the Disclosure Schedule or pursuant to a Restriction Exception, the substance of
which, in detail satisfactory to Administrative Agent, is promptly reported to Administrative
Agent, no Restricted Person will, directly or indirectly, enter into, create, or otherwise allow to
exist any contract or other consensual restriction on the ability of any Subsidiary of Borrower,
including but not limited to PMC (Nova Scotia) Company, Plains Midstream Canada and any Subsidiary
of such Persons to: (a) pay dividends or make other distributions to Borrower, (b) redeem equity
interests held in it

48

 

by Borrower, (c) repay loans and other indebtedness owing by it to Borrower,
or (d) transfer any of its assets to Borrower.

     Section 7.8. Debt Coverage Ratio.
 At the end of any Fiscal Quarter, the Debt Coverage Ratio will not be greater than the amount
set forth below for the applicable time set forth below:

     (i) During an Acquisition Period: 5.50 to 1.0

     (ii) Other than an Acquisition Period: 4.75 to 1.0

As used herein, “Debt Coverage Ratio” means the ratio of (a) Consolidated Funded
Indebtedness to (b) Consolidated EBITDA, for the four Fiscal Quarter period (or other period
specified below) most recently ended prior to the date of determination for which financial
statements contemplated by Section 6.2(a) or (b) are available to Borrower; provided, for
purposes of this Section 7.8, if, since the beginning of the four Fiscal Quarter period ending on
the date for which Consolidated EBITDA is determined, any Restricted Person shall have made any
asset disposition or acquisition, shall have consolidated or merged with or into any Person (other
than another Restricted Person), or shall have made any disposition or acquisition of a Restricted
Person or disposition or acquisition of any partial ownership interest in any other Person,
Consolidated EBITDA shall be calculated giving pro forma effect thereto as if the disposition,
acquisition, consolidation or merger had occurred on the first day of such period;
provided, with
respect to any Person not constituting a Subsidiary of Borrower, such pro forma calculation of
Consolidated EBITDA, with respect to any such Person, shall be limited to not more than 75% of (i)
such Restricted Person’s ownership interest in such Person times (ii) the difference of
such Person’s (A) Consolidated EBITDA minus (B) Interest Expense and capital expenditures.
Such pro forma calculations shall be determined (i) in good faith by the chief financial officer of
Borrower, and (ii) without giving effect to any anticipated or proposed change in operations,
revenues, expenses or other items included in the computation of Consolidated EBITDA, except cost
reductions specifically identified at the time of disposition, acquisition, consolidation or merger
that are attributable to personnel reductions, non-recurring maintenance and environmental costs
and allocated corporate overhead; provided further, Consolidated EBITDA may include, at
Borrower’s option, any Material Project EBITDA Adjustments as provided below.

As used herein, “Material Project EBITDA Adjustments” means, with respect to the
construction or expansion of any capital project of Borrower or any of its Consolidated
Subsidiaries (excluding Unrestricted Subsidiaries), the aggregate capital cost of which (inclusive
of capital costs expended prior to the acquisition thereof) is reasonably expected by Borrower to
exceed, or exceeds, $50,000,000 (a “Material Project”):

     (A) prior to the date on which a Material Project has achieved commercial operation
(the “Commercial Operation Date”) (but including the fiscal quarter in which such
Commercial Operation Date occurs), a percentage (based on the then-current completion
percentage of such Material Project) of an amount to be approved by Administrative Agent as
the projected Consolidated EBITDA attributable to such

49

 

Material Project for the first
12-month period following the scheduled Commercial Operation Date of such Material Project
(such amount to be determined based on customer contracts or tariff-based customers relating
to such Material Project, the creditworthiness of the other parties to such contracts or
such tariff-based customers, and projected revenues from such contracts, tariffs, capital
costs and expenses, scheduled Commercial Operation Date, oil and gas reserve and production
estimates, commodity price assumptions and other factors deemed appropriate by
Administrative Agent), which may, at Borrower’s option, be added to actual Consolidated
EBITDA for the fiscal quarter in which construction or expansion of such Material Project
commences and for each fiscal quarter thereafter until the Commercial Operation Date of such
Material Project (including the fiscal quarter in which such Commercial Operation Date
occurs, but net of any actual Consolidated EBITDA attributable to such Material Project
following such Commercial Operation Date); provided that if the actual Commercial
Operation Date does not occur by the scheduled Commercial Operation Date, then the foregoing
amount shall be reduced, for quarters ending after the scheduled Commercial Operation Date
to (but excluding) the first full quarter after its Commercial Operation Date, by the
following percentage amounts depending on the period of delay (based on the period of actual
delay or then-estimated delay, whichever is longer): (i) 90 days or less, 0%, (ii) longer
than 90 days, but not more than 180 days, 25%, (iii) longer than 180 days but not more than
270 days, 50%, (iv) longer than 270 days but not more than 365 days, 75%, and (v) longer
than 365 days, 100%; and

     (B) beginning with the first full fiscal quarter following the Commercial Operation
Date of a Material Project and for the two immediately succeeding fiscal quarters, an amount
equal to the projected Consolidated EBITDA attributable to such Material Project for the
balance of the four full fiscal quarter period following such Commercial Operation Date,
which may, at Borrower’s option, be added to actual Consolidated EBITDA for such fiscal
quarters.

Notwithstanding the foregoing:

     (i) no such Material Project EBITDA Adjustment shall be allowed with respect to any
Material Project unless:

     (a) at least 30 days prior to the last day of the Fiscal Quarter for which
Borrower desires to commence inclusion of such Material Project EBITDA Adjustment in
Consolidated EBITDA with respect to a Material Project for purposes of determining
compliance with this Section 7.8 (the “Initial Quarter”), Borrower shall
have delivered to Administrative Agent written pro forma projections of Consolidated
EBITDA attributable to such Material Project and

     (b) prior to the last day of the Initial Quarter, Administrative Agent shall
have approved (such approval not to be unreasonably withheld) such projections and
shall have received such other information and documentation as Administrative Agent
may reasonably request, all in form and substance satisfactory to Administrative
Agent, and

50

 

     (ii) the aggregate amount of all Material Project EBITDA Adjustments during any period
shall be limited to 15% of the total actual Consolidated EBITDA for such period (which total
actual Consolidated EBITDA shall be determined without including any Material Project EBITDA
Adjustments).

In addition, for purposes of this Section 7.8, Hybrid Securities up to an aggregate principal
amount of 15% of Consolidated Total Capitalization shall be excluded from Consolidated Funded
Indebtedness.

     Section 7.9. Unrestricted Subsidiaries.
 Unrestricted Subsidiaries shall be subject to the following:

     (a) No Unrestricted Subsidiary shall be deemed to be a “Restricted Person” or a “Subsidiary”
of Borrower for purposes of this Agreement or any other Loan Document, and no Unrestricted
Subsidiary shall be subject to or included within the scope of any provision herein or in any other
Loan Document, including without limitation any representation, warranty, covenant or Event of
Default herein or in any other Loan Document, except as set forth in this Section 7.9.

     (b) No Restricted Person shall guarantee or otherwise become liable in respect of any
Indebtedness of, grant any Lien on any of its property to secure any Indebtedness of or other
obligation of, or provide any other form of credit support to, any Unrestricted Subsidiary,
and no Restricted Person shall enter into any contract or agreement with any Unrestricted
Subsidiary, except on terms no less favorable to such Restricted Person, as applicable, than could
be obtained in a comparable arm’s length transaction with a non-Affiliate of such Restricted
Person; provided, Restricted Persons may guarantee trade accounts payable of Unrestricted
Subsidiaries that arise in the ordinary course of business in an amount not to exceed five percent
(5%) of Consolidated Tangible Net Worth.

     (c) Borrower shall at all times maintain, as between Restricted Persons and Unrestricted
Subsidiaries, the separate existence of each Unrestricted Subsidiary.

     (d) Restricted Persons shall notify each Lender Party, not later than five (5) Business Days
after any executive officer of Restricted Persons has knowledge of, any claim, including any claim
under any Environmental Law, or any notice of potential liability under any Environmental Law,
asserted against any Unrestricted Subsidiary or with respect to any Unrestricted Subsidiary’s
properties that would reasonably be expected to result in a Material Adverse Change, stating that
such notice is being given pursuant to this Section 7.9.

     Borrower may designate any Unrestricted Subsidiary to become a Restricted Person if a Default
or Event of Default is not continuing, such designation would not result in a Default or an Event
of Default, and immediately thereafter such Subsidiary has no outstanding Indebtedness.
Immediately thereafter, Borrower shall promptly notify Administrative Agent of such designation and
provide to it an officer’s certificate that such designation was made in compliance with this
Section 7.9.

51

 

     Section 7.10. No Negative Pledges.
 Except as described in the Disclosure Schedule or pursuant to a Restriction Exception, the
substance of which, in detail satisfactory to Administrative Agent, is promptly reported to
Administrative Agent, no Restricted Person will, directly or indirectly, enter into, create, or
consent to be bound to any contract or other consensual restriction that restricts the ability of
any Restricted Person to create or maintain Liens on its assets in favor of Administrative Agent
and Lenders to secure, in whole or part, the Obligations.

ARTICLE VIII.  — Events of Default and Remedies

     Section 8.1. Events of Default.
Each of the following events constitutes an Event of Default under this Agreement:

     (a) Borrower fails to pay the principal component of any Loan made to it when due and payable,
whether at a date for the payment of a fixed installment or as a contingent or other payment
becomes due and payable or as a result of acceleration or otherwise,

     (b) Any Restricted Person fails to pay any Obligation for which it is contractually liable
(other than the Obligations in subsection (a) above) when due and payable, whether at a date for
the payment of a fixed installment or as a contingent or other payment becomes due and
payable or as a result of acceleration or otherwise, within three Business Days after the same
becomes due;

     (c) Any Restricted Person fails to duly observe, perform or comply with any covenant,
agreement or provision of Section 6.4 or Article VII;

     (d) Any Restricted Person fails (other than as referred to in subsections (a), (b) or (c)
above) to duly observe, perform or comply with any of its obligations under any covenant,
agreement, condition or provision of any Loan Document to which it is a party, and such failure
remains unremedied for a period of thirty (30) days after notice of such failure is given by
Administrative Agent to Borrower;

     (e) Any representation or warranty previously, presently or hereafter made in writing by or on
behalf of any Restricted Person in connection with any Loan Document shall prove to have been false
or incorrect in any material respect on any date on or as of which made, or any Loan Document at
any time ceases to be valid, binding and enforceable as warranted in Section 5.5 for any reason
other than its release or subordination by Administrative Agent;

     (f) Any Restricted Person shall default in the payment when due of any principal of or
interest on any of its other Indebtedness, or any net hedging obligations, in excess of the Dollar
Equivalent of $25,000,000 in the aggregate (other than such Indebtedness or hedging obligations the
validity of which is being contested in good faith, by appropriate proceedings (if necessary) and
for which adequate reserves with respect thereto are maintained on the books of such Restricted
Person as required by GAAP), or any event specified in any note, agreement, indenture or other
document evidencing or relating to any such Indebtedness or hedging obligations shall occur for a
period beyond the applicable grace, cure extension, forbearance or

52

 

other similar period, if the
effect of such event is to cause, or (with the giving of any notice or the lapse of time or both)
to permit the holder or holders of such Indebtedness or hedging obligations (or a trustee or agent
on behalf of such holder or holders) to cause, as applicable, such Indebtedness to become due, or
to be prepaid in full (whether by redemption, purchase, offer to purchase or otherwise), prior to
its stated maturity, or an early termination event or similar event to occur and such Restricted
Person’s related net hedging obligations in excess of the Dollar Equivalent of $25,000,000 to
become due and payable;

     (g) Either (i) any “accumulated funding deficiency” (as defined in Section 412(a) of the
Code) in excess of $5,000,000 exists with respect to any ERISA Plan, whether or not waived by the
Secretary of the Treasury or his delegate, or (ii) any Termination Event occurs with respect to any
ERISA Plan and the then current value of such ERISA Plan’s benefit liabilities exceeds the then
current value of such ERISA Plan’s assets available for the payment of such benefit liabilities by
more than $5,000,000 (or in the case of a Termination Event involving the withdrawal of a
substantial employer, the withdrawing employer’s proportionate share of such excess exceeds such
amount);

     (h) GP LLC, General Partner, or any Significant Restricted Person:

          (i) has entered against it a judgment, decree or order for relief by a Governmental Authority
of competent jurisdiction having jurisdiction over it in an involuntary proceeding commenced under
any applicable bankruptcy, insolvency or other similar Law of any jurisdiction now or hereafter in
effect, including the federal Bankruptcy Code, the Bankruptcy and Insolvency Act (Canada) or the
Companies’ Creditors Arrangement Act (Canada), as from time to time amended, or has any such
proceeding commenced against it, in each case, which remains undismissed for a period of sixty
days; or

          (ii) commences a voluntary case under any applicable bankruptcy, insolvency or similar Law now
or hereafter in effect, including the federal Bankruptcy Code, the Bankruptcy and Insolvency Act
(Canada) or the Companies’ Creditors Arrangement Act (Canada), as from time to time amended; or
applies for or consents to the entry of an order for relief in an involuntary case under any such
Law; or makes a general assignment for the benefit of creditors; or is generally unable to pay (or
admits in writing its inability to so pay) its debts as such debts become due; or takes corporate
or other action to authorize any of the foregoing; or

          (iii) has entered against it the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of all or a substantial
part of its assets in a proceeding brought against or initiated by it, and such appointment or
taking possession is neither made ineffective nor discharged within sixty days after the making
thereof, or such appointment or taking possession is at any time consented to, requested by, or
acquiesced to by it; or

     (i) Any Significant Restricted Person:

          (i) has entered against it a final judgment for the payment of money in excess of the Dollar
Equivalent of $25,000,000 (in each case not covered by insurance

53

 

satisfactory to Administrative
Agent in its discretion), unless the same is stayed or discharged within thirty days after the date
of entry thereof (or longer period for which a stay of enforcement is allowed by applicable Law) or
an appeal or appropriate proceeding for review thereof is taken within such period and a stay of
execution pending such appeal is obtained; or

          (ii) suffers a writ or warrant of attachment or any similar process to be issued by any
Governmental Authority having jurisdiction over it against all or any substantial part of its
assets, and such writ or warrant of attachment or any similar process is not stayed or released
within sixty days after the entry or levy thereof (or longer period for which a stay of enforcement
is allowed by applicable Law) or after any stay is vacated or set aside;

     (j) Any Change in Control occurs.

Upon the occurrence of an Event of Default described in subsection (h)(i), (h)(ii) or (h)(iii) of
this section, with respect to Borrower, all of the Obligations shall thereupon be immediately due
and payable, without demand, presentment, notice of demand or of dishonor and nonpayment, protest,
notice of protest, notice of intention to accelerate, declaration or notice of acceleration, or any
other notice or declaration of any kind, all of which are hereby expressly waived by Borrower and
each Restricted Person who at any time ratifies or approves this Agreement. Upon
any such acceleration, any obligation of any Lender to make any further Loans shall be permanently
terminated. During the continuance of any other Event of Default, Administrative Agent at any time
and from time to time may (and upon written instructions from Majority Lenders, Administrative
Agent shall), without notice to Borrower or any other Restricted Person, do either or both of the
following: (1) terminate or suspend any obligation of Lenders to make Loans hereunder, and (2)
declare any or all of the Obligations immediately due and payable, and all such Obligations shall
thereupon be immediately due and payable, without demand, presentment, notice of demand or of
dishonor and nonpayment, protest, notice of protest, notice of intention to accelerate, declaration
or notice of acceleration, or any other notice or declaration of any kind, all of which are hereby
expressly waived by Borrower and each Restricted Person who at any time ratifies or approves this
Agreement.

     Section 8.2. Remedies.
 If any Default shall occur and be continuing, each Lender Party may protect and enforce its
rights under the Loan Documents by any appropriate proceedings, including proceedings for specific
performance of any covenant or agreement contained in any Loan Document, and each Lender Party may
enforce the payment of any Obligations due it or enforce any other legal or equitable right which
it may have. All rights, remedies and powers conferred upon Lender Parties under the Loan
Documents shall be deemed cumulative and not exclusive of any other rights, remedies or powers
available under the Loan Documents or at Law or in equity.

ARTICLE IX.  — Administrative Agent

     Section 9.1. Appointment and Authority.
 Each of the Lenders hereby irrevocably appoints Bank of America, N.A. to act on its behalf as
Administrative Agent hereunder and under the other Loan Documents and authorizes Administrative
Agent to take such actions on its behalf and to exercise such powers as are delegated to
Administrative Agent by the terms hereof

54

 

or thereof, together with such actions and powers as are
reasonably incidental thereto. The provisions of this Article are solely for the benefit of
Administrative Agent and the Lenders, and neither Borrower nor any other Lender Party shall have
rights as a third party beneficiary of any of such provisions (other than the right to reasonably
approve a successor Administrative Agent under Section 9.6 or with respect to application of
payments among Lenders as provided in Section 9.11).

     Section 9.2. Rights as a Lender.
 The Person serving as 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
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated
or unless the context otherwise requires, include the Person serving as Administrative Agent
hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity for and generally
engage in any kind of business with Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

     Section 9.3. Exculpatory Provisions.
 Administrative Agent shall have no duties or obligations except those expressly set forth herein
and in the other Loan Documents. Without limiting the generality of the foregoing, Administrative
Agent:

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

     (b) shall have no duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents
that Administrative Agent is required to exercise as directed in writing by the Majority Lenders
(or such other number or percentage of the Lenders as shall be expressly provided for herein or in
the other Loan Documents), provided that Administrative Agent shall not be required to take
any action that, in its opinion or the opinion of its counsel, may expose Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, nor shall it be liable for the failure to disclose, any information relating to
any of Borrower or any of its Affiliates that is communicated to or obtained by the Person serving
as Administrative Agent or any of its Affiliates in any capacity.

     Administrative Agent shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Majority Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.1 and 8.2) or (ii) in the absence of
its own gross negligence or willful misconduct. Administrative Agent shall not be deemed to have
knowledge of any Default unless and until notice describing such Default is given to Administrative
Agent by Borrower or a Lender.

55

 

     Administrative Agent shall not be responsible for nor have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to Administrative Agent.

     Section 9.4. Reliance by Administrative Agent.
 Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting or other
distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated
by the proper Person. Administrative Agent also may rely upon any statement made to it orally or
by telephone and believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. In determining compliance with any condition hereunder to the
making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender,
Administrative Agent may presume that such condition is satisfactory to such Lender unless
Administrative Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan. Administrative Agent may consult with legal counsel (who may be counsel for
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.

     Section 9.5. Delegation of Duties.
 Administrative Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents appointed by
Administrative Agent. Administrative Agent and any such sub-agent may perform any and all of its
duties and exercise its rights and powers by or through their respective Related Parties. The
exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties
of 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.

     Section 9.6. Resignation of Administrative Agent.
 Administrative Agent may at any time give notice of its resignation to the Lenders and Borrower,
which notice shall set forth the proposed date of resignation. Upon receipt of any such notice of
resignation, the Majority Lenders shall have the right to appoint a successor (subject to the
approval of Borrower, unless a Default has occurred and is continuing, which approval will not be
unreasonably withheld), which shall be a bank with an office in the United States, or an Affiliate
of any such bank with an office in the United States. If no such successor shall have been so
appointed by the Majority 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 meeting the
qualifications set forth above; provided that if Administrative Agent shall notify Borrower
and the Lenders that no

56

 

qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (2) all payments, communications and determinations provided to be made
by, to or through Administrative Agent shall instead be made by or to each Lender directly, until
such time as the Majority Lenders appoint a successor Administrative Agent as provided for above in
this Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all
of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by Borrower to a successor Administrative Agent shall be the
same as those payable to its predecessor unless otherwise agreed between Borrower and such
successor. After the retiring Administrative Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article and Section 10.4 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

     Section 9.7. Non-Reliance on Administrative Agent and Other Lenders.
 Each Lender acknowledges that it has, independently and without reliance upon Administrative
Agent or any other Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

     Section 9.8. No Other Duties, Etc.
Anything herein to the contrary notwithstanding, neither Administrative Agent, Co-Syndication
Agents nor the Co-Documentation Agents listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as Administrative Agent or a Lender hereunder.

     Section 9.9. Guaranty Matters.
 The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion, to
release any Guarantor from its obligations under the Guaranty if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder or as otherwise expressly provided in
any Loan Document.

     Upon request by Administrative Agent at any time, the Majority Lenders will confirm in writing
Administrative Agent’s authority to release any Guarantor from its obligations under the Guaranty
pursuant to this Section 9.9.

     Section 9.10. Indemnification.
 Each Lender agrees to indemnify Administrative Agent (to the extent not reimbursed by Borrower
within ten (10) days after demand) from and against

57

 

such Lender’s Percentage Share of any and all
liabilities, obligations, claims, losses, damages, penalties, fines, actions, judgments, suits,
settlements, costs, expenses or disbursements (including reasonable fees of attorneys, accountants,
experts and advisors) of any kind or nature whatsoever (in this section collectively
called “liabilities and costs”) which to any extent (in whole or in part) may be imposed on,
incurred by, or asserted against Administrative Agent growing out of, resulting from or in any
other way associated with the Loan Documents and the transactions and events (including the
enforcement thereof) at any time associated therewith or contemplated therein and Borrower’s use of
loan proceeds (whether arising in contract or in tort or otherwise and including any violation or
noncompliance with any Environmental Laws by any Person or any liabilities or duties of any Person
with respect to Hazardous Materials found in or released into the environment).

The foregoing indemnification shall apply whether or not such liabilities and costs are in any
way or to any extent owed, in whole or in part, under any claim or theory of strict liability or
caused, in whole or in part, by any negligent act or omission of any kind by Administrative
Agent, provided only that no Lender shall be obligated under this section to indemnify
Administrative Agent for that portion, if any, of any liabilities and costs which is proximately
caused by Administrative Agent’s own individual gross negligence or willful misconduct, as
determined in a final judgment. Cumulative of the foregoing, each Lender agrees to reimburse
Administrative Agent promptly upon demand for such Lender’s Percentage Share of any costs and
expenses to be paid to Administrative Agent by Borrower under Section 10.4(a) to the extent that
Administrative Agent is not timely reimbursed for such expenses by such Persons as provided in such
section. As used in this section the term “Administrative Agent” shall refer not only to the
Persons designated as such in Section 1.1 but also to each director, officer, agent, attorney,
employee, representative and Affiliate of such Person.

     Section 9.11. Sharing of Set-Offs and Other Payments.
 Each Lender Party agrees that if it shall, whether through the exercise of rights of banker’s
lien, set off, or counterclaim against Borrower or otherwise, obtain payment of a portion of the
aggregate Obligations owed to it which, taking into account all distributions made by
Administrative Agent under Section 3.1, causes such Lender Party to have received more than it
would have received had such payment been received by Administrative Agent and distributed pursuant
to Section 3.1, then (a) it shall be deemed to have simultaneously purchased and shall be obligated
to purchase interests in the Obligations as necessary to cause all Lender Parties to share all
payments as provided for in Section 3.1, and (b) such other adjustments shall be made from time to
time as shall be equitable to ensure that Administrative Agent and all Lender Parties share all
payments of Obligations as provided in Section 3.1; provided, however, and for the avoidance of
doubt, that nothing herein contained shall in any way affect the right of any Lender Party to
obtain payment (whether by exercise of rights of banker’s lien, set-off or counterclaim or
otherwise) of indebtedness other than the Obligations. Borrower expressly consents to the
foregoing arrangements, subject to Section 10.11. If all or any part of any funds transferred
pursuant to this section is thereafter recovered from the seller under this section which received
the same, the purchase provided for in this section shall be deemed to have been rescinded to the
extent of such recovery, together with interest, if any, if interest is required pursuant to the
order of a Governmental Authority to be paid on account of the possession of such funds prior to
such recovery.

58

 

     Section 9.12. Investments.
 Whenever Administrative Agent in good faith determines that it is uncertain about how to
distribute to Lender Parties any funds which it has received, or whenever Administrative Agent in
good faith determines that there is any dispute among Lender Parties about how such funds should be
distributed, Administrative Agent may choose to defer distribution of the funds which are the
subject of such uncertainty or dispute. If Administrative Agent in good faith believes that the
uncertainty or dispute will not be promptly resolved, or if Administrative Agent is otherwise
required to invest funds pending distribution to Lender Parties, Administrative Agent shall invest
such funds pending distribution; all interest on any such Investment shall be distributed upon the
distribution of such Investment and in the same proportion and to the same Persons as such
Investment. All moneys received by Administrative Agent for distribution to Lender Parties (other
than to the Person who is Administrative Agent in its separate capacity as a Lender Party) shall be
held by Administrative Agent pending such distribution solely as Administrative Agent for such
Lender Parties, and Administrative Agent shall have no equitable title to any portion thereof.

ARTICLE X.  — Miscellaneous

     Section 10.1. Waivers and Amendments; Acknowledgments.

     (a) Waivers and Amendments. No failure or delay (whether by course of conduct or
otherwise) by any Lender in exercising any right, power or remedy which such Lender Party may have
under any of the Loan Documents shall operate as a waiver thereof or of any other right, power or
remedy, nor shall any single or partial exercise by any Lender Party of any such right, power or
remedy preclude any other or further exercise thereof or of any other right, power or remedy. No
waiver of any provision of any Loan Document and no consent to any departure therefrom shall ever
be effective unless it is in writing and signed as provided below in this section, and then such
waiver or consent shall be effective only in the specific instances and for the purposes for which
given and to the extent specified in such writing. This Agreement and the other Loan Documents set
forth the entire understanding between the parties hereto with respect to the transactions
contemplated herein and therein and supersede all prior discussions and understandings with respect
to the subject matter hereof and thereof, and no amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by Borrower or any other
Restricted Person therefrom, shall be effective unless in writing signed by the Majority Lenders
and Borrower or the applicable Restricted Person, as the case may be, and acknowledged by
Administrative Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall:

          (i) waive any condition set forth in Section 4.1 without the written consent of each Lender
(provided Administrative Agent may in its discretion withdraw any request it has made under Section
4.1(i) to the extent such request does not pertain to an item expressly covered by any other
subsection of Section 4.1);

          (ii) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.1) without the written consent of such Lender;

59

 

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

          (iv) reduce the principal of, or the rate of interest specified herein on, any Loan or
(subject to clause (iii) of the proviso at the end of this Section 10.1) any fees or other amounts
payable hereunder or under any other Loan Document, or change the manner of computation of any
financial ratio (including any change in any applicable defined term) used in determining the
Applicable Margin that would result in a reduction of any interest rate on any Loan or any fee
payable hereunder without the written consent of each Lender directly affected thereby;
provided, however, and for the avoidance of doubt, that only the consent of the
Majority Lenders shall be necessary (A) to amend the definition of “Default Rate” or to waive any
obligation of Borrower to pay interest at the Default Rate or (B) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such amendment would be to
reduce the rate of interest on any Loan or to reduce any fee payable hereunder;

          (v) change Section 9.11 or Section 8.2 in a manner that would alter the pro rata sharing of
payments required thereby or any other provision hereof that affects the pro rata treatment of
Lenders without the written consent of each Lender; or

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

          (vii) except as expressly provided herein or in any other Loan Document, release (A) Borrower
from its obligation to pay such Lender’s Note, (B) any Guarantor from its guaranty of such payment
or (C) any Restricted Person from the negative pledge covenant set forth in Section 7.10 hereof.

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by Administrative Agent, in addition to the Lenders required above, affect the
rights or duties of Administrative Agent under this Agreement or any other Loan Document; and (ii)
the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed
only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent hereunder or any
other Loan Document, nor shall a Defaulting Lender’s vote or status as a Lender be required in
determining majority, unanimity or other condition or effect of any vote, except that the
Commitment of such Lender may not be increased or extended without the consent of such Lender.

     (b) Acknowledgments and Admissions. Borrower hereby represents, warrants,
acknowledges and admits that (i) it has been advised by counsel in the negotiation, execution and
delivery of the Loan Documents to which it is a party, (ii) no Lender Party has any fiduciary
obligation toward Borrower with respect to any Loan Document or the transactions contemplated

60

 

thereby, (iii) the relationship pursuant to the Loan Documents between Borrower and the other
Restricted Persons, on one hand, and each Lender Party, on the other hand, is and shall be solely
that of debtor and creditor, respectively, and (iv) no partnership or joint venture exists with
respect to the Loan Documents between any Restricted Person and any Lender Party.

     (c) Representation by Lenders. Each Lender hereby represents that it will acquire its
Notes for its own account in the ordinary course of its commercial lending or investing business;
however, the disposition of such Lender’s property shall at all times be and remain within its
control and, in particular and without limitation, such Lender may sell or otherwise transfer its
Note, any participation interest or other interest in its Note, or any of its other rights and
obligations under the Loan Documents subject to compliance with Section 10.5 and applicable Law.

     (d) Joint Acknowledgment. This written Agreement and the other Loan Documents
represent the final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties.

     There are no unwritten oral agreements between the parties.

     (e) Joint and Several Liability. All Obligations which are incurred by two or more
Restricted Persons shall be their joint and several obligations and liabilities of such Restricted
Persons.

     (f) No Recourse to Other Persons. No past, present or future director, officer,
partner, employee, incorporator, manager, stockholder, unitholder or member of Borrower, General
Partner or GP LLC, and no past, present or future director, officer, partner, employee,
incorporator, manager, stockholder, unitholder or member of Borrower or any Guarantor who, in each
such case, is a natural person, shall have any liability for any Obligations or for any claim based
on, in respect of, or by reason of, the Obligations or their creation. Each Lender Party waives
and releases all such liability. The waiver and release are part of the consideration for the
making of the Notes.

     Section 10.2. Survival of Representations, Warranties and Agreements; Cumulative
Nature.
 All of Restricted Persons’ various representations, warranties, covenants and agreements in the
Loan Documents shall survive the execution and delivery of this Agreement and the other Loan
Documents and the performance hereof and thereof, including the making or granting of the Loans
and the delivery of the Notes and the other Loan Documents, and shall further survive until all of
the Obligations are paid in full to each Lender Party and all of Lender Parties’ obligations to
Borrower are terminated. Such representations and warranties have been or will be relied upon by
Administrative Agent and each Lender, regardless of any investigation made
by Administrative Agent or any Lender or on their behalf and notwithstanding that Administrative
Agent or any Lender may have had notice or knowledge of any Default at the time of any credit
extension hereunder. The rights, powers, and privileges granted to Lender Parties in the Loan
Documents, are cumulative, and, except for expressly specified waivers and

61

 

consents, no Loan
Document shall be construed in the context of another to diminish, nullify, or otherwise reduce the
benefit to any Lender Party of any such right, power or privilege.

     Section 10.3. Notices; Effectiveness; Electronic Communication.

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

          (i) if to Borrower or Administrative Agent, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 10.3; and

          (ii) if to any other Lender, to the address, telecopier number, electronic mail address or
telephone number specified in its Administrative Questionnaire if it has been delivered to the
party sending such notice or communication; otherwise to such address reasonably believed to be
correct by the sending party.

     Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when received (except that, if not given during normal business hours for the
recipient, shall be deemed to have been received at the opening of business on the next business
day for the recipient), with confirmation of the transmittal of any such telecopied notice
evidencing receipt thereof. Notices delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such subsection (b).

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

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

62

 

intranet website shall be deemed received upon the deemed receipt by the intended
recipient at its e-mail address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address therefor.

     (c) Change of Address, Etc. Each of Borrower and Administrative Agent may change its
address, telecopier, e-mail address or telephone number for notices and other communications
hereunder by notice to the other parties hereto. Each other Lender may change its address,
telecopier, e-mail address or telephone number for notices and other communications hereunder by
notice to Borrower and Administrative Agent.

     (d) Reliance by Administrative Agent and Lenders. The Lender Parties shall be
entitled to rely and act upon any notices each of them reasonably believes is purportedly given by
or on behalf of Borrower even if (i) such notices were not made in a manner specified herein, were
incomplete or were not preceded or followed by any other form of notice specified herein, or (ii)
the terms thereof, as understood by the recipient, varied from any confirmation thereof. Borrower
shall indemnify the Lender Parties from all losses, costs, expenses and liabilities resulting from
the reliance by such Person on each notice it reasonably believes is purportedly given by or on
behalf of Borrower, as provided in Section 10.4(b). All telephonic notices to and other telephonic
communications with Administrative Agent may be recorded by Administrative Agent, and each of the
parties hereto hereby consents to such recording.

     Section 10.4. Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent), in connection with the
preparation, negotiation, execution, delivery and administration of this Agreement and the other
Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all
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 (A) in connection with this Agreement and the
other Loan Documents, including its rights under this Section, or (B) in connection with the Loans
made hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans; provided that neither a Defaulting Bank nor
any Related Party of a Defaulting Lender will be paid or reimbursed for its costs and expenses
related to the replacement of such Defaulting Bank.

     (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof) and each Lender (each such Person being called an “Indemnitee”)
against any and all liabilities, obligations, claims, losses, damages, penalties, fines, actions,
judgments, suits, settlements, costs, expenses or disbursements
(including reasonable fees of attorneys, accountants, experts and advisors) of any kind or
nature whatsoever (in this section collectively called “liabilities and costs”) which to any extent
(in whole or in part) may be imposed on, incurred by, or asserted against such Lender Party growing
out of, resulting from or in any other way associated with the Loan Documents and the

63

 

transactions
and events (including the enforcement or defense thereof) at any time associated therewith or
contemplated therein and the Borrower’s use of Loan proceeds (whether arising in contract or in
tort or otherwise and including any violation or noncompliance with any Environmental Laws by any
Indemnitee or any other Person or any liabilities or duties of any Indemnitee or any other Person
with respect to Hazardous Materials found in or released into the environment). In the case of an
investigation, litigation or proceeding to which the indemnity in this Section 10.04 applies, such
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought
by the Borrower, any of its equity holders, Affiliates or creditors or an Indemnitee or any third
party and whether or not an Indemnitee is otherwise a party thereto.

     (c) THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND COSTS ARE IN
ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY
OR CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNITEE,
provided only that no Indemnitee shall be entitled under this section to receive indemnification
for that portion, if any, of any liabilities and costs which (i) is proximately caused by its own
(A) individual gross negligence or willful misconduct, as determined by a court of competent
jurisdiction in a final judgment, or (B) material breach of any of its obligations hereunder or
under any other Loan Documents, as determined by a court of competent jurisdiction in a final
judgment or (ii) arises by reason of a claim (A) by any one or more Indemnitees against any one or
more other Indemnitees or (B) by an equity-interest owner of any Indemnitee against any one or more
Indemnitees, so long as in either such case, such claim is not proximately caused solely by the
breach hereunder or under any other Loan Document by the Borrower or its Affiliates. In addition,
neither a Defaulting Lender nor any Related Party of a Defaulting Lender will be indemnified
against liabilities and costs related to the replacement of such Defaulting Lender. If any Person
(including the Borrower or any of its Affiliates) ever alleges gross negligence or willful
misconduct pursuant to the preceding clause (i)(A) (but, for the avoidance of doubt, not with
respect to an allegation of a material breach pursuant to the preceding clause (i)(B)) by any
Indemnitee, the indemnification provided for in this section shall nonetheless be paid upon demand,
subject to later adjustment or reimbursement, until such time as a court of competent jurisdiction
enters a final judgment as to the extent and effect of the alleged gross negligence or willful
misconduct. As used in this Section 10.4, the term “Indemnitee” shall refer not only to each
Person expressly designated as an Indemnitee in Section 10.4(b), but also to each director,
officer, trustee, agent, attorney, employee, representative and Affiliate of such Persons. So long
as no Default has occurred and is continuing and the Borrower is financially solvent, no Indemnitee
may settle any claim to be indemnified without the consent of the Borrower, such consent not to be
unreasonably withheld; provided that the Borrower may not reasonably withhold consent to any
settlement that an Indemnitee proposes, if the Borrower does not have the financial ability to pay
all its obligations outstanding and asserted against the Borrower at that time, including the
maximum potential claims against the Indemnitee to be indemnified pursuant to this Section 10.04.

     (d) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof) or any applicable Related Party of any

64

 

of
the foregoing, without affecting the Borrower’s payment obligations with respect thereto, each
Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related
Party, as the case may be, such Lender’s Percentage Share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) in its capacity as such, or against any Related Party of any of the foregoing acting for
the Administrative Agent (or any such sub-agent) in connection with such capacity. The obligations
of the Lenders under this subsection (d) shall be several, as provided in the second next to last
sentence of Section 2.2 with respect to the several obligations of Lenders to make Loans.

     (e) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no party hereto or Related Party of any party hereto shall assert, and hereby
waives, any claim against each other party hereto and its Related Parties (including, as
applicable, each Indemnitee), on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds
thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other
than as a result of such Indemnitee’s gross negligence, willful misconduct or material breach of
any of its obligations under any Loan Document.

     (f) Interest. Each Borrower hereby promises to pay to each Lender Party interest at
the Default Rate on all obligations to pay fees or to reimburse or indemnify any Lender Party which
such Borrower has promised to pay to such Lender Party pursuant to this Section 10.4 and which are
not paid when due. Such interest shall accrue from the date such Obligations become due until they
are paid.

     (g) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor and the Borrower’s receipt of reasonably detailed invoices or
statements related thereto.

     (h) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the replacement of any Lender, the termination of the Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

     Section 10.5. Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that neither Borrower nor any other Restricted Person may assign
or otherwise transfer any of its rights or obligations hereunder without the prior written

65

 

consent
of Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the
provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) of this Section (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated hereby, the Affiliates of
Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that:

          (i) except (A) in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitments, if any, and the Loans at the time owing to it, or (B) in the case of an
assignment to a Lender and the assigning Lender retains a Commitment of $5,000,000, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the
Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000, unless Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be unreasonably withheld or
delayed);

          (ii) each partial assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the
Commitment assigned;

          (iii) any assignment of a Commitment must be approved by Administrative Agent unless the
Person that is the proposed assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and

          (iv) the parties to each assignment shall execute and deliver to Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee payable by such assignor
Lender (and not at Borrower’s expense) of $3,500, and the Eligible Assignee, if it shall not be a
Lender, shall deliver to Administrative Agent an Administrative Questionnaire.

Subject to acceptance and recording thereof by Administrative Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the

66

 

interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.2, 3.3, 3.7 and 3.8 and Section 10.4 with respect to facts
and circumstances occurring prior to the effective date of such assignment. Upon request, Borrower
(at its expense) shall execute and deliver a Note to the assignee Lender against receipt by
Borrower of the canceled original Note of the assignor, if its entire Commitment was assigned, or
evidence that such assignor’s Note is marked to reflect its reduction.. Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this subsection
shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

     Each Eligible Assignee of a Lender which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for Federal income tax purposes, must (to the extent it
has not already done so) provide Administrative Agent and Borrower with the “Prescribed Forms”
referred to in Section 3.8(d).

     (c) Register. Administrative Agent, acting solely for this purpose as an agent of
Borrower, shall maintain at its Applicable Lending Office a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amounts of the Loans 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 Borrower, Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof, and its
correspondingly recorded Commitment, as a Lender hereunder owning such Commitment for all purposes
of this Agreement, notwithstanding notice to the contrary. The Register shall be available for
inspection by Borrower at any reasonable time and from time to time upon reasonable prior notice.
In addition, at any time (i) requested by Borrower or (ii) that a request for a consent for a
material or substantive change to the Loan Documents is pending, Borrower or any Lender wishing to
consult with other Lenders in connection therewith, as applicable, may request and receive from
Administrative Agent a copy of the Register.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
Borrower or Administrative Agent, sell participations to any Person (other than a natural person or
Borrower or any of Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of the Obligations owing to such Lender and such Lender’s rights related thereto and such
Lender’s obligations under this Agreement (including all or a portion of its Commitment and/or the
Obligations 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) Borrower, Administrative Agent
and the 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

67

 

amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.1 that directly affects such Participant. Subject to subsection (e) of this Section,
Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.2, 3.3, 3.7
and 3.8 and the obligations imposed by such Sections, and shall be subject to replacement pursuant
to Section 3.9, to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.11 as though it were a Lender,
provided such Participant agrees to be subject to Section 9.11 as though it were a Lender.

     (e) Limitation upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Sections 3.2 through 3.8 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with Borrower’s prior written consent, which
consent sets forth an express waiver of the limitation on Sections 3.2 through 3.8 which are set
forth in this subsection.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Notes, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute (or, except as to the Federal Reserve Bank,
permit the substitution of) any such pledgee or assignee for such Lender as a party hereto, and all
costs, fees and expenses related to any such pledge shall be for the sole account of such Lender.

     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

     (h) Lost Notes. Upon receipt of an affidavit reasonably satisfactory to Borrower of
an officer of any Lender as to the loss, theft, destruction or mutilation of its Note which is not
of public record, and, in the case of any such loss, theft, destruction or mutilation, upon
cancellation of such Note, Borrower will execute and deliver, in lieu thereof, a replacement Note
in the principal amount of such Lender’s then Commitment or if no Commitment is in effect, the
outstanding principal amount owed to such Lender and otherwise of like tenor.

     Section 10.6. Treatment of Certain Information; Confidentiality.
 Each of Administrative Agent and the Lenders (for itself and each of its Affiliates, and its and
their Related Parties) agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’

68

 

respective partners, directors, officers, employees, agents, advisors and
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential and will agree to maintain such confidences), (b) to the extent requested or required
by applicable laws or regulations or by any subpoena or similar legal process, (c) subject to this
Section 10.6, to any other party hereto, (d) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or in connection with any Default or anticipated Default, the
enforcement of rights hereunder or thereunder, (e) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to, and requested by, Borrower and its obligations, (f) with the consent of Borrower, or
(g) to the extent such Information becomes publicly available other than as a result of a breach of
this Section, or becomes available to Administrative Agent, any Lender, or any of their respective
Affiliates on a nonconfidential basis from a source other than Borrower.

     For purposes of this Section, “Information” means all information received from any of
Borrower or any Subsidiary relating to any of Borrower or any Subsidiary, or any Affiliate of any
of them, or any of their respective businesses, other than any such information that is available
to Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any of
Borrower or any Subsidiary, provided that, in the case of information received from any of
Borrower or any Subsidiary after the date hereof, such information is clearly identified at the
time of delivery as confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied with its obligation to
do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

     Section 10.7. Governing Law; Submission to Process.
Except to the extent that the Law of another jurisdiction is expressly elected in a Loan
Document, the Loan Documents shall be deemed contracts and instruments made under the Laws of the
State of New York and shall be construed and enforced in accordance with and governed by the Laws
of the State of New York and the Laws of the United States of America, without regard to principles
of conflicts of law. Borrower hereby agrees that any legal action or proceeding against Borrower
with respect to this Agreement, the Notes or any of the Loan Documents may be brought in the courts
of the State of New York or of the United States of America for the Southern District of New York
as Lender Parties may elect, and, by execution and delivery hereof, Borrower accepts and consents
for itself and in respect to its property, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts. Borrower agrees that
Sections 5-1401 and 5-1402 of the General Obligations Law of the State of New York shall apply to
the Loan Documents and waives any right to stay or to dismiss any action or proceeding brought
before said courts on the basis of forum non conveniens. In furtherance of the foregoing, Borrower
hereby irrevocably designates and appoints Corporation Service Company, 80 State Street, Albany,
New York 12207,

69

 

as agent of Borrower to receive service of all process brought against Borrower
with respect to any such proceeding in any such court in New York, such service being hereby
acknowledged by Borrower to be effective and binding service in every respect. Copies of any such
process so served shall also, if permitted by Law, be sent by registered mail to Borrower at its
address set forth below, but the failure of Borrower to receive such copies shall not affect in any
way the service of such process as aforesaid. Borrower shall furnish to Lender Parties a consent
of Corporation Service Company agreeing to act hereunder prior to the effective date of this
agreement. Nothing herein shall affect the right of Lender Parties to serve process in any other
manner permitted by Law or shall limit the right of Lender Parties to bring proceedings against
Borrower in the courts of any other jurisdiction. If for any reason Corporation Service Company
shall resign or otherwise cease to act as Borrower’s agent, Borrower hereby irrevocably agrees to
(a) immediately designate and appoint a new agent acceptable to Administrative Agent to serve in
such capacity and, in such event, such new agent shall be deemed to be substituted for Corporation
Service Company for all purposes hereof and (b) promptly deliver to Administrative Agent the
written consent (in form and substance satisfactory to Administrative Agent) of such new agent
agreeing to serve in such capacity.

     Section 10.8. Limitation on Interest.
Lender Parties, Restricted Persons and any other parties to the Loan Documents intend to
contract in strict compliance with applicable usury Law from time to time in effect. In
furtherance thereof such Persons stipulate and agree that none of the terms and provisions
contained in the Loan Documents shall ever be construed to create a contract to pay, for the use,
forbearance or detention of money, interest in excess of the maximum amount of interest permitted
to be contracted for, charged, or received by applicable Law from time to time in effect. Neither
any Restricted Person nor any present or future guarantors, endorsers, or other Persons hereafter
becoming liable for payment of any Obligation shall ever be liable for unearned interest thereon or
shall ever be required to pay interest thereon in excess of the maximum amount that may be lawfully
contracted for, charged, or received under applicable Law from time to time in effect, and the
provisions of this section shall control over all other provisions of the Loan Documents which may
be in conflict or apparent conflict herewith. Lender Parties expressly disavow any intention to
contract for, charge, or receive excessive unearned interest or finance charges in the event the
maturity of any Obligation is accelerated. If (a) the maturity of any Obligation is accelerated
for any reason, (b) any Obligation is prepaid and as a result any amounts held to constitute
interest are determined to be in excess of the legal maximum, or (c) any Lender or any other holder
of any or all of the Obligations shall otherwise
collect moneys which are determined to constitute interest which would otherwise increase the
interest on any or all of the Obligations to an amount in excess of that permitted to be contracted
for, charged or received by applicable Law then in effect, then all sums determined to constitute
interest in excess of such legal limit shall, without penalty, be promptly applied to reduce the
then outstanding principal of the related Obligations or, at such Lender’s or holder’s option,
promptly returned to Borrower or other payor thereof upon such determination. In determining
whether or not the interest paid or payable, under any specific circumstance, exceeds the maximum
amount permitted under applicable Law, Lender Parties and Restricted Persons (and any other payors
thereof) shall to the greatest extent permitted under

70

 

applicable Law, (i) characterize any
non-principal payment as an expense, fee or premium rather than as interest, (ii) exclude voluntary
prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread the total
amount of interest throughout the entire contemplated term of the instruments evidencing the
Obligations in accordance with the amounts outstanding from time to time thereunder and the maximum
legal rate of interest from time to time in effect under applicable Law in order to lawfully charge
the maximum amount of interest permitted under applicable Law. In the event applicable Law
provides for an interest ceiling under Chapter 303 of the Texas Finance Code (the “Texas
Finance Code”) as amended, to the extent that the Texas Finance Code is mandatorily applicable
to any Lender, for that day, the ceiling shall be the “weekly ceiling” as defined in the Texas
Finance Code, provided that if any applicable Law permits greater interest, the Law permitting the
greatest interest shall apply. In no event shall Chapter 346 of the Texas Finance Code apply to
this Agreement or any other Loan Document, or any transactions or loan arrangement provided or
contemplated hereby or thereby.

     Section 10.9. Right of Offset.
 At any time and from time to time during the continuance of any Event of Default, each Lender is
hereby authorized to offset against the Obligations then due and payable (without notice to any
Restricted Person), (a) any and all moneys, securities or other property (and the proceeds
therefrom) of such Restricted Person now or hereafter held or received by or in transit to any
Lender or its Affiliates from or for the account of such Restricted Person, whether for
safekeeping, custody, pledge, transmission, collection or otherwise, (b) any and all deposits
(general or special, time or demand, provisional or final) of such Restricted Person with any
Lender or its Affiliates, and (c) any other credits and claims of such Restricted Person at any
time existing against any Lender, including claims under certificates of deposit.

     Section 10.10. Termination; Limited Survival; Payments Set Aside.
 In its sole and absolute discretion Borrower may at any time that no Obligations are owing or
outstanding elect in a written notice delivered to Administrative Agent to terminate this
Agreement. Upon receipt by Administrative Agent of such a notice, if no Obligations are then owing
or outstanding this Agreement and all other Loan Documents shall thereupon be terminated and the
parties thereto released from all prospective obligations thereunder. Notwithstanding the
foregoing or anything herein to the contrary, any waivers or admissions made by any Restricted
Person in any Loan Document, any Obligations under Sections 3.2 through 3.6, and any obligations
which any Person may have to indemnify or compensate any Lender Party shall survive any termination
of this Agreement or any other Loan Document. At
the request and expense of Borrower, Administrative Agent shall prepare and execute all necessary
instruments to reflect and effect such termination of the Loan Documents. Administrative Agent is
hereby authorized to execute all such instruments on behalf of all Lenders, without the joinder of
or further action by any Lender.

     To the extent that any payment by or on behalf of Borrower is made to Administrative Agent or
any Lender, or Administrative Agent or any Lender exercises its right of setoff, and such payment
or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver
or any other party, in connection with any proceeding under any debtor relief Law or otherwise,
then (a) to the extent of such recovery, the obligation or part thereof originally

71

 

intended to be
satisfied shall be revived and continued in full force and effect as if such payment had not been
made or such setoff had not occurred, and (b) each Lender severally agrees to pay to Administrative
Agent upon demand its applicable share (without duplication) of any amount so recovered from or
repaid by Administrative Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect, in
the applicable currency of such recovery or payment. The obligations of the Lenders under clause
(b) of the preceding sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

     Section 10.11. Severability.
 If any term or provision of any Loan Document shall be determined to be illegal or unenforceable
all other terms and provisions of the Loan Documents shall nevertheless remain effective and shall
be enforced to the fullest extent permitted by applicable Law.

     Section 10.12. Counterparts.
 This Agreement may be separately executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to constitute one
and the same Agreement.

     Section 10.13. Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY 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 ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON 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 AND
THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     Section 10.14. No Advisory or Fiduciary Responsibility.
 In connection with all aspects of each transaction contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Loan Document), Borrower
acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (a) (i) the
arranging and other services regarding this Agreement provided by the Administrative Agent and the
Lenders are arm’s-length commercial transactions between Borrower and its Affiliates, on the one
hand, and the Administrative Agent and the Lenders, on the other hand, (ii) Borrower has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and
(iii) Borrower is capable of evaluating, and understands and accepts, the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan Documents; (b) (i) the
Administrative Agent is and has been acting solely as a principal and, except as expressly agreed
in writing by the relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for Borrower or any of its Affiliates, or any other Person and (ii) neither the

72

 

Administrative Agent nor any Lender has any obligation to Borrower or any of its Affiliates with
respect to the transactions contemplated hereby except those obligations expressly set forth herein
and in the other Loan Documents; and (c) the Administrative Agent, the Lenders and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of Borrower and its Affiliates, and neither the Administrative Agent nor any Lender has any
obligation to disclose any of such interests to Borrower or its Affiliates. To the fullest extent
permitted by law, Borrower hereby waives and releases any claims that it may have against the
Administrative Agent with respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby.

     Section 10.15. Electronic Execution of Assignments and Certain Other Documents.
 The words “execution,” “signed,” “signature,” and words of like import in any Assignment and
Assumption or in any amendment or other modification hereof (including waivers and consents) shall
be deemed to include electronic signatures or the keeping of records in electronic form, each of
which shall be of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and
as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

     Section 10.16. USA PATRIOT Act Notice.
 Each Lender that is subject to the Act (as hereinafter defined) and Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law November 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies Borrower,
which information includes the name and address of Borrower and other information
that will allow such Lender or Administrative Agent, as applicable, to identify Borrower in
accordance with the Act. Borrower shall, promptly following a request by Administrative Agent or
any Lender, provide all documentation and other information that Administrative Agent or such
Lender requests in order to comply with its ongoing obligations under applicable “know your
customer” and anti-money laundering rules and regulations, including the Act.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

73

 

     IN WITNESS WHEREOF, this Agreement is executed as of the date first written above.

	 	 	 	 	 
	BORROWER:  	PLAINS ALL AMERICAN PIPELINE, L.P.

 	 
	 	By:  	PAA GP LLC, its general partner
 	 
	 	 	 
	 	By: 	PLAINS AAP, L.P., its sole member 	 
	 	 	 
	 	By: 	PLAINS ALL AMERICAN GP LLC,
its general partner 	 
	 
	 	 	 
	 	By:  	/s/
Charles Kingswell-Smith
 	 
	 	 	Charles Kingswell-Smith 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 

	Address for Borrower and Guarantors:

	 	333 Clay Street, Suite 1600
	 

	 	Houston, Texas 77002
	 

	 	Attention: Charles Kingswell-Smith
	 

	 	Telephone: (713) 993-5318
	 

	 	Fax: (713) 646-4564
	 

	 	Website: www.paalp.com

74

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

Administrative Agent

 	 
	 	By:  	/s/
Bridgett J. Manduk
 	 
	 	 	Name:  	Bridgett J. Manduk 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	BANK OF AMERICA, N.A., a Lender

 	 
	 	By:  	/s/
Christen A. Lacey
 	 
	 	 	Name:  	Christen A. Lacey 	 
	 	 	Title:  	Senior Vice President 	 

75

 

	 	 	 	 	 

	 	 	 	 	 
	 	DNB NOR BANK ASA, a Lender

 	 
	 	By:  	/s/
Barbara Gronquist
 	 
	 	 	Name:  	Barbara Gronquist 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/
Henrik Asland
 	 
	 	 	Name:  	Henrik Asland 	 
	 	 	Title:  	Senior Vice President 	 

76

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK NA, a Lender

 	 
	 	By:  	/s/
Jeanie C. Gonzalez
 	 
	 	 	Name:  	Jeanie C. Gonzalez 	 
	 	 	Title:  	Authorized Officer 	 

77

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUNTRUST BANK, a Lender

 	 
	 	By:  	/s/
Keith A. Cox
 	 
	 	 	Name:  	Keith A. Cox 	 
	 	 	Title:  	Managing Director 	 

78

 

	 	 	 	 	 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, a Lender

 	 
	 	By:  	/s/
Charles W. Randall
 	 
	 	 	Name:  	Charles W. Randall 	 
	 	 	Title:  	Managing Director 	 
	 

79

 

SCHEDULE I

COMMITMENT FEES AND APPLICABLE MARGIN

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable	 	Applicable Margin	 	Applicable Margin	 	Commitment
	Rating Level	 	Base Rate Loans	 	Eurodollar Loans	 	Fee Rate
	Level I
	 	 	0.25	%	 	 	1.25	%	 	 	0.15	%
	Level II
	 	 	0.50	%	 	 	1.50	%	 	 	0.20	%
	Level III
	 	 	0.75	%	 	 	1.75	%	 	 	0.25	%
	Level IV
	 	 	1.00	%	 	 	2.00	%	 	 	0.30	%
	Level V
	 	 	1.25	%	 	 	2.25	%	 	 	0.40	%

 

 

SCHEDULE II

COMMITMENTS AND PERCENTAGE SHARES

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	Percentage Share
	Bank of America, N.A.
	 	$	100,000,000	 	 	 	20	%
	DnB NOR Bank ASA
	 	$	100,000,000	 	 	 	20	%
	JPMorgan Chase Bank NA
	 	$	100,000,000	 	 	 	20	%
	SunTrust Bank
	 	$	100,000,000	 	 	 	20	%
	Wells Fargo Bank, National Association
	 	$	100,000,000	 	 	 	20	%
	 
	TOTALS
	 	$	500,000,000	 	 	 	100	%

 

 

SCHEDULE III

DISCLOSURE SCHEDULE

364-Day Credit Agreement

     To supplement the Agreement of which this Schedule is a part, Plains All American Pipeline,
L.P. (“PAALP”) hereby makes the following disclosures. Capitalized terms used and which are not
otherwise defined herein shall have the meanings ascribed thereto in the Agreement.

Section 5.4 No Conflicts or Consents.

     N/A

Section 5.7 Other Obligations and Restrictions.

     N/A

Section 5.9 Litigation.

     N/A

Section 5.10 ERISA Plans and Liabilities.

     N/A

Section 5.11 Compliance with Permits, Consents and Law.

     N/A

Section 5.12 Environmental Laws.

     N/A

Section 5.13 Borrower’s Subsidiaries.

     PAALP’s Subsidiaries and Stockholdings:

Plains Marketing GP Inc.

Plains Marketing, L.P.

Plains Pipeline, L.P.

PAA Finance Corp.

PMC (Nova Scotia) Company

Plains Midstream Canada ULC

Plains Southcap LLC

Picsco LLC

Plains LPG Services GP LLC

Plains Products Terminals LLC

1

 

Rancho LPG Holdings LLC

Plains Midstream Luxembourg S.a.r.L

PAA Luxembourg S.a.r.L

Plains Pipeline — North Dakota LLC

Plains Marketing — North Dakota Inc.

CDM Max, LLC

Pacific Energy GP, LP

Pacific Energy Management LLC

Pacific Pipeline System LLC

Plains West Coast Terminals LLC

Plains Marketing Bondholder LLC

SLC Pipeline LLC

Southcap Pipeline Company

Plains Marketing Canada LLC

Plains LPG Services, L.P.

Lone Star Trucking, LLC

Pacific Energy Group LLC

Aurora Pipeline Company Ltd.

Pacific L.A. Marine Terminal LLC

Rocky Mountain Pipeline System LLC

Plains Midstream, L.P.

Plains Midstream GP LLC

[4,000 shares of Butte Pipe Line Company]

[1.3 million shares of Wellpoint Systems Inc. held by Plains Midstream Canada ULC]

Additional Stockholdings:

Member interest in PAA/Vulcan Gas Storage, LLC —

50% by PAALP, 50% by Plains Marketing

50% Member Interest by Plains Marketing in Settoon Towing, LLC

Section 7.7 Restricted Contracts.

     N/A

Section 7.10 No Negative Pledges.

     N/A

2

 

SCHEDULE 10.3

ADDRESSES FOR NOTICES

BORROWER:

333 Clay Street, Suite 1600

Houston, Texas 77002

Attention: Charles Kingswell-Smith

Telephone: (713) 993-5318

Fax: (713) 646-4564

U.S. Taxpayer Identification Number: 76-0582150

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Loans):

Bank of America, N.A.

Street Address: 2001 Clayton Road, Bldg. B

Mail Code: CA4-702-02-25

City, State ZIP Code: Concord, CA 94520-2405

Attention: Anthony Salvador

Telephone: 925-675-8101

Telecopier: 415-343-9245

Electronic Mail: anthony.salvador@baml.com

Account No.: 375083649

Ref: Plains All American Pipeline — 364-Day

ABA# 026009593

Other Notices as Administrative Agent:

Bank of America, N.A.

Agency Management

Street Address: 1455 Market Street, 5th Floor

Mail Code: CA5-701-05-19

City, State ZIP Code: San Francisco, CA 94103

Attention: Bridgett J. Manduk

Telephone: 415-436-1097

Telecopier: 415-503-5011

Electronic Mail: bridgett.manduk@baml.com

3

 

EXHIBIT A

NOTE

					
	 	 	 	 	 
	$_______________
	 	_____, _____
	 	________, 201__

     FOR VALUE RECEIVED, the undersigned, Plains All American Pipeline, L.P., a Delaware limited
partnership (herein called “Borrower”), hereby promises to pay to the order of ____________________
(herein called “Lender”), the principal sum of ________________ ($______________), or, if greater
or less, the aggregate unpaid principal amount of the Loans made under this Note by Lender to
Borrower pursuant to the terms of the Credit Agreement (as hereinafter defined), together with
interest on the unpaid principal balance thereof as hereinafter set forth, both principal and
interest payable as herein provided in lawful money of the United States of America at the offices
of Administrative Agent under the Credit Agreement, as from time to time may be designated by the
holder of this Note.

     This Note (a) is issued and delivered under that certain 364-Day Credit Agreement dated
January 3, 2011 among Borrower, Bank of America, N.A., as Administrative Agent, and the lenders
(including Lender) referred to therein (herein, as from time to time supplemented, amended or
restated, called the “Credit Agreement”), and is a “Note” as defined therein, (b) is subject to the
terms and provisions of the Credit Agreement, which contains provisions for payments and
prepayments hereunder and acceleration of the maturity hereof upon the happening of certain stated
events, and (c) is guaranteed by and entitled to the benefits of certain guaranties (as identified
in the Credit Agreement). Payments on this Note shall be made and applied as provided herein and
in the Credit Agreement. Reference is hereby made to the Credit Agreement for a description of
certain rights, limitations of rights, obligations and duties of the parties hereto and for the
meanings assigned to terms used and not defined herein and to the guaranties for a description of
the nature and extent of the guarantee thereby provided and the rights of the parties thereto.

     The principal amount of this Note shall bear interest and shall be due and payable from time
to time as provided in the Credit Agreement with the remaining unpaid principal balance of this
Note being due and payable in full on or before the Maturity Date. Accrued and unpaid interest
hereon shall be due and payable on each Interest Payment Date as provided in the Credit Agreement
and on the Maturity Date.

     Notwithstanding the foregoing paragraph and all other provisions of this Note, in no event
shall the interest payable hereon, whether before or after maturity, exceed the maximum interest
which, under applicable Law, may be charged on this Note, and this Note is expressly made subject
to the provisions of the Credit Agreement which more fully set out the limitations on how interest
accrues hereon.

     If this Note is placed in the hands of an attorney for collection after default, or if all or
any part of the indebtedness represented hereby is proved, established or collected in any court or
in any bankruptcy, receivership, debtor relief, probate or other court proceedings, Borrower and
all endorsers, sureties and guarantors of this Note jointly and severally agree to pay reasonable
attorneys’ fees and collection costs to the holder hereof in addition to the principal and interest
payable hereunder.

4

 

     Borrower and all endorsers, sureties and guarantors of this Note hereby severally waive
demand, presentment, notice of demand and of dishonor and nonpayment of this Note, protest, notice
of protest, notice of intention to accelerate the maturity of this Note, declaration or notice of
acceleration of the maturity of this Note, diligence in collecting, the bringing of any suit
against any party and any notice of or defense on account of any extensions, renewals, partial
payments or changes in any manner of or in this Note or in any of its terms, provisions and
covenants, or any releases or substitutions of any security, or any delay, indulgence or other act
of any trustee or any holder hereof, whether before or after maturity.

     This Note and the rights and duties of the parties hereto shall be governed by the
Laws of the State of New York (without regard to principles of conflicts of law), except to the
extent the same are governed by applicable federal Law.

	 	 	 	 	 
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

By:  PAA GP LLC, its general partner

By:  PLAINS AAP, L.P., its sole member

By:  PLAINS ALL AMERICAN GP LLC,

        its general partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 

5

 

EXHIBIT B

BORROWING NOTICE

     Reference is made to that certain 364-Day Credit Agreement dated as of January 3, 2011 (as
from time to time amended, the “Agreement”), by and among Plains All American Pipeline, L.P.
(“Borrower”), Bank of America, N.A., as Administrative Agent, and certain financial institutions
(“Lenders”). Terms which are defined in the Agreement are used herein with the meanings given them
in the Agreement. Pursuant to the terms of the Agreement, Borrower hereby requests Lenders to make
Loans to Borrower in the aggregate principal amount of $__________ and specifies ____________,
____, as the date Borrower desires for Lenders to make such Loans and for Administrative Agent to
deliver to Borrower the proceeds thereof.

Type of Loan: [Eurodollar Loans] [Base Rate Loans]

Length of Interest Rate for Eurodollar Loan

     (1, 2, 3, 6 or 12 months, or number of days < 30): __________

     To induce Lenders to make such Loans, Borrower hereby represents, warrants, acknowledges, and
agrees to and with Administrative Agent and each Lender that:

     (a) The officer[s] or authorized agent[s] of GP LLC signing this instrument [is/are]
the duly elected, qualified and acting officer[s] or authorized agent[s] of GP LLC as
indicated below each such officer’s or authorized agent’s signature hereto having all
necessary authority to act for the Borrower.

     (b) The representations and warranties of each Restricted Person set forth in the
Agreement and the other Loan Documents are true and correct on and as of the date hereof
(except to the extent that such representation or warranty was made as of a specific date,
or updated, modified or supplemented as of a subsequent date with the consent of Majority
Lenders, then in each such case, such other date), with the same effect as though such
representations and warranties had been made on and as of the date hereof.

     (c) There does not exist on the date hereof any condition or event which constitutes a
Default which has not been waived in writing as provided in Section 10.1(a) of the
Agreement; nor will any such Default exist upon receipt and application of the Loans
requested hereby. Borrower will use the Loans hereby requested in compliance with Section
2.4 of the Agreement.

     (d) The Total Outstanding Amount, after the making of the Loans requested hereby, will
not be in excess of the Total Committed Amount on the date requested for the making of such
Loans.

     (e) The Loan Documents have not been modified, amended or supplemented by any
Restricted Person pursuant to any unwritten representations or promises, by any course of
dealing, or by any other means not provided for in Section 10.1(a) of the Agreement. The
Agreement and the other Loan Documents are hereby ratified, approved, and confirmed in all
respects.

1

 

     Each of the officer[s] or authorized agent[s] of GP LLC signing this instrument hereby
certifies that, to the best of his knowledge after due inquiry, the above representations,
warranties, acknowledgments, and agreements of General Partner and Borrower are true, correct and
complete in all material respects.

     IN WITNESS WHEREOF, this instrument is executed as of ____________, ___.

	 	 	 	 	 
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

By:  PAA GP LLC, its general partner

By:  PLAINS AAP, L.P., its sole member

By:  PLAINS ALL AMERICAN GP LLC,

        its general partner

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

2

 

	 	 	 	 	 

EXHIBIT C

CONTINUATION/CONVERSION NOTICE

     Reference is made to that certain 364-Day Credit Agreement dated as of January 3, 2011 (as
from time to time amended, the “Agreement”), by and among Plains All American Pipeline, L.P.
(“Borrower”), Bank of America, N.A., as Administrative Agent, and certain financial institutions
(“Lenders”). Terms which are defined in the Agreement are used herein with the meanings given them
in the Agreement.

     Borrower hereby requests a conversion or continuation of existing Loans into a new Borrowing
pursuant to Section 2.3 of the Agreement as follows:

     Existing Borrowing(s) of Loans to be Continued or Converted:

     $______________ of Eurodollar Loans with Interest Period ending ________________

     $______________ of Base Rate Loans

			
	 	 	 
	     Aggregate amount of new Borrowing:

     Type of Loans in new Borrowing:

     Date of Continuation or Conversion:

     Length of Interest Period for Eurodollar Loans

     (1, 2, 3, 6 or 12 months or number of days < 30):
	 	$__________________

__________________

__________________

___________

     Borrower hereby represents, warrants, acknowledges, and agrees to and with each Lender that:

     (a) The officer or authorized agent of GP LLC signing this instrument is the duly
elected, qualified and acting officer or authorized agent of GP LLC as indicated below such
officer’s or authorized agent’s signature hereto having all necessary authority to act for
the Borrower.

     (b) There does not exist on the date hereof any condition or event which constitutes a
Default which has not been waived in writing as provided in Section 10.1(a) of the
Agreement; nor will any such Default exist upon receipt and application of the Loans
requested hereby.

     (c) The Loan Documents have not been modified, amended or supplemented by any
Restricted Person pursuant to any unwritten representations or promises, by any course of
dealing, or by any other means not provided for in Section 10.1(a) of the Agreement. The
Agreement and the other Loan Documents are hereby ratified, approved, and confirmed in all
respects.

     The officer or authorized agent of GP LLC signing this instrument hereby certifies that, to
the best of his knowledge after due inquiry, the above representations, warranties,
acknowledgments, and agreements of Borrower are true, correct and complete in all material
respects.

1

 

     IN WITNESS WHEREOF, this instrument is executed as of ____________, ____.

	 	 	 	 	 
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

By:  PAA GP LLC, its general partner

By:  PLAINS AAP, L.P., its sole member

By:  PLAINS ALL AMERICAN GP LLC,

        its general partner

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

2

 

EXHIBIT D

CERTIFICATE ACCOMPANYING FINANCIAL STATEMENTS

     Reference is made to that certain 364-Day Credit Agreement dated as of January 3, 2011 (as
from time to time amended, the “Agreement”), by and among Plains All American Pipeline, L.P.
(“Borrower”), Bank of America, N.A., as Administrative Agent, and certain financial institutions
(“Lenders”). Terms which are defined in the Agreement are used herein with the meanings given them
in the Agreement.

     This Certificate is furnished pursuant to Section 6.2(b) of the Agreement. Pursuant to
Section 6.2, Borrower has furnished to Administrative Agent and each Lender Borrower’s
[audited/unaudited] financial statements (the “Financial Statements”) for the [fiscal year/fiscal
quarter] of Borrower ended ____________ (the “Reporting Date”). Borrower hereby represents,
warrants, and acknowledges to Administrative Agent and each Lender that:

     (a) the officer of GP LLC signing this instrument is the duly elected, qualified and
acting ____________ of GP LLC and as such is GP LLC’s [chief financial officer/principal
accounting officer/treasurer];

     (b) the Financial Statements are accurate and complete in all material respects
[(subject, in the case of such unaudited financial statements, to normal year end
adjustments)] and satisfy the requirements of the Agreement;

     (c) attached hereto is a schedule of calculations showing Borrower’s compliance [or
non-compliance] as of the Reporting Date with the requirement of Section 7.8 of the
Agreement [and Borrower’s non-compliance as of such date with the requirements of Section(s)
____________ of the Agreement];

     (d) no Default existed on the Reporting Date or otherwise exists on the date of this
instrument [except for Default(s) under Section(s) ____________ of the Agreement, which
[is/are] more fully described on a schedule attached hereto].

     The officer of GP LLC signing this instrument hereby certifies that he/she has reviewed the
Loan Documents and the Financial Statements and has otherwise undertaken such inquiry as is in
his/her opinion necessary to enable him/her to express an informed opinion with respect to the
above representations, warranties and acknowledgments of Borrower and, to the best of his/her
knowledge, such representations, warranties, and acknowledgments are true, correct and complete in
all material respects.

1

 

IN WITNESS WHEREOF, this instrument is executed as of
____________, 201__.

	 	 	 	 	 
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

 	 
	 	By:  	PAA GP LLC, its general partner
 	 
	 
	 	By: 	                          PLAINS AAP, L.P., its sole member 	 
	 
	 	By: 	                          PLAINS ALL AMERICAN GP LLC,
its general partner 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

2

 

	 	 	 	 	 

EXHIBIT E-1

OPINION OF IN-HOUSE COUNSEL TO RESTRICTED PERSONS

3

 

EXHIBIT E-2

OPINION OF FULBRIGHT & JAWORSKI L.L.P., COUNSEL TO RESTRICTED PERSONS

4

 

EXHIBIT E-3

OPINION OF BENNETT JONES LLP, CANADIAN COUNSEL TO RESTRICTED PERSONS

5

 

EXHIBIT F

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “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 (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 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 (including, without limitation, the Letters of Credit
included in such facilities) 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,
but not limited to, 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]]
	 
	3.	 	Borrower: Plains All American Pipeline, L.P.
	 
	4.	 	Administrative Agent: Bank of America, N.A., as the administrative agent under the
Credit Agreement
	 
	5.	 	Credit Agreement: 364-Day Credit Agreement, dated as of January 3, 2011, among Plains
All American Pipeline, L.P., the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent.

1

 

	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Percentage	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Assigned of	 	 
	Facility Assigned	 	for all Lenders*	 	Assigned*	 	Commitment/Loans	 	CUSIP Number
	 
	 	$	                    	 	 	$	                    	 	 	 	                    	% 	 	 	 	 
	 
	 	$	                    	 	 	$	                    	 	 	 	                    	% 	 	 	 	 
	 
	 	$	                    	 	 	$	                    	 	 	 	                    	% 	 	 	 	 

	 	 	[7. Trade Date: __________________]

Effective Date: __________________, 201__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

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

	 	 	 	 	 
	 	[NAME OF ASSIGNOR], as Assignor

 	 
	 	By:  	
 	 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Dated:                     , 201___

[NAME OF ASSIGNEE], as Assignee

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

Domestic Lending Office:

Eurodollar Lending Office:

 

			
	*	 	This date should be no earlier than five Business Days after the delivery of this Assignment
and Acceptance to Administrative Agent.

Accepted this ___ day of ___________, 201___

	 	 	 	 	 	 	 	 	 

	BANK OF AMERICA, N.A.

	 	 	 	 
	By:

	 	 
	 	By:
	 	 
	 	 
	 

	 	Title:
	 	 	 	Title:]
	 	 

2

 

[Approved this _____ day of _______________, 201___

	 	 	 	 	 
	PLAINS ALL AMERICAN PIPELINE, L.P.

 	 	 
	By:  	PAA GP LLC, its general partner
 	 	 
	 
	By: 	                             PLAINS AAP, L.P., its sole member 	 	 
	 
	By: 	                             PLAINS ALL AMERICAN GP LLC,
its general partner 	 	 
	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

3

 

	 	 	 	 	 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

PLAINS ALL AMERICAN PIPELINE, L.P.

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 or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents 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 any Loan Document 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 any
Loan Document.

     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 meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (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 6.2 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 hereto is any
documentation required to be delivered by it pursuant to the terms 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 Loan Documents, and (ii) it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents 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

4

 

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 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.

5exv10w1

EXECUTION VERSION

 

 

REVOLVING CREDIT AGREEMENT

dated as of January 3, 2011

among

STRAYER EDUCATION, INC.,

as Borrower

THE LENDERS FROM TIME TO TIME PARTY HERETO

and

SUNTRUST BANK

as Administrative Agent

 

 

SUNTRUST ROBINSON HUMPHREY, INC.,

as Arranger and Book Manager

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS; CONSTRUCTION	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1.

	 	Definitions
	 	 	1	 
	Section 1.2.

	 	Classifications of Loans and Borrowings
	 	 	24	 
	Section 1.3.

	 	Accounting Terms and Determination
	 	 	24	 
	Section 1.4.

	 	Terms Generally
	 	 	24	 
	Section 1.5.

	 	Letter of Credit Amounts
	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE 2 AMOUNT AND TERMS OF THE COMMITMENTS	 	 	25	 
	 
	 	 	 	 	 	 
	Section 2.1.

	 	General Description of Facilities
	 	 	25	 
	Section 2.2.

	 	Revolving Loans
	 	 	25	 
	Section 2.3.

	 	Procedure for Revolving Borrowings
	 	 	25	 
	Section 2.4.

	 	Swingline Commitment
	 	 	26	 
	Section 2.5.

	 	Reserved
	 	 	28	 
	Section 2.6.

	 	Reserved
	 	 	28	 
	Section 2.7.

	 	Funding of Borrowings
	 	 	28	 
	Section 2.8.

	 	Interest Elections
	 	 	28	 
	Section 2.9.

	 	Optional Reduction and Termination of Commitments
	 	 	30	 
	Section 2.10.

	 	Repayment of Loans
	 	 	30	 
	Section 2.11.

	 	Evidence of Indebtedness
	 	 	31	 
	Section 2.12.

	 	Optional Prepayments
	 	 	31	 
	Section 2.13.

	 	Mandatory Prepayments
	 	 	32	 
	Section 2.14.

	 	Interest on Loans
	 	 	33	 
	Section 2.15.

	 	Fees
	 	 	34	 
	Section 2.16.

	 	Computation of Interest and Fees
	 	 	35	 
	Section 2.17.

	 	Inability to Determine Interest Rates
	 	 	35	 
	Section 2.18.

	 	Illegality
	 	 	36	 
	Section 2.19.

	 	Increased Costs
	 	 	36	 
	Section 2.20.

	 	Funding Indemnity
	 	 	37	 
	Section 2.21.

	 	Taxes
	 	 	38	 
	Section 2.22.

	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	39	 
	Section 2.23.

	 	Letters of Credit
	 	 	41	 
	Section 2.24.

	 	Intentionally Deleted
	 	 	46	 
	Section 2.25.

	 	Mitigation of Obligations
	 	 	46	 
	Section 2.26.

	 	Replacement of Lenders
	 	 	46	 
	Section 2.27.

	 	Defaulting Lender
	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE 3 CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT	 	 	48	 
	 
	 	 	 	 	 	 
	Section 3.1.

	 	Conditions To Effectiveness
	 	 	48	 
	Section 3.2.

	 	Each Credit Event
	 	 	50	 
	Section 3.3.

	 	Delivery of Documents
	 	 	51	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES	 	 	51	 
	 
	 	 	 	 	 	 
	Section 4.1.

	 	Existence; Power
	 	 	51	 
	Section 4.2.

	 	Organizational Power; Authorization
	 	 	52	 
	Section 4.3.

	 	Governmental Approvals; No Conflicts
	 	 	52	 
	Section 4.4.

	 	Financial Statements
	 	 	52	 
	Section 4.5.

	 	Litigation and Environmental Matters
	 	 	52	 
	Section 4.6.

	 	Compliance with Laws and Agreements
	 	 	53	 
	Section 4.7.

	 	Investment Company Act, Etc.
	 	 	53	 
	Section 4.8.

	 	Taxes
	 	 	53	 
	Section 4.9.

	 	Margin Regulations
	 	 	53	 
	Section 4.10.

	 	ERISA
	 	 	53	 
	Section 4.11.

	 	Ownership of Property
	 	 	54	 
	Section 4 12.

	 	Disclosure
	 	 	54	 
	Section 4.13.

	 	Labor Relations
	 	 	55	 
	Section 4.14.

	 	Subsidiaries
	 	 	55	 
	Section 4.15.

	 	Insolvency
	 	 	55	 
	Section 4 16.

	 	Reserved
	 	 	55	 
	Section 4.17.

	 	OFAC
	 	 	55	 
	Section 4.18.

	 	Patriot Act
	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE 5 AFFIRMATIVE COVENANTS	 	 	56	 
	 
	 	 	 	 	 	 
	Section 5.1.

	 	Financial Statements and Other Information
	 	 	56	 
	Section 5.2.

	 	Notices of Material Events
	 	 	57	 
	Section 5.3.

	 	Existence; Conduct of Business
	 	 	58	 
	Section 5.4.

	 	Compliance with Laws, Etc; Maintenance of Licenses and Accreditations
	 	 	58	 
	Section 5.5.

	 	Payment of Obligations
	 	 	58	 
	Section 5.6.

	 	Books and Records
	 	 	58	 
	Section 5.7.

	 	Visitation, Inspection, Etc.
	 	 	58	 
	Section 5.8.

	 	Maintenance of Properties; Insurance
	 	 	59	 
	Section 5.9.

	 	Use of Proceeds and Letters of Credit
	 	 	59	 
	Section 5.10.

	 	Intentionally Deleted
	 	 	59	 
	Section 5.11.

	 	Additional Subsidiaries
	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE 6 FINANCIAL COVENANTS	 	 	60	 
	 
	 	 	 	 	 	 
	Section 6.1.

	 	Minimum EBITDA
	 	 	60	 
	Section 6.2.

	 	Interest Coverage Ratio
	 	 	60	 
	Section 6.3.

	 	Unrestricted Liquidity
	 	 	60	 
	Section 6.4.

	 	Minimum Consolidated Tangible Net Worth
	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE 7 NEGATIVE COVENANTS	 	 	60	 
	 
	 	 	 	 	 	 
	Section 7.1.

	 	Indebtedness and Preferred Stock
	 	 	60	 
	Section 7.2.

	 	Negative Pledge
	 	 	61	 
	Section 7.3.

	 	Fundamental Changes
	 	 	62	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 7.4.

	 	Investments, Loans, Etc.
	 	 	63	 
	Section 7.5.

	 	Restricted Payments
	 	 	64	 
	Section 7.6.

	 	Sale of Assets
	 	 	64	 
	Section 7.7.

	 	Transactions with Affiliates
	 	 	65	 
	Section 7.8.

	 	Restrictive Agreements
	 	 	65	 
	Section 7.9.

	 	Sale and Leaseback Transactions
	 	 	66	 
	Section 7.10.

	 	Hedging Transactions
	 	 	66	 
	Section 7.11.

	 	Amendment to Material Documents
	 	 	66	 
	Section 7.12.

	 	Intentionally Deleted
	 	 	66	 
	Section 7.13.

	 	Accounting Changes
	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE 8 EVENTS OF DEFAULT	 	 	66	 
	 
	 	 	 	 	 	 
	Section 8.1.

	 	Events of Default
	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE 9 THE ADMINISTRATIVE AGENT	 	 	69	 
	 
	 	 	 	 	 	 
	Section 9.1.

	 	Appointment of Administrative Agent
	 	 	69	 
	Section 9.2.

	 	Nature of Duties of Administrative Agent
	 	 	70	 
	Section 9.3.

	 	Lack of Reliance on the Administrative Agent
	 	 	70	 
	Section 9.4.

	 	Certain Rights of the Administrative Agent
	 	 	70	 
	Section 9.5.

	 	Reliance by Administrative Agent
	 	 	71	 
	Section 9.6.

	 	The Administrative Agent in its Individual Capacity
	 	 	71	 
	Section 9.7.

	 	Successor Administrative Agent
	 	 	71	 
	Section 9.8.

	 	Authorization to Execute other Loan Documents
	 	 	72	 
	Section 9.9.

	 	Benefits of Article 9
	 	 	73	 
	Section 9.10.

	 	Titled Agents
	 	 	73	 
	 
	 	 	 	 	 	 
	ARTICLE 10 MISCELLANEOUS	 	 	73	 
	 
	 	 	 	 	 	 
	Section 10.1.

	 	Notices
	 	 	73	 
	Section 10.2.

	 	Waiver; Amendments
	 	 	75	 
	Section 10.3.

	 	Expenses; Indemnification
	 	 	76	 
	Section 10.4.

	 	Successors and Assigns
	 	 	78	 
	Section 10.5.

	 	Governing Law; Jurisdiction; Consent to Service of Process
	 	 	81	 
	Section 10.6.

	 	WAIVER OF JURY TRIAL
	 	 	82	 
	Section 10.7.

	 	Right of Setoff
	 	 	82	 
	Section 10.8.

	 	Counterparts; Integration
	 	 	84	 
	Section 10.9.

	 	Survival
	 	 	84	 
	Section 10.10.

	 	Severability
	 	 	84	 
	Section 10.11.

	 	Confidentiality
	 	 	84	 
	Section 10.12.

	 	Interest Rate Limitation
	 	 	85	 
	Section 10.13.

	 	Waiver of Effect of Corporate Seal
	 	 	85	 
	Section 10.14.

	 	Patriot Act
	 	 	85	 
	Section 10.15.

	 	Publicity
	 	 	85	 

iii

 

	 	 	 	 	 

	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule I
	 	—	 	Applicable Margin and Applicable Percentage
	Schedule II
	 	—	 	Commitment Amounts
	Schedule 4.5
	 	—	 	Environmental Matters
	Schedule 4.14
	 	—	 	Subsidiaries
	Schedule 7.1
	 	—	 	Outstanding Indebtedness
	Schedule 7.2
	 	—	 	Existing Liens
	Schedule 7.4
	 	—	 	Existing Investments
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A
	 	—	 	Form of Revolving Credit Note
	Exhibit B
	 	—	 	Reserved
	Exhibit C
	 	—	 	Reserved
	Exhibit D
	 	—	 	Form of Swingline Note
	Exhibit E
	 	—	 	Form of Assignment and Assumption
	Exhibit F
	 	—	 	Form of Subsidiary Guaranty Agreement
	 
	Exhibit 2.3
	 	—	 	Form of Notice of Revolving Borrowing
	Exhibit 2.4
	 	—	 	Form of Notice of Swingline Borrowing
	Exhibit 2.8
	 	—	 	Form of Notice of Conversion/Continuation
	Exhibit 5.l(d)
	 	—	 	Form of Compliance Certificate

iv

 

REVOLVING CREDIT AGREEMENT

     THIS REVOLVING CREDIT AGREEMENT (this “Agreement”) is made and entered
into as of January 3, 2011, by and among STRAYER EDUCATION, INC., a Maryland
corporation (the “Borrower”), the several banks and other financial institutions
and lenders from
time to time party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as
administrative agent for the Lenders (the “Administrative Agent”), as issuing bank
(the “Issuing
Bank”) and as swingline lender (the “Swingline Lender”).

WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish a $100,000,000
revolving credit facility in favor of the Borrower;

     WHEREAS, subject to the terms and conditions of this Agreement, the Lenders, the
Issuing Bank and the Swingline Lender to the extent of their respective Commitments as
defined
herein, are willing severally to establish the requested revolving credit facility, letter
of credit
subfacility and the swingline subfacility in favor of the Borrower.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the Borrower, the Lenders, the Administrative Agent, the Issuing Bank and the
Swingline Lender agree as follows:

ARTICLE 1

DEFINITIONS; CONSTRUCTION

     Section 1.1. Definitions. In addition to the other terms defined herein, the
following
terms used herein shall have the meanings herein specified (to be equally applicable to
both the
singular and plural forms of the terms defined):

     “Adjusted LIBO Rate” shall mean, with respect to each Interest Period for a
Eurodollar
Borrowing, the rate per annum obtained by dividing (i) LIBOR for such Interest Period by
(ii) a
percentage equal to 1.00 minus the Eurodollar Reserve Percentage.

     “Administrative Questionnaire” shall mean, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent and
submitted to
the Administrative Agent duly completed by such Lender.

     “Affiliate” shall mean, as to any Person, any other Person that directly, or
indirectly
through one or more intermediaries, Controls, is Controlled by, or is under common Control
with, such Person. For the purposes of this definition, “Control” shall mean the power,
directly
or indirectly, either to (i) vote 5% or more of the securities having ordinary voting
power for the
election of directors (or persons performing similar functions) of a Person or (ii) direct
or cause
the direction of the management and policies of a Person, whether through the ability to
exercise
voting power, by control or otherwise. The terms “Controlling”, “Controlled by”, and
“under
common Control with” have the meanings correlative thereto.

 

 

     “Aggregate Revolving Commitment Amount” shall mean the aggregate principal amount
of the Aggregate Revolving Commitments from time to time. On the Closing Date, the Aggregate
Revolving Commitment Amount equals $100,000,000.

     “Aggregate Revolving Commitments” shall mean, collectively, all
Revolving Commitments of all Lenders at any time outstanding.

     “Applicable Lending Office” shall mean, for each Lender and for each Type of Loan,
the “Lending Office” of such Lender (or an Affiliate of such Lender) designated for such Type
of Loan in the Administrative Questionnaire submitted by such Lender or such other office of
such Lender (or an Affiliate of such Lender) as such Lender may from time to time specify to
the Administrative Agent and the Borrower as the office by which its Loans of such Type are to
be made and maintained.

     “Applicable Margin” shall mean, as of any date, with respect to interest on all
Loans outstanding on any date, or the letter of credit fee, as the case may be, a percentage
per annum determined by reference to the applicable Leverage Ratio from time to time in effect
as set forth on Schedule I; provided, that a change in the Applicable Margin
resulting from a change in the Leverage Ratio shall be effective on the second Business Day
after which the Borrower delivers the financial statements required by Section 5.1(a)
or (b) and the Compliance Certificate required by Section 5.1(d); provided,
further, that if at any time the Borrower shall have failed to deliver such financial
statements and such Compliance Certificate when so required, the Applicable Margin shall be at
Level III as set forth on Schedule I until such time as such financial statements and
Compliance Certificate are delivered, at which time the Applicable Margin shall be determined
as provided above; and provided, further, that in the event that any financial
statement delivered pursuant to Section 5.1(a) or (b) or any Compliance Certificate
delivered pursuant to Section 5.1(d) is shown to be inaccurate (regardless of whether
this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such
inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for
any period (an “Applicable Margin Period”) than the Applicable Margin applied for such
Applicable Margin Period, and only in such case, then the Borrower shall immediately (i)
deliver to the Administrative Agent a corrected Compliance Certificate for such Applicable
Margin Period, (ii) determine the Applicable Margin for such Applicable Margin Period based
upon the corrected Compliance Certificate, and (iii) immediately pay to the Administrative
Agent the accrued additional interest owing as a result of such increased Applicable Margin for
such Applicable Margin Period, which payment shall be promptly applied by the Administrative
Agent in accordance with Section 2.22. The provisions of this definition are in
addition to rights of the Administrative Agent and Lenders with respect to Section
2.14(c) and Article 8 and other of their respective rights under this Agreement.
Notwithstanding the foregoing, the Applicable Margin from the Closing Date until the financial
statements and Compliance Certificate for the Fiscal Quarter ending December 31, 2010, are
required to be delivered shall be at Level I as set forth on Schedule I.

     “Applicable Percentage” shall mean, as of any date, with respect to the commitment
fee as of any date, the percentage per annum determined by reference to the applicable Leverage
Ratio in effect on such date as set forth on Schedule I; provided, that a
change in the Applicable Percentage resulting from a change in the Leverage Ratio shall be
effective on the second

2

 

Business Day after which the Borrower delivers the financial statements required by Section
5.1(a) or (b) and the Compliance Certificate required by Section 5.1(d); provided
further, that if at any time the Borrower shall have failed to deliver such financial
statements and such Compliance Certificate, the Applicable Percentage shall be at Level III as set
forth on Schedule I until such time as such financial statements and Compliance
Certificate are delivered, at which time the Applicable Percentage shall be determined as provided
above; and provided, further, that in the event that any financial statement
delivered pursuant to Section 5.1(a) or (b) or any Compliance Certificate delivered
pursuant to Section 5.1(d) is shown to be inaccurate (regardless of whether this Agreement
or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if
corrected, would have led to the application of a higher Applicable Percentage for any period (an
“Applicable Percentage Period”) than the Applicable Percentage applied for such Applicable
Percentage Period, and only in such case, then the Borrower shall immediately (i) deliver to the
Administrative Agent a corrected Compliance Certificate for such Applicable Percentage Period,
(ii) determine the Applicable Percentage for such Applicable Percentage Period based upon the
corrected Compliance Certificate, and (iii) immediately pay to the Administrative Agent the
accrued additional commitment fees owing as a result of such increased Applicable Percentage for
such Applicable Percentage Period, which payment shall be promptly applied by the Administrative
Agent in accordance with Section 2.22. For purposes of calculating the Applicable
Percentage only, the Loans shall be deemed used to the extent of the then outstanding Revolving
Loans plus the sum of (x) the aggregate undrawn amount of all outstanding Letters of
Credit plus (y) the aggregate amount of all unreimbursed LC Disbursements. The provisions
of this definition are in addition to rights of the Administrative Agent and Lenders with respect
to Section 2.14(c) and Article 8 and other of their respective rights under this
Agreement. Notwithstanding the foregoing, the Applicable Percentage for the commitment fee from
the Closing Date until the financial statements and Compliance Certificate for the Fiscal Quarter
ending December 31, 2010, are required to be delivered shall be at Level I as set forth on
Schedule I.

     “Approved Fund” shall mean any Person (other than a natural Person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business and that is administered or managed by
(i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that
administers or manages a Lender.

     “Arranger” shall mean SunTrust Robinson Humphrey, Inc.

     “Assignment and Assumption” shall mean an Assignment and Assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
10.4(b)) and accepted by the Administrative Agent, in the form of Exhibit E attached
hereto or any other form approved by the Administrative Agent.

     “Availability Period” shall mean the period from the Closing Date to the Revolving
Commitment Termination Date.

     “Balance Sheet Date” shall have the meaning set forth in Section 4.4.

3

 

     “Base Rate” shall mean the highest of (i) the per annum rate which the Administrative
Agent publicly announces from time to time to be its prime lending rate, as in effect from time to
time, (ii) the Federal Funds Rate, as in effect from time to time, plus one-half of one percent
(0.50%) or (iii) the one-month Index Rate. The Administrative Agent’s prime lending rate is a
reference rate and does not necessarily represent the lowest or best rate charged to customers. The
Administrative Agent may make commercial loans or other loans at rates of interest at, above or
below the Administrative Agent’s prime lending rate. Each change in the Administrative Agent’s
prime lending rate shall be effective from and including the date such change is publicly announced
as being effective.

     “Borrowing” shall mean a borrowing consisting of (i) Loans of the same Class and
Type, made, converted or continued on the same date and in the case of Eurodollar Loans, as to
which a single Interest Period is in effect, or (ii) a Swingline Loan.

     “Business Day” shall mean (i) any day other than a Saturday, Sunday or other day on
which commercial banks in Richmond, Virginia are authorized or required by law to close and (ii) if
such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a
conversion of or into, or an Interest Period for, an Index Rate Loan or Eurodollar Loan or a notice
with respect to any of the foregoing, any day on which dealings in Dollars are carried on in the
London interbank market.

     “Capital Expenditures” shall mean for any period, without duplication, (i) the
additions to property, plant and equipment and other capital expenditures of the Borrower and its
Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the
Borrower for such period prepared in accordance with GAAP and (ii) Capital Lease Obligations
incurred by the Borrower and its Subsidiaries during such period.

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

     “Capital Stock” shall mean any capital stock (or in the case of a partnership or
limited liability company, the partners’ or members’ equivalent equity interest) of the Borrower or
any of its Subsidiaries (to the extent issued to a Person other than the Borrower), whether common
or preferred.

     “Cash Management Swingline Loans” shall have the meaning assigned to such term in
Section 2.4(b).

     “Change in Control” shall mean the occurrence of one or more of the following events:
(i) any sale, lease, exchange or other transfer (in a single transaction or a series of related
transactions) of all or substantially all of the assets of the Borrower to any Person or “group”
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and
Exchange Commission thereunder in effect on the date hereof), (ii) the acquisition of ownership,

4

 

directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of
the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission
thereunder as in effect on the date hereof) of 30% or more of the outstanding shares of the voting
stock of the Borrower or (iii) occupation of a majority of the seats (other than vacant seats) on
the board of directors of the Borrower by Persons who were neither (a) nominated by the current
board of directors nor (b) appointed by directors so nominated.

     “Change in Law” shall mean (i) the adoption of any applicable law, rule or regulation
after the date of this Agreement, (ii) any change in any applicable law, rule or regulation, or
any change in the interpretation or application thereof, by any Governmental Authority after the
date of this Agreement, or (iii) compliance by any Lender (or its Applicable Lending Office) or
the Issuing Bank (or for purposes of Section 2.19(b), by such Lender’s or the Issuing
Bank’s parent corporation, if applicable) 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 (and for purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, guidelines and directions in connection therewith (the “Dodd-Frank Act”) are deemed to have been adopted and gone into effect after the date hereof).

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans and when used
in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment or a
Swingline Commitment.

     “Closing Date” shall mean the date on which the conditions precedent set forth in
Section 3.1 and, if a Loan or Letter of Credit is requested, Section 3.2(a),
(b) and (f), have been satisfied or waived in accordance with Section 10.2.

     “Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from
time to time.

     “Commitment” shall mean a Revolving Commitment or a Swingline Commitment or any
combination thereof (as the context shall permit or require).

     “Compliance Certificate” shall mean a certificate from the principal executive
officer or the principal financial officer of the Borrower in the form of, and containing the
certifications set forth in, the certificate attached hereto as Exhibit 5.1(d).

     “Consolidated EBIT” shall mean, for the Borrower and its Subsidiaries for any period,
an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) to the extent
deducted in determining Consolidated Net Income for such period, (A) Consolidated Interest
Expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C)
the amount of any charges associated with the grant of any share based payment awards to
employees, officers, directors or consultants and (D) all other non-cash charges acceptable to the
Required Lenders, as all of the foregoing are determined on a consolidated basis in accordance
with GAAP, in each case for such period.

     “Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries for any
period, an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) to

5

 

the extent deducted in determining Consolidated Net Income for such period, (A) Consolidated
Interest Expense, (B) income tax expense determined on a consolidated basis in accordance with
GAAP, (C) depreciation and amortization determined on a consolidated basis in accordance with
GAAP, (D) the amount of any charges associated with the grant of any share based payment awards
to employees, officers, directors or consultants and (E) all other non-cash charges acceptable
to the Required Lenders, as all of the foregoing are determined on a consolidated basis in
accordance with GAAP, in each case for such period.

     “Consolidated Interest Expense” shall mean, for the Borrower and its Subsidiaries
for any period determined on a consolidated basis in accordance with GAAP, the sum of (i) total
interest expense, including without limitation the interest component of any payments in
respect of Capital Lease Obligations capitalized or expensed during such period (whether or not
actually paid during such period) plus (ii) the net amount payable (or minus the net amount
receivable) under Hedging Transactions during such period (whether or not actually paid or
received during such period).

     “Consolidated Net Income” shall mean, for the Borrower and its Subsidiaries for
any period, the net income (or loss) of the Borrower and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the
extent otherwise included therein) (i) any extraordinary gains or losses, (ii) any gains
attributable to write-ups of assets, (iii) any equity interest of the Borrower or any
Subsidiary of the Borrower in the unremitted earnings of any Person that is not a Subsidiary
and (iv) any income (or loss) of any Person accrued prior to the date it becomes a Subsidiary
or is merged into or consolidated with the Borrower or any Subsidiary on the date that such
Person’s assets are acquired by the Borrower or any Subsidiary.

     “Consolidated Tangible Net Worth” shall mean, as of any date, (i) the total assets
of the Borrower and its Subsidiaries that would be reflected on the Borrower’s consolidated
balance sheet as of such date prepared in accordance with GAAP, after eliminating all amounts
properly attributable to minority interests, if any, in the stock and surplus of Subsidiaries,
minus (ii) the sum of (x) the total liabilities of the Borrower and its Subsidiaries
that would be reflected on the Borrower’s consolidated balance sheet as of such date prepared
in accordance with GAAP, (y) the amount of any write-up in the book value of any assets
resulting from a revaluation thereof or any write-up in excess of the cost of such assets
acquired reflected on the consolidated balance sheet of the Borrower as of such date prepared
in accordance with GAAP and (z) the net book amount of all assets of the Borrower and its
Subsidiaries that would be classified as intangible assets on a consolidated balance sheet of
the Borrower as of such date prepared in accordance with GAAP.

     “Consolidated Total Debt” shall mean, as of any date, all Indebtedness of the
Borrower and its Subsidiaries measured on a consolidated basis as of such date, but excluding
Indebtedness of the type described in subsection (xi) thereof.

     “Contractual Obligation” of any Person shall mean any provision of any security
issued by such Person or of any agreement, instrument or undertaking under which such Person is
obligated or by which it or any of the property in which it has an interest is bound.

6

 

     “Default” shall mean any condition or event that, with the giving of notice or
the lapse of time or both, would constitute an Event of Default.

     “Defaulting Lender” shall mean, at any time, a Lender (which the Administrative
Agent shall promptly notify the Borrower thereof) that (i) such Lender has failed for three or
more Business Days to comply with its obligations under this Agreement to make a Loan, make a
payment to the Issuing Bank in respect of a Letter of Credit and/or make a payment to the
Swingline Lender in respect of a Swingline Loan (each, a “funding obligation”), (ii) such Lender
has notified the Administrative Agent or the Borrower in writing, or has stated publicly, that
it will not comply with any such funding obligation hereunder, or has defaulted on its funding
obligations under any other loan agreement or credit agreement or other similar/other financing
agreement, (iii) such Lender has, for three or more Business Days, failed to confirm in writing
to the Administrative Agent, in response to a written request of the Administrative Agent, that
it will comply with its funding obligations hereunder, or (iv) a Lender Insolvency Event has
occurred and is continuing with respect to such Lender. Any determination that a Lender is a
Defaulting Lender under clauses (i) through (iv) above will be made by the Administrative Agent
in its reasonable discretion acting in good faith, but a failure of the Administrative Agent to
make such a determination shall not be determinative of the status of such Lender as not being a
Defaulting Lender for purposes of this Agreement. The Administrative Agent will promptly send to
all parties hereto a copy of any notice to the Borrower provided for in this definition.

     “Default Interest” shall have the meaning set forth in Section 2.14(c).

     “Disposition” shall have the meaning set forth in Section 7.6.

     “Dollar(s)” and the sign “$” shall mean lawful money of the United States of America.

     “Domestic Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
organized under the laws of the United States, one of the fifty states or commonwealths of the
United States or the District of Columbia.

     “ELP” means Education Loan Processing, Inc., a Virginia corporation.

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

     “Environmental Liability” shall mean any liability, contingent or otherwise
(including any liability for damages, costs of environmental investigation and remediation,
costs of administrative oversight, fines, natural resource damages, penalties or indemnities),
of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (i) any
actual or alleged violation of any Environmental Law, (ii) the generation, use, handling,
transportation, storage, treatment or disposal of any Hazardous Materials, (iii) any actual or
alleged exposure to any Hazardous Materials, (iv) the Release or threatened Release of any
Hazardous Materials or (v) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

7

 

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute.

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

     “ERISA Event” shall mean (i) 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); (ii) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (iii) the filing pursuant to Section 412(d) of the Code or Section 303(d)
of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan;
(iv) 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 Plan; (v) the receipt by the Borrower or any ERISA
Affiliate from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (vi) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar” when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to
the Adjusted LIBO Rate.

     “Eurodollar Reserve Percentage” shall mean the aggregate of the maximum reserve
percentages (including, without limitation, any emergency, supplemental, special or other marginal
reserves) expressed as a decimal (rounded upwards to the next 1/100th of 1%) in effect
on any day to which any Lender is subject with respect to the Adjusted LIBO Rate pursuant to
regulations issued by the Board of Governors of the Federal Reserve System (or any Governmental
Authority succeeding to any of its principal functions) with respect to eurocurrency funding
(currently referred to as “eurocurrency liabilities” under Regulation D). Eurodollar Loans shall
be deemed to constitute eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets that may be available from time
to time to any Lender under Regulation D. The Eurodollar Reserve Percentage shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage.

     “Event of Default” shall have the meaning provided in Article 8

     “Excluded Taxes” shall mean with respect to the Administrative Agent, any Lender, the
Issuing Bank 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

8

 

by) its net income by the United States of America, or by the jurisdiction under the laws
of
which such recipient is organized or in which its principal office is located or, in the case of
any
Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed
by
the United States of America or any similar tax imposed by any other jurisdiction in which any
Lender is located and (c) in the case of a Foreign Lender, any withholding tax that (i) is
imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to
this Agreement, (ii) is imposed on amounts payable to such Foreign Lender at any time that such
Foreign Lender designates a new lending office, other than taxes that have accrued prior to the
designation of such lending office that are otherwise not Excluded Taxes, and (iii) is
attributable
to such Foreign Lender’s failure to comply with Section 2.21(e).

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

     “Fee Letter” shall mean that certain fee letter, dated as of December 28, 2010,
executed by the Arranger and SunTrust Bank and accepted by Borrower.

     “Fiscal Quarter” shall mean any fiscal quarter of the Borrower.

     “Fiscal Year” shall mean any fiscal year of the Borrower.

     “Foreign Lender” shall mean any Lender that is not a United States person under
Section 7701(a)(30) of the Code.

     “Foreign Subsidiary” shall mean any Subsidiary that is organized under the laws of
a jurisdiction other than the United States, one of the fifty states or commonwealths of the
United States or the District of Columbia.

     “GAAP” shall mean generally accepted accounting principles in the United States
applied on a consistent basis and subject to the terms of Section 1.3.

     “Governmental Authority” shall mean 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” of or by any Person (the “guarantor”) shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing
any Indebtedness or other obligation of any other Person (the “primary obligor”) in any
manner, whether directly or indirectly and including any obligation, direct or indirect, of the
guarantor (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such

9

 

Indebtedness or other obligation or to purchase (or to advance or supply funds for the
purchase of) any security for the payment thereof, (ii) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (iv) as an account party in
respect of any letter of credit or letter of guaranty issued in support of such Indebtedness or
obligation; provided, that the term “Guarantee” shall not include endorsements for
collection or deposits in the ordinary course of business. The amount of any Guarantee shall be
deemed to be an amount equal to the stated or determinable amount of the primary obligation in
respect of which Guarantee is made or, if not so stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has
a corresponding meaning.

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

     “Hedging Obligations” of any Person shall mean any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced
or acquired under (i) any and all Hedging Transactions, (ii) any and all cancellations, buy
backs, reversals, terminations or assignments of any Hedging Transactions and (iii) any and all
renewals, extensions and modifications of any Hedging Transactions and any and all substitutions
for any Hedging Transactions.

     “Hedging Transaction” of any Person shall mean (a) any transaction (including an
agreement with respect to any such transaction) now existing or hereafter entered into by such
Person that is a rate swap transaction, swap option, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap or option, bond option, interest
rate option, foreign exchange transaction, cap transaction, floor transaction, collar
transaction, currency swap transaction, cross-currency rate swap transaction, currency option,
spot transaction, credit protection transaction, credit swap, credit default swap, credit
default option, total return swap, credit spread transaction, repurchase transaction, reverse
repurchase transaction, buy/sell-back transaction, securities lending transaction, or any other
similar transaction (including any option with respect to any of these transactions) or any
combination thereof, whether or not any such transaction is governed by or subject to any master
agreement and (b) any and all transactions of any kind, and the related confirmations, which are
subject to the terms and conditions of, or governed by, any form of master agreement published
by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange
Master Agreement, or any other master agreement (any such master agreement, together with any
related schedules, a “Master Agreement”), including any such obligations or liabilities
under any Master Agreement.

     “Indebtedness” of any Person shall mean, without duplication (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures,

10

 

notes or other similar instruments, (iii) all obligations of such Person in respect of the
deferred purchase price of property or services (other than trade payables incurred in the ordinary
course of business; provided, that for purposes of Section 8.1(g), trade payables
overdue by more than
120 days shall be included in this definition except to the extent that any of such trade
payables
are being disputed in good faith and by appropriate measures), (iv) all obligations of such
Person
under any conditional sale or other title retention agreement(s) relating to property acquired
by
such Person, (v) all Capital Lease Obligations of such Person, (vi) all obligations, contingent
or
otherwise, of such Person in respect of letters of credit, acceptances or similar extensions of
credit, (vii) all Guarantees of such Person of the type of Indebtedness described in clauses (i)
through (vi) above, (viii) all Indebtedness of a third party secured by any Lien on property
owned by such Person, whether or not such Indebtedness has been assumed by such Person,
(ix) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or
otherwise acquire for value any preferred or common stock of such Person (other than voluntary
repurchases of shares of Capital Stock and the exercise of options to purchase shares of Capital
Stock of the Borrower permitted by Sections 7.4(f) and
7.5(iii)), (x)
Off-Balance Sheet
Liabilities and (xi) all Hedging Obligations. The Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture in which such Person is a general partner or a
joint venturer, except to the extent that the terms of such Indebtedness provide that such
Person
is not liable therefor.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

     “Index Rate” means that rate per annum effective on any Index Rate Determination
Date which is equal to the quotient of:

               (i) the rate per annum equal to the offered rate for deposits in U.S. dollars
for a one (1) month period, which rate appears on that page of Bloomberg reporting service, or
such similar service as determined by the Administrative Agent, that displays British Bankers’
Association interest settlement rates for deposits in U.S. Dollars, as of 11:00 A.M. (London,
England time) two (2) Business Days prior to the Index Rate Determination Date; provided, that
if no such offered rate appears on such page, the rate used for such period will be the per annum
rate of interest determined by the Administrative Agent to be the rate at which U.S. dollar
deposits for such period, are offered to the Administrative Agent in the London Inter-Bank
Market as of 11:00 A.M. (London, England time), on the day which is two (2) Business Days
prior to the Index Rate Determination Date, divided by

               (ii) a percentage equal to 1.00 minus the maximum reserve percentages
(including any emergency, supplemental, special or other marginal reserves) expressed as a
decimal (rounded upward to the next l/100th of 1%) in effect on any day to which the
Administrative Agent is subject with respect to any Index Rate Loan pursuant to regulations
issued by the Board of Governors of the Federal Reserve System with respect to eurocurrency
funding (currently referred to as “eurocurrency liabilities” under Regulation D). This
percentage will be adjusted automatically on and as of the effective date of any change in any reserve
percentage.

     “Index Rate Borrowing” and “Index Rate Loan” when used in reference to any
Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears
interest

11

 

at a rate determined by reference to the Index Rate, provided, that “Index Rate
Borrowing” and
“Index Rate Loan” shall not be deemed to refer to any Base Rate Loan or Base Rate
Borrowing
bearing interest at a rate determined by reference to the Index Rate.

     “Index Rate Determination Date” means the Closing Date and the first Business Day of
each calendar month thereafter.

     “Interest Coverage Ratio” shall mean, as of any date, the ratio of (i) the sum of
(A) Consolidated EBIT for the four consecutive Fiscal Quarters ending on or immediately
prior
to such date, less (B) Capital Expenditures made during the four consecutive Fiscal Quarters
ending on or immediately prior to such date, less (C) Restricted Payments made by the
Borrower
in cash during the four consecutive Fiscal Quarters ending on or immediately prior to such
date
to (ii) Consolidated Interest Expense for the four consecutive Fiscal Quarters ending on or
immediately prior to such date.

     “Interest Period” shall mean, with respect to any Eurodollar Borrowing, a period of
one, two, three or six months; provided, that:

               (i) the initial Interest Period for such Borrowing shall commence on
the date of such Borrowing (including the date of any conversion from a Borrowing of another
Type), and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

               (ii) if any Interest Period would otherwise end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless
such Business Day falls in another calendar month, in which case such Interest Period would end
on the next preceding Business Day;

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

               (iv) no Interest Period may extend beyond the Revolving Commitment
Termination Date.

     “Issuing Bank” shall mean SunTrust Bank or any other Lender that may agree to issue
Letters of Credit, each in its capacity as an issuer of Letters of Credit pursuant to
Section 2.23.

     “LC Commitment” shall mean that portion of the Aggregate Revolving Commitment
Amount that may be used by the Borrower for the issuance of Letters of Credit in an
aggregate
face amount not to exceed $50,000,000.

     “LC Disbursement” shall mean a payment made by the Issuing Bank pursuant to a Letter
of Credit.

     “LC Documents” shall mean all applications, agreements and instruments relating to
the Letters of Credit (but excluding the Letters of Credit).

12

 

     “LC Exposure” shall mean, at any time, the sum of (i) the aggregate undrawn
amount of all outstanding Letters of Credit at such time, plus (ii) the aggregate amount of all
LC Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The
LC Exposure of any Lender shall be its Pro Rata Share of the total LC Exposure at such time.

     “Lender Insolvency Event” shall mean that (i) a Lender or its Parent Company is
insolvent, or is generally unable to pay its debts as they become due, or makes a general
assignment for the benefit of its creditors, or (ii) such Lender or its Parent Company is the
subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a
receiver, trustee, conservator, intervenor or sequestrator or the like has been appointed for
such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in
furtherance of or indicating its consent to or acquiescence in any such proceeding or
appointment.

     “Lenders” shall have the meaning assigned to such term in the opening paragraph of
this Agreement and shall include, where appropriate, the Swingline Lender.

     “Letter of Credit” shall mean any stand-by letter of credit issued pursuant to
Section 2.23 by the Issuing Bank for the account of the Borrower pursuant to the LC
Commitment. For purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.5. For all purposes of this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn thereunder by reason of the operation
of Rule 3.14 of the “International Standby Practices 1998” (ISP98) (or such later revision as may
be published by the Institute of International Banking Law & Practice on any date any Letter of
Credit may be issued), such Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

     “Leverage Ratio” shall mean, as of any date, the ratio of (i) Consolidated Total
Debt as of such date to (ii) Consolidated EBITDA for the four consecutive Fiscal Quarters ending
on or immediately prior to such date.

     “LIBOR” shall mean, for any Interest Period with respect to a Eurodollar Loan, the
rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBOR0l Page (or any successor page) as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day of
such Interest Period for a term comparable to such Interest Period. If for any reason such rate
is not available, LIBOR shall be, for any Interest Period, the rate per annum reasonably
determined by the Agent as the rate of interest at which Dollar deposits in the approximate
amount of the Eurodollar Loan comprising part of such borrowing would be offered by the Agent to
major banks in the London interbank Eurodollar market at their request at or about 10:00 a.m.
(Richmond, Virginia time) two Business Days prior to the first day of such Interest Period for a
term comparable to such Interest Period.

     “Lien” shall mean any mortgage, pledge, security interest, lien (statutory or
otherwise), charge, encumbrance, hypothecation, assignment, cash collateral arrangement, or other
arrangement having the practical effect of the foregoing or any preference, priority or other

13

 

security agreement or preferential arrangement of any kind or nature whatsoever (including
any conditional sale or other title retention agreement and any capital lease having the same
economic effect as any of the foregoing).

     “Loan Documents” shall mean, collectively, this Agreement, the Notes (if any), the LC
Documents, the Subsidiary Guaranty Agreement, all Notices of Borrowing, all Notices of
Conversion/Continuation, all Compliance Certificates and any and all other instruments, agreements,
documents and writings executed in connection with any of the foregoing (other than any agreement
delivered in connection with Hedging Obligations or Treasury Management Obligations).

     “Loan Parties” shall mean the Borrower and the Subsidiary Loan Parties.

     “Loans” shall mean all Revolving Loans and Swingline Loans in the aggregate or any of
them, as the context shall require.

     “Material Adverse Effect” shall mean, with respect to any event, act, condition or
occurrence of whatever nature (including any adverse determination in any litigation, arbitration,
or governmental investigation or proceeding), whether singularly or in conjunction with any other
event or events, act or acts, condition or conditions, occurrence or occurrences whether or not
related, a material adverse change in, or a material adverse effect on, (i) the business, results
of operations, financial condition, assets or liabilities of the Borrower and its Subsidiaries
taken as a whole (it being understood that fluctuations in the stock price of the Borrower, alone,
shall not be the determinant of the existence of a Material Adverse Effect under this clause (i)),
(ii) the ability of the Loan Parties to perform any of their respective obligations under the Loan
Documents, (iii) the rights and remedies of the Administrative Agent, the Issuing Bank, Swingline
Lender, and the Lenders under any of the Loan Documents, or (iv) the legality, validity or
enforceability of any of the Loan Documents.

     “Material Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit) and Hedging Obligations of the Borrower or any of its Subsidiaries, individually or in an
aggregate principal amount exceeding $5,000,000. For purposes of determining the amount of
attributed Indebtedness from Hedging Obligations, the “principal amount” of any Hedging Obligations
at any time shall be the Net Mark-to-Market Exposure of such Hedging Obligations.

     “Moody’s” shall mean Moody’s Investors Service, Inc., and, if such corporation shall
be dissolved or liquidated or shall no longer perform the functions of a securities rating agency,
“Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Borrower with the consent of the Administrative Agent.

     “Multiemployer Plan” shall have the meaning set forth in Section 4001(a)(3) of ERISA.

     “Net Mark-to-Market Exposure” of any Person shall mean, as of any date of
determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses
over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized
losses” shall mean the fair market value of the cost to such Person of replacing the Hedging
Transaction giving rise to such Hedging Obligation as of the date of determination (assuming the
Hedging Transaction were to be terminated as of that date), and “unrealized profits” means the

14

 

fair market value of the gain to such Person of replacing such Hedging Transaction as of
the date of determination (assuming such Hedging Transaction were to be terminated as of that date).

     “Non-Defaulting Lender” shall mean, at any time, a Lender that is not a
Defaulting Lender or a Potential Defaulting Lender.

     “Notes” shall mean, collectively, the Revolving Credit Notes and the Swingline Note.

     “Notices of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing
and the Notices of Swingline Borrowing.

     “Notice of Conversion/Continuation” shall mean the notice given by the Borrower to
the Administrative Agent in respect of the conversion or continuation of an outstanding
Borrowing as provided in Section 2.8(b).

     “Notice of Revolving Borrowing” shall have the meaning as set forth in Section
2.3.

     “Notice of Swingline Borrowing” shall have the meaning as set forth in Section
2.4.

     “Obligations” shall mean (a) all amounts owing by the Borrower to the
Administrative Agent, the Issuing Bank or any Lender (including the Swingline Lender) pursuant to or in
connection with this Agreement or any other Loan Document or otherwise with respect to any
Loan or Letter of Credit, including without limitation, all principal, interest (including
any interest accruing after the filing of any petition in bankruptcy or the commencement of any
insolvency, reorganization or like proceeding relating to the Borrower, whether or not a
claim for
post-filing or post-petition interest is allowed in such proceeding), all reimbursement
obligations,
fees, expenses, indemnification and reimbursement payments, costs and expenses (including
all
fees and expenses of counsel to the Administrative Agent, the Issuing Bank and any Lender
(including the Swingline Lender) incurred, or required to be reimbursed, pursuant to this
Agreement or any other Loan Document), whether direct or indirect, absolute or contingent,
liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder, (b)
all
Hedging Obligations owed by any Loan Party to any Lender or Affiliate of any Lender or to
any
Person that was a Lender or an Affiliate of a Lender at the time the applicable Hedging
Transaction was entered into and (c) all Treasury Management Obligations owed by any Loan
Party to any Lender or Affiliate of any Lender or to any Person that was a Lender or an
Affiliate
of a Lender at the time the applicable agreement giving rise to such Treasury Management
Obligations was entered into, together with all renewals, extensions, modifications or
refinancings of any of the foregoing.

     “Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase
obligation or liability of such Person with respect to accounts or notes receivable sold by such Person,
(ii) any
liability of such Person under any sale and leaseback transactions that do not create a
liability on
the balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any
obligation
arising with respect to any other transaction which is the functional equivalent of or
takes the
place of borrowing but which does not constitute a liability on the balance sheet of such
Person.

     “OSHA” shall mean the Occupational Safety and Health Act of 1970, as amended from
time to time, and any successor statute.

15

 

     “Other Taxes” shall mean 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 or any other Loan Document.

     “Parent Company” shall mean, with respect to a Lender, the bank holding company (as
defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or Person owning,
beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

     “Participant” shall have the meaning set forth in Section 10.4(d).

     “Payment Office” shall mean the office of the Administrative Agent located at 303
Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to which the
Administrative Agent shall have given written notice to the Borrower and the other Lenders.

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

     “PEI” shall mean Professional Education, Inc., a Maryland corporation and a Subsidiary of
the Borrower.

     “Permitted Acquisition” means any transaction consummated after the date hereof, in
which the Borrower or a Subsidiary acquires all or substantially all of the assets or
outstanding Capital Stock of any Person or any division or business line of any Person, or
merges or consolidates with any Person (with any such acquisition being referred to as an
“Acquired Business” and any such Person, division or line of business being the
“Target”), provided that, with respect to such transaction: (a) at the closing of such
transaction, after giving effect thereto, no Default or Event of Default shall have occurred and
be continuing, (b) the Target has Target Consolidated EBITDA for the period of twelve
consecutive fiscal months ending as of the end of the most recent Fiscal Quarter prior to the
consummation of the Target transaction in an amount of not less than $0, (c) such acquisition is
not a “hostile” acquisition and has been approved by the Board of Directors and/or shareholders
of the Borrower, the applicable Subsidiary and the Target, (d) the Target is not subject to
pending insolvency proceedings, nor has it expressed in writing its intention to commence a
voluntary case or other proceeding, to file any petition seeking liquidation, reorganization or
other relief under any federal, state or foreign bankruptcy, insolvency or other similar law or
to seek the appointment of a custodian, trustee, receiver, liquidator or other similar official
of it or any substantial part of its property, or to consent to the institution of, or fail to
contest in a timely and appropriate manner, any insolvency proceeding or petition; (e) at least
10 Business Days prior to the closing of such transaction, the Borrower shall give written
notice of such transaction to the Administrative Agent (which shall promptly deliver a copy to
the Lenders) (the “Acquisition Notice”), which shall include (i) either (A) the final
acquisition agreement or the then current draft of the acquisition agreement or (B) a reasonably
detailed description of the material terms of such Permitted Acquisition (including, without
limitation, the purchase price and method and structure of payment) and (ii) all available
financial statements of the Target and its Subsidiaries covering the prior three years (or such
lesser period for which such financial statements are available), (f) if the Borrower is a party
to such merger, then the Borrower shall be the surviving entity of such merger, or a Subsidiary
shall

16

 

be the surviving entity of any merger or such surviving entity shall become a Subsidiary
Loan
Party, and the surviving entity shall not be a Foreign Subsidiary, (g) the Acquired Business
shall
be in substantially the same line of business as the Borrower and its Subsidiaries or in a line
of
business reasonably related to the line of business of the Borrower and its Subsidiaries, (h)
the
Transaction Value of all such transactions shall not exceed $7,500,000 in the aggregate during
any Fiscal Year of the Borrower or $22,500,000 in the aggregate during the term of this
Agreement, (i) at the time it gives the Acquisition Notice, the Borrower shall deliver to the
Administrative Agent pro forma financial statements for next succeeding two-year period giving
effect to the acquisition, which shall reflect to the Administrative Agent’s reasonable
satisfaction
that the Borrower and its Subsidiaries will continue to be in compliance with all of the
financial
covenants set forth in this Agreement, (j) the Administrative Agent shall receive and approve
(such approval not to be unreasonably withheld or delayed) all documents relating to the
acquisition and such additional documentation regarding the acquisition as it shall reasonably
require, including, to the extent available, audited financial statements, compiled financial
statements or a financial review of such Target, as applicable, for its two most recent fiscal
years
prepared by independent certified public accountants reasonably acceptable to the Administrative
Agent and unaudited fiscal year-to-date statements for the two most recent interim periods, and
(k) at the time it gives the Acquisition Notice, the Borrower shall deliver to the
Administrative
Agent (which shall promptly deliver a copy to the Lenders) a certificate, executed by a
Responsible Officer of the Borrower, demonstrating in sufficient detail compliance with the
financial covenants contained in Article 6 on a pro forma basis after giving effect to such
acquisition and, further, certifying that, after giving effect to the consummation of such
acquisition, the representations and warranties of the Borrower contained herein will be true
and
correct in all material respects and as of the date of such consummation (unless qualified by
materiality, in which case, the same shall be true and correct in all respects), except to the
extent
such representations or warranties expressly relate to an earlier date, and that the Borrower,
as of
the date of such consummation, will be in compliance with all other terms and conditions
contained herein.

     “Permitted Encumbrances” shall mean:

               (i) Liens imposed by law for taxes or other governmental charges not
at the time delinquent or thereafter payable without penalty or which are being contested in good
faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP;

               (ii) statutory Liens of landlords, suppliers, carriers, warehousemen,
mechanics, materialmen, and similar Liens arising by operation of law in the ordinary course of
business for amounts not at the time delinquent or thereafter payable without penalty or which
are being contested in good faith by appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP;

               (iii) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social security
laws or regulations;

17

 

               (iv) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature,
in each case in the ordinary course of business;

               (v) judgment and attachment liens not giving rise to an Event of Default or Liens created
by or existing from any litigation or legal proceeding that are currently being contested in
good faith by appropriate proceedings and with respect to which adequate reserves are being
maintained in accordance with GAAP;

               (vi) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property or
materially interfere with the ordinary conduct of business of the Borrower and its Subsidiaries
taken as a whole;

               (vii) leases, licenses, subleases or sublicenses granted to other Persons in the ordinary
course of business which do not (x) interfere in any material respect with the business of the
Borrower and its Subsidiaries taken as a whole or (y) secure any Indebtedness for borrowed
money;

               (viii) any interest or title of (x) a lessor or sublessor under any lease or sublease or
(y) a licensor or sublicensor under any license or sublicense, in each case entered into in the
ordinary course of business, so long as such interest or title relate solely to the assets
subject thereto;

               (ix) banker’s liens, rights of setoff and other similar Liens that are customary in the
banking industry and existing solely with respect to cash and other amounts on deposit in one or
more accounts (including securities accounts) maintained by the Borrower or its Subsidiaries;

               (x) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

               (xi) Liens of a collection bank arising under Section 4-210 of the Uniform Commerical
Code on items in the course of collection;

               (xii) Liens arising from precautionary UCC financing statement filings (or similar filings
under other applicable Law) regarding operating leases entered into by the Borrower or any of
its Subsidiaries in the ordinary course of business;

               (xiii) licenses of patents, trademarks, copyrights and other intellectual property rights
reasonably entered into in the ordinary course of business which do not secure any Indebtedness
for borrowed money;

               (xiv) good faith deposits required in connection with any investment transaction permitted
under Section 7.4;

18

 

               (xv) to the extent constituting a Lien, escrow arrangements securing indemnification obligations associated any investment transaction permitted under Section 7.4;
and

               (xvi) Liens (x) on advances of cash or Permitted Investments in favor of
the seller of any property to be acquired by the Borrower or any of its Subsidiaries in an
Investment permitted pursuant to Section 7.4 to be applied against the purchase
price for such
Investment; provided, that (I) the aggregate amount of such advances of cash or
Permitted
Investments shall not exceed the purchase price of such Investment and (II) the property is
acquired within 180 days following the date of the first such advance so made; and (y)
consisting
of an agreement to dispose of any property in a Disposition permitted under Section
7.6, in each
case, solely to the extent such Investment or disposition, as the case may be, would have
been
permitted on the date of the creation of such Lien;

provided, that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness (other than clauses (i), (ii), (ix), (x) and (xi), but, with respect to clauses (i)
and (ii),
only to the extent being contested in good faith and by appropriate proceedings, and provided
that the Borrower maintains adequate reserves for such contest in accordance with GAAP, and,
with respect to all such clauses, only to the extent such Indebtedness is otherwise permitted by
this Agreement).

     “Permitted Investments” shall mean:

               (i) direct obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United States), in each case
maturing within one year from the date of acquisition thereof;

               (ii) commercial paper having the highest rating, at the time of
acquisition thereof, of S&P or Moody’s and in either case maturing within six months from the
date of acquisition thereof;

               (iii) certificates of deposit, bankers’ acceptances and time deposits
maturing within 180 days of the date of acquisition thereof issued or guaranteed by or placed
with, and money market deposit accounts issued or offered by, any domestic office of any
commercial bank organized under the laws of the United States or any state thereof which has a
combined capital and surplus and undivided profits of not less than $500,000,000;

               (iv) fully collateralized repurchase agreements with a term of not more
than 30 days for securities described in clause (i) above and entered into with a financial
institution satisfying the criteria described in clause (iii) above; and

               (v) Investments, classified in accordance with GAAP as current assets
of the Borrower or any of its Subsidiaries, in money market investment programs registered
under the Investment Company Act of 1940, which are administered by reputable financial
institutions, and the portfolios of which are limited to Investments of the character,
quality and
maturity described in clauses (i) through (iv) above.

19

 

     “Person” shall mean any individual, partnership, firm, corporation,
association, joint venture, limited liability company, trust or other entity, or any
Governmental Authority.

     “Plan” shall mean any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302
of ERISA, and in respect of which 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.

     “Potential Defaulting Lender” shall mean, at any time, a Lender that has, or whose
Parent Company has, a non-investment grade rating from Moody’s or S&P or another nationally
recognized rating agency. Any determination that a Lender is a Potential Defaulting Lender will
be made by the Administrative Agent in its reasonable discretion acting in good faith. The
Administrative Agent will promptly send to all parties hereto a copy of any notice to the
Borrower provided for in this definition.

     “Pro Rata Share” shall mean (i) with respect to any Commitment of any Lender at any
time, a percentage, the numerator of which shall be such Lender’s Commitment (or if such
Commitments have been terminated or expired or the Loans have been declared to be due and
payable, such Lender’s Revolving Credit Exposure), and the denominator of which shall be the sum
of such Commitments of all Lenders (or if such Commitments have been terminated or expired or
the Loans have been declared to be due and payable, all Revolving Credit Exposure of all
Lenders), and (ii) with respect to all Commitments of any Lender at any time, the numerator of
which shall be the sum of such Lender’s Revolving Commitment (or if such Revolving Commitments
have been terminated or expired or the Loans have been declared to be due and payable, such
Lender’s Revolving Credit Exposure) and the denominator of which shall be the sum of all
Lenders’ Revolving Commitments (or if such Revolving Commitments have been terminated or expired
or the Loans have been declared to be due and payable, all Revolving Credit Exposure of all
Lenders funded under such Commitments).

     “Regulation D” shall mean Regulation D of the Board of Governors of the Federal
Reserve System, as the same may be in effect from time to time, and any successor regulations.

     “Related Parties” shall mean, 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.

     “Release” shall mean any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into the environment
(including ambient air, surface water, groundwater, land surface or subsurface strata) or within
any building, structure, facility or fixture.

     “Required Lenders” shall mean, (a) at any time that there are two Lenders or fewer,
Lenders holding more than 100% of the aggregate outstanding Revolving Commitments at such time
or if the Lenders have no Commitments outstanding, then Lenders holding more than 100% of the
Revolving Credit Exposure; and (b) at any other time, Lenders holding more than 50% of the
aggregate outstanding Revolving Commitments at such time or if the Lenders have no

20

 

Commitments outstanding, then Lenders holding more than 50% of the Revolving Credit
Exposure; provided, however, that to the extent that any Lender is a Defaulting
Lender, such
Defaulting Lender and all of its Commitments and Revolving Credit Exposure shall be excluded
for purposes of determining Required Lenders.

     “Requirement of Law” for any Person shall mean the articles or certificate of
incorporation, bylaws, partnership certificate and agreement, or limited liability company
certificate of organization and agreement, as the case may be, and other organizational and
governing documents of such Person, and any law, treaty, rule or regulation, or
determination of
a 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.

     “Responsible Officer” shall mean any of the president, the chief executive officer,
the
chief operating officer, the chief financial officer or the treasurer of the Borrower or
such other
representative of the Borrower as may be designated in writing by any one of the foregoing
with
the consent of the Administrative Agent; and, with respect to the financial covenants only,
the
chief financial officer or the treasurer of the Borrower.

     “Restricted Payment” shall have the meaning set forth in Section 7.5.

     “Revolving Commitment” shall mean, with respect to each Lender, the obligation of
such
Lender to make Revolving Loans to the Borrower and to participate in Letters of Credit and
Swingline Loans in an aggregate principal amount not exceeding the amount set forth with
respect to such Lender on Schedule II, or in the case of a Person becoming a Lender
after the
Closing Date through an assignment of an existing Revolving Commitment, the amount of the
assigned “Revolving Commitment” as provided in the Assignment and Assumption executed by
such Person as an assignee, as the same may be increased or decreased pursuant to terms
hereof.

     “Revolving Commitment Termination Date” shall mean the earliest of (i) December 31,
2013, (ii) the date on which all Revolving Commitments are terminated pursuant to
Section 2.9
and (iii) the date on which all amounts outstanding under this Agreement have been declared
or
have automatically become due and payable (whether by acceleration or otherwise).

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

     “Revolving Credit Note” shall mean a promissory note of the Borrower payable to the
order of a requesting Lender in the principal amount of such Lender’s Revolving Commitment,
in substantially the form of Exhibit A.

     “Revolving Loan” shall mean a loan made by a Lender (other than the Swingline
Lender)
to the Borrower under its Revolving Commitment, which may either be a Base Rate Loan, an
Index Rate Loan or a Eurodollar Loan.

     “Sale and Leaseback Transaction” shall have the meaning set forth in Section
7.9.

21

 

     “S&P” shall mean Standard & Poor’s, a division of McGraw-Hill, Inc., a
corporation organized and existing under the laws of the State of New York, its successors and
assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the
functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally
recognized securities rating agency designated by the Borrower with the consent of the
Administrative Agent.

     “Subsidiary” shall mean, with respect to any Person (the “parent”), any
corporation, partnership, joint venture, limited liability company, association or other entity
the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of
such date, as well as any other corporation, partnership, joint venture, limited liability
company, association or other entity (i) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting power, or in the
case of a partnership, more than 50% of the general partnership interests are, as of such date,
owned, controlled or held, or (ii) that is, as of such date, otherwise controlled, by the parent
or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the
parent. Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a
Subsidiary of the Borrower.

     “Subsidiary Guaranty Agreement” shall mean the Subsidiary Guaranty Agreement, dated
as of the date hereof and substantially in the form of Exhibit F, made by all Domestic
Subsidiaries of the Borrower in favor of the Administrative Agent for the benefit of the Lenders.

     “Subsidiary Guaranty Supplement” shall mean each supplement substantially in the
form of Schedule II to the Subsidiary Guaranty Agreement executed and delivered by a
Domestic Subsidiary of the Borrower pursuant to Section 5.11.

     “Subsidiary Loan Party” shall mean any Subsidiary that executes or becomes a party
to the Subsidiary Guaranty Agreement.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding not to exceed
$10,000,000.

     “Swingline Exposure” shall mean, with respect to each Lender, the principal
amount of the Swingline Loans in which such Lender is legally obligated either to make an Index
Rate Loan or to purchase a participation in accordance with Section 2.4, which shall
equal such Lender’s Pro Rata Share of all outstanding Swingline Loans.

     “Swingline Lender” shall mean SunTrust Bank, or any other Lender that may agree
to make Swingline Loans hereunder.

     “Swingline Loan” shall mean a loan made to the Borrower by the Swingline Lender
under the Swingline Commitment.

     “Swingline Note” shall mean the promissory note of the Borrower payable to the order
of the Swingline Lender in the principal amount of the Swingline Commitment, substantially the
form of Exhibit D.

22

 

     “Swingline Rate” shall mean the Index Rate plus the Applicable Margin.

     “Synthetic Lease” shall mean a lease transaction under which the parties intend
that (i) the lease will be treated as an “operating lease” by the lessee pursuant to Statement
of Financial Accounting Standards No. 13, as amended and (ii) the lessee will be entitled to
various tax and other benefits ordinarily available to owners (as opposed to lessees) of like
property.

     “Synthetic Lease Obligations” shall mean, with respect to any Person, the sum of
(i) all remaining rental obligations of such Person as lessee under Synthetic Leases which are
attributable to principal and, without duplication and (ii) all rental and purchase price
payment obligations of such Person under such Synthetic Leases assuming such Person exercises the
option to purchase the lease property at the end of the lease term.

     “Target Consolidated EBITDA” shall mean, for the Target and its Subsidiaries for
any period, an amount equal to the sum of (i) the consolidated net income for such period plus
(ii) to the extent deducted in determining consolidated net income for such period, (A)
consolidated interest expense, (B) income tax expense, (C) depreciation and amortization, all of the
foregoing as determined on a consolidated basis in accordance with GAAP, (D) the amount of any
charges associated with the grant of any share based payment awards to employees, officers,
directors or consultants and (E) all other non-cash charges acceptable to the Required Lenders, in each
case for such period.

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

     “Title IV, HEA Programs” shall mean the programs of federal student financial
assistance authorized by Title IV of the Higher Education Act of 1965, as amended, 20
U.S.C. 1079 et seq., and any amendments or successor statutes thereto after the Closing Date.

     “Transaction Value” shall mean the aggregate value of the sum of all current and
deferred cash and securities to be paid and issued, plus Indebtedness paid or assumed, in connection
with a Permitted Acquisition (provided, however, that any consideration paid in Capital Stock of
the Borrower shall not be included in the calculation of Transaction Value). The Borrower shall
make an estimate in good faith as of the time of the closing of a Permitted Acquisition of
all deferred payments (including, without limitation, earnout payments) to be paid in
connection with such Permitted Acquisition.

     “Treasury Management Obligations” shall mean, collectively, all obligations and
other liabilities of any Loan Parties pursuant to any agreements governing the provision to such
Loan Parties of treasury or cash management services, including deposit accounts, funds
transfer, automated clearing house, zero balance accounts, returned check concentration, controlled
disbursement, lockbox, account reconciliation, reporting and trade finance services,
overnight draft, credit cards, purchasing cards and commercial cards and other cash management
services.

     “Type”, when used in reference to a 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 Adjusted LIBO Rate, the Index Rate or the Base Rate.

23

 

     “Unrestricted Liquidity” shall mean, at any time, the sum of (a) cash and Permitted
Investments of the Loan Parties that are not subject to any Lien, other than Liens in favor of
the Administrative Agent, or any restriction on use, (b) 90% of the fair market value of the
Borrower’s Investment in shares of Vanguard Short-term Tax-exempt Bond Fund (Admiral Shares), as
described in Schedule 7.4 and (c) the aggregate unused Revolving Commitments of all
Lenders.

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

     Section 1.2. Classifications 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 “Eurodollar Loan,” “Index Rate Loan” or “Base Rate Loan”) or by Class and Type (e.g.
“Revolving Eurodollar Loan”). Borrowings also may be classified and referred to by Class (e.g.
“Revolving Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type (e.g.
“Revolving Eurodollar Borrowing”).

     Section 1.3. Accounting Terms and Determination. Unless otherwise defined or
specified herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared, in accordance with GAAP as in effect from time to time, applied on a
basis consistent with the most recent audited consolidated financial statement of the Borrower
delivered pursuant to Section 5.1(a); provided, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article 6 to
eliminate the effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article
6 for such purpose), then the Borrower’s compliance with such covenant shall be determined on
the basis of GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the
Borrower and the Required Lenders.

     Section 1.4. 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”. In the
computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including” and the word “to” means “to but excluding”. Unless the context
requires otherwise (i) 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 it was originally executed or as it may from time to time be amended, restated, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and permitted assigns, (iii) the words “hereof’, “herein” and
“hereunder” and words of similar import shall be construed to refer to this Agreement as a whole
and not to any particular provision hereof, (iv) all references to Articles,

24

 

Sections, Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and
Schedules to this Agreement and (v) all references to a specific time shall be construed to refer
to the time in the city and state of the Administrative Agent’s principal office, unless otherwise
indicated.

     Section 1.5. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit
in effect at such time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any LC Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

ARTICLE 2

AMOUNT AND TERMS OF THE COMMITMENTS

     Section 2.1. General Description of Facilities. Subject to and upon the terms and
conditions herein set forth, (i) the Lenders hereby establish in favor of the Borrower a revolving
credit facility pursuant to which each Lender severally agrees (to the extent of such Lender’s
Revolving Commitment) to make Revolving Loans to the Borrower in accordance with Section
2.2, (ii) the Issuing Bank agrees to issue Letters of Credit in accordance with Section
2.23, (iii) the Swingline Lender agrees to make Swingline Loans
in accordance with Section 2.4, and (iv) each Lender agrees to purchase a participation interest in the Letters of Credit and the
Swingline Loans pursuant to the terms and conditions hereof; provided, that in no event
shall the aggregate principal amount of all outstanding Revolving Loans, Swingline Loans and
outstanding LC Exposure exceed at any time the Aggregate Revolving Commitment Amount from time to
time in effect.

     Section 2.2. Revolving Loans. Subject to the terms and conditions set forth herein,
each Lender severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata Share,
to the Borrower, from time to time during the Availability Period, in an aggregate principal amount
outstanding at any time that will not result in (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Revolving Commitment or (b) the sum of the aggregate Revolving Credit
Exposures of all Lenders exceeding the Aggregate Revolving Commitment Amount. During the
Availability Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans
in accordance with the terms and conditions of this Agreement; provided, that the Borrower
may not borrow or reborrow should there exist a Default or Event of Default or should any of the
conditions set forth in Section 3.2 not be satisfied or waived as provided in this
Agreement.

     Section 2.3. Procedure for Revolving Borrowings. The Borrower shall give the
Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each
Revolving Borrowing substantially in the form of Exhibit 2.3 (a “Notice of Revolving
Borrowing”) (x) prior to 11:00 a.m. (Richmond, Virginia time) on the same Business Day as the
requested date of each Base Rate Borrowing or Index Rate Borrowing and (y) prior to 11:00 a.m.
(Richmond, Virginia time) three (3) Business Days prior to the requested date of each Eurodollar

25

 

Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify: (i) the
aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a
Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the
case of a Eurodollar Borrowing, the duration of the initial Interest Period applicable thereto
(subject to the provisions of the definition of “Interest Period”). Each Revolving Borrowing
shall consist entirely of Base Rate Loans, Index Rate Loans or Eurodollar Loans, as the Borrower
may request, provided, that any Revolving Loans funded on the Closing Date shall be
Index Rate Loans. The aggregate principal amount of each Eurodollar Borrowing shall be not less
than $1,000,000 or a larger multiple of $1,000,000, and the aggregate principal amount of each
Base Rate Borrowing and Index Rate Borrowing shall not be less than $1,000,000 or a larger
multiple of $500,000; provided, that Index Rate Loans or Base Rate Loans, respectively,
made pursuant to Section 2.4 or Section 2.23(d) may be made in lesser amounts as
provided therein. At no time shall the total number of Eurodollar Borrowings outstanding at any
time exceed six. Promptly following the receipt of a Notice of Revolving Borrowing in accordance
herewith, the Administrative Agent shall advise each Lender of the details thereof and the
amount of such Lender’s Revolving Loan to be made as part of the requested Revolving Borrowing.

     Section 2.4. Swingline Commitment.

          (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to
make Swingline Loans to the Borrower, from time to time during the Availability Period, in an
aggregate principal amount outstanding at any time not to exceed the lesser of
(i) the Swingline Commitment then in effect and (ii) the difference between the Aggregate
Revolving Commitment Amount and the aggregate Revolving Credit Exposures of all Lenders;
provided, that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. The Borrower shall be entitled to borrow, repay and
reborrow Swingline Loans in accordance with the terms and conditions of this Agreement.

          (b) The Swingline Lender agrees to make Swingline Loans to the Borrower from time to time
in accordance with the treasury and cash management services and products provided to the
Borrower by the Swingline Lender (the “Cash Management Swingline Loans”). For other
Swingline Loans, the Borrower shall give the Administrative Agent written notice (or telephonic
notice promptly confirmed in writing) of each Swingline Borrowing substantially in the form of
Exhibit 2.4 attached hereto (“Notice of Swingline Borrowing”) prior to 1:00 p.m.
(Richmond, Virginia time) on the requested date of each Swingline Borrowing. Each Notice of
Swingline Borrowing shall be irrevocable and shall specify: (i) the principal amount of such
Swingline Loan, (ii) the date of such Swingline Loan (which shall be a Business Day) and (iii)
the account of the Borrower to which the proceeds of such Swingline Loan should be credited. The
Administrative Agent will promptly advise the Swingline Lender of each Notice of Swingline
Borrowing. Each Swingline Loan shall accrue interest at the Swingline Rate. The aggregate
principal amount of each Swingline Loan shall be not less than $100,000 or a larger multiple of
$50,000, or such other minimum amounts agreed to by the Swingline Lender and the Borrower.
Unless the Swingline Lender has received notice from the Administrative Agent or any Lender on
or before the Business Day immediately preceding the date the Swingline Lender is to make the
requested Swingline Loan directing the Swingline Lender not to make the Swingline Loan because
such Swingline Loan is not then permitted hereunder because of the

26

 

limitations set forth in Section 2.4(a) or that one or more conditions specified in
Article 3 are not then satisfied, then, subject to the terms and conditions hereof, the
Swingline Lender will make the proceeds of each Swingline Loan available to the Borrower in
Dollars in immediately available funds at the account specified by the Borrower in the applicable
Notice of Swingline Borrowing not later than the later of 1:00 p.m. (Richmond, Virginia time) or
two hours following the delivery of the Notice of Swingline Borrowing on the requested date of
such Swingline Loan.

          (c) The Swingline Lender, at any time and from time to time in its sole discretion, may, on
behalf of the Borrower (which hereby irrevocably authorizes and directs the Swingline Lender to
act on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting
the Lenders (including the Swingline Lender) to make Index Rate Loans in an amount equal to the
unpaid principal amount of any Swingline Loan. Each Lender will make the proceeds of its Index
Rate Loan included in such Borrowing available to the Administrative Agent for the account of the
Swingline Lender in accordance with Section 2.7, which will be used solely for the
repayment of such Swingline Loan. The Swingline Lender agrees that it shall give such Notice of
Revolving Borrowing on the last Business Day of each calendar week if any Swingline Loans are then
outstanding.

          (d) If for any reason an Index Rate Borrowing may not be (as determined in the sole
discretion of the Administrative Agent), or is not, made in accordance with the foregoing
provisions, then each Lender (other than the Swingline Lender) shall purchase an undivided
participating interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on
the date that such Index Rate Borrowing should have occurred. On the date of such required
purchase, each Lender shall promptly transfer, in immediately available funds, the amount of its
participating interest to the Administrative Agent for the account of the Swingline Lender. If
such Swingline Loan bears interest at a rate other than the Index Rate, such Swingline Loan shall
automatically become an Index Rate Loan on the effective date of any such participation and
interest shall become payable on demand.

          (e) Each Lender’s obligation to make an Index Rate Loan pursuant to Section 2.4(c) or
to purchase the participating interests pursuant to Section 2.4(d) shall be absolute and
unconditional and shall not be affected by any circumstance, including without limitation (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may
have or claim against the Swingline Lender, the Borrower or any other Person for any reason
whatsoever, (ii) the existence of a Default or an Event of Default or the termination of any
Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of any event or
condition which has had or could reasonably be expected to have a Material Adverse Effect,
(iv) any breach of this Agreement or any other Loan Document by the Borrower, the Administrative
Agent or any Lender or (v) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing. If such amount is not in fact made available to the Swingline
Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from
such Lender, together with accrued interest thereon for each day from the date of demand thereof
(i) at the Federal Funds Rate until the second Business Day after such demand and (ii) at the Base
Rate at all times thereafter. Until such time as such Lender makes its required payment, the
Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of
the unpaid participation for all purposes of the Loan Documents. In addition, such Lender shall be
deemed to have assigned any and all

27

 

payments made of principal and interest on its Revolving Loans and any other amounts due to it
hereunder, to the Swingline Lender to fund the amount of such Lender’s participation interest in
such Swingline Loans that such Lender failed to fund pursuant to this Section 2.4, until
such amount has been purchased in full.

     Section 2.5. Reserved.

     Section 2.6. Reserved.

     Section 2.7. Funding of Borrowings.

          (a) Each Lender will make available each Loan to be made by it hereunder on the proposed date
thereof by wire transfer in immediately available funds by 1:00 p.m. (Richmond, Virginia time) to
the Administrative Agent at the Payment Office; provided, that the Swingline Loans will be
made as set forth in Section 2.4. The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts that it receives, in like funds by the close of
business on such proposed date, to an account maintained by the Borrower with the Administrative
Agent or at the Borrower’s option, by effecting a wire transfer of such amounts to an account
designated by the Borrower to the Administrative Agent.

          (b) Unless the Administrative Agent shall have been notified by any Lender prior to 5:00 p.m.
(Richmond, Virginia time) one (1) Business Day prior to the date of a Borrowing in which such
Lender is to participate 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 amount available to the Administrative Agent on such date, and the Administrative Agent, in
reliance on such assumption, may make available to the Borrower on such date a corresponding
amount. If such corresponding amount is not in fact made available to the Administrative Agent by
such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover
such corresponding amount on demand from such Lender together with interest at the Federal Funds
Rate until the second Business Day after such demand and thereafter at the Base Rate. If such
Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand
therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall
immediately pay such corresponding amount to the Administrative Agent together with interest at
the rate specified for such Borrowing. Nothing in this subsection shall be deemed to relieve any
Lender from its obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice
any rights which the Borrower may have against any Lender as a result of any default by such
Lender hereunder.

          (c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective
Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in its
obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made by
it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

     Section 2.8. Interest Elections.

          (a) On the Closing Date, each Revolving Loan funded on such date shall be an Index Rate Loan
and each Swingline Loan shall be an Index Rate Loan. After the Closing

28

 

Date, each Borrowing initially shall be of the Type specified in the applicable Notice of
Borrowing, and in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Notice of Borrowing, provided that only Revolving Loans and Swingline Loans may
be borrowed as Index Rate Loans. Thereafter, the Borrower may elect to convert such Borrowing into
a different Type or to continue such Borrowing, and in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section 2.8. 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 Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.
This Section shall not apply to Swingline Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section 2.8, the Borrower shall give the
Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) of
each Borrowing that is to be converted or continued, as the case may be, substantially in the form
of Exhibit 2.8 attached hereto (a “Notice of Conversion/Continuation”), (x) prior
to 11:00 a.m. (Richmond, Virginia time) on the same Business Day as the requested date of a
conversion into a Base Rate Borrowing or an Index Rate Borrowing and (y) prior to 11:00 a.m.
(Richmond, Virginia time) three (3) Business Days prior to a continuation of or conversion into a
Eurodollar Borrowing or of a Eurodollar Borrowing into a Borrowing of another Type. Each such
Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to
which such Notice of Conversion/Continuation applies and if different options are being elected
with respect to different portions thereof, the portions thereof that are to be allocated to each
resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and
(iv) shall be specified for each resulting Borrowing); (ii) the effective date of the election
made pursuant to such Notice of Conversion/Continuation, which shall be a Business Day, (iii)
whether the resulting Borrowing is to be a Base Rate Borrowing, an Index Rate Borrowing or a
Eurodollar Borrowing; and (iv) if the resulting Borrowing is to be a Eurodollar Borrowing, the
Interest Period applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of “Interest Period.” If any such Notice of Conversion/Continuation
requests a Eurodollar Borrowing but does not specify an Interest Period, the Borrower shall be
deemed to have selected an Interest Period of one month. The principal amount of any resulting
Borrowing shall satisfy the minimum borrowing amount for Eurodollar Borrowings, Index Rate
Borrowings and Base Rate Borrowings set forth in Section 2.3.

          (c) If, on the expiration of any Interest Period in respect of any Eurodollar Borrowing, the
Borrower shall have failed to deliver a Notice of Conversion/Continuation, then, unless such
Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert
such Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a
Eurodollar Borrowing if a Default or an Event of Default exists, unless the Administrative Agent
and each of the Lenders shall have otherwise consented in writing. No conversion of any Eurodollar
Loans shall be permitted except on the last day of the Interest Period in respect thereof.

29

 

          (d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent
shall promptly notify each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.

          (e) If a Notice of Borrowing or a Notice of Conversion/Continuation does not specify a
Type, the Borrower shall be deemed to have requested an Index Rate Borrowing with respect to the
Revolving Loans.

     Section 2.9. Optional Reduction and Termination of Commitments.

          (a) Unless previously terminated, all Revolving Commitments, Swingline Commitments and LC
Commitments shall terminate on the Revolving Commitment Termination Date.

          (b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice
promptly confirmed in writing) to the Administrative Agent (which notice shall be irrevocable
unless contingent on the consummation of an anticipated refinancing and the Borrower shall, as
promptly as practicable, notify the Administrative Agent that such refinancing will not occur as
scheduled), the Borrower may reduce the Aggregate Revolving Commitments in part or terminate the
Aggregate Revolving Commitments in whole; provided, that (i) any partial reduction shall
apply to reduce proportionately and permanently the Revolving Commitment of each Lender, (ii)
any partial reduction pursuant to this Section 2.9 shall be in an amount of at least
$5,000,000 and any larger multiple of $1,000,000, and (iii) no such reduction shall be permitted
which would reduce the Aggregate Revolving Commitment Amount to an amount less than the
outstanding Revolving Credit Exposures of all Lenders. Any such reduction in the Aggregate
Revolving Commitment Amount below the sum of the principal amount of the Swingline Commitment
and the LC Commitment shall result in a proportionate reduction (rounded to the next lowest
integral multiple of $100,000) in the Swingline Commitment and the LC Commitment.

          (c) The Borrower may terminate the unused amount of the Revolving Commitment of a
Defaulting Lender upon not less than two Business Days’ prior notice to the Administrative Agent
(which will promptly notify the Lenders thereof), and in such event the provisions of Section
2.22 will apply to all amounts thereafter paid by the Borrower for the account of such
Defaulting Lender under this Agreement (whether on account of principal, interest, fees,
indemnity or other amounts), provided that such termination will not be deemed to be a waiver or
release of any claim the Borrower, the Administrative Agent, the Issuing Bank, the Swingline
Lender or any Lender may have against such Defaulting Lender.

     Section 2.10. Repayment of Loans.

          (a) The outstanding principal amount of all Revolving Loans shall be due and payable
(together with accrued and unpaid interest thereon) on the Revolving Commitment Termination
Date.

          (b) The principal amount of each Swingline Borrowing shall be due and payable (together
with accrued and unpaid interest thereon) on the Revolving Commitment Termination Date.

30

 

     Section 2.11. Evidence of Indebtedness.

          (a) Each Lender shall maintain in accordance with its usual practice appropriate records
evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender from time to time, including the amounts of principal and interest payable thereon and paid
to such Lender from time to time under this Agreement. The Administrative Agent shall maintain
appropriate records in which shall be recorded (i) the Revolving Commitment of each Lender, (ii)
the amount of each Loan made hereunder by each Lender, the Class and Type thereof and the Interest
Period applicable thereto, (iii) the date of each continuation thereof pursuant to Section
2.8, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to
Section 2.8, (v) the date and amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder in respect of such Loans and
(vi) both the date and amount of any sum received by the Administrative Agent hereunder from the
Borrower in respect of the Loans and each Lender’s Pro Rata Share thereof. The entries made in
such records shall be prima facie evidence of the existence and amounts of the obligations of the
Borrower therein recorded, absent manifest error; provided, that the failure or delay of
any Lender or the Administrative Agent in maintaining or making entries into any such record or
any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans
(both principal and unpaid accrued interest) of such Lender in accordance with the terms of this
Agreement.

          (b) At the request of any Lender (including the Swingline Lender) at any time, the Borrower
agrees that it will execute and deliver to such Lender, as applicable, a Revolving Credit Note
and, in the case of the Swingline Lender only, a Swingline Note, payable to the order of such
Lender.

     Section 2.12. Optional Prepayments. The Borrower shall have the right at any time and
from time to time to prepay any Borrowing, in whole or in part, without premium or penalty, by
giving irrevocable written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent no later than (i) in the case of prepayment of any Eurodollar Borrowing,
11:00 a.m. (Richmond, Virginia time) not less than three (3) Business Days prior to any such
prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing or an Index Rate
Borrowing, 11:00 a.m. (Richmond, Virginia time) on the Business Day of such prepayment, and (iii)
in the case of Swingline Borrowings, 11:00 a.m. (Richmond, Virginia time) on the date of such
prepayment, provided that no notice shall be required for the prepayment of any Cash Management
Swingline Loans. Each such notice shall be irrevocable and shall specify the proposed date of such
prepayment and the principal amount of each Borrowing or portion thereof to be prepaid. Upon
receipt of any such notice, the Administrative Agent shall promptly notify each affected Lender of
the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is
given, the aggregate amount specified in such notice shall be due and payable on the date
designated in such notice, together with accrued interest to such date on the amount so prepaid in
accordance with Section 2.14(d); provided, that if a Eurodollar Borrowing is
prepaid on a date other than the last day of an Interest Period applicable thereto, the Borrower
shall also pay all amounts required pursuant to Section 2.20. Each partial prepayment of
any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case
of an advance of a Revolving Borrowing of the same Type pursuant to Section 2.2 or in the

31

 

case of a Swingline Loan pursuant to Section 2.4. Each prepayment of a Borrowing
shall be applied ratably to the Loans comprising such Borrowing.

     Section 2.13. Mandatory Prepayments.

          (a) Immediately upon receipt by the Borrower or any of its Subsidiaries of proceeds of any
sale or disposition by the Borrower or such Subsidiary of any of its assets (excluding (i) sales
of inventory in the ordinary course of business, (ii) sales of worn-out, obsolete equipment,
(iii) sales of assets the proceeds of which are invested into the businesses of the Borrower and
its Subsidiaries within 180 days after such assets are sold and (iv) so long as no Event of
Default has occurred and is continuing, other sales of assets of the Borrower or any of its
Subsidiaries with an aggregate book value not to exceed $1,000,000 in any Fiscal Year) the
Borrower shall prepay the Loans (without any associated permanent reduction of the Commitments)
in an amount equal to all such proceeds, net of commissions and other reasonable and customary
transaction costs, fees and expenses properly attributable to such transaction and payable by
the Borrower in connection therewith (in each case, paid to non-Affiliates). Any such prepayment
shall be applied in accordance with Section 2.13(d) below.

          (b) If the Borrower or any of its Subsidiaries issues any debt or equity securities (other
than Indebtedness permitted under Section 7.1 and equity securities issued (x) by a
Subsidiary of the Borrower to the Borrower or another Subsidiary or (y) by the Borrower to its
officers or employees in connection with its employee award programs) then no later than the
Business Day following the date of receipt of the proceeds thereof, Borrower shall prepay the
Loans (without any associated permanent reduction of the Commitments) in an amount equal to all
such proceeds, net of underwriting discounts and commissions and other reasonable costs paid to
non-Affiliates in connection therewith. Any such prepayment shall be applied in accordance with
Section 2.13(d).

          (c) Intentionally Deleted.

          (d) Any prepayments made by the Borrower pursuant to Sections 2.13(a) or
(b) above shall be applied as follows: first, to Administrative Agent’s fees and
reimbursable expenses then due and payable pursuant to any of the Loan Documents;
second, to all other fees and reimbursable expenses of the Lenders and the Issuing Bank
then due and payable pursuant to any of the Loan Documents, pro rata to the Lenders and the
Issuing Bank based on their respective Pro Rata Shares of such fees and expenses; third,
to interest then due and payable on the Loans made to Borrower, pro rata to the Lenders based on
their respective Revolving Commitments; fourth, to the principal balance of the
Swingline Loans, until the same shall have been paid in full, to the Swingline Lender;
fifth, to the principal balance of the Revolving Loans, until the same shall have been
paid in full, pro rata to the Lenders based on their respective Revolving Commitments and
sixth, to the extent that an Event of Default has occurred and is continuing, to cash
collateralize the Letters of Credit in accordance with Section 2.23(g) in an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid fees thereon.

          (e) If at any time the Revolving Credit Exposure of all Lenders exceeds the Aggregate
Revolving Commitment Amount, as reduced pursuant to Section 2.9 or otherwise, the

32

 

Borrower shall immediately repay Swingline Loans and Revolving Loans in an amount equal to
such excess, together with all accrued and unpaid interest on such excess amount and any
amounts due under Section 2.20. Each prepayment shall be applied first to the Swingline
Loans
to the full extent thereof, second to the Base Rate Loans to the full extent thereof, and finally
to
Eurodollar Loans to the full extent thereof. If after giving effect to prepayment of all
Swingline
Loans and Revolving Loans, the Revolving Credit Exposure of all Lenders exceeds the
Aggregate Revolving Commitment Amount, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the benefit of the Issuing
Bank and the Lenders, an amount in cash equal to such excess plus any accrued and unpaid fees
thereon to be held as collateral for the LC Exposure. Such account shall be administered in
accordance with Section 2.23(g) hereof.

     Section 2.14. Interest on Loans.

          (a) The Borrower shall pay interest on each Base Rate Loan at the Base Rate
in effect from time to time and on each Eurodollar Loan at the Adjusted LIBO Rate for the
applicable Interest Period in effect for such Loan, plus, in each case, the Applicable
Margin in
effect from time to time. The Borrower shall pay interest on each Index Rate Loan at the
Index
Rate plus the Applicable Margin in effect from time to time. The interest rate on Index Rate
Loans shall be established based on the Index Rate in effect on the first Index Rate
Determination Date, and shall be adjusted on each Index Rate Determination Date thereafter
to
reflect the Index Rate then in effect.

          (b) The Borrower shall pay interest on each Swingline Loan at the Swingline
Rate in effect from time to time.

          (c) While an Event of Default exists or after acceleration, at the option of the
Required Lenders, the Borrower shall pay interest (“Default Interest”) with respect
to all
Eurodollar Loans and at the rate otherwise applicable for the then-current Interest Period
plus an
additional 2% per annum until the last day of such Interest Period, and thereafter, and with
respect to all Index Rate Loans (including all Swingline Loans) and Base Rate Loans and all
other Obligations hereunder (other than Loans), at an all-in rate in effect for Base Rate
Loans,
plus an additional 2% per annum.

          (d) Interest on the principal amount of all Loans shall accrue from and
including the date such Loans are made to but excluding the date of any repayment thereof.
Interest on all outstanding Base Rate Revolving Loans shall be payable monthly in arrears on
the
last day of each calendar month, and on the Revolving Commitment Termination Date. Interest
on all outstanding Index Rate Revolving Loans and Swingline Loans shall be payable monthly
in
arrears on the last day of each calendar month and on the Revolving Commitment Termination
Date. Interest on all outstanding Eurodollar Loans shall be payable on the last day of each
Interest Period applicable thereto, and, in the case of any Eurodollar Loans having an
Interest
Period in excess of three months, on each day which occurs every three months after the
initial
date of such Interest Period, and on the Revolving Commitment Termination Date. Interest on
any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall
be
payable on the date of such conversion or on the date of any such repayment or prepayment
(on
the amount repaid or prepaid) thereof. All Default Interest shall be payable on demand.

33

 

          (e) The Administrative Agent shall determine each interest rate applicable to the
Loans hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing
(or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and
binding for all purposes, absent manifest error.

     Section 2.15. Fees.

          (a) The Borrower shall pay to the Administrative Agent for its own account fees in the amounts
and at the times previously agreed upon in writing by the Borrower and the Administrative
Agent.

          (b) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the Applicable Percentage per annum (determined daily in
accordance with Schedule I) on the daily amount of the unused Revolving Commitment of
such Lender during the Availability Period. For purposes of computing commitment fees with
respect to the Revolving Commitments, the Revolving Commitment of each Lender shall be deemed
used to the extent of the outstanding Revolving Loans and LC Exposure, but not Swingline
Exposure, of such Lender.

          (c) The Borrower agrees to pay (i) to the Administrative Agent, for the account of each Lender,
a letter of credit fee with respect to its participation in each Letter of Credit, which shall
accrue at a rate per annum equal to the Applicable Margin for Eurodollar Loans then in effect on
the average daily amount of such Lender’s LC Exposure attributable to such Letter of Credit
during the period from and including the date of issuance of such Letter of Credit to but
excluding the date on which such Letter of Credit expires or is drawn in full (including without
limitation any LC Exposure that remains outstanding after the Revolving Commitment Termination
Date) and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the
rate of 0.25% per annum on the average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the Availability Period (or until
the date that such Letter of Credit is irrevocably cancelled, whichever is later), as well as
the Issuing Bank’s standard fees with respect to issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Notwithstanding the foregoing, if the
Required Lenders elect to increase the interest rate on the Loans to the Default Interest
pursuant to Section 2.14(c), the rate per annum used to calculate the letter of credit
fee pursuant to clause (i) above shall automatically be increased by an additional 2% per annum.

          (d) The Borrower shall pay to the Administrative Agent, for the ratable benefit of each
Lender, the upfront fee previously agreed upon by the Borrower and the Administrative
Agent, which shall be due and payable on the Closing Date.

          (e) Accrued fees under paragraphs (b) and (c) above shall be payable quarterly in arrears on
the last day of each March, June, September and December, commencing on March 31, 2011, and on
the Revolving Commitment Termination Date (and if later, the date the Loans and LC Exposure
shall be repaid in their entirety); provided further, that any such fees accruing after
the Revolving Commitment Termination Date shall be payable on demand.

34

 

          (f) Anything herein to the contrary notwithstanding, during such period as a Lender is
a Defaulting Lender, such Defaulting Lender will not be entitled to any fees accruing during
such period pursuant to paragraphs (b) and (c) above (without prejudice to the rights of the
Lenders other than Defaulting Lenders in respect of such fees) and the pro rata payment
provisions of Section 2.22 will automatically be deemed adjusted to reflect the provisions of
this Section. Such fees shall accrue, but shall only be payable pursuant to Section 2.27(b).

     Section 2.16. Computation of Interest and Fees. Subject to the following sentence,
all computations of interest and fees hereunder shall be made on the basis of a year of 360 days
for the actual number of days (including the first day but excluding the last day) occurring in
the period for which such interest or fees are payable (to the extent computed on the basis of
days elapsed). Interest hereunder based on the Administrative Agent’s prime lending rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the
actual number of days elapsed (including the first day but excluding the last day). Each
determination by the Administrative Agent of an interest amount or fee hereunder shall be made
in good faith and, except for manifest error, shall be final, conclusive and binding for all
purposes.

     Section 2.17. Inability to Determine Interest Rates. If prior to the commencement
of any Interest Period for any Eurodollar Borrowing or on the Index Rate Determination Date for
any Index Rate Borrowing or a Base Rate Borrowing bearing interest at a rate determined by
reference to the Index Rate,

               (i) the Administrative Agent shall have determined (which determination shall be conclusive
and binding upon the Borrower) that, by reason of circumstances affecting the relevant interbank
market, adequate means do not exist for ascertaining LIBOR for such Interest Period or the Index
Rate on such Index Rate Determination Date, or

               (ii) the Administrative Agent shall have received notice from the Required Lenders that the
Adjusted LIBO Rate or the Index Rate does not adequately and fairly reflect the cost to such
Lenders (or Lender, as the case may be) of making, funding or maintaining their (or its, as the
case may be) Eurodollar Loans for such Interest Period or its Index Rate Loans or its Base Rate
Loans bearing interest at a rate determined by reference to the Index Rate, as applicable,

     the Administrative Agent shall give written notice (or telephonic notice, promptly
confirmed in writing) to the Borrower and to the Lenders as soon as practicable thereafter.
Until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances
giving rise to such notice no longer exist, (i) the obligations of the Lenders to make
Eurodollar Revolving Loans or Index Rate Loans or Base Rate Loans bearing interest at a rate
determined by reference to the Index Rate or to continue or convert outstanding Loans as or into
Eurodollar Loans or Index Rate Loans or Base Rate Loans bearing interest at a rate determined by
reference to the Index Rate shall be suspended and (ii) all such affected Loans shall be
converted into Base Rate Loans on the last day of the then current Interest Period applicable
thereto and all Index Rate Loans shall automatically be converted to Base Rate Loans, unless, in
either case, the Borrower prepays such Loans in accordance with this Agreement. Unless the
Borrower notifies the Administrative Agent at least one Business Day before the date of any
Eurodollar Revolving

35

 

Borrowing or Index Rate Revolving Borrowing for which a Notice of Revolving Borrowing has
previously been given that it elects not to borrow on such date, then such Revolving Borrowing
shall be made as a Base Rate Borrowing.

     Section 2.18. Illegality. If any Change in Law shall make it unlawful or impossible
for
any Lender to make, maintain or fund any Eurodollar Loan or Index Rate Loan or Base Rate
Loan bearing interest at a rate determined by reference to the Index Rate and such Lender
shall
so notify the Administrative Agent, the Administrative Agent shall promptly give notice
thereof
to the Borrower and the other Lenders, whereupon until such Lender notifies the
Administrative
Agent and the Borrower that the circumstances giving rise to such suspension no longer
exist, the
obligation of such Lender to make Eurodollar Revolving Loans or Index Rate Loans or Base
Rate Loans bearing interest at a rate determined by reference to the Index Rate, or to
continue or
convert outstanding Loans as or into Eurodollar Loans or Index Rate Loans or Base Rate Loans
bearing interest at a rate determined by reference to the Index Rate, shall be suspended. In
the
case of the making of a Eurodollar Revolving Borrowing or an Index Rate Borrowing or a Base
Rate Borrowing bearing interest at a rate determined by reference to the Index Rate, such
Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving
Borrowing for the same Interest Period and if the affected Eurodollar Loan is then
outstanding,
such Loan shall be converted to a Base Rate Loan either (i) on the last day of the then
current
Interest Period applicable to such Eurodollar Loan if such Lender may lawfully continue to
maintain such Loan to such date or (ii) immediately if such Lender shall determine that it
may
not lawfully continue to maintain such Eurodollar Loan to such date, and immediately in the
case
of an Index Rate Loan or a Base Rate Loan bearing interest at a rate determined by reference
to
the Index Rate. Notwithstanding the foregoing, the affected Lender shall, prior to giving
such
notice to the Administrative Agent, designate a different Applicable Lending Office if such
designation would avoid the need for giving such notice and if such designation would not
otherwise be disadvantageous to such Lender in the good faith exercise of its discretion.

     Section 2.19. Increased Costs.

          (a) If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special deposit or
similar requirement that is not otherwise included in the determination of the Adjusted LIBO
Rate or the Index Rate hereunder against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO
Rate or the Index Rate) or the Issuing Bank; or

               (ii) impose on any Lender or on the Issuing Bank or the eurodollar
interbank market any other condition affecting this Agreement or any Eurodollar Loans or
Index
Rate Loans or Base Rate Loans bearing interest at a rate determined by reference to the
Index
Rate made by such Lender or any Letter of Credit or any participation therein;

     and the result of either of the foregoing is to increase the cost to such Lender of making,
converting into, continuing or maintaining a Eurodollar Loan or Index Rate Loan or Base Rate
Loan bearing interest at a rate determined by reference to the Index Rate or to increase the
cost to
such Lender or the Issuing Bank of participating in or issuing any Letter of Credit or to
reduce

36

 

the amount received or receivable by such Lender or the Issuing Bank hereunder (whether of
principal, interest or any other amount), then the Borrower shall promptly pay, upon written
notice (which shall include a statement setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail) from and demand by such Lender on the
Borrower (with a copy of such notice and demand to the Administrative Agent), to the
Administrative Agent for the account of such Lender, within ten days after the date of such
notice and demand, the additional amount or amounts sufficient to compensate such Lender or the
Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.

          (b) If any Lender or the Issuing Bank shall have determined that on or after the date of
this Agreement any Change in Law regarding capital requirements has or would have the effect of
reducing the rate of return on such Lender’s or the Issuing Bank’s capital (or on the capital of
such Lender’s or the Issuing Bank’s parent corporation) as a consequence of its obligations
hereunder or under or in respect of any Letter of Credit to a level below that which such Lender
or the Issuing Bank or such Lender’s or the Issuing Bank’s parent corporation could have
achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing
Bank’s policies or the policies of such Lender’s or the Issuing Bank’s parent corporation with
respect to capital adequacy), from time to time, within ten days after receipt by the Borrower
of written demand (which shall include a statement setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail) by such Lender (with a copy thereof to
the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s parent
corporation for any such reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the basis for such demand
and a calculation of the amount or amounts necessary to compensate such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s parent corporation, as the case may be, specified in
paragraph (a) or (b) of this Section 2.19 shall be delivered to the Borrower (with a
copy to the Administrative Agent) and shall be conclusive, absent manifest error. The Borrower
shall pay any such Lender or the Issuing Bank, as the case may be, such amount or amounts within
10 days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section 2.19 shall not constitute a waiver of such Lender’s or the
Issuing Bank’s right to demand such compensation; provided, that the Borrower shall not
be required to compensate a Lender or the Issuing Bank under this Section 2.19 for any
increased costs or reductions incurred more than six (6) months prior to the date that such
Lender or the Issuing Bank notifies the Borrower of such increased costs or reductions and of
such Lender’s or the Issuing Bank’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 such six-month period shall be extended to include the period of such
retroactive effect.

     Section 2.20. Funding Indemnity. In the event of (a) the payment of any principal
of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion or continuation of a
Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or (c) the
failure by the Borrower to borrow, prepay, convert or continue any Eurodollar Loan on the date
specified in any applicable

37

 

notice (regardless of whether such notice is withdrawn or revoked), then, in any such event,
the Borrower shall compensate each Lender, within five (5) Business Days after written demand from
such Lender, for any loss, cost or expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense shall be deemed to include an amount determined by such Lender to
be the excess, if any, of (A) the amount of interest that would have accrued on the principal
amount of such Eurodollar Loan if such event had not occurred at the Adjusted LIBO Rate applicable
to such Eurodollar Loan for the period from the date of such event to the last day of the then
current Interest Period therefor (or in the case of a failure to borrow, convert or continue, for
the period that would have been the Interest Period for such Eurodollar Loan) over (B) the amount
of interest that would accrue on the principal amount of such Eurodollar Loan for the same period
if the Adjusted LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted or
the date on which the Borrower failed to borrow, convert or continue such Eurodollar Loan. A
certificate as to any additional amount payable under this Section 2.20 submitted to the
Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive, absent
manifest error. The Borrower shall also pay any customary administrative fees charged by such
Lender in connection with the foregoing.

     Section 2.21. Taxes.

          (a) Any and all payments by or on account of any obligation of the Borrower hereunder shall
be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided, that if the Borrower 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 2.21) the Administrative Agent, any Lender or the Issuing Bank (as the case
may be) shall receive an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions and (iii) the Borrower 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, each Lender and the Issuing Bank,
within five (5) Business Days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing
Bank, as the case may be, on or with respect to any payment by or on account of any obligation of
the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 2.21) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto that may become payable by the
Administrative Agent, such Lender or the Issuing Bank, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability setting forth in reasonable detail the
calculation thereof and delivered to the Borrower by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be
conclusive absent manifest error.

38

 

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

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the Code or any treaty to which the United States is a party, with
respect
to payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably requested
by
the Borrower as will permit such payments to be made without withholding or at a reduced
rate.
Without limiting the generality of the foregoing, each Foreign Lender agrees that it will
deliver
to the Administrative Agent and the Borrower (or in the case of a Participant, to the
Lender from
which the related participation shall have been purchased), as appropriate, two (2) duly
completed copies of (i) Internal Revenue Service Form W-8 ECI, or any successor form
thereto,
certifying that the payments received from the Borrower hereunder are effectively connected
with such Foreign Lender’s conduct of a trade or business in the United States; or (ii)
Internal
Revenue Service Form W-8 BEN, or any successor form thereto, certifying that such Foreign
Lender is entitled to benefits under an income tax treaty to which the United States is a
party
which reduces the rate of withholding tax on payments of interest; or (iii) Internal
Revenue
Service Form W-8 BEN, or any successor form prescribed by the Internal Revenue Service,
together with a certificate (A) establishing that the payment to the Foreign Lender
qualifies as
“portfolio interest” exempt from U.S. withholding tax under Code section 871(h) or 881(c),
and
(B) stating that (1) the Foreign Lender is not a bank for purposes of Code section
881(c)(3)(A),
or the obligation of the Borrower hereunder is not, with respect to such Foreign Lender, a
loan
agreement entered into in the ordinary course of its trade or business, within the meaning
of that
section; (2) the Foreign Lender is not a 10% shareholder of the Borrower within the meaning
of
Code section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a controlled
foreign
corporation that is related to the Borrower within the meaning of Code section
881(c)(3)(C); or
(iv) such other Internal Revenue Service forms as may be applicable to the Foreign Lender,
including Forms W-8 IMY or W-8 EXP. Each such Foreign Lender shall deliver to the
Borrower and the Administrative Agent such forms on or before the date that it becomes a
party
to this Agreement (or in the case of a Participant, on or before the date such Participant
purchases the related participation). In addition, each such Foreign Lender shall deliver
such
forms promptly upon the obsolescence or invalidity of any form previously delivered by such
Foreign Lender. Each such Foreign Lender shall promptly notify the Borrower and the
Administrative Agent at any time that it determines that it is no longer in a position to
provide
any previously delivered certificate to the Borrower (or any other form of certification
adopted
by the Internal Revenue Service for such purpose).

     Section 2.22. Payments Generally; Pro Rata Treatment: Sharing of Set-offs.

          (a) Each Borrowing hereunder, each payment by the Borrower on account of
any commitment fee or Letter of Credit fee (other than the fronting fee payable solely to
the
Issuing Bank) and any reduction of the Revolving Commitments of the Lenders shall be made
pro rata according to the respective Pro Rata Shares of the relevant Lenders. Each
payment

39

 

(other than prepayments) in respect of principal or interest in respect of the Loans and each
payment in respect of fees payable hereunder shall be applied to the amounts of such obligations
owing to the Lenders pro rata according to the respective amounts then due and owing to
the Lenders.

          (b) Reserved.

          (c) Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the Revolving Loans shall be made pro rata according to the respective
outstanding principal amounts of the Revolving Loans then held by the Lenders. Each payment in
respect of LC Disbursements in respect of any Letter of Credit shall be made to the Issuing Bank
that issued such Letters of Credit.

          (d) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Sections 2.19, 2.20 or 2.21, or otherwise) prior to 12:00 noon (Richmond,
Virginia time) on the date when due, in immediately available funds, free and clear of any
defenses, rights of set-off, counterclaim, or withholding or deduction of taxes. 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 the Payment Office, except
payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein
and except that payments pursuant to Sections 2.19, 2.20 and 2.21 and
10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent
shall distribute any such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on
a day that is not a Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest thereon shall be made
payable for the period of such extension. All payments hereunder shall be made in Dollars.

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

          (f) 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
participations in LC Disbursements or Swingline Loans that would result in such Lender receiving
payment of a greater proportion of the aggregate amount of its Revolving Loans and participations
in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received
by any other Lender, then the Lender receiving such greater proportion shall

40

 

purchase (for cash at face value) participations in the Revolving Loans and participations in LC
Disbursements and Swingline 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 and participations in LC
Disbursements and Swingline 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 or participations in LC Disbursements or Swingline 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.

          (g) Unless the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the account of the Lenders
or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case
may be, the amount or amounts due. In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or
Issuing Bank with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

          (h) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.4(c), 2.4(d), 2.7(b), 2.22(d), 2.23(d) or (e)
or 10.3(d), then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for
the account of such Lender to satisfy such Lender’s obligations under such Sections until all
such unsatisfied obligations are fully paid.

     Section 2.23. Letters of Credit.

          (a) During the Availability Period, the Issuing Bank, in reliance upon the agreements of the
other Lenders pursuant to Section 2.23(d), agrees to issue, at the request of the
Borrower, Letters of Credit for the account of the Borrower on the terms and conditions
hereinafter set forth; provided, that (i) each Letter of Credit shall expire on the
earlier of (A) the date one year after the date of issuance of such Letter of Credit (or in the
case of any renewal or extension thereof, one year after such renewal or extension) and (B) the
date that is five (5)

41

 

Business Days prior to the Revolving Commitment Termination Date; (ii) each Letter of Credit
shall be in a stated amount of at least $100,000 (or such other amount as may be agreed to by
the Issuing Bank); (iii) the Borrower may not request any Letter of Credit, if, after giving
effect to such issuance (A) the aggregate LC Exposure would exceed the LC Commitment or (B) the
aggregate Revolving Credit Exposure of all Lenders would exceed the Aggregate Revolving
Commitment Amount and (iv) except as provided in Section 3.2(f), the Issuing Bank shall
not be required to issue any Letter of Credit if there is any Defaulting Lender or Potential
Defaulting Lender at the time of such request or issuance. Each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank without
recourse a participation in each Letter of Credit equal to such Lender’s Pro Rata Share of the
aggregate amount available to be drawn under such Letter of Credit on the date of issuance
thereof. Each issuance of a Letter of Credit shall be deemed to utilize the Revolving
Commitment of each Lender by an amount equal to the amount of such participation.

          (b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension
of an outstanding Letter of Credit), the Borrower shall give the Issuing Bank and the
Administrative Agent irrevocable written notice at least three (3) Business Days (or such
earlier date as may be agreed to by the Issuing Bank and the Administrative Agent) prior to the
requested date of such issuance specifying the date (which shall be a Business Day) such Letter
of Credit is to be issued (or amended, extended or renewed, as the case may be), the expiration
date of such Letter of Credit, the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to prepare, amend, renew
or extend such Letter of Credit. In addition to the satisfaction of the conditions in
Article 3 the issuance of such Letter of Credit (or any amendment which increases the
amount of such Letter of Credit) will be subject to the further conditions that such Letter of
Credit shall be in such form and contain such terms as the Issuing Bank shall approve and that
the Borrower shall have executed and delivered any additional applications, agreements and
instruments relating to such Letter of Credit as the Issuing Bank shall reasonably require;
provided, that in the event of any conflict between such applications, agreements or
instruments and this Agreement, the terms of this Agreement shall control; provided,
further that the following are specific conditions under which the Issuing Bank may
refuse to issue Letters of Credit:

               (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain the Issuing Bank from issuing such Letter of Credit, or any
Law applicable to the Issuing Bank or any request or directive (whether or not having the force
of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit,
or request that the Issuing Bank refrain from, the issuance of letters of credit generally or
such Letter of Credit in particular or shall impose upon the Issuing Bank with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon
the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Closing
Date and which the Issuing Bank in good faith deems material to it (for which the Issuing Bank
is not otherwise compensated hereunder); or

               (ii) the issuance of such Letter of Credit would violate one or more policies of the
Issuing Bank applicable to letters of credit generally; or

42

 

               (iii) such Letter of Credit is to be denominated in a currency other than
Dollars.

          (c) At least two Business Days (or such earlier date as may be agreed to by the Issuing Bank
and the Administrative Agent) prior to the issuance of any Letter of Credit, the Issuing Bank will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent
has received such notice and if not, the Issuing Bank will provide the Administrative Agent with a
copy thereof. Unless the Issuing Bank has received notice from the Administrative Agent or any
Lender on or before the Business Day immediately preceding the date the Issuing Bank is to issue
the requested Letter of Credit directing the Issuing Bank not to issue the Letter of Credit
because such issuance is not then permitted hereunder because of the limitations set forth in
Section 2.23(a), or that one or more conditions specified in Article 3 are not
then satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall, on the
requested date, issue such Letter of Credit in accordance with the Issuing Bank’s usual and
customary business practices.

          (d) The Issuing Bank shall examine all documents purporting to represent a demand for payment
under a Letter of Credit promptly following its receipt thereof. The Issuing Bank shall notify the
Borrower and the Administrative Agent of such demand for payment and whether the Issuing Bank has
made or will make a LC Disbursement thereunder; provided, that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the
Issuing Bank and the Lenders with respect to such LC Disbursement. The Borrower shall be
irrevocably and unconditionally obligated to reimburse the Issuing Bank for any LC Disbursements
paid by the Issuing Bank in respect of such drawing, without presentment, demand or other
formalities of any kind. Unless the Borrower shall have notified the Issuing Bank and the
Administrative Agent prior to 11:00 a.m. (Richmond, Virginia time) on the Business Day immediately
prior to the date on which such drawing is honored that the Borrower intends to reimburse the
Issuing Bank for the amount of such drawing in funds other than from the proceeds of Revolving
Loans, the Borrower shall be deemed to have timely given a Notice of Revolving Borrowing to the
Administrative Agent requesting the Lenders to make a Base Rate Borrowing on the date on which
such drawing is honored in an exact amount due to the Issuing Bank; provided, that for
purposes solely of such Borrowing, the conditions precedent set forth in Section 3.2
hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such
Borrowing in accordance with Section 2.3, and each Lender shall make the proceeds of its
Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of
the Issuing Bank in accordance with Section 2.7. The proceeds of such Borrowing shall be
applied directly by the Administrative Agent to reimburse the Issuing Bank for such LC
Disbursement.

          (e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion
of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then
each Lender (other than the Issuing Bank) shall be obligated to fund the participation that such
Lender purchased pursuant to subsection (a) in an amount equal to its Pro Rata Share of such LC
Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each
Lender’s obligation to fund its participation shall be absolute and unconditional and shall not be
affected by any circumstance, including without limitation (i) any setoff, counterclaim,
recoupment, defense or other right that such Lender or any other Person

43

 

may have against the Issuing Bank or any other Person for any reason whatsoever, (ii) the
existence of a Default or an Event of Default or the termination of the Aggregate Revolving
Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or
any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other Lender,
(v) any amendment, renewal or extension of any Letter of Credit or (vi) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing. On the date that
such participation is required to be funded, each Lender shall promptly transfer, in immediately
available funds, the amount of its participation to the Administrative Agent for the account of
the Issuing Bank. Whenever, at any time after the Issuing Bank has received from any such Lender
the funds for its participation in a LC Disbursement, the Issuing Bank (or the Administrative
Agent on its behalf) receives any payment on account thereof, the Administrative Agent or the
Issuing Bank, as the case may be, will distribute to such Lender its Pro Rata Share of such
payment; provided, that if such payment is required to be returned for any reason to the
Borrower or to a trustee, receiver, liquidator, custodian or similar official in any bankruptcy
proceeding, such Lender will return to the Administrative Agent or the Issuing Bank any portion
thereof previously distributed by the Administrative Agent or the Issuing Bank to it.

          (f) To the extent that any Lender shall fail to pay any amount required to be paid pursuant
to paragraphs (d) or (e) above on the due date therefor, such Lender shall pay interest to the
Issuing Bank (through the Administrative Agent) on such amount from such due date to the date such
payment is made at a rate per annum equal to the Federal Funds Rate; provided, that if
such Lender shall fail to make such payment to the Issuing Bank within three (3) Business Days of
such due date, then, retroactively to the due date, such Lender shall be obligated to pay interest
on such amount at the rate set forth in Section 2.14(c).

          (g) If any Event of Default shall occur and be continuing, on the Business Day that the
Borrower receives notice from the Administrative Agent or the Required Lenders demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the
Issuing Bank and the Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid fees thereon; provided, that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become immediately due and
payable, without demand or notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (h) or (i) of Section 8.1. Such deposit shall
be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Borrower
agrees to execute any documents and/or certificates to effectuate the intent of this paragraph.
Other than any interest earned on the investment of such deposits, which investments shall be made
at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and
expense, such deposits shall not bear interest. Interest and profits, if any, on such investments
shall accumulate in such account. Moneys in such account shall be applied by the Administrative
Agent to reimburse the Issuing Bank for LC Disbursements for which it had not been reimbursed and
to the extent so applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been
accelerated, with the consent of the Required Lenders, be applied to satisfy other obligations of
the Borrower under this Agreement and the other Loan Documents. If the

44

 

Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not so applied as aforesaid) shall
be returned to the Borrower within three Business Days after all Events of Default have been
cured or waived.

          (h) Promptly following the end of each calendar quarter, the Issuing Bank shall deliver
(through the Administrative Agent) to each Lender and the Borrower a report describing the
aggregate Letters of Credit outstanding at the end of such Fiscal Quarter. Upon the request of any
Lender from time to time, the Issuing Bank shall deliver to such Lender any other information
reasonably requested by such Lender with respect to each Letter of Credit then outstanding.

          (i) The Borrower’s obligation to reimburse LC Disbursements hereunder shall be absolute,
unconditional and irrevocable and shall be performed strictly in accordance with the terms of this
Agreement under all circumstances whatsoever and irrespective of any of the following
circumstances:

               (i) Any lack of validity or enforceability of any Letter of Credit or this
Agreement;

               (ii) The existence of any claim, set-off, defense or other right which the Borrower or any
Subsidiary or Affiliate of the Borrower may have at any time against a beneficiary or any
transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or
transferee may be acting), any Lender (including the Issuing Bank) or any other Person, whether in
connection with this Agreement or the Letter of Credit or any document related hereto or thereto
or any unrelated transaction;

               (iii) Any draft or other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any
respect;

               (iv) Payment by the Issuing Bank under a Letter of Credit against presentation of a draft or
other document to the Issuing Bank that does not comply with the terms of such Letter of Credit;

               (v) Any other event or circumstance whatsoever, whether or not similar to any of the
foregoing, that might, but for the provisions of this Section 2.23, constitute a legal or
equitable discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder; or

               (vi) The existence of a Default or an Event of Default.

     Neither the Administrative Agent, the Issuing Bank, the Lenders nor any Related Party of any
of the foregoing shall have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to above), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document required to make a
drawing

45

 

thereunder), any error in interpretation of technical terms or any consequence arising from
causes beyond the control of the Issuing Bank; provided, that the foregoing shall not be
construed to excuse (i) the Issuing Bank from liability to the Borrower to the extent of any
actual direct damages (as opposed to special, indirect (including claims for lost profits or
other consequential damages), or punitive damages, claims in respect of which are hereby waived
by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are
caused by the Issuing Bank’s failure to exercise due care when determining whether drafts or
other documents presented under a Letter of Credit comply with the terms thereof or (ii) the
Issuing Bank or any Related Party of any of the foregoing from the Issuing Bank’s gross
negligence or willful misconduct as determined in a final, nonappealable judgment of a court of
competent jurisdiction. The parties hereto expressly agree, that in the absence of gross
negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a
court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised due care in
each such determination. In furtherance of the foregoing and without limiting the generality
thereof, the parties agree that, with respect to documents presented that appear on their face
to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in
its sole discretion, either accept and make payment upon such documents without responsibility
for further investigation, regardless of any notice or information to the contrary, or refuse to
accept and make payment upon such documents if such documents are not in strict compliance with
the terms of such Letter of Credit.

          (j) Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter
of Credit is issued and subject to applicable laws, performance under Letters of Credit by the
Issuing Bank, its correspondents, and the beneficiaries thereof will be governed by the rules
of the “International Standby Practices 1998” (ISP98) (or such later revision as may be
published by the Institute of International Banking Law & Practice on any date any Letter of
Credit may be issued) and to the extent not inconsistent therewith, the governing law of this
Agreement set forth in Section 10.5.

     Section 2.24. Intentionally Deleted.

     Section 2.25. Mitigation of Obligations. If any Lender requests compensation under
Section 2.19, 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 2.21,
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 sole judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable under Section
2.19 or Section 2.21, as the case may be, in the future and (ii) would not subject
such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender. The Borrower hereby agrees to pay all costs and expenses incurred by any Lender in
connection with such designation or assignment.

     Section 2.26. Replacement of Lenders. If any Lender is unable to fund any
Eurodollar Loan or Index Rate Loan pursuant to Section 2.17(ii) or Section 2.18
or if any Lender requests compensation under Section 2.19, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority of the account
of any Lender pursuant to Section 2.21, or if any Lender is a Defaulting Lender or
defaults in its obligation to fund Loans

46

 

hereunder or comply with the provisions of Section 2.21(e) or if any Lender does not
provide its consent to any proposed waiver or amendment which is not effective unless consented
to by the Required Lenders (or such higher percentage or proportion of the Lenders as herein
provided), 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 set forth in Section 10.4(b)) all its
interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender); provided, that (i) the Borrower
shall have received the prior written consent of the Administrative Agent, which consent shall
not be unreasonably withheld (provided that such consent shall not be required to the extent an
assignment pursuant to Section 10.4 to such assignee would not require the consent of
the Administrative Agent), (ii) such Lender shall have received payment of an amount equal to
the outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (in the case of such
outstanding principal and accrued interest) and from the Borrower (in the case of all other
amounts) and (iii) in the case of a claim for compensation under Section 2.19 or
payments required to be made pursuant to Section 2.21, 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 2.27. Defaulting Lender. If a Lender becomes, and during the period it
remains, a Defaulting Lender, the following provisions shall apply with respect to any
outstanding LC Exposure and any outstanding Swingline Exposure of such Defaulting Lender:

          (a) the Borrower will, not less than one Business Day after demand by the Administrative Agent
(at the direction of the Issuing Bank and/or the Swingline Lender, as the case may be), (i) to
the extent not otherwise reallocated among all other Lenders that are Non-Defaulting Lenders
in accordance with Section 3.2(f), cash collateralize (in accordance with Section
2.23(g)) a portion of the obligations of the Borrower owed to the Issuing Bank and the
Swingline Lender equal to such Defaulting Lender’s LC Exposure or Swingline Exposure, as the
case may be, (ii) in the case of such Swingline Exposure, prepay all Swingline Loans or (iii)
make other arrangements reasonably satisfactory to the Administrative Agent, and to the Issuing
Bank and the Swingline Lender, as the case may be, in their reasonable discretion to protect
them against the risk of non-payment by such Defaulting Lender; and

          (b) any amount paid by the Borrower for the account of a Defaulting Lender under this
Agreement (whether on account of principal, interest, fees, indemnity payments or other
amounts) will not be paid or distributed to such Defaulting Lender, but will instead be
retained by the Administrative Agent in a segregated non-interest-bearing account until the
termination of the Commitments and payment in full of all obligations of the Borrower hereunder
and will be applied by the Administrative Agent, to the fullest extent permitted by law, to the
making of payments from time to time in the following order of priority: first to the payment
of any amounts owing by such Defaulting Lender to the Administrative Agent under this
Agreement, second to the payments of any amounts owing by such Defaulting Lender to the Issuing
Bank or the Swingline Lender (pro rata as to the respective amounts owing to each of them)
under this Agreement, third to the payment of post-default interest and then current

47

 

interest due and payable to Lenders other than Defaulting Lenders, ratably among them in
accordance with the amounts of such interest then due and payable to them, fourth to the
payment of fees then due and payable to the Non-Defaulting Lenders hereunder, ratably among
them in accordance with the amount of such fees then due and payable to them, fifth to pay
principal and unreimbursed LC Disbursements then due and payable to the Non-Defaulting Lenders
hereunder ratably in accordance with the amounts then due and payable to them, sixth to the
ratable payment of other amounts then due and payable to the Non-Defaulting Lenders, and
seventh after the termination of the Commitments and payment in full of all obligations of the
Borrower hereunder, to pay amounts owing under this Agreement to such Defaulting Lender or as a
court of competent jurisdiction may otherwise direct.

ARTICLE 3

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

     Section 3.1. Conditions To Effectiveness. The obligations of the Lenders
(including the Swingline Lender) to make Loans and the obligation of the Issuing Bank to issue
any Letter of Credit hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 10.2).

          (a) The Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Closing Date, including reimbursement or payment of all out-of-pocket
expenses (including reasonable fees, charges and disbursements of counsel to the
Administrative Agent) required to be reimbursed or paid by the Borrower hereunder, under any
other Loan Document and under any agreement with the Administrative Agent or the Arranger
(including the Fee Letter).

          (b) The Administrative Agent (or its counsel) shall have received the
following:

               (i) a counterpart of this Agreement signed by or on behalf of each party hereto or
written evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement;

               (ii) duly executed Notes payable to each Lender requesting a note;

               (iii) the Subsidiary Guaranty Agreement duly executed by each Subsidiary that is a
Domestic Subsidiary;

               (iv) copies of duly executed payoff letters, in form and substance satisfactory to
Administrative Agent, executed by each holder of existing Indebtedness or the agent thereof;
together with (a) the results of a search of the Uniform Commercial Code filings (or
equivalent filings) made with respect to the Loan Parties in the states (or other
jurisdictions) of formation of such Persons, together with copies of the financing statements
(or similar documents) disclosed by such search, (b) UCC-3 or other appropriate termination
statements, in form and substance satisfactory to Administrative Agent, releasing all liens of
such holders or agent upon any of the personal property of the Borrower and its Subsidiaries
and (c) any other

48

 

releases, terminations or other documents reasonably required by the Administrative Agent
to evidence the payoff of such Indebtedness;

               (v) Reserved;

               (vi) a certificate of the Secretary or Assistant Secretary of each Loan Party in form and
substance acceptable to the Administrative Agent, attaching and certifying copies of its bylaws
and of the resolutions of its boards of directors, or partnership agreement or limited liability
company agreement, or comparable organizational documents and authorizations, authorizing the
execution, delivery and performance of the Loan Documents to which it is a party and certifying
the name, title and true signature of each officer of such Loan Party executing the Loan Documents
to which it is a party;

               (vii) certified copies of the articles or certificate of incorporation, certificate of
organization or limited partnership, or other registered organizational documents of each Loan
Party, together with certificates of good standing or existence, as may be available from the
Secretary of State of the jurisdiction of organization of such Loan Party;

               (viii) Reserved;

               (ix) favorable written opinion of Hogan Lovells US LLP, counsel to the Loan Parties,
addressed to the Administrative Agent and each of the Lenders, and covering such matters relating
to the Loan Parties, the Loan Documents and the transactions contemplated therein as the
Administrative Agent or the Required Lenders shall reasonably request;

               (x) a certificate, in form and substance acceptable to the Administrative Agent, dated the
Closing Date and signed by a Responsible Officer, certifying that (x) no Default or Event of
Default exists, (y) all representations and warranties of each Loan Party set forth in the Loan
Documents are true and correct in all material respects (or, if qualified by materiality, in all
respects) and (z) since the Balance Sheet Date, and except as disclosed to the Lenders in writing
prior to the Closing Date, there shall have been no change which has had or could reasonably be
expected to have a Material Adverse Effect;

               (xi) with respect to any Loan to be funded on the Closing Date, if any, a duly executed
Notice of Borrowing;

               (xii) with respect to any Loan to be funded on the Closing Date, if any, a duly executed
funds disbursement agreement, together with a report setting forth the sources and uses of the
proceeds of the Loans to be disbursed on the Closing Date;

               (xiii) certified copies of all consents, approvals, authorizations, registrations and filings
and orders required to be made or obtained under any Requirement of Law, or by any Contractual
Obligation of each Loan Party, in connection with the execution, delivery and performance of the
Loan Documents by each Loan Party, and the validity and enforceability of the Loan Documents
against each Loan Party or any of the transactions contemplated thereby, and such consents,
approvals, authorizations, registrations, filings and orders shall be in full force and effect and
all applicable waiting periods shall have expired, and

49

 

no investigation or inquiry by any Governmental Authority regarding the Loans or any
transaction being financed with the proceeds thereof shall be ongoing;

               (xiv) Reserved;

               (xv) Reserved;

               (xvi) copies of (A) the internally prepared quarterly financial statements of Borrower and
its Subsidiaries on a consolidated basis for the Fiscal Quarter ending on September 30, 2010, and
(B) the audited consolidated financial statements for Borrower and its Subsidiaries for the Fiscal
Years ending December 31, 2007, December 31, 2008 and
December 31, 2009;

               (xvii) a duly completed and executed Compliance Certificate of the Borrower, including
pro forma calculations of the financial covenants set forth in Article 6 hereof as
of September 30, 2010;

               (xviii) Reserved;

               (xix) Reserved; and

               (xx) such other documents, certificates or information as the Administrative Agent or the
Required Lenders may reasonably request, all in form and substance reasonably satisfactory to the
Administrative Agent or the Required Lenders.

     Section 3.2. Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit is subject to the satisfaction of the following conditions:

          (a) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of
Default shall exist;

          (b) at the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, all representations and
warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all
material respects (or, if qualified by materiality, in all respects) on and as of the date of such
Borrowing or the date of issuance, amendment, extension or renewal of such Letter of Credit
(except to the extent stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct in all material respects as of such
earlier date), in each case before and after giving effect thereto;

          (c) Reserved;

          (d) the Borrower shall have delivered the required Notice of Borrowing, or, in the case of
any Letter of Credit, any other notice required pursuant to Section 2.23;

          (e) Reserved; and

50

 

          (f) to the extent any Lender is a Defaulting Lender or a Potential Defaulting Lender, at the
time of such Loan or issuance of such Letter of Credit, the cost or loss to the Issuing Bank or
the Swingline Lender, as the case may be, that would result therefrom is fully covered or
eliminated by (i) with respect to such Letter of Credit, (x) the LC Exposure of such Defaulting
Lender or Potential Defaulting Lender being reallocated among all other Lenders that are
Non-Defaulting Lenders in proportion with their Pro Rata Share, but only to the extent that, after
giving effect to such reallocation, the Revolving Credit Exposure of each Non-Defaulting Lender
does not exceed such Non-Defaulting Lender’s Pro Rata Share of the Aggregate Revolving Commitment
Amount; and (y) to the extent that such LC Exposure of such Defaulting Lender or Potential
Defaulting Lender exceeds the amount that is permitted to be reallocated pursuant to the
immediately preceding clause (x), the Borrower having provided cash collateral to the
Administrative Agent to hold on behalf of the Borrower, on terms and conditions reasonably
satisfactory to the Issuing Bank and the Administrative Agent, in an amount equal to such excess,
(ii) with respect to any Swingline Loan, the Borrower having provided cash collateral to the
Administrative Agent to hold on behalf of the Borrower, on terms and conditions reasonably
satisfactory to the Swingline Lender and the Administrative Agent, in an amount equal to the
Swingline Exposure of such Defaulting Lender or Potential Defaulting Lender, or (iii) the Borrower
making other arrangements reasonably satisfactory to the Administrative Agent and the Issuing Bank
or the Swingline Lender, as applicable, in their reasonable discretion to protect them against the
risk of non-payment by such Defaulting Lender or Potential Defaulting Lender; provided that none
of the foregoing will constitute a waiver or release of any claim the Borrower, the Administrative
Agent, the Issuing Bank, the Swingline Lender or any other Lender may have against such Defaulting
Lender, or cause such Defaulting Lender or Potential Defaulting Lender to be a Non-Defaulting
Lender.

     Each Borrowing and each issuance, amendment, extension or renewal of any Letter of Credit
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 3.2.

     Section 3.3. Delivery of Documents. All of the Loan Documents, certificates, legal
opinions and other documents and papers referred to in this Article 3, unless otherwise
specified, shall be delivered to the Administrative Agent for the account of each of the Lenders.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and each Lender as
follows:

     Section 4.1. Existence; Power. Each of the Loan Parties (i) is duly organized,
validly existing and in good standing as a corporation, partnership or limited liability company
under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority
to carry on its business as now conducted, and (iii) is duly qualified to do business, and is in
good standing, in each jurisdiction where such qualification is required, except in a case where a
failure to be so qualified could not reasonably be expected to result in a Material Adverse
Effect.

51

 

     Section 4.2. Organizational Power; Authorization. The execution, delivery and
performance by each Loan Party of the Loan Documents to which it is a party are within such Loan
Party’s organizational powers and have been duly authorized by all necessary organizational, and
if required, shareholder, partner or member, action. This Agreement has been duly executed and
delivered by the Borrower, and constitutes, and each other Loan Document to which any Loan Party
is a party, when executed and delivered by such Loan Party, will be duly executed and delivered by
such Loan Party, and will constitute, valid and binding obligations of the Borrower or such Loan
Party (as the case may be), enforceable against it in accordance with their respective terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting the enforcement of creditors’ rights generally and by general principles of
equity.

     Section 4.3. Governmental Approvals; No Conflicts. The execution, delivery and
performance by the Borrower of this Agreement, and by each Loan Party of the other Loan Documents
to which it is a party (a) do not require any consent or approval of, registration or filing with,
or any action by, any Governmental Authority, except those as have been obtained or made and are
in full force and effect, (b) will not violate any Requirements of Law applicable to the Borrower
or any of its Subsidiaries or any judgment, order or ruling of any Governmental Authority, (c)
will not violate or result in a default under any indenture, material agreement or other material
instrument binding on the Borrower or any of its Subsidiaries or any of its assets or give rise to
a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries
and (d) will not result in the creation or imposition of any Lien (other than Liens permitted by
Section 7.2) on any asset of the Borrower or any of its Subsidiaries.

     Section 4.4. Financial Statements. The Borrower has furnished to each Lender (i) the
audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2009,
and the related consolidated statements of income, shareholders’ equity and cash flows for the
Fiscal Year then ended with a written report thereon prepared by PriceWaterhouse Coopers and (ii)
the unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of September 30,
2010 (the “Balance Sheet Date”), and the related unaudited consolidated statements of
income and cash flows for the Fiscal Quarter and year-to-date period then ending, certified by a
Responsible Officer. Such financial statements fairly present in all material respects the
consolidated financial condition of the Borrower and its Subsidiaries as of such dates and the
consolidated results of operations for such periods in conformity with GAAP consistently applied,
subject to year end audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii). Since the Balance Sheet Date, and except as otherwise disclosed to the
Lenders in writing prior to the Closing Date, there has been no event, circumstance or condition
which has had or would reasonably be expected to have, singly or in the aggregate, a Material
Adverse Effect.

     Section 4.5. Litigation and Environmental Matters.

          (a) No litigation, investigation or proceeding of or before any arbitrators or Governmental
Authorities is pending against or, to the knowledge of any Responsible Officer of the Borrower or
any other officer of the Borrower having primary responsibility therefor, threatened against or
affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable
possibility of an adverse determination that could reasonably be expected to have,

52

 

either individually or in the aggregate, a Material Adverse Effect or (ii) which in any
manner draws into question the validity or enforceability of this Agreement or any other Loan
Document.

          (b) Except for the matters set forth on Schedule 4.5 or as could not reasonably be
expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental Law, (ii) has become subject to
any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

     Section 4.6. Compliance with Laws and Agreements. The Borrower and each Subsidiary is
in compliance with (a) all Requirements of Law and all judgments, decrees and orders of any
Governmental Authority and (b) all indentures, agreements or other instruments binding upon it or
its properties, except where non-compliance, either singly or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     Section 4.7. Investment Company Act, Etc. Neither the Borrower nor any of its
Subsidiaries is an “investment company” or is “controlled” by an “investment company”, as such
terms are defined in, or is required to register under, the Investment Company Act of 1940, as
amended.

     Section 4.8. Taxes. The Borrower and its Subsidiaries have timely filed or caused to
be filed all Federal income tax returns and all other material tax returns that are required to be
filed by them, and have paid all Federal and other material taxes shown to be due and payable on
such returns or on any assessments made against it or its property and all other material taxes,
fees or other charges imposed on it or any of its property by any Governmental Authority, except
where the same are currently being contested in good faith by appropriate proceedings and for
which the Borrower or such Subsidiary, as the case may be, has set aside on its books adequate
reserves in accordance with GAAP. The charges, accruals and reserves on the books of the Borrower
and its Subsidiaries in respect of such taxes are adequate, and no tax liabilities that could be
materially in excess of the amount so provided are anticipated.

     Section 4.9. Margin Regulations. None of the proceeds of any of the Loans or Letters
of Credit will be used, directly or indirectly, for “purchasing” or “carrying” any “margin stock”
with the respective meanings of each of such terms under Regulation U of the Board of Governors of
the Federal Reserve System as now and from time to time hereafter in effect or for any purpose
that violates the provisions of the Regulation U. Neither the Borrower nor its Subsidiaries is
engaged principally, or as one of its important activities, in the business of extending credit
for the purpose of purchasing or carrying “margin stock.”

     Section 4.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on the assumptions
used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most

53

 

recent financial statements reflecting such amounts, exceed the fair market value of the
assets of such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of Financial Standards
No. 87) did not, as of the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of all such underfunded Plans.

     Section 4.11. Ownership of Property.

          (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests
in, all of its real and personal property material to the operation of its business, including all
such properties reflected in the most recent audited consolidated balance sheet of the Borrower
referred to in Section 4.4 or purported to have been acquired by the Borrower or any
Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens other than Liens permitted by this Agreement.
Except as could not reasonably be expected to result in a Material Adverse Effect, all leases that
individually or in the aggregate are material to the business or operations of the Borrower and
its Subsidiaries are valid and subsisting and are in full force.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise has the
right, to use, all patents, trademarks, service marks, trade names, copyrights and other
intellectual property material to its business, and the use thereof by the Borrower and its
Subsidiaries does not infringe in any material respect on the rights of any other Person.

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

     Section 4.12. Disclosure. None of the reports (including, without limitation, all
reports that the Borrower is required to file with the Securities and Exchange Commission),
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 or syndication of
this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or
supplemented by any other information so furnished, including, without limitation, all reports
that the Borrower is required to file with the Securities and Exchange Commission) contains any
material misstatement of fact or omits to state any material fact necessary to make the statements
herein or in any of the reports, financial statements, certificates or other information furnished
by or on behalf of the Borrower, taken as a whole, in light of the circumstances under which they
were made, not materially misleading; provided, that with respect to projected financial
information, the Borrower represents only that such information was prepared in good faith based
upon assumptions that management of the Borrower believed to be reasonable at the time such
projected financial information was prepared (it being recognized by the Administrative Agent and
each Lender that projections as to future events are not to be viewed as facts or guaranties of
future performance, that actual results during the period or periods covered by such projections
may differ from the projected results and that such differences may be material and that the
Borrower makes no representation that such projections will be in fact realized).

54

 

     Section 4.13. Labor Relations. There are no strikes, lockouts or other material
labor disputes or grievances against the Borrower or any of its Subsidiaries, or, to the knowledge
of any Responsible Officer of the Borrower or any other officer of the Borrower having primary
responsibility therefor, threatened against or affecting the Borrower or any of its Subsidiaries,
and no significant unfair labor practice, charges or grievances are pending against the Borrower
or any of its Subsidiaries, or to the knowledge of any Responsible Officer of the Borrower or any
other officer of the Borrower having primary responsibility therefor, threatened against any of
them before any Governmental Authority. All payments due from the Borrower or any of its
Subsidiaries pursuant to the provisions of any collective bargaining agreement have been paid or
accrued as a liability on the books of the Borrower or any such Subsidiary, except where the
failure to do so could not reasonably be expected to have a Material Adverse Effect.

     Section 4.14. Subsidiaries. Schedule 4.14 sets forth the name of, the
ownership interest of the Borrower or any Subsidiary in, the jurisdiction of incorporation or
organization of, and the type of, each Subsidiary and identifies each Subsidiary that is a
Subsidiary Loan Party, in each case as of the Closing Date.

     Section 4.15. Insolvency. After giving effect to the execution and delivery of the
Loan Documents and the making of the Loans under this Agreement, the Borrower and the Loan
Parties, taken as a whole on a consolidated basis, (a) will not be “insolvent,” within the meaning
of such term as defined in § 101 of Title 11 of the United States Code, as amended from time to
time, (b) will not be unable to pay its debts generally as such debts become due, or (c) will not
have an unreasonably small capital to engage in any business or transaction, whether current or
contemplated.

     Section 4.16. Reserved.

     Section 4.17. OFAC. No Loan Party (i) is a person whose property or interest in
property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any dealings
or transactions prohibited by Section 2 of such executive order, or is otherwise associated with
any such person in any manner violative of Section 2, or (iii) is a person on the list of
Specially Designated Nationals and Blocked Persons or subject to the limitations or prohibitions
under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or
executive order.

     Section 4.18. Patriot Act. Each Loan Party is in compliance, in all material
respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto, and (ii) the
Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And
Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of the Loans will be used,
directly or indirectly, for any payments to any governmental official or employee, political
party, official of a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any improper advantage,
in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

55

 

ARTICLE 5

AFFIRMATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment
hereunder or any Obligation remains unpaid or outstanding (other than indemnities and
other
similar contingent obligations surviving the termination of this Agreement for which no
claim
has been made and which are unknown and not calculable at the time of termination):

     Section 5.1. Financial Statements and Other Information. The Borrower will
deliver to the Administrative Agent (which the Administrative Agent shall forward to
each Lender):

          (a) as soon as available and in any event, in the case of the consolidated
statements required hereunder only, within 120 days after the end of each Fiscal Year of
Borrower, a copy of the annual audited report for such Fiscal Year for the Borrower and its
Subsidiaries, containing a consolidated and, when available and to the extent prepared for
Strayer University, Inc., consolidating balance sheet of the Borrower and its Subsidiaries
as of
the end of such Fiscal Year and the related consolidated and, when available and to the
extent
prepared for Strayer University, Inc., consolidating statements of income, stockholders’
equity
and cash flows (together with, in the case of consolidated financial statements, all
footnotes
thereto) of the Borrower and its Subsidiaries for such Fiscal Year, setting forth in each
case in
comparative form the figures for the previous Fiscal Year, all in reasonable detail and, in
the case
of the consolidated financial statements only, reported on by PriceWaterhouse Coopers or
other
independent public accountants of nationally recognized standing (without a “going concern”
or
like qualification, exception or explanation and without any qualification or exception as
to
scope of such audit) to the effect that such financial statements present fairly in all
material
respects the financial condition and the results of operations of the Borrower and its
Subsidiaries
for such Fiscal Year on a consolidated basis in accordance with GAAP and that the
examination
by such accountants in connection with such consolidated financial statements has been made
in
accordance with generally accepted auditing standards;

          (b) as soon as available and in any event within 45 days after the end of each
Fiscal Quarter of the Borrower, an unaudited consolidated balance sheet of the Borrower and
its
Subsidiaries as of the end of such Fiscal Quarter and the related unaudited consolidated
statement of income and consolidated statement of cash flows of the Borrower and its
Subsidiaries for such Fiscal Quarter and the then elapsed portion of such Fiscal Year,
setting
forth in each case in comparative form the figures for the corresponding quarter and the
corresponding portion of Borrower’s previous Fiscal Year (it being understood that quarterly
financial statements are not required to have footnote disclosures and are subject to normal
year-end adjustments);

          (c) as soon as available and in any event within 30 days after the end of each
calendar month, an unaudited consolidated balance sheet of the Borrower and its Subsidiaries
as
of the end of such calendar month (it being understood that monthly financial statements are
not
required to have footnote disclosures and are subject to normal year-end adjustments and
will
generally be in a form prepared by the Borrower for internal use);

56

 

          (d) concurrently with the delivery of the financial statements referred to in clauses
(a) and (b) above, a Compliance Certificate signed by the principal executive officer and the
principal financial officer of the Borrower;

          (e) within 60 days after the end of each Fiscal Year, a budget and projection of the Borrower
and its Subsidiaries for the next succeeding Fiscal Year;

          (f) promptly after the same become publicly available, notice of all periodic and other
reports, proxy statements and other materials filed with the Securities and Exchange Commission,
or any Governmental Authority succeeding to any or all functions of said Commission, or with any
national securities exchange, or distributed by the Borrower to its
shareholders generally, as the case may be;

          (g) not less than ten days
following such change, written notice of any change (i) in any Loan
Party’s corporate name, (ii) in the jurisdiction of organization or formation of any
Loan Party, (iii) in any Loan Party’s identity or form of organization or (iv) in any Loan
Party’s Federal Taxpayer Identification Number; and

          (h) promptly following any request therefor by the Administrative Agent, such other
information regarding the results of operations, business affairs and financial condition of the
Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request.

     Section 5.2. Notices of Material Events.

          (a) The Borrower will furnish to the Administrative Agent prompt written notice of the
following (which the Administrative Agent shall forward to each Lender):

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

               (ii) the filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or, to the knowledge of any Responsible Officer of the Borrower
or any other officer of the Borrower having primary responsibility therefor, affecting the
Borrower or any Subsidiary which could reasonably be expected to result in a Material Adverse
Effect;

               (iii) the occurrence of any event or any other development by which the Borrower or any of
its Subsidiaries (i) fails to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) becomes
subject to any Environmental Liability, (iii) receives notice of any claim with respect to any
Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in
each of the preceding clauses, which individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect;

               (iv) 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 $500,000;

57

 

               (v) the occurrence of any default or event of default, or the receipt by Borrower or any
of its Subsidiaries of any written notice of an alleged default or event of default, respect of any
Material Indebtedness of the Borrower or any of its Subsidiaries; and

               (vi) any other development that results in a Material Adverse Effect.

          (b) Each notice delivered under this Section 5.2 shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

     Section 5.3. Existence; Conduct of Business. The Borrower will, and will cause each
other Loan Party to, do or cause to be done all things necessary to preserve, renew and maintain in
full force and effect (a) its legal existence and (b) its respective rights, licenses, permits,
privileges, franchises, patents, copyrights, trademarks and trade names, the loss of which could
reasonably be expected to result in a Material Adverse Effect, and will continue to engage in the
same business as presently conducted or such other businesses that are reasonably related thereto;
provided, that nothing in this Section 5.3 shall prohibit any merger,
consolidation, liquidation, dissolution or disposition permitted under Section 7.3 or
Section 7.6.

     Section 5.4. Compliance with Laws, Etc; Maintenance of Licenses and Accreditations.
The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules,
regulations and requirements of any Governmental Authority applicable to its business and
properties, including without limitation, all Environmental Laws, ERISA, OSHA and rules,
regulations and requirements of the U.S. Department of Education (including any regulatory test of
financial responsibility), except where the failure to do so, either individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower
will, and will cause each of its Subsidiaries to, maintain all licenses and accreditations required
for the operation of its business and properties, the loss of which could not reasonably be
expected to result in a Material Adverse Effect.

     Section 5.5. Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay and discharge at or before maturity, all of Federal and other material tax
liabilities, assessments and governmental charges (including without limitation all tax liabilities
and claims that could result in a statutory Lien) before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate
reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending
such contest could not reasonably be expected to result in a Material Adverse Effect.

     Section 5.6. Books and Records. The Borrower will, and will cause each of its
Subsidiaries to, keep proper books of record and account in which full, true and correct entries
shall be made of all dealings and transactions in relation to its business and activities to the
extent necessary to prepare the consolidated financial statements of Borrower in conformity with
GAAP.

     Section 5.7. Visitation, Inspection, Etc. The Borrower will, and will cause each of
its Subsidiaries to, permit any representative of the Administrative Agent or any Lender, to visit
and

58

 

inspect its properties, to examine its books and records and to make copies and take extracts
therefrom, to discuss its affairs, finances and accounts with any of its officers and with its
independent certified public accountants, all at such reasonable times and as often as the
Administrative Agent or any Lender may reasonably request after reasonable prior notice to the
Borrower; provided, however, if an Event of Default has occurred and is
continuing, no prior notice shall be required. All such inspections and examinations by the
Administrative Agent or any Lender shall be at the Borrower’s expense; provided, that so
long as no Event of Default exists, the Borrower shall only be required to reimburse for one such
inspection or examination each Fiscal Year.

     Section 5.8. Maintenance of Properties; Insurance. The Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear and casualty events excepted
and (b) maintain with financially sound and reputable insurance companies, insurance with respect
to its properties and business, and the properties and business of its Subsidiaries, against loss
or damage of the kinds customarily insured against by companies in the same or similar businesses
operating in the same or similar locations.

     Section 5.9. Use of Proceeds and Letters of Credit. The Borrower will use the
proceeds of all Loans to finance the repurchase of shares of the Capital Stock of the Borrower,
finance working capital needs and Permitted Acquisitions and pay transactional expenses related
thereto and for other general corporate purposes of the Borrower and its Subsidiaries. No part of
the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that would
violate any rule or regulation of the Board of Governors of the Federal Reserve System, including
Regulations T, U or X. Specifically, no part of the proceeds of any Loan will be used to purchase
or carry “margin stock” or to extend credit to others for the purpose of purchasing or carrying
“margin stock.” All Letters of Credit will be used for general corporate purposes.

     Section 5.10. Intentionally Deleted.

     Section 5.11. Additional Subsidiaries. If any Domestic Subsidiary is acquired or
formed after the Closing Date, the Borrower will promptly notify the Administrative Agent thereof
and, within ten (10) Business Days after any such Domestic Subsidiary is acquired or formed, will
cause such Domestic Subsidiary to become a Subsidiary Loan Party. A Domestic Subsidiary shall
become an additional Subsidiary Loan Party by executing and delivering to the Administrative Agent
a Subsidiary Guaranty Supplement, accompanied by (i) all other Loan Documents related thereto,
(ii) certified copies of certificates or articles of incorporation or organization, by-laws,
membership operating agreements, and other organizational documents, appropriate authorizing
resolutions of the board of directors of such Subsidiaries, and, to the extent requested by the
Administrative Agent, opinions of counsel comparable to those delivered pursuant to Section
3.1, and (iii) such other documents as the Administrative Agent may reasonably request. No
Subsidiary that becomes a Subsidiary Loan Party shall thereafter cease to be a Subsidiary Loan
Party or be entitled to be released or discharged from its obligation under the Subsidiary
Guaranty Agreement except as otherwise provided in this Agreement. No Loan Party shall form or
acquire a Foreign Subsidiary after the date hereof without the prior written consent of the
Required Lenders. PEI shall not be required to become a Subsidiary Loan Party so long as no
further Investments are made therein by the Borrower or any Subsidiary.

59

 

ARTICLE 6

FINANCIAL COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or
any Obligation remains unpaid or outstanding (other than indemnities and other similar
contingent obligations surviving the termination of this Agreement for which no claim has been
made and which are unknown and not calculable at the time of termination):

     Section 6.1. Minimum EBITDAError! Bookmark not defined.. The Borrower will
maintain, as of the last day of each Fiscal Quarter, commencing with the Fiscal Quarter ending
December 31, 2010, Consolidated EBITDA for the period of two consecutive Fiscal Quarters then
ended of not less than $60,000,000.

     Section 6.2. Interest Coverage Ratio. The Borrower will maintain, as of the end of
each Fiscal Quarter, commencing with the Fiscal Quarter ending December 31, 2010, an Interest
Coverage Ratio of not less than 3.00 to 1.

     Section 6.3. Unrestricted Liquidity. The Borrower will maintain, at all times,
Unrestricted Liquidity of not less than $35,000,000.

     Section 6.4. Minimum Consolidated Tangible Net Worth. The Borrower will maintain,
as of the end of each calendar month, commencing with the calendar month ending December 31,
2010, Consolidated Tangible Net Worth of not less than $50,000,000.

ARTICLE 7

NEGATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a Commitment hereunder or
any Obligation remains outstanding (other than indemnities and other similar contingent
obligations surviving the termination of this Agreement for which no claim has been made and
which are unknown and not calculable at the time of termination):

     Section 7.1. Indebtedness and Preferred Stock. The Borrower will not, and will not
permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness,
except:

          (a) Indebtedness created pursuant to the Loan Documents;

          (b) Indebtedness of the Borrower and its Subsidiaries existing on the date hereof and set
forth on Schedule 7.1 and extensions, renewals and replacements of any such Indebtedness
that do not increase the outstanding principal amount thereof (immediately prior to giving
effect to such extension, renewal or replacement) or shorten the maturity or the weighted
average life thereof;

          (c) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital Lease

60

 

Obligations, and any Indebtedness assumed in connection with the acquisition of any such
assets
or secured by a Lien on any such assets prior to the acquisition thereof; provided, that such
Indebtedness is incurred prior to or within 180 days after such acquisition or the completion of
such construction or improvements or extensions, renewals, and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof (immediately prior to
giving effect to such extension, renewal or replacement) or shorten the maturity or the weighted
average life thereof; provided further, that the aggregate principal amount of such Indebtedness
does not exceed $10,000,000 at any time outstanding;

          (d) Indebtedness of the Borrower owing to any Subsidiary Loan Party and of
any Subsidiary owing to the Borrower or any other Subsidiary Loan Party;

          (e) Guarantees (i) by the Borrower or any Subsidiary Loan Party of
Indebtedness of any other Loan Party and by any Subsidiary of Indebtedness of the Borrower
or any Subsidiary Loan Party and (ii) by any Loan Party of Indebtedness of any Subsidiary that
is
not a Loan Party to the extent constituting an Investment permitted pursuant to Section
7.4;

          (f) Indebtedness of any Person which becomes a Subsidiary after the date of
this Agreement; provided, that such Indebtedness exists at the time that such
Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person
becoming a
Subsidiary and the aggregate principal amount of such Indebtedness permitted under this
Section
7.1(f) shall not exceed $5,000,000 outstanding at any time;

          (g) Indebtedness in respect of Hedging Obligations permitted by Section 7.10;

and

          (h) other unsecured Indebtedness of the Borrower or its Subsidiaries in an
aggregate principal amount not to exceed $5,000,000 at any time outstanding.

          The Borrower will not, and will not permit any Subsidiary to, issue any preferred
stock or other preferred equity interests that (i) matures or is mandatorily redeemable
pursuant to
a sinking fund obligation or otherwise, (ii) is or may become redeemable or repurchaseable
by
the Borrower or such Subsidiary at the option of the holder thereof, in whole or in part or
(iii) is
convertible or exchangeable at the option of the holder thereof for Indebtedness or
preferred
stock or any other preferred equity interests described in this paragraph, on or prior to,
in the
case of clause (i), (ii) or (iii), the 91st day following the Revolving
Commitment Termination
Date.

     Section 7.2. Negative Pledge. The Borrower will not, and will not permit any of its
Subsidiaries to, create, incur, assume or suffer to exist any Lien on any of its assets or
property
now owned or hereafter acquired or, except:

          (a) Liens securing the Obligations, provided, however, that no Liens may
secure Hedging Obligations without securing all other Obligations on a basis at least pari
passu
with such Hedging Obligations and subject to the priority of payments set forth in
Section 2.22
of this Agreement;

          (b) Permitted Encumbrances;

61

 

          (c) any Liens on any property or asset of the Borrower or any Subsidiary existing on the
Closing Date set forth on Schedule 7.2; provided, that such Lien shall not
apply to any other property or asset of the Borrower or any Subsidiary;

          (d) purchase money Liens upon or in any fixed or capital assets to secure the purchase
price or the cost of construction or improvement of such fixed or capital assets or to secure
Indebtedness incurred solely for the purpose of financing the acquisition, construction or
improvement of such fixed or capital assets (including Liens securing any Capital Lease
Obligations); provided, that (i) such Lien secures Indebtedness permitted by
Section 7.1(c),
(ii) such Lien attaches to such asset concurrently or within 180 days after the acquisition,
improvement or completion of the construction thereof; (iii) such Lien does not extend to any
other asset; and (iv) the principal amount of the Indebtedness secured thereby does not exceed
the cost of acquiring, constructing or improving such fixed or capital assets;

          (e) Liens securing Indebtedness permitted pursuant to Section 7.1(f);
provided, that such Lien does not extend to any assets other than the assets of the
Person which becomes a Subsidiary after the date of this Agreement; and

          (f) extensions, renewals, or replacements of any Lien referred to in paragraphs (a)
through (e) of this Section 7.2; provided, that the principal amount of
the Indebtedness secured thereby is not increased and that any such extension, renewal or
replacement is limited to the assets originally encumbered thereby.

     Section 7.3. Fundamental Changes. The Borrower will not, and will not permit any
Subsidiary to, merge into or consolidate into any other Person, or permit any other Person to
merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single
transaction or a series of transactions) all or substantially all of its assets (in each case,
whether now owned or hereafter acquired) or all or substantially all of the stock of any of its
Subsidiaries (in each case, whether now owned or hereafter acquired) or liquidate or dissolve;
provided, that if at the time thereof and immediately after giving effect thereto, no
Default or Event of Default shall have occurred and be continuing (i) the Borrower or any
Subsidiary may merge with a Person if (x) the Borrower is the surviving Person or (y) if the
Borrower is not a party to such merger, such Subsidiary is the surviving Person or the surviving
Person shall become a Subsidiary Loan Party pursuant to Section 5.11, (ii) any Subsidiary
may merge into another Subsidiary; provided, that if any party to such merger is a
Subsidiary Loan Party, the Subsidiary Loan Party shall be the surviving Person or the surviving
Person shall become a Subsidiary Loan Party pursuant to Section 5.11, (iii) any
Subsidiary may sell, transfer, lease or otherwise dispose of all or substantially all of its
assets to the Borrower or to a Subsidiary Loan Party or in connection with a Disposition
permitted pursuant to Section 7.6 and (iv) PEI (subject to the provisions of Section
5.11 regarding Investments) and any other Subsidiary (other than a Subsidiary Loan Party,
subject to the following proviso) may liquidate or dissolve if the Borrower determines in good
faith that such liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders; provided, that ELP may liquidate or dissolve if (x)
the Borrower determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders, (y) the Borrower
determines in good faith that ELP is no longer required or necessary for the conduct of the
business of the Borrower and (z) either (I) upon dissolution, the assets of

62

 

ELP become those of a Loan Party or (II) prior to dissolution, the assets of ELP are subject to a
Disposition permitted by Section 7.6; and provided, further, that any
merger permitted pursuant to this Section 7.3 involving a Person that is not a
wholly-owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 7.4.

     Section 7.4. Investments, Loans, Etc. The Borrower will not, and will not permit any
of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any
Person that was not a wholly-owned Subsidiary prior to such merger), any Capital Stock, evidence
of indebtedness or other securities (including any option, warrant, or other right to acquire any
of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations
of, or make or permit to exist any investment or any other interest in, any other Person (all of
the foregoing being collectively called “Investments”), or purchase or otherwise acquire
(in one transaction or a series of transactions) any assets of any other Person that constitute a
business unit, or create or form any Subsidiary, except:

          (a) Investments (other than Permitted Investments) existing on the date hereof and set forth
on Schedule 7.4 (including Investments in Subsidiaries); and provided that,
notwithstanding anything to the contrary contained in this Agreement, the Borrower shall not, and
shall not permit any Subsidiary Loan Party to, make any further Investments in PEI;

          (b) Permitted Investments;

          (c) Guarantees constituting Indebtedness permitted by Section 7.1;

          (d) Investments made by the Borrower in or to any Subsidiary Loan Party and by any Subsidiary
to the Borrower or in or to a Subsidiary Loan Party;

          (e) loans or advances to employees, officers or directors of the Borrower or any Subsidiary
in the ordinary course of business for travel, relocation and related expenses; provided,
however, that the aggregate amount of all such loans and advances does not exceed
$1,000,000 at any time;

          (f) repurchases of shares of Capital Stock and options to purchase shares of Capital Stock
of the Borrower, and provided, that for the purpose of this clause (f) at the time such
repurchase is made and after giving effect thereto (i) no Default or Event of Default has
occurred and is continuing nor would occur and (ii) the Borrower would be in compliance with the
financial covenants contained in Article 6 (other than that contained in Section 6.4
with respect to Consolidated Tangible Net Worth) on a pro forma basis;

          (g) Permitted Acquisitions;

          (h) Hedging Transactions permitted by Section 7.10;

          (i) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss;

63

 

          (j) Investments consisting of receivables and notes received from students in the ordinary
course of business; and

          (k) Other Investments which in the aggregate do not exceed $5,000,000 in any
Fiscal Year.

     Section 7.5. Restricted Payments. The Borrower will not, and will not permit its
Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on
any class of its Capital Stock, or make any payment on account of, or set apart assets for a
sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other
acquisition of, any shares of Capital Stock or Indebtedness subordinated to the Obligations of the
Borrower or any Guarantee thereof or any options, warrants, or other rights to purchase such
Capital Stock or such Indebtedness, whether now or hereafter outstanding (each, a “Restricted
Payment”), except for (i) dividends payable by the Borrower solely in shares of any class of
its common stock, (ii) Restricted Payments made by any Subsidiary to the Borrower or to another
Subsidiary, on at least a pro rata basis with any other shareholders if such Subsidiary is not
wholly owned by the Borrower and other wholly owned Subsidiaries, (iii) repurchases of shares of
Capital Stock and options to purchase shares of Capital Stock permitted by Section 7.4(f);
provided, for the purpose of this clause (iii) that no Default or Event of Default has
occurred and is continuing at the time such repurchase is made and the Borrower would be in
compliance with the financial covenants contained in Article 6 on a pro forma basis after giving
effect thereto; and (iv) cash dividends and distributions paid on the Capital Stock of the
Borrower; provided, for the purpose of this clause (iv) that at the time such dividend or
distribution is paid and after giving effect thereto (x) no Default or Event of Default has
occurred and is continuing nor would occur and (y) the Borrower would be in compliance with the
financial covenants contained in Article 6 (other than that contained in Section 6.4 with
respect to Consolidated Tangible Net Worth) on a pro forma basis.

     Section 7.6. Sale of Assets. The Borrower will not, and will not permit any of its
Subsidiaries to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets,
business or property, whether now owned or hereafter acquired, or, in the case of any Subsidiary,
issue or sell any shares of such Subsidiary’s Capital Stock to any Person other than the Borrower
or a Subsidiary Loan Party (or to qualify directors if required by applicable law) (each, a
“Disposition”), except:

          (a) the sale or other disposition for fair market value of obsolete or worn out property or
other property not necessary for operations disposed of in the ordinary course of business;

          (b) the sale of inventory and Permitted Investments in the ordinary course of
business;

          (c) Dispositions permitted by Sections 7.3, 7.4 and 7.5;

          (d) leases, subleases, licenses or sublicenses of real or personal property in the ordinary
course of business, in each case that do not materially interfere with the business of the Borrower
and its Subsidiaries taken as a whole;

64

 

          (e) Dispositions of Permitted Investments for fair market value or otherwise in connection
with transactions not otherwise prohibited by this Agreement;

          (f) so long as no Event of Default has occurred and is continuing or would occur after
giving effect thereto, the Disposition of delinquent notes or accounts receivable in the
ordinary course of business of purposes of collection only (and not for the purpose of any bulk
sale, financing or securitization transaction); and

          (g) any other Disposition in an aggregate amount not to exceed $10,000,000 in any Fiscal
Year.

     Section 7.7. Transactions with Affiliates. The Borrower will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to,
or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any
other transactions with, any of its Affiliates, except (a) in the ordinary course of business at
prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than
could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions
between or among the Borrower and any Subsidiary Loan Party not involving any other Affiliates,
(c) any Restricted Payments permitted by Section 7.5 and any Investments permitted by
Section 7.4, (d) customary directors’ fees and expenses to Persons who are not otherwise
employees of the Borrower or any of its Subsidiaries, (e) employment agreements, employee
benefit and compensation plans, as determined in good faith by the board of directors or senior
management of the Borrower and (f) the payment of customary fees and reimbursement of reasonable
out-of- pocket costs of, and customary indemnities provided to or on behalf of, directors,
officers and employees of the Borrower and its Subsidiaries in the ordinary course of business.

     Section 7.8. Restrictive Agreements. The Borrower will not, and will not permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement that
prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or permit any Lien upon any of its assets or properties, whether now
owned or hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to its Capital Stock, to make or repay loans or advances to the
Borrower or any other Subsidiary, to Guarantee Indebtedness of the Borrower or any other
Subsidiary or to transfer any of its property or assets to the Borrower or any Subsidiary of the
Borrower; provided, that (i) the foregoing shall not apply to restrictions or conditions
imposed by law or by this Agreement or any other Loan Document, (ii) the foregoing shall not
apply to customary restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided such restrictions and conditions apply only to the
Subsidiary that is sold and such sale is permitted hereunder, (iii) clause (a) shall not apply
to restrictions or conditions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement if such restrictions and conditions apply only to the property or
assets securing such Indebtedness, (iv) clause (a) shall not apply to customary provisions in
leases, licenses and other similar agreements restricting the assignment thereof and (v) clause
(a) shall not apply to negative pledge covenants contained in any agreements relating to
Indebtedness permitted to be incurred pursuant to the provisions of this Agreement that (i) are
not in any respect more restrictive than the restrictions contained in this Agreement and (ii)
do not prohibit the granting of Liens to secure the Obligations.

65

 

     Section 7.9. Sale and Leaseback Transactions. The Borrower will not, and will not
permit any of the Subsidiaries to, enter into any arrangement, directly or indirectly, whereby
it shall sell or transfer any property, real or personal, used or useful in its business,
whether now owned or hereinafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes as the property
sold or transferred (each such transaction, a “Sale and Leaseback Transaction”), unless
such Sale and Leaseback Transaction is otherwise permitted by Sections 7.1 and
7.6.

     Section 7.10. Hedging Transactions. The Borrower will not, and will not permit any
of the Subsidiaries to, enter into any Hedging Transaction, other than Hedging Transactions
entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower
or any Subsidiary is exposed in the conduct of its business or the management of its
liabilities. Solely for the avoidance of doubt, the Borrower acknowledges that a Hedging
Transaction entered into for speculative purposes or of a speculative nature (which shall be
deemed to include any Hedging Transaction under which the Borrower or any of the Subsidiaries is
or may become obliged to make any payment (i) in connection with the purchase by any third party
of any Capital Stock or any Indebtedness or (ii) as a result of changes in the market value of
any Capital Stock or any Indebtedness (excluding Indebtedness of the Borrower or its
Subsidiaries under this Agreement and the other Loan Documents or as permitted to be incurred
pursuant to this Agreement) is not a Hedging Transaction entered into in the ordinary course of
business to hedge or mitigate risks.

     Section 7.11. Amendment to Material Documents. The Borrower will not, and will not
permit any of its Subsidiaries to, amend, modify or waive any of its rights in a manner
materially adverse to the Lenders under (a) its certificate of incorporation, bylaws or other
organizational documents or (b) Contractual Obligations evidencing, governing, securing or
otherwise related to Material Indebtedness.

     Section 7.12. Intentionally Deleted.

     Section 7.13. Accounting Changes. The Borrower will not, and will not permit any of
its Subsidiaries to, make any significant change in accounting treatment or reporting practices,
except as required by GAAP, or change the Fiscal Year of the Borrower or of any of its
Subsidiaries, except to change the fiscal year of a Subsidiary to conform its fiscal year to
that of the Borrower.

ARTICLE 8

EVENTS OF DEFAULT

     Section 8.1. Events of Default. If any of the following events (each an
“Event of Default”) shall occur:

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

66

 

          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount payable under clause (a) of this Section 8.1) payable under this
Agreement or any other Loan Document, when and as the same shall become due and payable, and such
failure shall continue unremedied for a period of three (3) Business Days; or

          (c) any representation or warranty made or deemed made by or on behalf of the Borrower or any
Subsidiary in or in connection with this Agreement or any other Loan Document (including the
Schedules attached thereto) and any amendments or modifications hereof or waivers hereunder, or in
any certificate, report, financial statement or other document submitted to the Administrative
Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in
connection with this Agreement or any other Loan Document (including any Compliance Certificate)
shall prove to be incorrect in any material respect (or, if qualified by materiality, then in all
respects) when made or deemed made or submitted; or

          (d) the Borrower shall fail to observe or perform any covenant or agreement contained in
Section 5.1(a), 5.1(b), 5.1(c) (and, in the case of Section 5.1(c)
only, such failure remains unremedied for 5 days after the date when the applicable statements are
due), 5.2(a)(i), or 5.3(a) (with respect to the Borrower’s or any Loan Party’s
existence) or Articles 6 or 7; or

          (e) any Loan Party shall fail to observe or perform any covenant or agreement contained in
this Agreement (other than those referred to in clauses (a), (b) and (d) above) or any other Loan
Document, and such failure shall remain unremedied for 30 days after the earlier of (i) any
Responsible Officer of the Borrower becomes aware of such failure, or (ii) notice thereof shall
have been given to the Borrower by the Administrative Agent or any Lender; or

          (f) intentionally deleted; or

          (g) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other
surety) shall fail to pay any principal of, or premium or interest on, any Material Indebtedness
that is outstanding, when and as the same shall become due and payable (whether at scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument evidencing or
governing such Indebtedness; or any other event shall occur or condition shall exist under any
agreement or instrument relating to such Indebtedness and shall continue after the applicable
grace period, if any, specified in such agreement or instrument, if the effect of such event or
condition is to accelerate, or permit the acceleration of, the maturity of such Indebtedness; or
any such Indebtedness shall be declared to be due and payable, or required to be prepaid or
redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or
defeased, or any offer to prepay, redeem, purchase or defease such Indebtedness shall be required
to be made, in each case prior to the stated maturity thereof (other than customary non-default
mandatory prepayment requirements associated with asset sales, casualty events or equity
issuances); or

          (h) the Borrower or any Subsidiary Loan Party shall (i) commence a voluntary case or other
proceeding or file any petition seeking liquidation, reorganization or other relief under any
federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect
or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar

67

 

official of it or any substantial part of its property, (ii) consent to the institution of, or
fail to
contest in a timely and appropriate manner, any proceeding or petition described in clause (i) of
this Section 8.1, (iii) apply for or consent to the appointment of a custodian, trustee,
receiver,
liquidator or other similar official for the Borrower or any such Subsidiary Loan Party or for a
substantial part of its assets, (iv) file an answer admitting the material allegations of a
petition
filed against it in any such proceeding, (v) make a general assignment for the benefit of
creditors,
or (vi) take any action for the purpose of effecting any of the foregoing; or

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

          (j) the Borrower or any Subsidiary shall become unable to pay, shall admit in
writing its inability to pay, or shall fail generally to pay, its debts as they become due;
or

          (k) an ERISA Event shall have occurred that, when taken together with other
ERISA Events that have occurred, would reasonably be expected to result in a Material
Adverse
Effect; or

          (1) any judgment or order for the payment of money in excess of $5,000,000
in the aggregate shall be rendered against the Borrower or any Subsidiary, and either
(i) enforcement proceedings shall have been commenced by any creditor upon such judgment or
order or (ii) there shall be a period of 30 consecutive days during which a stay of
enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;
or

          (m) any non-monetary judgment or order shall be rendered against the
Borrower or any Subsidiary that would reasonably be expected to have a Material Adverse
Effect, and there shall be a period of 30 consecutive days during which a stay of
enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect;
or

          (n) a Change in Control shall occur or exist; or

          (o) any provision of any Subsidiary Guaranty Agreement shall for any reason
cease to be valid and binding on, or enforceable against, any Subsidiary Loan Party, or any
Subsidiary Loan Party shall so state in writing, or any Subsidiary Loan Party shall seek to
terminate its Subsidiary Guaranty Agreement; or

          (p) intentionally deleted; or

          (q) any “Event of Default” shall have occurred and be continuing under any
other Loan Document;

68

 

     then, and in every such event (other than an event with respect to the Borrower described
in clause (h) or (i) of this Section 8.1) and at any time thereafter during the
continuance of such event, the Administrative Agent may, and upon the written request of the
Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at
the same or different times: (i) terminate the Commitments, whereupon the Commitment of each
Lender shall terminate immediately, (ii) declare the principal of and any accrued interest on
the Loans, and all other Obligations owing hereunder, to be, whereupon the same shall become,
due and payable immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower, (iii) exercise all remedies contained in any
other Loan Document, and (iv) exercise any other remedies available at law or in equity; and
that, if an Event of Default specified in either clause (h) or (i) shall occur, the Commitments
shall automatically terminate and the principal of the Loans then outstanding, together with
accrued interest thereon, and all fees, and all other Obligations shall automatically become due
and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

ARTICLE 9

THE ADMINISTRATIVE AGENT

     Section 9.1. Appointment
of Administrative Agent.

          (a) Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and
authorizes it to take such actions on its behalf and to exercise such powers as are delegated to
the Administrative Agent under this Agreement and the other Loan Documents, together with all
such actions and powers that are reasonably incidental thereto. The Administrative Agent may
perform any of its duties hereunder or under the other Loan Documents by or through any one or
more sub-agents or attorneys-in-fact appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent or attorney-in-fact may perform any and all of its duties and
exercise its rights and powers through their respective Related Parties. The exculpatory
provisions set forth in this Article shall apply to any such sub-agent or attorney-in-fact and
the Related Parties of the Administrative Agent, any such sub-agent and any such
attorney-in-fact 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.

          (b) The Issuing Bank shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith until such time and except for so
long as the Administrative Agent may agree at the request of the Required Lenders to act for the
Issuing Bank with respect thereto; provided, that the Issuing Bank shall have all the benefits
and immunities (i) provided to the Administrative Agent in this Article with respect to any acts
taken or omissions suffered by the Issuing Bank in connection with Letters of Credit issued by
it or proposed to be issued by it and the application and agreements for letters of credit
pertaining to the Letters of Credit as fully as if the term “Administrative Agent” as used in
this Article included the Issuing Bank with respect to such acts or omissions and (ii) as
additionally provided in this Agreement with respect to the Issuing Bank.

69

 

     Section 9.2. Nature of Duties of Administrative Agent. The Administrative
Agent shall not have any duties or obligations except those expressly set forth in this
Agreement and the other Loan Documents. 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 or an Event of 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 those discretionary rights and powers expressly contemplated by
the Loan Documents that the Administrative Agent is required to exercise in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 10.2), and (c) except as expressly set forth
in the Loan Documents, 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 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, its sub-agents or attorneys-in-fact with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 10.2) or in the absence of its own gross
negligence or willful misconduct as determined by a final, non-appealable judgment of a court
of competent jurisdiction. The Administrative Agent shall not be responsible for the negligence
or misconduct of any sub-agents or attorneys-in-fact selected by it with reasonable care. The
Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default
unless and until written notice thereof (which notice shall include an express reference to
such event being a “Default” or “Event of Default” hereunder) is given to the Administrative
Agent by the Borrower or any 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 any Loan Document, (ii) the contents of any certificate, report
or other document delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements, or other terms and
conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of any Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article 3 or elsewhere in any Loan Document,
other than to confirm receipt of items expressly required to be delivered to the Administrative
Agent. The Administrative Agent may consult with legal counsel (including counsel for the
Borrower) concerning all matters pertaining to such duties.

     Section 9.3. Lack of Reliance on the Administrative Agent. Each of the Lenders,
the Swingline Lender and the Issuing Bank 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 of the Lenders, the Swingline Lender and the Issuing Bank 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 has deemed appropriate,
continue to make its own decisions in taking or not taking of any action under or based on this
Agreement, any related agreement or any document furnished hereunder or thereunder.

     Section 9.4. Certain Rights of the Administrative Agent. If the Administrative
Agent shall request instructions from the Required Lenders with respect to any action or
actions (including the failure to act) in connection with this Agreement, the Administrative
Agent shall

70

 

be entitled to refrain from such act or taking such act, unless and until it shall have received
instructions from such Lenders, and the Administrative Agent shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right
of action whatsoever against the Administrative Agent as a result of the Administrative Agent
acting or refraining from acting hereunder in accordance with the instructions of the Required
Lenders where required by the terms of this Agreement.

     Section 9.5. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed in good faith by
it to be genuine and to have been signed, sent or made by the proper Person. The Administrative
Agent may also rely upon any statement made to it orally or by telephone and believed in good
faith 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 (including counsel for the Borrower),
independent public 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 such counsel, accountants or
experts.

     Section 9.6. The Administrative Agent in its Individual Capacity. The bank serving as
the Administrative Agent shall have the same rights and powers under this Agreement and any other
Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from
exercising the same as though it were not the Administrative Agent; and the terms “Lenders”,
“Required Lenders”, “holders of Notes”, or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting
as the Administrative Agent 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 Affiliate of the
Borrower as if it were not the Administrative Agent hereunder.

     Section 9.7. Successor Administrative Agent.

          (a) The Administrative Agent may resign at any time by giving notice thereof to the Lenders and
the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a
successor Administrative Agent, subject to the approval by the Borrower provided that no Event of
Default shall exist at such time. If no successor Administrative Agent shall have been so
appointed, and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on
behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent, which shall
be a commercial bank organized under the laws of the United States of America or any state thereof
or a bank which maintains an office in the United States, having a combined capital and surplus of
at least $500,000,000.

          (b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a successor,
such successor Administrative Agent shall thereupon 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 under this Agreement and
the other Loan Documents. If within 45 days after written notice is given of the retiring
Administrative Agent’s resignation under this Section 9.7 no successor

71

 

Administrative Agent shall have been appointed and shall have accepted such appointment,
then on such 45th day (i) the retiring Administrative Agent’s resignation shall
become effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its
duties and obligations under the Loan Documents and (iii) the Required Lenders shall thereafter
perform all duties of the retiring Administrative Agent under the Loan Documents until such time
as the Required Lenders appoint a successor Administrative Agent as provided above. After any
retiring Administrative Agent’s resignation hereunder, the provisions of this Article shall
continue in effect for the benefit of such retiring Administrative Agent and its representatives
and agents in respect of any actions taken or not taken by any of them while it was serving as
the Administrative Agent.

     Section 9.8. Authorization to Execute other Loan Documents.

          (a) Each Lender authorizes the Administrative Agent to enter into each of the Loan
Documents to which it is a party and to take all action contemplated by such Loan Documents.
Each Lender agrees (except to the extent provided in Section 9.7(b) following the
resignation of the Administrative Agent) that no Lender, other than the Administrative Agent
acting on behalf of all Lenders, shall have the right individually to seek to realize upon the
security granted by any Loan Document, it being understood and agreed that such rights and
remedies may be exercised solely by the Administrative Agent for the benefit of the Lenders,
upon the terms of the Loan Documents. Each Lender further authorizes the Administrative Agent,
and, at the request of the Borrower, the Administrative Agent shall, release any Subsidiary Loan
Party from its obligations under the Subsidiary Guaranty Agreement in connection with any sale,
liquidation or dissolution of such Subsidiary Loan Party; provided, that such sale,
liquidation or dissolution is otherwise permitted under the Loan Documents.

          (b) In the event that any collateral is pledged by any Person as collateral security for
the Obligations, the Administrative Agent is hereby authorized to execute and deliver on
behalf of the Lenders any Loan Documents necessary or appropriate to grant and perfect a
Lien on such collateral in favor of the Administrative Agent on behalf of the
Lenders.

72

 

     Section 9.9. Benefits of Article 9. None of the provisions of this Article
9 (other than the Borrower consent rights provided in Section 9.7(a) or the Borrower
rights to guaranty release as provided in Section 9.8) shall inure to the benefit of the
Borrower or of any Person other than Administrative Agent and each of the Lenders and their
respective successors and permitted assigns. Accordingly, neither the Borrower nor any Person
other than Administrative Agent and the Lenders (and their respective successors and permitted
assigns) shall be entitled to rely upon, or to raise as a defense, the failure of the
Administrative Agent or any Lenders to comply with the provisions of this Article 9.

     Section 9.10. Titled Agents. Each Lender and each Loan Party agrees that any
documentation agent or syndication agent or any other titled agent, in such capacity, shall have
no duties or obligations under any Loan Documents to any Lender or any Loan Party. Anything
herein to the contrary notwithstanding, none of the Bookrunners, Book Managers or Arrangers or
other titled agents listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its
capacity, as applicable, as the Administrative Agent, a Lender or the Issuing Bank hereunder.

ARTICLE 10

MISCELLANEOUS

     Section 10.1. Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given
by telephone, all notices and other communications to any party herein to be effective shall be
in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail, return receipt requested, or sent by telecopy, as follows:

	 	 	 

	          To the Borrower:

	 	Strayer Education, Inc.

1100 Wilson Boulevard

Suite 2500

Arlington, Virginia 22209

Attention: Mark Brown, Executive Vice

President and Chief Financial Officer

Telecopy Number: (703) 527-0112
	 
	 	 
	          With a copy to:

	 	Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attention: Gordon Wilson, Esquire

Telecopy Number: (202) 637-5910

73

 

	 	 	 

	          To the
Administrative Agent
or Swingline Lender:

	 	SunTrust Bank

120 E. Baltimore Street

25th Floor

Baltimore, Maryland 21202

Attention: Paul Deerin, Vice President

Telecopy Number: (410) 986-1927
	 
	 	 
	          With a copy to:

	 	Hunton & Williams LLP

1751 Pinnacle Drive

Suite 1700

McLean, Virginia 22102

Attention: Kevin F. Hull, Esquire

Telecopy Number: (703) 714-7410
	 
	 	 
	          With a copy to:

	 	SunTrust Bank

Agency Services

303 Peachtree Street, N. E./ 25th Floor

Atlanta, Georgia 30308

Attention: Mr. Douglas Weltz

Telecopy Number: (404) 221-2001
	 
	 	 
	          To the Issuing Bank:

	 	SunTrust Bank

25 Park Place, N. E./Mail Code 3706

Atlanta, Georgia 30303

Attention: Phil Acuff

Telecopy Number: (404) 588-8129
	 
	 	 
	          To the Swingline Lender:

	 	SunTrust Bank

Agency Services

303 Peachtree Street, N.E./25th Floor

Atlanta, Georgia 30308

Attention: Mr. Douglas Weltz

Telecopy Number: (404) 221-2001
	 
	 	 
	          To any other Lender:

	 	the address set forth in the Administrative
Questionnaire or the Assignment and Assumption
Agreement executed by such Lender

          (b) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All such notices and other
communications shall, when transmitted by overnight delivery, or faxed, be effective when
delivered for overnight (next-day) delivery, or transmitted in legible form by facsimile machine,
respectively, or if mailed, upon the third Business Day after the date deposited into the mail or
if delivered, upon delivery; provided, that notices delivered to the Administrative Agent, the
Issuing Bank or the Swingline Bank shall not be effective until actually received by such party
at its address specified in this Section 10.1.

74

 

          (c) Any agreement of the Administrative Agent and the Lenders herein to
receive certain notices by telephone or facsimile is solely for the convenience and at the
request
of the Borrower. The Administrative Agent and the Lenders shall be entitled to rely on the
authority of any Person purporting to be a Person authorized by the Borrower to give such
notice
and the Administrative Agent and Lenders shall not have any liability to the Borrower or
other
Person on account of any action taken or not taken by the Administrative Agent or the
Lenders in
reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay
the
Loans and all other Obligations hereunder shall not be affected in any way or to any extent
by
any failure of the Administrative Agent and the Lenders to receive written confirmation of
any
telephonic or facsimile notice or the receipt by the Administrative Agent and the Lenders
of a
confirmation which is at variance with the terms understood by the Administrative Agent and
the
Lenders to be contained in any such telephonic or facsimile notice.

     Section 10.2. Waiver; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or any
Lender in exercising any right or power hereunder or any other Loan Document, and no course
of dealing between the Borrower and the Administrative Agent or any Lender, 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 right or power, preclude any other
or
further exercise thereof or the exercise of any other right or power hereunder or
thereunder. The
rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder
and under the other Loan Documents are cumulative and are not exclusive of any rights or
remedies provided by law. No waiver of any provision of this Agreement or any other Loan
Document 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 10.2, 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 or the issuance of a
Letter
of Credit shall not be construed as a waiver of any Default or Event of Default, regardless
of
whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or
knowledge of such Default or Event of Default at the time.

          (b) No amendment or waiver of any provision of this Agreement or the other
Loan Documents, nor consent to any departure by the Borrower or any Loan Party therefrom,
shall in any event be effective unless the same shall be in writing and signed by the
Borrower or
the applicable Loan Party and the Required Lenders or the Borrower or the applicable Loan
Party and the Administrative Agent with the consent of the Required Lenders and then such
waiver or consent shall be effective only in the specific instance and for the specific
purpose for
which given; provided, that no amendment or waiver shall: (i) increase the
Commitment of any
Lender without the written consent of such Lender, (ii) reduce the principal amount of any
Loan
or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable
hereunder,
without the written consent of each Lender affected thereby (provided,
however, that only the
consent of the Required Lenders shall be necessary to (A) amend the definition of “Default
Interest” or waive any obligation of the Borrower to pay (1) Default Interest or (2) Letter
of
Credit fees by an additional 2% per annum pursuant to the last sentence of Section
2.15(c) or (B)
to amend any financial covenant hereunder (or any defined term used therein) even if the
effect
of such amendment would be to reduce the rate of interest on any Loan or LC Disbursement or
to

75

 

reduce any fee payable hereunder), (iii) postpone the date fixed for any payment of any
principal
of, or interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or
reduce the amount of, waive or excuse any such payment or postpone the scheduled date for the
termination or reduction of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Section 2.22(b) or (c) in a manner that would alter the
pro rata
sharing of payments required thereby, without the written consent of each Lender, (v) change
any of the provisions of this Section 10.2 or the definition of “Required Lenders” or
any other
provision hereof specifying the number or percentage of Lenders which are required to waive,
amend or modify any rights hereunder or make any determination or grant any consent
hereunder, without the consent of each Lender; (vi) release the Borrower or any guarantor
(subject to the provisions of Section 9.8(a)) or limit the liability of the Borrower
under the Loan
Documents or any such guarantor under any guaranty agreement, without the written consent of
each Lender, (vii) release all or substantially all collateral (if any) securing any of the
Obligations, without the written consent of each Lender, (viii) subordinate the Loans to any
other
Indebtedness without the consent of all Lenders, or (ix) increase the aggregate of all
Commitments without the consent of all of the Lenders; provided further, that no such
agreement
shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative
Agent, the Swingline Bank or the Issuing Bank without the prior written consent of such Person.
Notwithstanding anything to the contrary contained herein, no Defaulting Lender shall have any
right to approve or disapprove any amendment, waiver or consent hereunder, except that the
Commitment of such Lender may not be increased or extended without the consent of such
Lender, and provided that a Defaulting Lender shall have the right to approve or disapprove any
waiver, amendment or modification requiring the consent of all Lenders or each affected Lender
that by its terms affects such Defaulting Lender more adversely than other affected Lenders.
Notwithstanding anything contained herein to the contrary, this Agreement may be amended and
restated without the consent of any Lender (but with the consent of the Borrower and the
Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender
shall no longer be a party to this Agreement (as so amended and restated), the Commitments of
such Lender shall have terminated (but such Lender shall continue to be entitled to the benefits
of Sections 2.19, 2.20, 2.21 and 10.3), such Lender shall no
other commitment or other
obligation hereunder and shall have been paid in full all principal, interest and other amounts
owing to it or accrued for its account under this Agreement.

     Section 10.3. Expenses: Indemnification.

          (a) The Borrower shall pay (i) all reasonable documented out-of-pocket costs
and expenses of the Administrative Agent and its Affiliates, including the reasonable
documented fees, charges and disbursements of counsel for the Administrative Agent and its
Affiliates, in connection with the syndication of the credit facilities provided for
herein, the
preparation and administration of the Loan Documents and any amendments, modifications or
waivers thereof (whether or not the transactions contemplated in this Agreement or any
other
Loan Document shall be consummated), (ii) all reasonable documented out-of-pocket expenses
incurred by the Issuing Bank in connection with the issuance, amendment, renewal or
extension
of any Letter of Credit or any demand for payment thereunder and (iii) all documented
out-of-
pocket costs and expenses (including, without limitation, the reasonable documented fees,
charges and disbursements of outside counsel) incurred by the Administrative Agent, the
Issuing
Bank or any Lender in connection with the enforcement or protection of its rights in
connection

76

 

with this Agreement, including its rights under this
Section 10.3, or in connection
with the Loans made or any Letters of Credit issued hereunder, including all such documented
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Loans or Letters of Credit. The Borrower shall pay to the Administrative Agent or the
Arranger, as applicable, all fees due from time to time under the Fee Letter.

          (b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof),
each Lender and the Issuing Bank, 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, penalties and related expenses
(including the fees, charges and disbursements of any counsel for any Indemnitee), and shall
indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for
attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against
any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by
the parties hereto of their respective obligations hereunder or thereunder or the consummation
of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use
or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a
demand for payment under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or
alleged presence or Release of Hazardous Materials on or from any property owned or operated by
the Borrower or any of its Subsidiaries, or any actual or alleged Environmental Liability
related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective
claim, litigation, investigation or proceeding relating to any of the foregoing, whether based
on contract, tort or any other theory, whether brought by a third party or by the Borrower or
any other Loan Party, and regardless of whether any Indemnitee is a party thereto,
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities, penalties or related expenses (x) are determined
by a court of competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought
by the Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such
Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction or (z) constitute amounts in respect of Excluded
Taxes.

          (c) The Borrower shall pay, and hold the Administrative Agent and each of the Lenders
harmless from and against, any and all present and future stamp, documentary, and other similar
taxes (other than Excluded Taxes) with respect to this Agreement and any other Loan Documents,
any collateral described therein, or any payments due thereunder, and save the Administrative
Agent and each Lender harmless from and against any and all liabilities with respect to or
resulting from any delay or omission to pay such taxes.

          (d) To the extent that the Borrower fails to pay any amount required to be paid to the
Administrative Agent, the Issuing Bank or the Swingline Lender under clauses (a), (b) or (c)
hereof, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or

77

 

the Swingline Lender, as the case may be, such Lender’s Pro Rata Share (determined as of
the time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided, that the unreimbursed expense or indemnified payment, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

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

          (f) All amounts due under this Section 10.3 shall be payable promptly after written
demand therefor.

     Section 10.4. Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender, and no Lender may assign
or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in
accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge or
assignment of a security interest subject to the restrictions of paragraph (g) of this Section
(and any other attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in paragraph (d) 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) Any Lender may at any time 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); provided that any such assignment shall be subject
to the following conditions:

               (i) Minimum Amounts.

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

                    (B) in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount
of the Commitment (which for this purpose includes Loans and Revolving Credit Exposure
outstanding thereunder) or, if the applicable Commitment is not then in effect,

78

 

the principal outstanding balance of the Loans and Revolving Credit Exposure of the
assigning Lender subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be
less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such consent not
to be unreasonably withheld or delayed).

               (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement
with respect to the Loans, Revolving Credit Exposure or the Commitment assigned, except that this
clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Commitments on a non-pro rata basis.

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

                    (A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed)
shall be required unless (x) an Event of Default has occurred and is continuing at the time of
such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved
Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless
it shall object thereto by written notice to the Administrative Agent within five (5) Business
Days after having received notice thereof;

                    (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or
delayed) shall be required (x) for assignments to a Person that is not a Lender with a Commitment
or an Affiliate of a Lender or an Approved Fund and (y) for assignments by Defaulting Lenders;
and

                    (C) the consent of the Issuing Bank (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not then outstanding),
and the consent of the Swingline Lender (such consent not to be unreasonably withheld or delayed)
shall be required for any assignment in respect of the Revolving Credit Commitments.

               (iv) Assignment and Assumption. The parties to each assignment shall deliver to the
Administrative Agent (A) a duly executed Assignment and Assumption, (B) a processing and
recordation fee of $3,500, (C) an Administrative Questionnaire unless the assignee is already a
Lender and (D) the documents required under Section 2.21(e) if such assignee is a Foreign
Lender.

               (v) No Assignment to Borrower. No such assignment shall be made to the Borrower or
any of the Borrower’s Affiliates or Subsidiaries.

               (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

79

 

     Subject to acceptance and recording thereof by the Administrative Agent pursuant to
paragraph (c) of this Section 10.4, from and after the effective date specified in each
Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Sections 2.19, 2.20, 2.21
and 10.3 with respect to facts and circumstances occurring prior to the effective date of
such assignment. 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 (d) of this Section 10.4. If the consent of the Borrower to an assignment is
required hereunder (including a consent to an assignment which does not meet the minimum
assignment thresholds specified above), the Borrower shall be deemed to have given its consent
five Business Days after the date notice thereof has actually been delivered by the assigning
Lender (through the Administrative Agent) to the Borrower, unless such consent is expressly
refused by the Borrower prior to such fifth Business Day.

          (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at one of its offices in Atlanta, Georgia a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitments of, and principal amount of the Loans and Revolving Credit Exposure owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. 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) Any Lender may at any time, without the consent of, or notice to, the Borrower, the
Administrative Agent, the Swingline Bank or the Issuing Bank sell participations to any Person
(other than a natural person, the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance
of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders, Issuing Bank
and Swingline Lender shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement.

          (e) 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 with respect to the

80

 

following to the extent affecting such Participant: (i) increase the Commitment of any
Lender
without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC
Disbursement 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 date fixed for
any
payment of any principal of, or interest on, any Loan or LC Disbursement or interest thereon or
any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date for the termination or reduction of any Commitment, without the written consent
of each Lender affected thereby, (iv) change Section 2.22(b) or (c) in a manner that
would alter
the pro rata sharing of payments required thereby, without the written consent of each Lender,
(v) change any of the provisions of this Section 10.4 or the definition of “Required
Lenders” or
any other provision hereof specifying the number or percentage of Lenders which are required to
waive, amend or modify any rights hereunder or make any determination or grant any consent
hereunder, without the consent of each Lender; (vi) release any guarantor (subject to the
provisions of Section 9.8(a)) or limit the liability of any such guarantor under any
guaranty
agreement without the written consent of each Lender except to the extent such release is
expressly provided under the terms of the Guaranty Agreement; or (vii) release all or
substantially all collateral (if any) securing any of the Obligations. Subject to paragraph (e)
of
this Section 10.4, the Borrower agrees that each Participant shall be entitled to the
benefits of
Sections 2.19, 2.20, and 2.21 to the same extent as if it were a Lender
and had acquired its
interest by assignment pursuant to paragraph (b) of this Section 10.4. To the extent
permitted by
law, each Participant also shall be entitled to the benefits of Section 10.7 as though
it were a
Lender, provided such Participant agrees to be subject to Section 2.19 as though it were
a
Lender.

          (f) A Participant shall not be entitled to receive any greater payment under
Section 2.19 and Section 2.21 than the applicable Lender would have been
entitled to receive
with respect to the participation sold to such Participant, unless the sale of the
participation to
such Participant is made with the Borrower’s prior written consent. A Participant that
would be
a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
2.21 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 2.21(e) as though it were
a Lender.

          (g) Any Lender may at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement to secure obligations of such Lender,
including
without limitation any pledge or assignment to secure obligations to a Federal Reserve
Bank;
provided that no such pledge or assignment shall release such Lender from any of
its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 10.5. Governing Law: Jurisdiction; Consent to Service of Process.

          (a) This Agreement and the other Loan Documents shall be construed in
accordance with and be governed by the law (without giving effect to the conflict of law
principles thereof) of the Commonwealth of Virginia. EACH LOAN DOCUMENT (OTHER
THAN AS OTHERWISE EXPRESSLY SET FORTH IN A LOAN DOCUMENT) WILL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF
THE COMMONWEALTH OF VIRGINIA.

81

 

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the non-exclusive jurisdiction of the United States District Court of the Eastern
District of Virginia, Alexandria Division, and of any state court of the Commonwealth of Virginia
sitting in Fairfax County, Virginia, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Loan Document or the
transactions contemplated hereby or thereby, 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 Virginia state court
or, to the extent permitted by applicable law, such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Loan Document shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against the Borrower or its
properties in the courts of any jurisdiction.

          (c) The Borrower irrevocably and unconditionally waives any objection which it may now or
hereafter have to the laying of venue of any such suit, action or proceeding described in
paragraph (b) of this Section 10.5 and brought in any court referred to in paragraph (b)
of this Section 10.5. Each of the parties hereto irrevocably waives, to the fullest extent
permitted by applicable law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

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

     Section 10.6. WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY 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 THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (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 AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 10.7. Right of Setoff.

          (a) In addition to any rights now or hereafter granted under applicable law and not by way of
limitation of any such rights, each Lender and the Issuing Bank and any Affiliate

82

 

thereof shall have the right, at any time or from time to time upon the occurrence and during
the continuance of an Event of Default, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent permitted by applicable law, to set off and
apply against all deposits (general or special, time or demand, provisional or final) owned by the
Borrower at any time held or other obligations at any time owing by such Lender and the Issuing
Bank or such Affiliate to or for the credit or the account of the Borrower against any and all
Obligations held by such Lender or the Issuing Bank or such Affiliate, as the case may be,
irrespective of whether such Lender or the Issuing Bank or such Affiliate shall have made demand
hereunder and although such Obligations may be unmatured. The setoff rights provided in this
Section 10.7 shall not apply to funds held by or on behalf of the Borrower and its
Subsidiaries in trust for other persons, including, without limitation, funds received under the
Title IV, HEA Programs that are held in trust for the beneficiaries provided under 34 C.F.R.
668.161(b). Each Lender and the Issuing Bank agree promptly to notify the Administrative Agent and
the Borrower after any such set-off and any application made by such Lender and the Issuing Bank
or any Affiliate thereof, as the case may be; provided, that the failure to give such
notice shall not affect the validity of such set-off and application.

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

83

 

     Section 10.8. Counterparts; Integration. This Agreement may be executed by one
or more of the parties to this Agreement on any number of separate counterparts (including by
telecopy or by email, in pdf format), and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. This Agreement, the Fee Letter, the other Loan
Documents, and any separate letter agreement(s) relating to any fees payable to the
Administrative Agent constitute the entire agreement among the parties hereto and thereto
regarding the subject matters hereof and thereof and supersede all prior agreements and
understandings, oral or written, regarding such subject matters. Delivery of an executed
counterpart of a signature page of this Agreement and any other Loan Document by telecopy or by
email, in pdf format, shall be effective as delivery of a manually executed counterpart of this
Agreement or such other Loan Document.

     Section 10.9. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein, in the Loan Documents 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 and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or
any Letter of Credit is outstanding and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.19, 2.20, 2.21. and 10.3
and Article 9 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 Letters of Credit and the Commitments or the termination of this Agreement
or any provision hereof. All representations and warranties made herein, in the Loan Documents,
in the certificates, reports, notices, and other documents delivered pursuant to this Agreement
shall survive the execution and delivery of this Agreement and the other Loan Documents, and the
making of the Loans and the issuance of the Letters of Credit.

     Section 10.10. Severability. Any provision of this Agreement or any other Loan
Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such
jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability
without affecting the legality, validity or enforceability of the remaining provisions hereof or
thereof; and the illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 10.11. Confidentiality. Each of the Administrative Agent, the Issuing Bank
and each Lender agrees to maintain the confidentiality of any information provided to it by the
Borrower or any Subsidiary, except that such information may be disclosed (i) to any Related
Party of the Administrative Agent, the Issuing Bank or any such Lender, including without
limitation accountants, legal counsel and other advisors, (ii) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (iii) to the extent
requested by any regulatory agency or authority, (iv) to the extent that such information becomes
publicly available other than as a result of a breach of this Section 10.11, or which
becomes available to

84

 

the Administrative Agent, the Issuing Bank, any Lender or any Related Party of any of the
foregoing on a non-confidential basis from a source other than the Borrower, (v) in connection
with the exercise of any remedy hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder, (vi) subject to provisions substantially similar
to this Section 10.11, to any actual or prospective assignee or Participant or any actual
or prospective counterparty (or its advisors) to any swap or derivative transaction relating to a
Loan Party and its obligations, or (vii) with the consent of the Borrower. Any Person required to
maintain the confidentiality of any information as provided for in this Section 10.11
shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such information as such Person would
accord its own confidential information.

     Section 10.12. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which may be treated as interest on such Loan under applicable law
(collectively, the “Charges”), shall exceed the maximum lawful rate of interest (the
“Maximum Rate”) which may be contracted for, charged, taken, received or reserved by a
Lender holding such Loan in accordance with applicable law, the rate of interest payable in
respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the operation of this
Section 10.12 shall be cumulated and the interest and Charges payable to such Lender in
respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor)
until such cumulated amount, together with interest thereon at the Federal Funds Rate to the date
of repayment, shall have been received by such Lender.

     Section 10.13. Waiver of Effect of Corporate Seal. The Borrower represents and
warrants that neither it nor any other Loan Party is required to affix its corporate seal to this
Agreement or any other Loan Document pursuant to any requirement of law or regulation, agrees that
this Agreement is delivered by Borrower under seal and waives any shortening of the statute of
limitations that may result from not affixing the corporate seal to this Agreement or such other
Loan Documents.

     Section 10.14. Patriot Act. The Administrative Agent and each Lender hereby notifies
the Loan Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify
and record information that identifies each Loan Party, which information includes the name and
address of such Loan Party and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act. Each Loan
Party shall, and shall cause each of its Subsidiaries to, provide to the extent commercially
reasonable, such information and take such other actions as are reasonably requested by the
Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in
maintaining compliance with the Patriot Act.

     Section 10.15. Publicity. With the prior written consent of the Borrower, the
Administrative Agent or any Lender may publish customary advertising material relating to the

85

 

transactions contemplated by this Agreement and the Loan Documents using the Borrower’s
name, logos or trademarks.

(remainder of page left intentionally blank)

86

 

     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.

	 	 	 	 	 
	 	BORROWER:

STRAYER EDUCATION, INC., a

Maryland corporation

 	 
	 	By:  	/s/ Mark C. Brown
 	 
	 	 	Name:  	Mark C. Brown 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO

REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT: 

SUNTRUST BANK

as Administrative Agent, as Issuing Bank and as Swingline Lender

 	 
	 	By  	/s/ Paul Deerin
 	 
	 	 	Name:  	Paul Deerin  	 
	 	 	Title:  	Vice President 	 
	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO

REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	LENDERS:

SUNTRUST BANK

as Lender

 	 
	 	By  	/s/ Paul Deerin
 	 
	 	 	Name:  	Paul Deerin  	 
	 	 	Title:  	Vice President 	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

[SIGNATURE PAGE TO

REVOLVING CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

as Lender

 	 
	 	By  	/s/ Michael D. Brannan
 	 
	 	 	Name:  	Michael D. Brannan 	 
	 	 	Title:  	Senior Vice President 	 

[SIGNATURE PAGE TO

REVOLVING CREDIT AGREEMENT]

 

 

Schedule I

APPLICABLE MARGIN FOR THE LOANS AND

APPLICABLE PERCENTAGE

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Margin	 	 	 	 
	 	 	 	 	for Eurodollar Loans	 	Applicable	 	Applicable
	Pricing	 	 	 	and Index Rate	 	Margin for Base	 	Percentage for
	Level	 	Leverage Ratio	 	Loans	 	Rate Loans	 	Commitment Fee
	I

	 	Less than 1.00:1
	 	1.750% per annum
	 	1.750% per annum
	 	0.300% per annum
	II

	 	Greater than or
equal to 1.00:1.00
but less than
1.50:1.00
	 	2.000% per annum
	 	2.000% per annum
	 	0.350% per annum
	III

	 	Greater than or
equal to 1.50:1.00
	 	2.250% per annum
	 	2.250% per annum
	 	0.400% per annum

Schedule I

 

 

Schedule II

COMMITMENT AMOUNTS

	 	 	 	 	 
	Lender	   	Revolving Commitment Amount	 
	SunTrust Bank
	 	$	50,000,000	 
	Bank of America, N.A.
	 	$	50,000,000	 
	 
	 	 	 
	Total
	 	$	100,000,000	 
	 
	 	 	 

Schedule II

 

 

SCHEDULE 4.5

ENVIRONMENTAL MATTERS

None.

Schedule 4.5

 

 

SCHEDULE 4.14

SUBSIDIARIES

	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	Type of	 	 
	Name of Subsidiary	 	Organization	 	Organization	 	Ownership
	Strayer University, Inc.*

	 	MD
	 	Corporation
	 	100% of the equity
interest held by
Strayer Education,
Inc.
	Education Loan Processing,
Inc.*

	 	VA
	 	Corporation
	 	100% of the equity
interest held by
Strayer Education,
Inc.
	Professional Education, Inc.

	 	MD
	 	Corporation
	 	100% of the equity
interest held by
Strayer Education,
Inc.

Note: Asterisk (“*”) indicates each Subsidiary that is a Subsidiary Loan Party.

Schedule 4.14

 

 

SCHEDULE 7.1

OUTSTANDING INDEBTEDNESS

None.

Schedule 7.1

 

 

SCHEDULE 7.2

EXISTING LIENS

None.

Schedule 7.2

 

 

SCHEDULE 7.4

EXISTING INVESTMENTS

1. Vanguard Short-Term Tax Exempt Fund Admiral Shares valued at approximately $12.4 million.

2. See Schedule 4.14.

Schedule 7.4

 

 

Exhibit A

REVOLVING CREDIT NOTE

			
	 
	$50,000,000
	 	Arlington, Virginia
	 
	 	January 3, 2011

     FOR VALUE RECEIVED, the undersigned, STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”), hereby promises to pay to BANK OF AMERICA, N.A., a national banking association
(the “Lender”) or its registered assigns, at the Payment Office (as defined in the Revolving
Credit Agreement, dated as of January 3, 2011, among the Borrower, the Lenders from time to time
party thereto and SunTrust Bank, as Administrative Agent for the Lenders, as Issuing Bank and as
Swingline Lender, as the same may be amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall
have the meanings given to such terms in the Credit Agreement) on the Revolving Commitment
Termination Date, the lesser of the principal sum of FIFTY MILLION AND NO/100 DOLLARS
($50,000,000) or the aggregate unpaid principal amount of all Revolving Loans made by the Lender
to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of
America in immediately available funds, and to pay interest from the date hereof on the
principal amount thereof from time to time outstanding, in like funds, at said office, at the
rate or rates per annum and payable on such dates as provided in the Credit Agreement. In
addition, should legal action or an attorney-at-law be utilized to collect any amount due
hereunder, the Borrower further promises to pay the documented, out-of-pocket costs of
collection of the Lender, in accordance with Section 10.3 of the Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from their due dates at a rate or rates provided in
the Credit Agreement.

     All borrowings evidenced by this Revolving Credit Note and all payments and prepayments of
the principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall be attached
hereto and made a part hereof, or otherwise recorded by such holder in its internal records;
provided, that the failure of the holder hereof to make such a notation or any error in
such notation shall not affect the obligations of the Borrower to make the payments of principal
and interest in accordance with the terms of this Revolving Credit Note and the Credit
Agreement.

     This Revolving Credit Note is issued in connection with, and is entitled to the benefits
of, the Credit Agreement which, among other things, contains provisions for the acceleration of
the maturity hereof upon the happening of certain events, for prepayment of the principal hereof
prior to the maturity hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified. THIS REVOLVING CREDIT NOTE SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS (WITHOUT GIVING EFFECT TO THE CONFLICT
OF LAW PRINCIPLES

 

 

THEREOF) OF THE COMMONWEALTH OF VIRGINIA AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA.

[SIGNATURE ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Revolving Note to be signed by its
duly authorized representative all as of the day and year first above written.

	 	 	 	 	 
	 	STRAYER EDUCATION, INC., a
Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Mark C. Brown 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to Revolving Note

 

 

Exhibit D

SWINGLINE NOTE

			
	 	 	 
	$10,000,000
	 	Arlington, Virginia

January 3, 2011

     FOR VALUE RECEIVED, the undersigned, STRAYER EDUCATION, INC., a
Maryland corporation (the “Borrower”), hereby promises to pay to SUNTRUST BANK, a Georgia banking
corporation (the “Swingline Lender”) or its registered assigns, at the Payment Office (as defined
in the Revolving Credit Agreement, dated as of January 3, 2011, among the Borrower, the Lenders
from time to time party thereto and SunTrust Bank, as Administrative Agent for the Lenders, as
Issuing Bank and as Swingline Lender, as the same may be amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise
defined shall have the meanings given to such terms in the Credit Agreement), on the Revolving
Commitment Termination Date, the lesser of the principal sum of TEN MILLION DOLLARS AND NO/100
($10,000,000) or the aggregate unpaid principal amount of all Swingline Loans made by the Swingline
Lender to the Borrower pursuant to the Credit Agreement, in lawful money of the United States of
America in immediately available funds, and to pay interest from the date hereof on the principal
amount thereof from time to time outstanding, in like funds, at said office, at the rate or rates
per annum and payable on such dates as provided in the Credit Agreement. In addition, should legal
action or an attorney-at-law be utilized to collect any amount due hereunder, the Borrower further
promises to pay the documented, out-of-pocket costs of collection of the Lender, in accordance with
Section 10.3 of the Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the extent
permitted by law, overdue interest from their due dates at a rate or rates provided in the Credit
Agreement.

     All borrowings evidenced by this Swingline Note and all payments and prepayments of the
principal hereof and the date thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto
and made a part hereof, or otherwise recorded by such holder in its internal records;
provided, that the failure of the holder hereof to make such a notation or any error in
such notation shall not affect the obligations of the Borrower to make the payments of principal
and interest in accordance with the terms of this Swingline Note and the Credit Agreement.

     This Swingline Note is issued in connection with, and is entitled to the benefits of, the
Credit Agreement which, among other things, contains provisions for the acceleration of the
maturity hereof upon the happening of certain events, for optional and mandatory prepayment of the
principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions
of the Credit Agreement, all upon the terms and conditions therein specified. THIS SWINGLINE NOTE
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS (WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAW PRINCIPLES THEREOF) OF THE COMMONWEALTH OF VIRGINIA AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA.

 

 

[SIGNATURE ON FOLLOWING PAGE]

 

 

     IN WITNESS WHEREOF, the Borrower has caused this Swingline Note to be signed by its duly
authorized representative all as of the day and year first above written.

	 	 	 	 	 
	 	STRAYER EDUCATION, INC., a

Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Mark C. Brown 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

Signature Page to Swingline Note

 

 

Exhibit E

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 Revolving Credit Agreement
identified below (as amended, 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 (including any letters of credit,
guarantees, and Swingline loans included in such facilities) 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]1]
	 
	 	 	 	 
	3.

	 	Borrower:
	 	Strayer Education, Inc.
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	SunTrust Bank., as the administrative agent under the Credit Agreement

 

			
	1	 	Select as applicable.

 

 

	 	 	 	 	 

	5.

	 	Credit Agreement:
	 	Revolving Credit Agreement dated as of January 3, 2011 among Strayer Education, Inc., a Maryland corporation, the Lender parties thereto, and SunTrust Bank, as Administrative Agent, Issuing Bank and Swingline Lender.
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 
	Aggregate Amount of	 	 	 	 
	Commitment/Loans for all	 	Amount of Commitment/	 	Percentage Assigned of
	Lenders	 	Loans Assigned	 	Commitment/Loans2
	$
	 	$	 	 	 	 	%	 
	$
	 	$	 	 	 	 	%	 
	$
	 	$	 	 	 	 	%	 

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

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

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

			
	2	 	Set forth, so at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

 

 

	 	 	 	 	 
	[Consented to and]3 Accepted:

SUNTRUST BANK., as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Title: 	 	 
	 	 	 	 
	 
	[Consented to:]4

STRAYER EDUCATION, INC.

 	 	 
	By:  	 	 	 
	 	Title: 	 	 
	 	 	 	 
	 

 

			
	3	 	To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.
	 
	4	 	To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

 

 

ANNEX 1

STRAYER EDUCATION, INC. CREDIT AGREEMENT

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 or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents 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 any Loan Document or (iv) the performance or observance by the Borrower, any of its
Domestic Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Loan Document.

     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 5.1(a) and (b)
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, the Assignor 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 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 Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents 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 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 Commonwealth of Virginia.

 

 

Exhibit F

SUBSIDIARY GUARANTY AGREEMENT

     THIS SUBSIDIARY GUARANTY AGREEMENT dated as of January 3, 2011, among each of the Subsidiaries
listed on Schedule I hereto (each such Subsidiary individually, a “Guarantor,” and
collectively, the “Guarantors”) of STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”) and SUNTRUST BANK, a Georgia banking corporation, as administrative agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to
below).

     Reference is made to the Revolving Credit Agreement dated as of January 3, 2011 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among the
Borrower, the lenders from time to time party thereto (the “Lenders”) and SunTrust Bank, as
Administrative Agent, as Issuing Bank and as Swingline Lender. Capitalized terms used herein and
not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

     The Lenders have agreed to make Loans to the Borrower, and the Issuing Bank has agreed to
issue Letters of Credit for the account of the Borrower, pursuant to, and upon the terms and
subject to the conditions specified in, the Credit Agreement. Each of the Guarantors is a Domestic
Subsidiary of the Borrower and acknowledges that it will derive substantial benefit from the making
of the Loans by the Lenders, and the issuance of the Letters of Credit by the Issuing Bank. The
obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit are
conditioned on, among other things, the execution and delivery by the Guarantors of a Subsidiary
Guaranty Agreement in the form hereof. As consideration therefor and in order to induce the Lenders
to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors are willing to
execute this Subsidiary Guaranty Agreement (as amended, modified or supplemented from time to time,
this “Agreement”).

     Accordingly, the parties hereto agree as follows:

     Section 1. Guarantee. Each Guarantor unconditionally guarantees, jointly with the
other Guarantors and severally, as a primary obligor and not merely as a surety, (i) the due and
punctual payment of all Obligations, including without limitation, (A) the principal of and
premium, if any, and interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable
in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one
or more dates set for prepayment or otherwise, (B) each payment required to be made by the
Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement or disbursements, interest thereon and obligations to provide
cash collateral, and (C) all other monetary obligations, including reasonable, documented,
out-of-pocket fees, costs, expenses and indemnities, whether primary, secondary, direct,
contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding), of the Loan Parties to the
Administrative Agent and the Lenders under the Credit Agreement and the

1

 

other Loan Documents; (ii) the due and punctual performance of all covenants, agreements,
obligations and liabilities of the Loan Parties under or pursuant to the Credit Agreement and the
other Loan Documents; (iii) the due and punctual payment and performance of all Hedging Obligations
of any Loan Party entered into with a counterparty that is a Lender or an Affiliate of a Lender or
was a Lender or an Affiliate of a Lender at the time the applicable Hedging Transaction was entered
into (each such person, a “Specified Hedge Provider”); and (iv) the due and punctual
payment and performance of all Treasury Management Obligations entered into with a counterparty
that is a Lender or an Affiliate of a Lender or was a Lender or an Affiliate of a Lender at the
time such Treasury Management Obligation was entered into (each such person, a “Specified
Treasury Management Provider”; the Administrative Agent, the Lenders, the Issuing Bank, each
Specified Hedge Provider, and each Specified Treasury Management Provider, collectively, the
“Guaranteed Parties,” and each individually a “Guaranteed Party”) (all the monetary
and other obligations referred to in the preceding clauses (i) through (iv) being collectively
called the “Guaranteed Obligations”). Each Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed, in whole or in part, without notice to or further assent
from such Guarantor, and that such Guarantor will remain bound upon its guarantee notwithstanding
any extension or renewal of any Guaranteed Obligations.

     Section 2. Obligations Not Waived. To the fullest extent permitted by applicable law,
each Guarantor waives presentment or protest to, demand of or payment from the other Loan Parties
of any of the Guaranteed Obligations, and also waives notice of acceptance of its guarantee and
notice of protest for nonpayment. To the fullest extent permitted by applicable law, the
obligations of each Guarantor hereunder shall not be affected by (i) the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce or exercise any
right or remedy against the Borrower or any other Guarantor under the provisions of the Credit
Agreement, any other Loan Document or otherwise, (ii) the failure of any Guaranteed Party to
assert any claim or demand or to enforce or exercise any right or remedy against the Borrower or
any other Guarantor under the provisions of any instruments, agreements or documents executed in
connection with any Hedging Transaction incurred to limit interest rate or fee fluctuation with
respect to the Loans and Letters of Credit entered into with a Specified Hedge Provider (each such
document, a “Hedging Document”), (iii) the failure of any Guaranteed Party to assert any
claim or demand or to enforce or exercise any right or remedy against the Borrower or any other
Guarantor under the provisions of any instruments, agreements or documents executed in connection
with a Treasury Management Obligation entered into with a Specified Treasury Management Provider
(each such document, a “Treasury Document”), (iv) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, this Agreement, any other
Loan Document, Hedging Document, Treasury Document or any guarantee or any other agreement,
including with respect to any other Guarantor under this Agreement, or (v) the failure to perfect
any security interest in, or the release of, any of the security held by or on behalf of the
Administrative Agent or any Lender.

     Section 3. Reserved.

     Section 4. Guaranty of Payment. Each Guarantor further agrees that its guaranty
constitutes a guaranty of payment when due and not of collection, and waives any right to require
that any resort be had by the Administrative Agent or any Guaranteed Party to any of the

2

 

security held for payment of the Guaranteed Obligations or to any balance of any deposit
account or credit on the books of the Administrative Agent or any Guaranteed Party in favor of the
Borrower or any other Person.

     Section 5. No Discharge or Diminishment of Guaranty. The obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations or
pursuant to Section 13 hereof), including any claim of waiver, release, surrender, alteration or
compromise of any of the Guaranteed Obligations, and shall not be subject to any defense or setoff,
counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Guaranteed Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by the failure of the Administrative Agent or any Guaranteed Party to assert any
claim or demand or to enforce any remedy under the Credit Agreement except to the extent otherwise
provided by applicable law, any other Loan Document, Hedging Document, Treasury Document or any
other agreement, by any waiver or modification of any provision of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations, or by any
other act or omission that may or might in any manner or to the extent vary the risk of any
Guarantor or that would otherwise operate as a discharge of each Guarantor as a matter of law or
equity (other than the indefeasible payment in full in cash of all the Obligations or pursuant to
Section 13 hereof).

     Section 6. Defenses of Borrower Waived. To the fullest extent permitted by applicable
law, each Guarantor waives any defense based on or arising out of any defense of any Loan Party or
the unenforceability of the Guaranteed Obligations or any part thereof from any cause, or the
cessation from any cause of the liability of any Loan Party, other than the indefeasible payment in
full in cash of the Guaranteed Obligations. The Administrative Agent and the Guaranteed Parties
may, at their election, foreclose on any security held by one or more of them by one or more
judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure,
compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any
other Loan Party or any other guarantor, without affecting or impairing in any way the liability of
any Guarantor hereunder except to the extent the Guaranteed Obligations have been fully, finally
and indefeasibly paid in cash. Pursuant to applicable law, each Guarantor waives any defense
arising out of any such election even though such election operates, pursuant to applicable law, to
impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such
Guarantor against the Borrower or any other Guarantor or guarantor, as the case may be, or any
security. Each Guarantor hereby waives all rights afforded such Guarantor under Sections 49-25 and
49-26 of the Code of Virginia (1950), as amended.

     Section 7. Agreement to Pay; Subordination. In furtherance of the foregoing and not
in limitation of any other right that the Administrative Agent or any Guaranteed Party has at law
or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other
Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Administrative Agent for the benefit of the

3

 

Guaranteed Parties in cash the amount of such unpaid and overdue Obligation. Upon payment by
any Guarantor of any sums to the Administrative Agent, all rights of such Guarantor against any
Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement,
indemnity or otherwise shall in all respects be subordinate and junior in right of payment to the
prior indefeasible payment in full in cash of all the Guaranteed Obligations. In addition, any
indebtedness of any Loan Party now or hereafter held by any Guarantor is hereby subordinated in
right of payment to the prior payment in full in cash of the Guaranteed Obligations; provided,
however, that so long as no Event of Default shall exist, any Guarantor may seek, accept and retain
payments by any other Loan Party of principal and interest in connection with such indebtedness. If
any amount shall erroneously be paid to any Guarantor on account of (i) such subrogation,
contribution, reimbursement, indemnity or similar right or (ii) any such indebtedness of any Loan
Party, such amount shall be held in trust for the benefit of the Administrative Agent and the
Guaranteed Parties and shall forthwith be paid to the Administrative Agent to be credited against
the payment of the Guaranteed Obligations, whether matured or unmatured, in accordance with the
terms of the Loan Documents.

     Section 8. Information. Each Guarantor assumes all responsibility for being and
keeping itself informed of other Loan Parties’ financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Administrative Agent or the Guaranteed Parties will have any duty to advise any of the
Guarantors of information known to it or any of them regarding such circumstances or risks.

     Section 9. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Guarantors may have under applicable law (but subject to Section 7),
the Borrower agrees that (a) in the event a payment shall be made by any Guarantor under this
Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the person to whom such payment shall have
been made to the extent of such payment and (b) in the event any assets of any Guarantor shall be
sold to satisfy a claim of any Guaranteed Party under this Agreement, the Borrower shall indemnify
such Guarantor in an amount equal to the greater of the book value or the fair market value of the
assets so sold.

     Section 10. Contribution and Subrogation. Each Guarantor (a “Contributing
Guarantor”) agrees (subject to Section 7) that, in the event a payment shall be made
by any other Guarantor under this Agreement or assets of any other Guarantor shall be sold to
satisfy a claim of any Guaranteed Party and such other Guarantor (the “Claiming
Guarantor”) shall not have been fully indemnified by the Borrower as provided in Section
9, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the
amount of such payment or the greater of the book value or the fair market value of such assets,
as the case may be, in each case multiplied by a fraction of which the numerator shall be the net
worth of the Contributing Guarantor on the date hereof and the denominator shall be the aggregate
net worth of all the Guarantors on the date hereof (or, in the case of any Guarantor becoming a
party hereto pursuant to Section 23, the date of the Supplement hereto executed and
delivered by such Guarantor). Any Contributing Guarantor making any payment to a Claiming
Guarantor pursuant to this

4

 

Section 10 shall be subrogated to the rights of such Claiming Guarantor under
Section 9 to the extent of such payment.

     Section 11. Subordination. Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors under Section 9 and Section 10 and all
other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be
fully subordinated to the indefeasible payment in full in cash of the Guaranteed Obligations. No
failure on the part of the Borrower or any Guarantor to make the payments required under
applicable law or otherwise shall in any respect limit the obligations and liabilities of any
Guarantor with respect to its obligations hereunder, and each Guarantor shall remain liable for
the full amount of the obligations of such Guarantor hereunder.

     Section 12. Representations and Warranties. Each Guarantor represents and warrants as
to itself that all representations and warranties relating to it (as a Subsidiary of the Borrower)
contained in the Credit Agreement are true and correct.

     Section 13. Termination. The guarantees made hereunder (i) shall terminate without the
necessity of any further action by any party hereto when all the Guaranteed Obligations (other than
those Guaranteed Obligations relating to the Hedging Obligations or the Treasury Management
Obligations and those indemnities and other similar contingent obligations for which no claim has
been made and which are unknown and not calculable at the time of termination) have been paid in
full in cash and the Guaranteed Parties have no further commitment to lend under the Credit
Agreement, the LC Exposure has been reduced to zero and the Issuing Bank has no further obligation
to issue Letters of Credit under the Credit Agreement and (ii) shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by any Lender or any Guarantor upon the bankruptcy or
reorganization of the Borrower, any Guarantor or otherwise. Furthermore, upon release of any
Guarantor in accordance with Section 9.8(a) of the Credit Agreement, such Guarantor shall be
released automatically from its obligations under this Agreement without the necessity of any
further action by any party hereto. In connection with the foregoing, the Administrative Agent
shall execute and deliver to such Guarantor or Guarantor’s designee, at such Guarantor’s expense,
any documents or instruments which such Guarantor shall reasonably request from time to time to
evidence such termination and release.

     Section 14. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants, promises and agreements by or on behalf
of the Guarantors that are contained in this Agreement shall bind and inure to the benefit of each
party hereto and their respective permitted successors and assigns. This Agreement shall become
effective as to any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall
have been delivered to the Administrative Agent, and a counterpart hereof shall have been executed
on behalf of the Administrative Agent, and thereafter shall be binding upon such Guarantor and the
Administrative Agent and their respective successors and assigns, and shall inure to the benefit
of such Guarantor, the Administrative Agent and the Guaranteed Parties, and their respective
permitted successors and assigns, except that no Guarantor shall have the right to assign its
rights or obligations hereunder or any interest herein (and any such attempted assignment shall be
void). This Agreement shall be construed as a separate agreement with

5

 

respect to each Guarantor and may be amended, modified, supplemented, waived or released with
respect to any Guarantor without the approval of any other Guarantor and without affecting the
obligations of any other Guarantor hereunder.

     Section 15. Waivers; Amendment.

     (a) No failure or delay of the Administrative Agent of any kind in exercising any
power, right or remedy hereunder and no course of dealing between any Guarantor on the one
hand and the Administrative Agent or any holder of any Note on the other hand shall operate as
a
waiver thereof, nor shall any single or partial exercise of any such power, right or remedy
hereunder, or under any Loan Document, Hedging Document, or Treasury Document, or any
abandonment or discontinuance of steps to enforce such a power, right or remedy, preclude any
other or further exercise thereof or the exercise of any other power, right or remedy. The
rights
of the Administrative Agent hereunder and of the Guaranteed Parties under the other Loan
Documents, the Hedging Documents and the Treasury Document, as applicable, 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 any Guarantor therefrom shall
in
any event be effective unless the same shall be permitted by subsection (b) below, and then
such
waiver and consent shall be effective only in the specific instance and for the purpose for
which
given. No notice or demand on any Guarantor in any case shall entitle such Guarantor to any
other or further notice in similar or other circumstances.

     (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the Guarantors with
respect to which such waiver, amendment or modification relates and the Administrative Agent,
with the prior written consent of the Required Lenders (except as otherwise provided in the
Credit Agreement).

     Section 16. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

     Section 17. Notices. All communications and notices hereunder shall be in writing and
given as provided in Section 10.1 of the Credit Agreement. All communications and notices
hereunder to each Guarantor shall be given to it at its address set forth on Schedule I attached
hereto or any subsequent address described in a written notice given as provided in Section 10.1
of the Credit Agreement.

     Section 18. Survival of Agreement; Severability.

     (a) All covenants, agreements representations and warranties made by the Guarantors herein
and in the certificates or other instruments prepared or delivered in connection with or pursuant
to this Agreement or the other Loan Document shall be considered to have been relied upon by the
Administrative Agent and the Lenders and shall survive the making by the Lenders of the Loans and
the issuance of the Letters of Credit by the Issuing Bank regardless of any investigation made by
any of them or on their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any other fee or amount

6

 

payable under this Agreement or any other Loan Document is outstanding and unpaid or the LC
Exposure does not equal zero and as long as the Commitments have not been terminated.

     (b) In the event one or more of the provisions contained in this Agreement or in any other
Loan Document should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     Section 19. Counterparts. This Agreement may be executed in counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute a single
contract (subject to Section 14), and shall become effective as provided in Section 14. Delivery of
an executed signature page to this Agreement by facsimile transmission shall be as effective as
delivery of a manually executed counterpart of this Agreement.

     Section 20. Rules of Interpretation. The rules of interpretation specified in Section
1.4 of the Credit Agreement shall be applicable to this Agreement.

     Section 21. Jurisdiction; Consent to Service of Process.

     (a) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any of the United States District Court of the
Eastern
District of Virginia, Alexandria Division, and of any state court of the Commonwealth of
Virginia sitting in Fairfax County, Virginia, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement, any other Loan Document or
any Hedging Document or any Treasury Document or the transactions contemplated hereby or
thereby, 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 Virginia state court 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, the Issuing Bank or any Guaranteed Party may otherwise
have to bring any action or proceeding relating to this Agreement or the other Loan Documents
against any Guarantor or its properties in the courts of any jurisdiction.

     (b) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that 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
or
the other Loan Documents in any Virginia state or Federal court. 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.

7

 

     (c) Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 17. 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 22. 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 RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR
ANY OTHER LOAN DOCUMENT, HEDGING DOCUMENT OR TREASURY DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (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, THE OTHER LOAN DOCUMENTS, THE HEDGING DOCUMENTS OR THE TREASURY
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 22.

     Section 23. Additional Guarantors. Upon the occurrence of certain events and on the
terms and conditions set forth and described in Section 5.11 of the Credit Agreement, certain other
Domestic Subsidiaries of the Borrower may become Guarantors for purposes hereof and become a party
hereto by executing and delivering to the Administrative Agent an instrument in the form of Annex I
(each, a “Joinder Agreement”). Upon execution and delivery after the date hereof by the
Administrative Agent and such Domestic Subsidiary of a Joinder Agreement, such Domestic Subsidiary
shall become a Guarantor hereunder with the same force and effect as if originally named as a
Guarantor herein. The execution and delivery of any instrument adding an additional Guarantor as a
party to this Agreement shall not require the consent of any other Guarantor hereunder. The rights
and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding
the addition of any new Guarantor as a party to this Agreement.

     Section 24. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Guaranteed Party and the Issuing Bank are 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 Guaranteed Party or the Issuing Bank to or for the credit or the account
of any Guarantor against any or all the obligations of such Guarantor now or hereafter existing
under this Agreement, the other Loan Documents, the Hedging Documents or the Treasury Documents
held by such Guaranteed Party or the Issuing Bank, irrespective of whether or not such Person
shall have made any demand under this Agreement or any other Loan Document, Hedging Document or
Treasury Document, and although such obligations may be unmatured. The setoff rights provided in
this Section 24 shall not apply to funds held by or on behalf of any Guarantor in trust
for other persons, including, without limitation, funds received

8

 

under the Title IV, HEA Programs that are held in trust for the beneficiaries provided under
34 C.F.R. 668.161(b). The rights of each Guaranteed Party and the Issuing Bank under this
Section 24 are in addition to other rights and remedies (including other rights of setoff)
which such Guaranteed Party or the Issuing Bank, as the case may be, may have.

     Section 25. Savings Clause.

     (a) It is the intent of each Guarantor and the Administrative Agent that each
Guarantor’s maximum obligations hereunder shall be, but not in excess of:

     (i) in a case or proceeding commenced by or against any Guarantor under the provisions
of Title 11 of the United States Code, 11 U.S.C. §§101
et seq. (the
“Bankruptcy Code”) on or within one year from the date on which any of the
Guaranteed Obligations are incurred, the maximum amount which would not otherwise cause the
Guaranteed Obligations (or any other obligations of such Guarantor owed to the
Administrative Agent or the Guaranteed Parties) to be avoidable or unenforceable against
such Guarantor under (i) Section 548 of the Bankruptcy Code or (ii) any state fraudulent
transfer or fraudulent conveyance act or statute applied in such case or proceeding by
virtue of Section 544 of the Bankruptcy Code; or

     (ii) in a case or proceeding commenced by or against any Guarantor under the
Bankruptcy Code subsequent to one year from the date on which any of the Guaranteed
Obligations are incurred, the maximum amount which would not otherwise cause the Guaranteed
Obligations (or any other obligations of such Guarantor to the Administrative Agent or the
Guaranteed Parties) to be avoidable or unenforceable against such Guarantor under any state
fraudulent transfer or fraudulent conveyance act or statute applied in any such case or
proceeding by virtue of Section 544 of the Bankruptcy Code; or

     (iii) in a case or proceeding commenced by or against any Guarantor under any law,
statute or regulation other than the Bankruptcy Code (including, without limitation, any
other bankruptcy, reorganization, arrangement, moratorium, readjustment of debt,
dissolution, liquidation or similar debtor relief laws), the maximum amount which would not
otherwise cause the Guaranteed Obligations (or any other obligations of such Guarantor to
the Administrative Agent or the Guaranteed Parties) to be avoidable or unenforceable
against such Guarantor under such law, statute or regulation including, without limitation,
any state fraudulent transfer or fraudulent conveyance act or statute applied in any such
case or proceeding.

     (b) The substantive laws under which the possible avoidance or unenforceability of
the Guaranteed Obligations (or any other obligations of such Guarantor to the Administrative
Agent or the Guaranteed Parties) as may be determined in any case or proceeding shall
hereinafter be referred to as the “Avoidance Provisions”. To the extent set forth in
Section 25(a)
(i), (ii), and (iii), but only to the extent that the Guaranteed Obligations would
otherwise be
subject to avoidance or found unenforceable under the Avoidance Provisions, if any Guarantor
is
not deemed to have received valuable consideration, fair value or reasonably equivalent value
for
the Guaranteed Obligations, or if the Guaranteed Obligations would render such Guarantor
insolvent, or leave such Guarantor with an unreasonably small capital to conduct its business,
or

9

 

cause such Guarantor to have incurred debts (or to have intended to have incurred debts) beyond
its ability to pay such debts as they mature, in each case as of the time any of the Guaranteed
Obligations are deemed to have been incurred under the Avoidance Provisions and after giving
effect to the contribution by such Guarantor, the maximum Guaranteed Obligations for which such
Guarantor shall be liable hereunder shall be reduced to that amount which, after giving effect
thereto, would not cause the Guaranteed Obligations (or any other obligations of such Guarantor to
the Administrative Agent or the Guaranteed Parties), as so reduced, to be subject to avoidance or
unenforceability under the Avoidance Provisions.

     (c) This Section 25 is intended solely to preserve the rights of the Administrative
Agent and the Guaranteed Parties hereunder to the maximum extent that would not cause the
Guaranteed Obligations of such Guarantor to be subject to avoidance or unenforceability under the
Avoidance Provisions, and neither the Guarantors nor any other Person shall have any right or claim
under this Section 25 as against the Administrative Agent or Guaranteed Parties that would
not otherwise be available to such Person under the Avoidance Provisions.

(Signatures on following page)

10

 

	 	 	IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day
and year first above written.

	 	 	 	 	 
	 	STRAYER UNIVERSITY, INC.,

a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Mark C. Brown 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	EDUCATION LOAN PROCESSING, INC.,

a Virginia corporation

 	 
	 	By:  	 	 
	 	 	Name:  	Mark C. Brown 	 
	 	 	Title:  	Treasurer 	 
	 
	 	SUNTRUST BANK, as

Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	Paul Deerin	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	Acknowledged and agreed to:

STRAYER EDUCATION, INC., a Maryland corporation

 	 	 
	By:  	 	 	 
	 	Name:  	Mark C. Brown 	 	 
	 	Title:  	Chief Financial Officer 	 	 
	 

Signature Page to Subsidiary Guaranty

 

 

SCHEDULE I TO THE

SUBSIDIARY GUARANTY AGREEMENT

Guarantor(s)

	 	 	 
	Guarantors	 	Address
	 
	 	 
	STRAYER UNIVERSITY, INC.,
 a
Maryland corporation

	 	Strayer University, Inc.
 1100 Wilson
Boulevard 
Suite 2500 
Arlington,
Virginia 22209 
Attention: Mark
Brown, Executive Vice President 
and
Chief Financial Officer 
Telecopy
Number: (703) 527-0112
	 
	 	 
	EDUCATION LOAN PROCESSING,
INC., 
a Virginia corporation

	 	Education Loan Processing, Inc. 
1100
Wilson Boulevard 
Suite 2500

Arlington, Virginia 22209

Attention: Mark Brown, Executive
Vice President 
and Chief Financial
Officer 
Telecopy Number: (703)
527-0112

Schedule I

 

 

ANNEX 1 TO THE

SUBSIDIARY GUARANTY AGREEMENT

     SUPPLEMENT NO.
[      ] dated as of [                         ], to the Subsidiary Guaranty
Agreement (the “Guaranty Agreement”) dated as of January 3, 2011, among each of the
Subsidiaries listed on Schedule I thereto (each such Subsidiary individually, a “Guarantor”
and collectively, the “Guarantors”) of STRAYER EDUCATION, INC., a Maryland corporation (the
“Borrower”) and SUNTRUST BANK, a Georgia banking corporation, as Administrative Agent (the
“Administrative Agent”) for the Lenders (as defined in the Credit Agreement referred to
below).

     A. Reference is made to the Revolving Credit Agreement dated as of January 3, 2011
(as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”),
among the Borrower, the lenders from time to time party thereto (the “Lenders”) and
SunTrust
Bank, as Administrative Agent, as Issuing Bank and as Swingline Lender.

     B. Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Guaranty Agreement and the Credit Agreement.

     C. The Guarantors have entered into the Guaranty Agreement in order to induce the
Lenders to make Loans and the Issuing Bank to issue Letters of Credit. Pursuant to Section
5.11
of the Credit Agreement, certain Domestic Subsidiaries of the Borrower required to enter into
the
Guaranty Agreement as a Guarantor after the Closing Date. Section 23 of the Guaranty
Agreement provides that such Domestic Subsidiaries of the Borrower may become Guarantors
under the Guaranty Agreement by execution and delivery of an instrument in the form of this
Supplement. The undersigned Domestic Subsidiary of the Borrower (the “New
Guarantor”), is
executing this Supplement in accordance with the requirements of the Credit Agreement to
become a Guarantor under the Guaranty Agreement in order to induce the Lenders to make
additional Loans and the Issuing Bank to issue additional Letters of Credit and as
consideration
for Loans previously made and Letters of Credit previously issued.

     Accordingly, the Administrative Agent and the New Guarantor agree as follows:

     Section 1. In accordance with Section 23 of the Guaranty Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Guaranty Agreement with the same force and effect as
if originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms
and provisions of the Guaranty Agreement applicable to it as Guarantor thereunder and (b)
represents and warrants that the representations and warranties made by it (but not the other
Guarantors) as a Guarantor thereunder are true and correct in all material respects (or, if
qualified by materiality, in all respects) on and as of the date hereof. Each reference to a
Guarantor in the Guaranty Agreement shall be deemed to include the New Guarantor. The Guaranty
Agreement is hereby incorporated herein by reference.

 

 

     Section 2. The New Guarantor represents and warrants to the Administrative Agent and the
Guaranteed Parties that this Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity.

     Section 3. This Supplement may be executed in counterparts each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Administrative Agent shall have received counterparts of this
Supplement that, when taken together, bear the signatures of the New Guarantor and the
Administrative Agent. Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart of this
Supplement.

     Section 4. Except as expressly supplemented hereby, the Guaranty Agreement shall remain in
full force and effect.

     Section 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE COMMONWEALTH OF VIRGINIA.

     Section 6. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein and in the Guaranty Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision
hereof in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

     Section 7. All communications and notices hereunder shall be in writing and given as provided
in Section 17 of the Guaranty Agreement. All communications and notices hereunder to the New
Guarantor shall be given to it at the address set forth under its signature below, with a copy to
the Borrower.

     Section 8. The New Guarantor agrees to reimburse the Administrative Agent for its reasonable
and documented out-of-pocket expenses in connection with this Supplement, including the
reasonable, documented, disbursements and other charges of outside counsel for the Administrative
Agent, in accordance with Section 10.3(a) of the Credit Agreement.

(Signatures on following page)

 

 

     IN WITNESS WHEREOF, the New Guarantor and the Administrative Agent have duly executed this
Supplement to the Guaranty Agreement as of the day and year first above written.

	 	 	 	 	 
	 	[NAME OF NEW GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address:  	 	 
	 

	 	 	 	 	 
	 	SUNTRUST BANK, as

Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Exhibit 2.3

FORM OF NOTICE OF REVOLVING BORROWING

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

303 Peachtree Street, N. E./ 25th Floor

Atlanta, GA 30308

Attention: Ms. Doris Folsom
Telecopy Number: (404) 658-4906

To Whom It May Concern:

     Reference is made to the Revolving Credit Agreement dated as of January 3, 2011 (as amended,
modified or supplemented and in effect on the date hereof, the “Credit Agreement”), among the
undersigned, as Borrower, the Lenders named therein, and SunTrust Bank, as Administrative Agent,
Issuing Bank and Swingline Lender. Terms defined in the Credit Agreement are used herein with the
same meanings. This notice constitutes a Notice of Revolving Borrowing, and the Borrower hereby
requests a Revolving Borrowing under the Credit Agreement, and in that connection the Borrower
specifies the following information with respect to the Revolving Borrowing requested hereby:

          (A) Aggregate principal amount of Revolving Borrowing1:

          (B) Date of Revolving Borrowing (which is a Business Day):

          (C) Type of Revolving Loans comprising such Borrowing2:

          (D) Interest Period3:

          (E) Location and number of Borrower’s account to which proceeds of Revolving Borrowing are to
be disbursed:

 

			
	1	 	In the case of a Eurodollar Borrowing, not less
than $1,000,000 or a larger multiple of $1,000,000; in the case of a Base Rate
Borrowing or an Index Rate Borrowing, not less than $1,000,000 or a larger
multiple of $500,000.
	 
	2	 	Eurodollar Borrowing, Index Rate Borrowing or Base
Rate Borrowing.
	 
	3	 	Which must comply with the definition of “Interest
Period” and end not later than the Revolving Commitment Termination Date.

 

 

     The Borrower hereby represents and warrants that the conditions specified in Section 3.2 of
the Credit Agreement are satisfied.

	 	 	 	 	 
	 	Very truly yours,

STRAYER EDUCATION, INC., a Maryland

corporation

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit 2.4

FORM OF NOTICE OF SWINGLINE BORROWING

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

303 Peachtree Street, N. E./ 25th Floor

Atlanta, GA 30308

Attention: Ms. Doris Folsom

Telecopy Number: (404) 658-4906

To Whom It May Concern:

     Reference is made to the Revolving Credit Agreement dated as of January 3, 2011 (as amended,
modified or supplemented and in effect on the date hereof, the “Credit Agreement”), among the
undersigned, as Borrower, the Lenders named therein, and SunTrust Bank, as Administrative Agent,
Issuing Bank and Swingline Lender. Terms defined in the Credit Agreement are used herein with the
same meanings. This notice constitutes a Notice of Swingline Borrowing, and the Borrower hereby
requests a Swingline Borrowing under the Credit Agreement, and in that connection the Borrower
specifies the following information with respect to the Swingline Borrowing requested hereby:

          (A) Aggregate principal amount of Swingline Loan1:

          (B) Date of Swingline Loan (which is a Business Day):

          (C) Account of the Borrower to which the proceeds of such Swingline Loan should be
credited:

 

			
	1	 	Not less than $100,000 or a larger multiple of
$50,000.

 

 

     The Borrower hereby represents and warrants that the conditions specified in Section 3.2 of
the Credit Agreement are satisfied.

	 	 	 	 	 
	 	Very truly yours,

STRAYER EDUCATION, INC., a Maryland

corporation

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Notice of Conversion/Continuation

 

 

Exhibit 2.8

FORM OF NOTICE OF CONVERSION/CONTINUATION

[Date]

SunTrust Bank,

as Administrative Agent

for the Lenders referred to below

Agency Services

303 Peachtree Street, N. E./ 25th Floor

Atlanta, Georgia 30308

Attention: Mr. Doug Weltz

Telecopy Number: (404) 221-2001

To Whom It May Concern:

     Reference is made to the Revolving Credit Agreement dated as of January 3, 2011 (as amended,
modified or supplemented and in effect on the date hereof, the “Credit Agreement”), among the
undersigned, as Borrower, the Lenders named therein, and SunTrust Bank, as Administrative Agent,
Issuing Bank and Swingline Lender. Terms defined in the Credit Agreement are used herein with the
same meanings. This notice constitutes a Conversion/Continuation, and the Borrower, hereby
requests the [conversion/continuation] of a Borrowing under the Credit Agreement, and in that
connection the undersigned specifies the following information with respect to the Borrowing to be
converted or continued as requested hereby:

          (A) Borrowing to which this request applies1:

          (B) Effective date of election (which is a Business Day):

          (C) Whether the resulting Borrowing is to be a Base Rate Borrowing, an Index Rate Borrowing or
a Eurodollar Borrowing:

          (D) Interest Period2:

 

			
	1	 	If different options are being elected with
respect to different portions thereof, indicate the portions thereof that are
to be allocated to each resulting Borrowing (in which case the information to
be specified pursuant to clauses (C) and (D) hereof also shall be specified for
each resulting Borrowing).
	 
	2	 	To be completed by the undersigned if such
Borrowing is a Eurodollar Borrowing. Such period shall be a period
contemplated by the definition of “Interest Period” in the Credit Agreement.

 

 

	 	 	 	 	 
	 	Very truly yours,

STRAYER EDUCATION, INC.,

a Maryland corporation

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Notice of Conversion/Continuation

 

Exhibit 5.1(d)

Covenant Compliance Certificate

     In connection with the terms of the Revolving Credit Agreement, dated as of January 3, 2011
(as amended, modified or supplemented from time to time, the “Credit Agreement”), among
Strayer Education, Inc., a Maryland corporation (the “Borrower”), SunTrust Bank, a Georgia
banking corporation (the “Administrative Agent”), and each Lender that is, or may become, a
party thereto, the undersigned certifies that the following information is true and correct, in all
material respects, as of the date of this Covenant Compliance Certificate:

1. No Default or Event of Default has occurred and is continuing.

2. For purposes of calculating the Applicable Margin and the Applicable Percentage, the Leverage
Ratio for the period of four consecutive Fiscal Quarters ended on                      was       to 1,
calculated as set forth on Schedule 1.

3. Consolidated EBITDA for the period of two consecutive Fiscal Quarters ended on                      was
$                    , calculated as set forth on Schedule 2, and exceeds the level required by
Section 6.1 of the Credit Agreement.

4. The Interest Coverage Ratio for the period of four consecutive Fiscal Quarters ended on
                     was       to 1, calculated as set forth on Schedule 3, and exceeds the level
required by Section 6.2 of the Credit Agreement.

5. Unrestricted Liquidity as of                      was $          , calculated as set forth on Schedule
4, and exceeds the level required by Section 6.3 of the Credit Agreement.

[SIGNATURE ON FOLLOWING PAGE]

 

 

     Capitalized terms used in this Covenant Compliance Certificate shall have the same meanings as
those assigned to them in the Credit Agreement. The foregoing is true and correct, in all material
respects, as of                     , 201   .

     Dated as of                           , 201  .

	 	 	 	 	 

	 	 	STRAYER EDUCATION, INC.,
	 	 	a Maryland corporation
	 
	 	 	 	 
	 

	 	By:
	 	 
	 	 	 	 	 
	 

	 	Name:	 	 
	 	 	 	 	 
	 

	 	Title:	 	 
	 	 	 	 	 

Covenant Compliance Certificate Signature Page

2

 

Exhibit 5.1(d)

Schedule 1

Leverage Ratio

	 	 	 	 	 	 	 

	1.

	 	Consolidated Total Debt	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(a) Borrowed money
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) Obligations evidenced by bonds, debentures,

notes or other similar instruments
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c) Deferred purchase price obligations (other than
trade payables incurred in the ordinary course of
business, provided that such trade payables which
are overdue by 120 days shall be included except to
the extent that such trade payables are being
disputed in good faith and by appropriate measures)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(d) Obligations under any conditional sale or other

title retention agreement
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(e) Capital Lease Obligations
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(f) Obligations for letters of credit, acceptances
or similar extensions of credit
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(g) Guaranties of Indebtedness of the types in the
foregoing (a) through (f)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(h) Indebtedness of a third party secured by any Lien
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(i) Preferred or common stock or similar equity
interests subject to mandatory sinking fund
payments, redemption or acceleration on equity
(other than voluntary repurchases of shares and the
exercise of options permitted by Sections 7.4(f)
and 7.5(iii) of the Credit Agreement)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(j) Off-Balance Sheet Liabilities
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(k) Partnership or joint venture debt
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b+c+d+e+f+g+h+i+j)1
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Consolidated EBITDA for the period of four consecutive
Fiscal Quarters ended on                     2	 	 	 	 

 

			
	1	 	Such amount shall be the sum of clauses (a)
through (j) without duplication. The calculation shall include the
Indebtedness of any partnership or joint venture in which such the Borrower or
any of its Subsidiaries is a general partner or a joint venturer, except to the
extent that the terms of such Indebtedness provide that such Borrower or
Subsidiary is not liable therefor.

 

 

	 	 	 	 	 	 	 

	 

	 	(a) Consolidated Net Income
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) Consolidated Interest Expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c) Income tax expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(d) Depreciation
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(e) Amortization
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(f) charges associated with the grant of any share
based payment awards to employees, officers,
directors or consultants
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(g) all other non-cash charges acceptable to the
Required Lenders
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b+c+d+e+f+g)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	3.

	 	Total Leverage Ratio
	 	=       to 1

	 

	 	Consolidated Total Debt
($                    )	 	 	 	 
	 

	 	Consolidated EBITDA (                    )	 	 	 	 

 

			
	2	 	All determined on a consolidated basis in accordance with GAAP for such period.

4

 

Exhibit 5.1(d)

Schedule 2

Consolidated EBITDA

	 	 	 	 	 	 	 

	Consolidated EBITDA for the period of two consecutive Fiscal Quarters
ended on                     3	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(a) Consolidated Net Income
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) Consolidated Interest Expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c) Income tax expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(d) Depreciation
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(e) Amortization
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(f) charges associated with the grant of any share based
payment awards to employees, officers, directors or
consultants
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(g) all other non-cash charges acceptable to the Required
Lenders
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b+c+d+e+f+g)
	 	$	                    	 
	 

	 	 	 	 	 	 

 

			
	3	 	All determined on a consolidated basis in accordance with GAAP for such period.

 

 

Exhibit 5.1(d)

Schedule 3

Interest Coverage Ratio

	 	 	 	 	 	 	 

	1. Consolidated EBIT for the period of four
consecutive Fiscal Quarters ended on                     4	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(a) Consolidated Net Income
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) Consolidated Interest Expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c) Income tax expense
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(d) charges associated with the grant of
any share based payment awards to
employees, officers, directors or
consultants
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(e) all other non-cash charges acceptable
to the Required Lenders
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b+c+d+e)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2. Capital Expenditures made during the four
consecutive Fiscal Quarters ending on or immediately
prior to                     	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	3. Restricted Payments made by the Borrower in cash
during the four consecutive Fiscal Quarters ending on
or immediately prior to                     	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	4. Consolidated Interest Expense for such period	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(a) total interest expense, including
without limitation the interest component
of any payments in respect of Capital
Lease Obligations capitalized or expensed
during such period (whether or not
actually paid during such period)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) the net amount payable (or
minus the net amount receivable) under Hedging Transactions
during such period (whether or not actually paid or received during such period)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	4. Interest Coverage Ratio	 	=            to 1

	 

	 	Coverage (1-2-3)	 	 	 	 
	 

	 	Consolidated Interest Expense (4)	 	 	 	 

 

			
	4	 	All determined on a consolidated basis in accordance with GAAP for such period.

 

 

Exhibit 5.1(d)

Schedule 4

Unrestricted Liquidity

	 	 	 	 	 	 	 

	Unrestricted Liquidity as of                     	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(a) Cash5
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b) Permitted Investments6
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(c) 90% of the fair market value of the Borrower’s
Investment in shares of Vanguard Short-term Tax-exempt
Bond Fund (Admiral Shares), as described in Schedule 7.4
of the Credit Agreement
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(d) aggregate unused Revolving Commitments of all Lenders
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TOTAL (a+b+c+d)
	 	$	                    	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 

 

			
	5	 	Not subject to any Lien, other than Liens in favor of the Administrative Agent, or any restriction on use.
	 
	6	 	Not subject to any Lien, other than Liens in favor of the Administrative Agent, or any restriction on use.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]