Document:

exv4w1

 

EXECUTION COPY

Exhibit 4.1

$2,800,000,000

CREDIT AGREEMENT

dated as of

October 31, 2005

among

Johnson Controls, Inc.,

as Borrower and Guarantor,

The Eligible Subsidiaries Referred to Herein,

as Borrowers,

The Lenders Parties Hereto

and

Citibank, N.A.,

as Administrative Agent

 

Citigroup Global Markets Inc.

Banc of America Securities LLC,

Joint Lead Arrangers and Joint Bookrunners

Bank of America, N.A.

Barclays Bank PLC

and

JPMorgan Chase Bank, N.A.,

Co-Syndication Agents

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	
ARTICLE 1

Definitions
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Accounting Terms and Determinations
	 	 	10	 
	Section 1.03. Types of Loans and Borrowings
	 	 	11	 
	 
	 	 	 	 
	
ARTICLE 2

The Credits
	 
	 	 	 	 
	Section 2.01. Commitments to Lend.
	 	 	11	 
	Section 2.02. Notice of Borrowing
	 	 	11	 
	Section 2.03. Notice to Lenders; Funding of Loans.
	 	 	12	 
	Section 2.04. Notes.
	 	 	13	 
	Section 2.05. Maturity of Loans
	 	 	13	 
	Section 2.06. Interest Rates.
	 	 	13	 
	Section 2.07. Fees
	 	 	15	 
	Section 2.08. Termination or Reduction of Commitments.
	 	 	15	 
	Section 2.09. Mandatory Termination of Commitments
	 	 	16	 
	Section 2.10. Optional Prepayments.
	 	 	16	 
	Section 2.11. General Provisions as to Payments.
	 	 	16	 
	Section 2.12. Funding Losses
	 	 	17	 
	Section 2.13. Computation of Interest and Fees
	 	 	17	 
	Section 2.14. Regulation D Compensation
	 	 	18	 
	Section 2.15. Method of Electing Interest Rates.
	 	 	18	 
	 
	 	 	 	 
	
ARTICLE 3

Conditions
	 
	 	 	 	 
	Section 3.01. Effectiveness
	 	 	19	 
	Section 3.02. Borrowings
	 	 	20	 
	Section 3.03. First Borrowing by Each Eligible Subsidiary
	 	 	21	 
	 
	 	 	 	 
	
ARTICLE 4

Representations and Warranties of the Company
	 
	 	 	 	 
	Section 4.01. Corporate Existence and Power
	 	 	21	 
	Section 4.02. Corporate and Governmental Authorization; No Contravention
	 	 	21	 
	Section 4.03. Binding Effect
	 	 	22	 
	Section 4.04. Financial Information.
	 	 	22	 

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 4.05. Litigation
	 	 	23	 
	Section 4.06. Compliance with ERISA
	 	 	23	 
	Section 4.07. Environmental Matters
	 	 	23	 
	Section 4.08. Taxes
	 	 	24	 
	Section 4.09. Subsidiaries
	 	 	24	 
	Section 4.10. Not an Investment Company
	 	 	24	 
	Section 4.11. Full Disclosure
	 	 	24	 
	 
	 	 	 	 
	
ARTICLE 5

Covenants
	 
	 	 	 	 
	Section 5.01. Information
	 	 	25	 
	Section 5.02. Payment of Obligations
	 	 	27	 
	Section 5.03. Maintenance of Property; Insurance.
	 	 	27	 
	Section 5.04. Conduct of Business and Maintenance of Existence
	 	 	27	 
	Section 5.05. Compliance with Laws
	 	 	28	 
	Section 5.06. Inspection of Property, Books and Records
	 	 	28	 
	Section 5.07. Minimum Consolidated Stockholder’s Equity
	 	 	28	 
	Section 5.08. Negative Pledge
	 	 	28	 
	Section 5.09. Consolidation, Mergers and Sales of Assets
	 	 	29	 
	Section 5.10. Use of Proceeds
	 	 	29	 
	 
	 	 	 	 
	
ARTICLE 6

Defaults
	 
	 	 	 	 
	Section 6.01. Events of Default
	 	 	30	 
	Section 6.02. Notice of Default
	 	 	32	 
	 
	 	 	 	 
	
ARTICLE 7

The Administrative Agent
	 
	 	 	 	 
	Section 7.01. Appointment and Authorization
	 	 	32	 
	Section 7.02. Administrative Agent and Affiliates
	 	 	32	 
	Section 7.03. Action by Administrative Agent
	 	 	33	 
	Section 7.04. Consultation with Experts
	 	 	33	 
	Section 7.05. Liability of Administrative Agent
	 	 	33	 
	Section 7.06. Indemnification
	 	 	33	 
	Section 7.07. Credit Decision
	 	 	33	 
	Section 7.08. Successor Administrative Agent
	 	 	34	 
	Section 7.09. Administrative Agent’s Fee
	 	 	34	 
	Section 7.10. Co-Syndication Agents
	 	 	34	 

iii

 

 

	 	 	 	 	 
	 	 	Page	 
	
ARTICLE 8

Change in Circumstances
	 
	 	 	 	 
	Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair
	 	 	34	 
	Section 8.02. Illegality
	 	 	35	 
	Section 8.03. Increased Cost and Reduced Return.
	 	 	35	 
	Section 8.04. Taxes.
	 	 	37	 
	Section 8.05. Requests For Compensation
	 	 	39	 
	Section 8.06. Base Rate Loans Substituted for Affected Euro-Dollar Loans
	 	 	39	 
	 
	 	 	 	 
	
ARTICLE 9

Representations and Warranties of Eligible Subsidiaries
	 
	 	 	 	 
	Section 9.01. Corporate Existence and Power
	 	 	40	 
	Section 9.02. Corporate and Governmental Authorization; No Contravention
	 	 	40	 
	Section 9.03. Binding Effect
	 	 	40	 
	Section 9.04. Taxes
	 	 	40	 
	 
	 	 	 	 
	
ARTICLE 10

Guaranty
	 
	 	 	 	 
	Section 10.01. The Guaranty
	 	 	40	 
	Section 10.02. Guaranty Unconditional
	 	 	41	 
	Section 10.03. Discharge Only Upon Payment In Full; Reinstatement In Certain Circumstances
	 	 	41	 
	Section 10.04. Waiver by the Company
	 	 	42	 
	Section 10.05. Subrogation
	 	 	42	 
	Section 10.06. Stay of Acceleration
	 	 	42	 
	 
	 	 	 	 
	
ARTICLE 11

Miscellaneous
	 
	 	 	 	 
	Section 11.01. Notices
	 	 	42	 
	Section 11.02. No Waivers
	 	 	43	 
	Section 11.03. Expenses; Indemnification.
	 	 	43	 
	Section 11.04. Sharing of Set-offs
	 	 	44	 
	Section 11.05. Amendments and Waivers
	 	 	45	 
	Section 11.06. Successors and Assigns.
	 	 	45	 
	Section 11.07. Collateral
	 	 	48	 
	Section 11.08. Governing Law; Submission to Jurisdiction
	 	 	48	 
	Section 11.09. Counterparts; Integration
	 	 	48	 
	Section 11.10. Waiver of Jury Trial
	 	 	48	 
	Section 11.11. Confidentiality
	 	 	48	 
	Section 11.12. USA Patriot Act
	 	 	49	 

iv

 

 

Page

v

 

Page

COMMITMENT SCHEDULE

PRICING SCHEDULE

SCHEDULE I

EXHIBIT A —  Form of Note

EXHIBIT B —  Opinion of General Counsel of the Company

EXHIBIT C —  Opinion of Special Counsel of the Administrative Agent

EXHIBIT D —  Form of Election to Participate

EXHIBIT E —  Form of Election to Terminate

EXHIBIT F —  Opinion of Counsel of the Borrower (Borrowings by Eligible

                    Subsidiaries)

EXHIBIT G —  Assignment and Assumption Agreement

vi

 

 

     AGREEMENT dated as of October 31, 2005 among JOHNSON CONTROLS, INC., the ELIGIBLE SUBSIDIARIES
referred to herein, the LENDERS from time to time parties hereto and CITIBANK, N.A., as
Administrative Agent.

     The parties hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01 . Definitions. The following terms, as used herein, have the following
meanings:

     “Administrative Agent” means Citibank, N.A. in its capacity as agent for the Lenders
hereunder, and its successors in such capacity.

     “Administrative Questionnaire” means, with respect to each Lender, an administrative
questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative
Agent (with a copy to the Company) duly completed by such Lender.

     “Agents” means the Administrative Agent and the Co-Syndication Agents.

     “Applicable Lending Office” means, with respect to any Lender, (i) in the case of its Base
Rate Loans, its Domestic Lending Office and (ii) in the case of its Euro-Dollar Loans, its
Euro-Dollar Lending Office.

     “Assignee” has the meaning set forth in Section 11.06(c).

     “Base Rate” means, for any day, a rate per annum equal to the higher of (i) the Citibank Rate
for such day and (ii) the sum of 1 / 2 of 1% plus the Federal Funds Rate for such
day.

     “Base Rate Loan” means a Loan which bears interest at the Base Rate pursuant to the applicable
Notice of Borrowing or Notice of Interest Rate Election or the provisions of Section 2.06(a) or
Article 8.

     “Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section
3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group.

     “Borrower” means the Company or any Eligible Subsidiary, as the context may require, and their
respective successors, and “Borrowers” means all

 

 

of the foregoing. When used in relation to any Loan, references to “the Borrower” are to the
particular Borrower to which such Loan is or is to be made.

     “Borrowing” has the meaning set forth in Section 1.03.

     “Citibank Rate” means the rate of interest per annum publicly announced from time to time by
Citibank, N.A. as its base rate in effect at its principal office in New York City. Each change in
the Citibank Rate shall be effective on the date such change is publicly announced.

     “Commitment” means (i) with respect to each Lender, the amount of such Lender’s Commitment, as
such amount is set forth opposite the name of such Lender on the Commitment Schedule and (ii) with
respect to any Assignee, the amount of the transferor Lender’s Commitment assigned to it pursuant
to Section 11.06(c), in each case as such amount may be changed from time to time pursuant to
Section 2.08, or 11.06(c); provided that, if the context so requires, the term “Commitment” means
the obligation of a Lender to extend credit up to such amount to the Borrowers hereunder.

     “Commitment Schedule” means the Schedule attached hereto identified as such.

     “Company” means Johnson Controls, Inc., a Wisconsin corporation, and its successors.

     “Company’s 2004 Form 10-K” means the Company’s annual report on Form 10-K for 2004, as
amended, filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act
of 1934.

     “Conduit” means a special purpose corporation which is engaged in making, purchasing or
otherwise investing in commercial loans in the ordinary course of its business.

     “Conduit Designation” has the meaning set forth in Section 11.06(f).

     “Consolidated Stockholders’ Equity” means at any date the stockholders’ equity of the Company
and its Consolidated Subsidiaries determined on a consolidated basis as of such date in accordance
with GAAP; provided that, for purposes hereof, the consolidated stockholders’ equity of the Company
and its Consolidated Subsidiaries shall be calculated without giving effect to (i) the application
of Financial Accounting Standards Board Statement No. 106 or (ii) the cumulative foreign currency
translation adjustment.

     “Consolidated Subsidiary” shall mean, as to any Person, each subsidiary of such Person
(whether now existing or hereafter created or acquired) the financial statements of which shall be
(or should have been) consolidated with the

2

 

financial statements of such Person in accordance with GAAP, but, at any time prior to
December 31, 2006, excluding any such consolidated subsidiary of York International Corporation
that would not be so consolidated but for the effect of FIN 46.

     “Co-Syndication Agents” means Bank of America, N.A., Barclays Bank PLC and JPMorgan Chase
Bank, N.A. in their respective capacities as Co-Syndication Agents in connection with the credit
facility provided hereunder.

     “Credit Exposure” means, with respect to any Lender at any time, (i) the amount of its
Commitment (whether used or unused) at such time or (ii) if the Commitments have terminated in
their entirety, the aggregate principal amount of its Loans at such time.

     “Debt” of any Person means at any date, without duplication, (i) all obligations of such
Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person to pay the deferred
purchase price of property or services, except trade accounts payable arising in the ordinary
course of business and accrued pension costs, (iv) all obligations of such Person as lessee which
are capitalized in accordance with GAAP, (v) all Debt (as defined in one of the other clauses of
this definition) of others secured by a Lien on any asset of such Person, whether or not such Debt
is assumed by such Person and (vi) all Debt of others Guaranteed by such Person; provided that Debt
shall not include obligations in respect of letters of credit to secure the performance of bids,
trade contracts (other than for Debt), operating leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of
business and letters of credit issued in connection with the Company’s self-insurance programs for
workman’s compensation, product liability and general liability; provided, further, for purposes of
the definition of Material Debt and Section 5.08, (x) so long as the amount of such Debt is not
also Guaranteed by such Person, the amount of any Debt described in clause (v) shall be deemed to
be equal to the lesser of the fair market value of the asset secured by such Lien and the amount of
such Debt and (y) the amount of any Debt described in clause (vi) for which such Person’s Guarantee
is limited in amount shall be deemed to be equal to the lesser of the amount of such Debt and the
maximum amount of the Guarantee.

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

     “Dollars” and the sign “$” mean lawful currency of the United States.

3

 

     “Domestic Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in New York City are authorized by law to close.

     “Domestic Lending Office” means, as to each Lender, its office located at its address set
forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its
Domestic Lending Office) or such other office as such Lender may hereafter designate as its
Domestic Lending Office by notice to the Company and the Administrative Agent.

     “Effective Date” means the date this Agreement becomes effective in accordance with Section
3.01.

     “Election to Participate” means an Election to Participate substantially in the form of
Exhibit G hereto.

     “Election to Terminate” means an Election to Terminate substantially in the form of Exhibit H
hereto.

     “Eligible Subsidiary” means any Wholly-Owned Consolidated Subsidiary of the Company as to
which an Election to Participate shall have been delivered to the Administrative Agent and as to
which an Election to Terminate shall not have been delivered to the Administrative Agent. Each
such Election to Participate and Election to Terminate shall be duly executed on behalf of such
Wholly-Owned Consolidated Subsidiary and the Company in such number of copies as the Administrative
Agent may request. The delivery of an Election to Terminate shall not affect any obligation of an
Eligible Subsidiary theretofore incurred. The Administrative Agent shall promptly give notice to
the Lenders of the receipt of any Election to Participate or Election to Terminate.

     “Environmental Laws” means any and all federal, state, local and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or other governmental restrictions relating to the environment or
to emissions, discharges or releases of pollutants, contaminants, petroleum or petroleum products,
chemicals or industrial, toxic or hazardous substances or wastes into the environment including,
without limitation, 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, petroleum or petroleum products, chemicals or industrial, toxic or
hazardous substances or wastes or the clean-up or other remediation thereof.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any
successor statute.

4

 

     “ERISA Group” means the Company, any Consolidated Subsidiary and all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated) under common
control which, together with the Company or any Consolidated Subsidiary, are treated as a single
employer under Section 414 of the Internal Revenue Code.

     “Euro-Dollar Business Day” means any Domestic Business Day on which commercial banks are open
for international business (including dealings in Dollar deposits) in London.

     “Euro-Dollar Lending Office” means, as to each Lender, its office, branch or affiliate located
at its address set forth in its Administrative Questionnaire (or identified in its Administrative
Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or affiliate of such
Lender as it may hereafter designate as its Euro-Dollar Lending Office by notice to the Company and
the Administrative Agent, Lender shall be deemed to refer to any or all of such offices, as the
context may require.

     “Euro-Dollar Loan” means a Loan that bears interest at a Euro-Dollar Rate pursuant to the
applicable Notice of Borrowing or Notice of Interest Rate Election.

     “Euro-Dollar Margin” means, at any date, the applicable rate per annum determined in
accordance with the Pricing Schedule.

     “Euro-Dollar Rate” means a rate of interest determined pursuant to Section 2.06(b) on the
basis of a London Interbank Offered Rate.

     “Euro-Dollar Reserve Percentage” means, for any day, that percentage (expressed as a decimal)
which is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve
System (or any successor) for determining the maximum reserve requirement for a member bank of the
Federal Reserve System in New York City with deposits exceeding five billion dollars in respect of
“Eurocurrency liabilities” (or in respect of any other category of liabilities which includes
deposits by reference to which the interest rate on Euro-Dollar Loans is determined or any category
of extensions of credit or other assets which includes loans by a non-United States office of any
Lender to United States residents).

     “Event of Default” has the meaning set forth in Section 6.01.

     “Facility Fee Rate” means, at any date, the applicable rate per annum determined in accordance
with the Pricing Schedule.

5

 

     “Federal Funds Rate” means, for any day, the rate per annum (rounded upward, if necessary, to
the nearest 1/100th of 1%) 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 Domestic Business Day next
succeeding such day; provided that (i) if such day is not a Domestic Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next preceding Domestic
Business Day as so published on the next succeeding Domestic Business Day, and (ii) if no such rate
is so published on such next succeeding Domestic Business Day, the Federal Funds Rate for such day
shall be the average rate quoted to Citibank, N.A. on such day on such transactions as determined
by the Administrative Agent.

     “GAAP” shall mean generally accepted accounting principles as in effect from time to time.

     “Group of Loans” means, at any time, a group of Loans consisting of (i) all Loans to the same
Borrower which are Base Rate Loans at such time or (ii) all Loans which are Euro-Dollar Loans to
the same Borrower having the same Interest Period at such time, provided that, if a Loan of any
particular Lender is converted to or made as a Base Rate Loan pursuant to Article 8, such Loan
shall be included in the same Group or Groups of Loans from time to time as it would have been in
if it had not been so converted or made.

     “Guarantee” by any Person means any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Debt of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person, without duplication, (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt (whether arising by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain
financial statement conditions or otherwise) or (ii) entered into for the purpose of assuring in
any other manner the holder of such Debt of the payment thereof or to protect such holder against
loss in respect thereof (in whole or in part); provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business. The term “Guarantee”
used as a verb has a corresponding meaning.

     “Indemnitee” has the meaning set forth in Section 11.03(b).

     “Interest Period” means, with respect to each Euro-Dollar Loan, the period commencing on the
date of borrowing specified in the applicable Notice of Borrowing or on the date specified in an
applicable Notice of Interest Rate Election and ending one, two, three, six months or, if available
to each Lender, nine or twelve months thereafter (or such other period of time as may at the time

6

 

be mutually agreed by the Borrower and the Lenders), as the Borrower may elect in such notice;
provided that:

     (a) any Interest Period which would otherwise end on a day which is not a
Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day
unless such Euro-Dollar Business Day falls in another calendar month, in which case such
Interest Period shall end on the next preceding Euro-Dollar Business Day; and

     (b) any Interest Period which begins on the last Euro-Dollar 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 Euro-Dollar
Business Day of a calendar month; and

     (c) any Interest Period which would otherwise end after the Termination Date shall
end on the Termination Date.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, or any successor
statute.

     “Lender” means each Person listed in the Commitment Schedule, each Additional Lender or
Assignee which becomes a Lender pursuant to Section 11.06(c), and their respective successors.

     “Lender Affiliate” means, (a) with respect to any Lender, (i) an Affiliate of such Lender or
(ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged in making,
purchasing, holding or otherwise investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by such Lender or an Affiliate of
such Lender and (b) with respect to any Lender that is a fund which invests in bank loans and
similar extensions of credit, any other fund that invests in bank loans and similar extensions of
credit and is managed by the same investment advisor as such Lender or by an Affiliate of such
investment advisor. As used in this definition, (x) “Affiliate” means, with respect to a specified
Person, another Person that directly, or indirectly through one or more intermediaries, Controls or
is Controlled by or is under common Control with such specified Person and (y) “Control” means
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power, by contract or
otherwise (and “Controlled” has a meaning correlative thereto).

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, the
Company or any Consolidated Subsidiary

7

 

shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to
the interest of a vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset, but not the interest of a lessor under an
operating lease.

     “Loan” means a loan made by a Lender pursuant to Section 2.01; provided that, if any such loan
or loans (or portions thereof) are combined or subdivided pursuant to a Notice of Interest Rate
Election, the term “Loan” shall refer to the combined principal amount resulting from such
combination or to each of the separate principal amounts resulting from such subdivision, as the
case may be.

     “London Interbank Offered Rate” has the meaning set forth in Section 2.06(b).

     “Material Adverse Effect” means a material adverse effect on (a) the business, financial
position and results of operations of the Company and its Consolidated Subsidiaries, considered as
a whole, (b) the ability of the Borrowers to perform any of their obligations under this Agreement
or (c) the rights of or benefits available to the Lenders under this Agreement.

     “Material Debt” means Debt (other than the Loans) of the Company and/or one or more of its
Consolidated Subsidiaries, arising in one or more related or unrelated transactions, in an
aggregate principal amount exceeding $100,000,000.

     “Material Plan” means at any time a Plan or Plans having aggregate Unfunded Liabilities in
excess of $100,000,000.

     “Multiemployer Plan” means at any time an employee pension benefit plan within the meaning of
Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an
obligation to make contributions or has within the preceding five plan years made contributions,
including for these purposes any Person which ceased to be a member of the ERISA Group during such
five year period.

     “New York Office” means the office of the Administrative Agent identified on the signature
pages hereof as its New York office, or such other office of the Administrative Agent as it may
specify for such purpose by notice to the other parties hereto.

     “Notes” means promissory notes of a Borrower, substantially in the form of Exhibit A hereto,
evidencing the obligation of such Borrower to repay the Loans made to it, and “Note” means any one
of such promissory notes issued hereunder.

8

 

     “Notice of Borrowing” has the meaning set forth in Section 2.02.

     “Notice of Interest Rate Election” has the meaning set forth in Section 2.15.

     “Outstanding Amount” means, as to any Lender at any time, the aggregate principal amount of
Loans made by it outstanding at such time.

     “Parent” means, with respect to any Lender, any Person controlling such Lender.

     “Participant” has the meaning set forth in Section 11.06(b).

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all
of its functions under ERISA.

     “Person” means an individual, a corporation, a limited liability company, a partnership, an
association, a trust, a limited liability company or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

     “Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan)
which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412
of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the
ERISA Group for employees of any member of the ERISA Group or (ii) has at any time within the
preceding five years been maintained, or contributed to, by any Person which was at such time a
member of the ERISA Group for employees of any Person which was at such time a member of the ERISA
Group.

     “Pricing Schedule” means the Schedule attached hereto identified as such.

     “Quarterly Payment Date” means each March 31, June 30, September 30 and December 31.

     “Reduction Event” means the issuance by the Company or any of its Subsidiaries of long-term
debt securities in a capital markets transaction.

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

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

     “Required Lenders” means at any time Lenders having more than 50% of the aggregate amount of
the Credit Exposures at such time.

9

 

     “Revolving Credit Period” means the period from and including the Effective Date to but not
including the Termination Date.

     “Subsidiary” means, with respect to any Person, any corporation, association or other business
entity of which more than 50% of the total voting power of shares of stock (or comparable ownership
interests) entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of the Person or a combination
thereof.

     “Termination Date” means the earlier of (i) the day that is 364 days after the Effective Date
(or, if such date is not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day)
and (ii) December 28, 2006.

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

     “Type” refers to the determination whether a loan is a Base Rate Loan or a Euro-Dollar Loan.

     “Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by
which (i) the present value of all benefits under such Plan exceeds (ii) the fair market value of
all Plan assets allocable to such benefits (excluding any accrued but unpaid contributions), all
determined as of the then most recent valuation date for such Plan, but only to the extent that
such excess represents a potential liability of a member of the ERISA Group to the PBGC or any
other Person under Title IV of ERISA.

     “United States” means the United States of America, including the States and the District of
Columbia, but excluding its territories and possessions.

     “Wholly-Owned Consolidated Subsidiary” means any Consolidated Subsidiary all of the shares of
capital stock or other ownership interests of which (except directors’ qualifying shares) are at
the time directly or indirectly owned by the Company.

     Section 1.02 . Accounting Terms and Determinations. Unless otherwise 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 generally accepted accounting principles as in effect from time to time, applied on
a basis consistent (except for changes concurred in by the Company’s independent public
accountants) with the most recent audited consolidated financial statements of the Company and its
Consolidated Subsidiaries delivered to the Lenders; provided

10

 

that, if the Company notifies the Administrative Agent that the Company wishes to amend any
covenant in Article 5 to eliminate the effect of any change in generally accepted accounting
principles on the operation of such covenant (or if the Administrative Agent notifies the Company
that the Required Lenders wish to amend Article 5 for such purpose), then the Company’s compliance
with such covenant shall be determined on the basis of generally accepted accounting principles in
effect immediately before the relevant change in generally accepted accounting principles became
effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Company and the Required Lenders.

     Section 1.03 . Types of Loans and Borrowings. The term “Borrowing” denotes the aggregation
of Loans of one or more Lenders to be made to a single Borrower pursuant to Article 2 on the same
date, all of which Loans are of the same Type and, in the case of Euro-Dollar Loans, have the same
initial Interest Period. Identification of a Borrowing by type (e.g., a “Euro-Dollar Borrowing”)
indicates that such Borrowing is comprised of Loans of such Type.

ARTICLE 2

The Credits

     Section 2.01 . Commitments to Lend.

     (a) Committed Loans. During the Revolving Credit Period, each Lender severally agrees, on
the terms and conditions set forth in this Agreement, to make loans in Dollars to the Borrowers
pursuant to this Section 2.01(a) from time to time prior to the Termination Date in amounts such
that (i) the Outstanding Amount of such Lender shall at no time exceed the amount of such Lender’s
Commitment and (ii) the Total Outstanding Amount shall at no time exceed the aggregate amount of
the Commitments. Within the foregoing limits, any Borrower may borrow under this Section, repay
or, to the extent permitted by Section 2.10, prepay Loans and reborrow at any time prior to the
Termination Date under this Section 2.01.

     (b) Minimum Borrowings. Each Borrowing under this Section 2.01 shall be in an integral
multiple of $1,000,000 and in an aggregate amount of not less than $10,000,000 (except that any
such Borrowing may be in the aggregate amount of the available Commitments) and shall be made from
the several Lenders ratably in proportion to their respective Commitments.

     Section 2.02 . Notice of Borrowing. The Borrower shall give the Administrative Agent notice
(a “Notice of Borrowing”) at its New York Office not later than 10:30 A.M. (New York City time) on
(i) the date of each Base Rate

11

 

Borrowing and (ii) the third Euro-Dollar Business Day before each Euro-Dollar Borrowing,
specifying:

     (i) the date of such Borrowing, which shall be a Domestic Business Day in the case of
a Base Rate Borrowing or a Euro-Dollar Business Day in the case of a Euro-Dollar
Borrowing;

     (ii) the aggregate amount of such Borrowing;

     (iii) whether such Loans are to be Base Rate Loans or Euro-Dollar Loans; and

     (iv) in the case of a Euro-Dollar Borrowing, the duration of the initial Interest
Period applicable thereto, subject to the provisions of the definition of Interest Period.

     Section 2.03 . Notice to Lenders; Funding of Loans.

     (a) Upon receipt of a Notice of Borrowing, the Administrative Agent shall promptly notify each
Lender of the contents thereof and of such Lender’s share of such Borrowing and such Notice of
Borrowing shall not thereafter be revocable by the Borrower.

     (b) On the date of each Borrowing, each Lender participating therein shall make available its
ratable share of such Borrowing not later than 2:00 P.M. (New York City time), in Federal or other
funds immediately available in New York City, to the Administrative Agent at its New York Office.
Unless the Administrative Agent determines that any applicable condition specified in Article 3 has
not been satisfied or waived in accordance with Section 11.05, the Administrative Agent will make
the funds so received from the Lenders available to the Borrower as directed by the Borrower.

     (c) Unless the Administrative Agent shall have received at its New York Office notice from a
Lender prior to the date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume
that such Lender has made such share available to the Administrative Agent on the date of such
Borrowing in accordance with subsection (b) of this Section 2.03 and the Administrative Agent may,
in reliance upon such assumption, make available to the Borrower on such date a corresponding
amount. If and to the extent that such Lender shall not have so made such share available to the
Administrative Agent, such Lender and, if such Lender shall not have paid such amount to the
Administrative Agent within two Domestic Business Days of the Administrative Agent’s demand
therefor, the Borrower severally agree to repay to the Administrative Agent forthwith on demand
such corresponding amount together

12

 

with interest thereon, for each day from the date such amount is made available to the
Borrower until the date such amount is repaid to the Administrative Agent, at the Federal Funds
Rate. If such Lender shall repay to the Administrative Agent such corresponding amount, such
amount so repaid shall constitute such Lender’s Loan included in such Borrowing for purposes of
this Agreement.

     (d) The failure of any Lender to make any Loan to be made by it on the date specified therefor
shall not relieve any other Lender of any obligation to make a Loan on such date.

     Section 2.04 . Notes.

     (a) Each Lender may, by notice to the Company and the Agent, request (i) that its Loans to any
Borrower be evidenced by a single Note of such Borrower payable to the order of such Lender for the
account of its Applicable Lending Office in an amount equal to the aggregate unpaid principal
amount of such Lender’s Loans to such Borrower or (ii) that its Loans of a particular Type to any
Borrower be evidenced by a separate Note of such Borrower in an amount equal to the aggregate
unpaid principal amount of such Loans. Each such Note shall be in substantially the form of
Exhibit A hereto with appropriate modifications to reflect the fact that it evidences solely Loans
of the relevant Type. Each reference in this Agreement to the “Notes” of such Lender shall be
deemed to refer to and include any or all of such Notes, as the context may require.

     (b) Each Lender shall record the date, amount, Type and maturity of each Loan made by it and
the date and amount of each payment of principal made with respect thereto, and may, if such Lender
so elects in connection with any transfer or enforcement of its Note, endorse on the schedule
forming a part thereof appropriate notations to evidence the foregoing information with respect to
each such Loan then outstanding; provided that the failure of any Lender to make any such
recordation or endorsement shall not affect the obligations of any Borrower hereunder or under the
Notes. Each Lender is hereby irrevocably authorized by the Borrowers so to endorse its Notes and
to attach to and make a part of any Note a continuation of any such schedule as and when required.

     Section 2.05 . Maturity of Loans. Each Loan shall mature, and the principal amount thereof
shall be due and payable (together with interest accrued thereon), on the Termination Date.

     Section 2.06 . Interest Rates.

     (a) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, for
each day from the date such Loan is made until it becomes due, at a rate per annum equal to the
Base Rate for each such day. Such interest shall be payable at maturity, quarterly in arrears on
each Quarterly Payment Date

13

 

prior to maturity and, with respect to the principal amount of any Base Rate Loan converted to
a Euro-Dollar Loan, on the date such amount is so converted. Any overdue principal of or interest
on any Base Rate Loan shall bear interest, payable on demand, for each day from and including the
date payment thereof was due to but excluding the date of actual payment, at a rate per annum equal
to the sum of 2% plus the rate otherwise applicable to Base Rate Loans for each such day.

     (b) Each Euro-Dollar Loan shall bear interest on the outstanding principal amount thereof, for
each day during each Interest Period applicable thereto, at a rate per annum equal to the sum of
the Euro-Dollar Margin for such day plus the applicable London Interbank Offered Rate for such
Interest Period. Such interest shall be payable for each Interest Period on the last day thereof
and, if such Interest Period is longer than three months, at intervals of three months after the
first day thereof.

     The “London Interbank Offered Rate” applicable to any Euro-Dollar Loan for any Interest Period
means the rate appearing on the Screen at approximately 11:00 A.M. (London time) on the Rate Fixing
Date as the rate for deposits in Dollars with a maturity comparable to such Interest Period. If no
rate appears on the Screen for the necessary currency and period, then the “London Interbank
Offered Rate” with respect to such Euro-Dollar Loan for such Interest Period shall be the rate at
which deposits in Dollars for value on the first day of such Interest Period with a maturity
comparable to such Interest Period are offered by the principal London office of the Administrative
Agent in the London interbank market at approximately 11:00 A.M. (London time) on the Rate Fixing
Date.

     The “Screen” means Telerate Page 3750. The Administrative Agent may nominate an alternative
source of screen rates if this page is replaced by another which display rates for interbank
deposits offered by leading banks in London.

     “Rate Fixing Date” means the second Euro-Dollar Business Day before the first day of such
Interest Period.

     (c) Any overdue principal of or interest on any Euro-Dollar Loan shall bear interest, payable
on demand, for each day from and including the date payment thereof was due to but excluding the
date of actual payment, at a rate per annum equal to the sum of 2% plus the higher of (i) the sum
of the Euro-Dollar Margin for such day plus the London Interbank Offered Rate applicable to such
Loan on the day before such payment was due and (ii) the Euro-Dollar Margin for such day plus the
quotient obtained (rounded upward, if necessary, to the next higher 1/100 of 1%) by dividing (x)
the average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the respective rates
per annum at which one day (or, if such amount due remains unpaid more than three Euro-Dollar
Business Days, then for such other period of time not longer than six months as the

14

 

Administrative Agent may select) deposits in Dollars in an amount approximately equal to such
overdue payment are offered by the principal London office of the Administrative Agent in the
London interbank market for the applicable period determined as provided above by (y) 1.00 minus
the Euro-Dollar Reserve Percentage.

     (d) The Administrative Agent shall determine each interest rate applicable to the Loans
hereunder. The Administrative Agent shall give prompt notice to the Borrower and the Lenders of
each rate of interest so determined, and its determination thereof shall be conclusive in the
absence of manifest error.

     Section 2.07 . Fees. (a) The Company shall pay to the Administrative Agent for the account
of the Lenders ratably a facility fee in Dollars at the Facility Fee Rate (determined daily in
accordance with the Pricing Schedule) on the daily aggregate amount of the Credit Exposures. Such
facility fee shall accrue from and including the Effective Date to but excluding the date on which
the Credit Exposures are reduced to zero.

     (a) Accrued fees under this Section shall be payable quarterly in arrears on each Quarterly
Date and on the date of termination of the Commitments in their entirety (and, if later, the date
the Credit Exposures are reduced to zero).

     Section 2.08 . Termination or Reduction of Commitments.

     (a) The Company may, upon at least three Domestic Business Days’ notice to the Administrative
Agent at its New York Office, (i) terminate the Commitments at any time, if no Loans are
outstanding at such time or (ii) ratably reduce from time to time by an aggregate amount of
$10,000,000 or any larger multiple thereof, the aggregate amount of the Commitments in excess of
the Total Outstanding Amount. Promptly after receiving a notice pursuant to this Section, the
Administrative Agent shall notify each Lender of the contents thereof.

     (b) The Commitments shall be reduced automatically in the event that the Company or any of its
Subsidiaries shall at any time, or from time to time, after the date hereof (and whether before or
after the Effective Date) receive any net cash proceeds of any Reduction Event, by an amount equal
to the largest multiple of $5,000,000 which does not exceed the amount of such net cash proceeds.
The reductions in the Commitments required by this subsection shall be effective on the fifth
Business Day following receipt by the Company or any of its Subsidiaries, as the case may be, of
such net cash proceeds. The Company shall notify the Administrative Agent within two Business Days
of receipt by it or a Subsidiary of net cash proceeds of a Reduction Event, specifying the date and
amount thereof.

15

 

     (c) On the date of any reduction of the Commitments pursuant to this Section, the Borrowers
shall repay such principal amount (together with accrued interest thereon) of outstanding Loans, if
any, as may be necessary so that after such repayment the aggregate outstanding principal amount of
the Loans does not exceed the amount of the Commitments as then reduced. Within the foregoing
limits of this subsection (c), each required payment or prepayment shall be made with respect to
such outstanding Loans as the Borrowers may designate to the Administrative Agent not less than
three Business Days prior to the date required for such payment or prepayment or, failing such
designation by the Borrower, as the Administrative Agent may specify by notice to the Borrowers.

     Section 2.09 . Mandatory Termination of Commitments. The Commitment of each Lender shall
terminate on the Termination Date.

     Section 2.10 . Optional Prepayments.

     (a) Subject in the case of Euro-Dollar Loans to Section 2.12, the Borrower may upon notice to
the Administrative Agent at its New York Office not later than 10:30 A.M. (New York City time) on
the Domestic Business Day preceding the date of prepayment of any Group of Base Rate Loans or the
third Euro-Dollar Business Day before the date of prepayment of any Group of Euro-Dollar Loans,
prepay any such Group, in each case in whole at any time, or from time to time in part in amounts
aggregating not less than $10,000,000, by paying the principal amount to be prepaid together with
accrued interest thereon to but not including the date of prepayment. Each such optional prepayment
shall be applied to prepay ratably the Loans of the several Lenders included in such Group of
Loans.

     (b) Upon receipt of a notice of prepayment pursuant to this Section, the Administrative Agent
shall promptly notify each Lender of the contents thereof and of such Lender’s ratable share of
such prepayment and once notice is so given to the Lenders, the Borrower’s notice of prepayment
shall not thereafter be revocable by the Borrower.

     Section 2.11 . General Provisions as to Payments.

     (a) The Borrowers shall make each payment of principal of, and interest on, the Loans and of
fees hereunder not later than 2:00 P.M. (New York City time) on the date when due, in Federal or
other funds immediately available in New York City, without set-off, counterclaim or other
deduction, to the Administrative Agent at its New York Office. The Administrative Agent will
promptly distribute to each Lender its ratable share of each such payment received by the
Administrative Agent for the respective accounts of the Lenders. Whenever any payment of principal
of, or interest on, the Base Rate Loans or of fees shall be due on a day which is not a Domestic
Business Day, the date for payment thereof

16

 

shall be extended to the next succeeding Domestic Business Day. Whenever any payment of
principal of, or interest on, the Euro-Dollar Loans shall be due on a day which is not a
Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding
Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in
which case the date for payment thereof shall be the next preceding Euro-Dollar Business Day. If
the date for any payment of principal is extended by operation of law or otherwise, interest
thereon shall be payable for such extended time.

     (b) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Lenders hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has made such payment in
full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon
such assumption, cause to be distributed to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent that the Borrower shall not have so made such
payment, each Lender shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the date such amount
is distributed to such Lender until the date such Lender repays such amount to the Administrative
Agent, at the Federal Funds Rate.

     Section 2.12 . Funding Losses. If the Borrower makes any payment of principal with respect
to any Euro-Dollar Loan or any Euro-Dollar Loan is converted to a Base Rate Loan (pursuant to
Article 2, 6 or 8 or otherwise) on any day other than the last day of an Interest Period applicable
thereto, or the last day of an applicable period fixed pursuant to Section 2.06(c), or if the
Borrower fails to borrow, prepay, convert or continue any Euro-Dollar Loans after notice has been
given to any Lender in accordance with Section 2.03(a), 2.10(b), or 2.15, the Borrower shall
reimburse each Lender within 15 days after demand for any resulting loss or expense reasonably
incurred by it (or by an existing or prospective Participant in the related Loan) in obtaining,
liquidating or employing deposits or other funds from third parties, but excluding loss of margin
for the period after any such payment or conversion or failure to borrow, prepay, convert or
continue; provided that such Lender shall have delivered to the Borrower a certificate specifying
in reasonable detail the calculation of, and the reasons for, the amount of such loss or expense,
which certificate shall be conclusive in the absence of manifest error.

     Section 2.13 . Computation of Interest and Fees. Interest calculated on the basis of the
Citibank 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).
All other interest and fees shall be computed on the basis of a year of 360 days and paid for the
actual number of days elapsed (including the first day but excluding the last day).

17

 

     Section 2.14 . Regulation D Compensation. Each Lender may require the Borrower to pay,
contemporaneously with each payment of interest on the Euro-Dollar Loans, additional interest on
the related Euro-Dollar Loan of such Lender at a rate per annum determined by such Lender up to but
not exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one
minus the Euro-Dollar Reserve Percentage over (ii) the applicable London Interbank Offered Rate.
Any Lender wishing to require payment of such additional interest (x) shall so notify the Borrower
and the Administrative Agent, in which case such additional interest on the Euro-Dollar Loans of
such Lender shall be payable to such Lender at the place indicated in such notice with respect to
each Interest Period commencing at least three Euro-Dollar Business Days after the giving of such
notice, and (y) shall notify the Borrower at least five Euro-Dollar Business Days prior to each
date on which interest is payable on the Euro-Dollar Loans of the amount then due it under this
Section.

     Section 2.15 . Method of Electing Interest Rates.

     (a) The Loans included in each Borrowing shall initially be of the Type specified by the
Borrower in the applicable Notice of Borrowing. Thereafter, the Borrower may from time to time
elect to change or continue the Type of each such Group of Loans (subject to subsection 2.15(d) of
this Section and the provisions of Article 8), as follows:

     (i) if such Loans are Base Rate Loans, the Borrower may elect to convert such Loans
to Euro-Dollar Loans as of any Euro-Dollar Business Day; and

     (ii) if such Loans are Euro-Dollar Loans, the Borrower may elect to convert such
Loans to Base Rate Loans or elect to continue such Loans as Euro-Dollar Loans for an
additional Interest Period, subject to Section 2.12 if any such conversion is effective on
any day other than the last day of an Interest Period applicable to such Loans.

     Each such election shall be made by delivering a notice (a “Notice of Interest Rate Election”)
to the Administrative Agent at its New York Office not later than 10:30 A.M. (New York City time)
on the third Euro-Dollar Business Day before the conversion or continuation selected in such notice
is to be effective. A Notice of Interest Rate Election may, if it so specifies, apply to only a
portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such
portion is allocated ratably among the Loans comprising such Group and (ii) the portion to which
such Notice applies, and the remaining portion to which it does not apply, are each at least
$10,000,000 (unless such portion is comprised of Base Rate Loans). If no such notice is timely
received before the end of an Interest Period for any Group of Euro-Dollar Loans, the

18

 

Borrower shall be deemed to have elected that such Group of Loans be converted to Base Rate
Loans at the end of such Interest Period.

     (b) Each Notice of Interest Rate Election shall specify:

     (i) the Group of Loans (or portion thereof) to which such notice applies;

     (ii) the date on which the conversion or continuation selected in such notice is to
be effective, which shall comply with the applicable clause of Section 2.15(a) above;

     (iii) if the Loans comprising such Group are to be converted, the new Type of Loans
and, if the Loans resulting from such conversion are to be Euro-Dollar Loans, the duration
of the next succeeding Interest Period applicable thereto; and

     (iv) if such Loans are to be continued as Euro-Dollar Loans for an additional
Interest Period, the duration of such additional Interest Period.

     Each Interest Period specified in a Notice of Interest Rate Election shall comply with the
provisions of the definition of Interest Period.

     (c) Promptly after receiving a Notice of Interest Rate Election from the Borrower pursuant to
subsection (a) above, the Administrative Agent shall notify each Lender of the contents thereof and
such notice shall not thereafter be revocable by the Borrower.

     (d) The Borrower shall not be entitled to elect to convert any Loans to, or continue any Loans
for an additional Interest Period as, Euro-Dollar Loans if (i) the aggregate Dollar Amount of any
Group of Euro-Dollar Loans created or continued as a result of such election would be less than
$10,000,000 or (ii) a Default shall have occurred and be continuing when the Borrower delivers
notice of such election to the Administrative Agent.

ARTICLE 3

Conditions

     Section 3.01 . Effectiveness. The Commitments shall become effective on the date that each
of the following conditions shall have been satisfied (or waived in accordance with Section 11.05):

19

 

     (a) receipt by the Administrative Agent of counterparts hereof signed by each of the parties
hereto (or, in the case of any party as to which an executed counterpart shall not have been
received, receipt by the Administrative Agent in form satisfactory to it of telegraphic or other
written confirmation from such party of execution of a counterpart hereof by such party);

     (b) receipt by the Administrative Agent of an opinion of Jerome D. Okarma, general counsel for
the Company, substantially in the form of Exhibit B hereto and covering such additional matters
relating to the transactions contemplated hereby as the Required Lenders may reasonably request;

     (c) receipt by the Administrative Agent of an opinion of Davis Polk & Wardwell, special
counsel for the Administrative Agent, substantially in the form of Exhibit C hereto and covering
such additional matters relating to the transactions contemplated hereby as the Required Lenders
may reasonably request;

     (d) receipt by the Administrative Agent of all documents the Administrative Agent may
reasonably request relating to the existence of the Company, the corporate authority for and the
validity of this Agreement and the Notes, and any other matters relevant hereto, all in form and
substance satisfactory to the Administrative Agent; and

     (e) receipt by the Administrative Agent of a notice from the Company requesting that this
Agreement become effective or of a Notice of Borrowing as required by Section 2.02,

provided that this Agreement shall not become effective or be binding on any party hereto unless
all of the foregoing conditions are satisfied not later than the earlier of (i) the date of
consummation by the Company or the acquisition of all of the outstanding capital stock of York
International Corporation and (ii) December 31, 2005; provided that such date may be extended to
January 31, 2006 with the consent of the Agents. The Administrative Agent shall promptly notify
the Company and each Lender of the Effective Date, and such notice shall be conclusive and binding
on all parties.

     Section 3.02 . Borrowings. The obligation of any Lender to make a Loan on the occasion of
any Borrowing is subject to the satisfaction of the following conditions:

     (a) receipt by the Administrative Agent of a Notice of Borrowing as required by Section 2.02;

     (b) the fact that, immediately after such Borrowing the Total Outstanding Amount will not
exceed the aggregate amount of the Commitments;

20

 

     (c) the fact that, immediately before and after such Borrowing, no Default shall have occurred
and be continuing; and

     (d) the fact that the representations and warranties of the Company and, if other than the
Company, the Borrower contained in this Agreement (except the representations and warranties set
forth in Sections 4.04(c), 4.05 and 4.07) shall be true on and as of the date of such Borrowing.

Each Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower (and
by the Company if it is not the Borrower) on the date of such Borrowing as to the facts specified
in clauses 3.02(b), 3.02(c) and 3.02(d).

     Section 3.03 . First Borrowing by Each Eligible Subsidiary. The obligation of each Lender to
make a Loan on the occasion of the first Borrowing by each Eligible Subsidiary is subject to the
receipt by the Administrative Agent of the following documents:

     (a) an opinion of counsel for such Eligible Subsidiary acceptable to the
Administrative Agent, which may be in-house counsel unless the Administrative Agent
otherwise reasonably determines, substantially in the form of Exhibit I hereto and
covering such additional matters relating to the transactions contemplated hereby as the
Required Lenders may reasonably request; and

     (b) all documents which it may reasonably request relating to the existence of such
Eligible Subsidiary, the corporate authority for and the validity of the Election to
Participate of such Eligible Subsidiary, this Agreement and the Notes of such Eligible
Subsidiary, and any other matters relevant thereto, all in form and substance satisfactory
to the Administrative Agent.

ARTICLE 4

Representations and Warranties of the Company

     The Company represents and warrants that:

     Section 4.01 . Corporate Existence and Power. The Company is a corporation duly
incorporated, validly existing and in active status under the laws of Wisconsin, and has all
corporate powers and all material governmental licenses, authorizations, consents and approvals
required to carry on its business as now conducted.

     Section 4.02 . Corporate and Governmental Authorization; No Contravention. The execution,
delivery and performance by the Company of this

21

 

Agreement and its Notes are within the Company’s corporate powers, have been duly authorized
by all necessary corporate action, require no action by or in respect of, or filing with, any
governmental body, agency or official other than filings on Form 8-K with the Securities and
Exchange Commission and do not contravene, or constitute a default under, any provision of
applicable law or regulation or of the certificate of incorporation or by-laws of the Company or of
any agreement, judgment, injunction, order, decree or other instrument binding upon the Company or
result in the creation or imposition of any Lien on any asset of the Company or any of its
Consolidated Subsidiaries.

     Section 4.03 . Binding Effect. This Agreement constitutes a valid and binding agreement of
the Company, and its Notes, if and when executed and delivered in accordance with this Agreement,
will constitute valid and binding obligations of the Company.

     Section 4.04 . Financial Information.

     (a) The consolidated statement of financial position of the Company and its Consolidated
Subsidiaries as of September 30, 2004 and the related consolidated statements of income, cash flows
and shareholders’ equity for the fiscal year then ended, reported on by PricewaterhouseCoopers LLP
and set forth in the Company’s 2004 Form 10-K, a copy of which has been delivered to each of the
Lenders, fairly present, in conformity with generally accepted accounting principles, the
consolidated financial position of the Company and its Consolidated Subsidiaries as of such date
and their consolidated results of operations and cash flows for such fiscal year.

     (b) The unaudited consolidated statement of financial position of the Company and its
Consolidated Subsidiaries as of June 30, 2005 and the related unaudited consolidated statements of
income, cash flows and shareholders’ equity for the nine months then ended, set forth in the
Company’s quarterly report for the fiscal quarter ended June 30, 2005 as filed with the Securities
and Exchange Commission on Form 10-Q, a copy of which has been delivered to each of the Lenders,
fairly present, in conformity with generally accepted accounting principles applied on a basis
consistent with the financial statements referred to in subsection (a) of this Section 4.04, the
consolidated financial position of the Company and its Consolidated Subsidiaries as of such date
and their consolidated results of operations and cash flows for such nine month period (subject to
normal year-end adjustments and the absence of footnotes).

     (c) Since September 30, 2004 there has been no material adverse change in the business,
financial position and results of operations of the Company and its Consolidated Subsidiaries,
considered as a whole.

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     Section 4.05 . Litigation. Except as set forth in the Company’s reports on Form 8-K, Form
10-K and Form 10-Q filed with the Securities and Exchange Commission pursuant to the Securities
Exchange Act of 1934, copies of which have been provided to the Lenders, there is no action, suit
or proceeding pending against, or to the knowledge of the Company threatened against or affecting,
the Company or any of its Consolidated Subsidiaries before any court or arbitrator or any
governmental body, agency or official in which there is a reasonable possibility of an adverse
decision which could reasonably be expected to materially adversely affect the business,
consolidated financial position or consolidated results of operations of the Company and its
Consolidated Subsidiaries, considered as a whole, or which in any manner draws into question the
validity of this Agreement or the Notes.

     Section 4.06 . Compliance with ERISA. Each member of the ERISA Group has fulfilled its
obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect
to each Plan and is in compliance in all material respects with the presently applicable provisions
of ERISA and the Internal Revenue Code with respect to each Plan except to the extent that failure
to fulfill such obligations or to be in compliance with such provisions, as the case may be, could
not reasonably be expected to have a Material Adverse Effect. No member of the ERISA Group has (i)
sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in
respect of any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer
Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, which has resulted or could result in the imposition of a Lien or the posting of a
bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any liability
under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of
ERISA, in each case, except to the extent that the seeking of such a waiver, failure to make such
contribution or payment, the making of such amendment or the incurrence of such liability, as the
case may be, could not reasonably be expected to have a Material Adverse Effect.

     Section 4.07 . Environmental Matters. In the course of its business, the Company reviews the
effect of Environmental Laws on the business, operations and properties of the Company and its
Subsidiaries, in the course of which it attempts to identify and evaluate associated liabilities
and costs (“Environmental Liabilities”) (including, without limitation, any capital or operating
expenditures required for clean-up or closure of properties presently owned, any capital or
operating expenditures required to achieve or maintain compliance with environmental protection
standards imposed by law or as a condition of any license, permit or contract, any related
constraints on operating activities, including any periodic or permanent shutdown of any facility
or reduction in the level of or change in the nature of operations conducted thereat and any actual
or

23

 

potential liabilities to third parties, including employees, and any related costs and
expenses). Except as set forth in Schedule I hereto, on the basis of this review and giving effect
to any indemnification obligations or insurance coverage, the Company has reasonably concluded that
its Environmental Liabilities are unlikely to have a Material Adverse Effect.

     Section 4.08 . Taxes. United States Federal income tax returns of the Company and its
Consolidated Subsidiaries have been examined and closed through the fiscal year ended September 30,
2001. The Company and its Consolidated Subsidiaries have filed all United States Federal income
tax returns and all other material tax returns which are required to be filed by them and have paid
all taxes due pursuant to such returns or pursuant to any assessment received by the Company or any
Consolidated Subsidiary except taxes and assessments that are being contested in good faith by
appropriate action and for which the Company or such Consolidated Subsidiary, as applicable, has
set aside on its books adequate reserves. The charges, accruals and reserves on the books of the
Company and its Consolidated Subsidiaries in respect of taxes or other governmental charges are, in
the opinion of the Company, adequate.

     Section 4.09 . Subsidiaries. Each of the Company’s corporate Consolidated Subsidiaries is a
corporation duly incorporated, validly existing and in good standing or active status under the
laws of its jurisdiction of incorporation, and has all corporate powers and all material
governmental licenses, authorizations, consents and approvals required to carry on its business as
now conducted, except those instances where failure to hold such powers, licenses, authorizations,
consents or approvals would not be expected to have a material adverse effect on the Company.

     Section 4.10 . Not an Investment Company. The Company is not an “investment company” within
the meaning of the Investment Company Act of 1940, as amended.

     Section 4.11 . Full Disclosure. All information heretofore furnished in writing by the
Company to the Administrative Agent or any Lender for purposes of or in connection with this
Agreement or any transaction contemplated hereby is, and all such information hereafter furnished
in writing by the Company to the Administrative Agent or any Lender will be, true and accurate in
all material respects on the date as of which such information is stated or certified. The Company
has disclosed to the Lenders in writing any and all facts which materially and adversely affect the
business, operations or financial condition of the Company and its Consolidated Subsidiaries, taken
as a whole, or the ability of the Company to perform its obligations under this Agreement.

24

 

ARTICLE 5

Covenants

     The Company agrees that, so long as any Lender has any Commitment hereunder or any principal,
interest or fees payable hereunder remain unpaid:

     Section 5.01 . Information. The Company will deliver to the Administrative Agent, and the
Administrative Agent will promptly deliver to each Lender:

     (a) as soon as available and in any event within 95 days after the end of each fiscal year of
the Company, a consolidated statement of financial position of the Company and its Consolidated
Subsidiaries as of the end of such fiscal year and the related consolidated statements of income,
cash flow and shareholders’ equity for such fiscal year, setting forth in each case in comparative
form the figures for the previous fiscal year, all set forth in accordance with generally accepted
accounting principles and reported on in a manner acceptable to the Securities and Exchange
Commission by PricewaterhouseCoopers LLP or other independent public accountants of nationally
recognized standing;

     (b) as soon as available and in any event within 50 days after the end of each of the first
three quarters of each fiscal year of the Company, a consolidated statement of financial position
of the Company and its Consolidated Subsidiaries as of the end of such quarter and the related
consolidated statements of income, cash flow and shareholders’ equity for such quarter and for the
portion of the Company’s fiscal year ended at the end of such quarter, setting forth in each case
in comparative form the figures for the corresponding quarter and the corresponding portion of the
Company’s previous fiscal year, all certified (subject to normal year-end adjustments) as to
fairness of presentation, generally accepted accounting principles and consistency (except as noted
therein) by the chief financial officer or the chief accounting officer of the Company;

     (c) simultaneously with the delivery of each set of financial statements referred to in
clauses (a) and (b) above, a certificate of the chief financial officer or the chief accounting
officer of the Company (i) stating whether any Default exists on the date of such certificate and,
if any Default then exists, setting forth the details thereof and the action which the Company is
taking or proposes to take with respect thereto and (ii) setting forth in reasonable detail the
calculations required to establish whether the Company was in compliance with the requirements of
Section 5.07 on the date of such financial statements;

     (d) as soon as practicable under the circumstances, after any officer of the Company obtains
knowledge of any Default, if such Default is then continuing, a certificate of the chief financial
officer or the chief accounting

25

 

officer of the Company setting forth the details thereof and the action which the Company is
taking or proposes to take with respect thereto;

     (e) promptly upon the mailing thereof to the shareholders of the Company generally, copies of
all financial statements, reports and proxy statements so mailed;

     (f) promptly upon the filing thereof, copies of all registration statements (other than the
exhibits thereto and any registration statements on Form S-8 or its equivalent) and reports on
Forms 10-K, 10-Q and 8-K (or their equivalents) which the Company shall have filed with the
Securities and Exchange Commission;

     (g) if and when any member of the ERISA Group (i) gives or is required to give notice to the
PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Plan which
might reasonably be expected to constitute grounds for a termination of such Plan under Title IV of
ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of
any such reportable event, a copy of the notice of such reportable event given or required to be
given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV
of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been
terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of
an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in
respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a
waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of
such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA,
a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal
from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any
payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement
or makes any amendment to any Plan or Benefit Arrangement which has resulted in the imposition of a
Lien or the posting of a bond or other security, a certificate of the chief financial officer or
the chief accounting officer of the Company setting forth details as to such occurrence and action,
if any, which the Company or applicable member of the ERISA Group is required or proposes to take;
and

     (h) from time to time such additional information regarding the financial position or business
of the Company and its Consolidated Subsidiaries as the Administrative Agent, at the request of any
Lender, may reasonably request.

     Information required to be delivered pursuant to subsections (a), (b), (e) or (f) above shall
be deemed to have been delivered on the date on which the Company provides notice to the Lenders
that such information has been posted on

26

 

the Company’s website on the Internet at the website address www.jci.com, at
sec.gov/edaux/searches.htm or at another website identified in such notice and accessible by the
Lenders without charge; provided that (i) such notice may be included in a certificate delivered
pursuant to subsection 5.01(c) and (ii) the Company shall deliver paper copies of the information
referred to in subsections (a), (b), (e) or (f) to any Lender which requests such delivery.

     Section 5.02 . Payment of Obligations. Each Borrower will pay and discharge, and will cause
each of its Consolidated Subsidiaries to pay and discharge, at or before maturity, all their
respective obligations and liabilities that, if not paid, could result in a Material Adverse Effect
including, without limitation, tax liabilities, except where the same may be contested in good
faith by appropriate proceedings, and will maintain, and will cause each of its Consolidated
Subsidiaries to maintain, in accordance with generally accepted accounting principles, appropriate
reserves for the accrual of any of the same.

     Section 5.03 . Maintenance of Property; Insurance.

     (a) Each Borrower will, to the best of its ability, keep, and will cause each of its
Consolidated Subsidiaries to keep, all material property useful and necessary in its business in
good working order and condition, ordinary wear and tear and casualties excepted.

     (b) Each Borrower will, and will cause each of its Consolidated Subsidiaries to, maintain
(either in the name of such Borrower or in such Consolidated Subsidiary’s own name) with
financially sound and responsible insurance companies, insurance on all their respective properties
in at least such amounts, and with such reasonable amounts of self-insurance, and against at least
such risks (and with such risk retention) as are usually insured against in the same general area
by companies of established repute engaged in the same or a similar business; and will furnish to
the Administrative Agent, upon request from the Administrative Agent, information presented in
reasonable detail as to the insurance so carried.

     Section 5.04 . Conduct of Business and Maintenance of Existence. Each Borrower will
preserve, renew and keep in full force and effect, and will cause each of its Consolidated
Subsidiaries to preserve, renew and keep in full force and effect their respective corporate
existence and their respective rights, privileges and franchises necessary or desirable in the
normal conduct of business except in the case of each Consolidated Subsidiary to the extent that a
failure to do so could not reasonably be expected to have a Material Adverse Effect; provided that
nothing in this Section 5.04 shall prohibit (i) the merger of a Consolidated Subsidiary into the
Company or the merger or consolidation of a Consolidated Subsidiary with or into another Person if
the corporation surviving such consolidation or merger is a Consolidated Subsidiary and if, in each
case, after

27

 

giving effect thereto, no Default shall have occurred and be continuing or (ii) the
termination of the corporate existence of any Consolidated Subsidiary if the Company in good faith
determines that such termination (x) is in the best interest of the Company and (y) is not
materially disadvantageous to the Lenders.

     Section 5.05 . Compliance with Laws. Each Borrower will comply, and cause each of its
Consolidated Subsidiaries to comply, in all material respects with all applicable laws, ordinances,
rules, regulations, and requirements of governmental authorities (including, without limitation,
Environmental Laws and ERISA and the rules and regulations thereunder) except where the necessity
of compliance therewith is contested in good faith by appropriate action.

     Section 5.06 . Inspection of Property, Books and Records. Each Borrower will keep, and will
cause each of its Consolidated 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; and will permit, and will cause each of its Consolidated Subsidiaries to
permit, representatives of any Lender at such Lender’s expense to visit and inspect any of their
respective properties, to examine any of their respective books and records and to discuss their
respective affairs, finances and accounts with their respective officers and independent public
accountants in the presence of such officers, all at such reasonable times and as often as may
reasonably be desired.

     Section 5.07 . Minimum Consolidated Stockholder’s Equity. Consolidated Stockholders’ Equity
will at no time be less than $1,310,000,000.

     Section 5.08 . Negative Pledge. Neither the Company nor any Consolidated Subsidiary will
create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it,
except:

     (a) Liens existing on the date of this Agreement securing Debt outstanding on the date of this
Agreement or borrowed after the date of this Agreement under a committed credit facility in
existence on the date of this Agreement in an aggregate principal amount not exceeding
$100,000,000;

     (b) any Lien existing on any asset of any Person at the time such Person becomes a
Consolidated Subsidiary and not created in contemplation of such event;

     (c) any Lien on any asset securing Debt incurred or assumed for the purpose of financing an
amount not to exceed all or any part of the cost of acquiring such asset, provided that such Lien
attaches to such asset concurrently with or within 180 days after the acquisition thereof;

28

 

     (d) any Lien on any asset of any Person existing at the time such Person is merged or
consolidated with or into the Company or a Consolidated Subsidiary and not created in contemplation
of such event;

     (e) any Lien existing on any asset prior to the acquisition thereof by the Company or a
Consolidated Subsidiary and not created in contemplation of such acquisition;

     (f) any Lien arising out of the refinancing, extension, renewal or refunding of any Debt
secured by any Lien permitted by any of the foregoing clauses of this Section 5.08, provided that
such Debt is not increased and is not secured by any additional assets;

     (g) Liens arising in the ordinary course of its business which (i) do not secure Debt or any
obligations of the type referred to in the proviso to the definition of Debt, (ii) do not secure
any obligation in an amount exceeding $75,000,000 and (iii) do not in the aggregate materially
detract from the value of its assets or materially impair the use thereof in the operation of its
business; and

     (h) Liens not otherwise permitted by the foregoing clauses of this Section 5.08 securing Debt
in an aggregate principal amount at any time outstanding not to exceed 10% of Consolidated
Stockholders’ Equity.

     Section 5.09 . Consolidation, Mergers and Sales of Assets. Neither the Company nor any
Consolidated Subsidiary will (i) consolidate or merge with or into any other Person or (ii) sell,
lease or otherwise transfer, directly or indirectly, all or any substantial part of the assets of
the Company and its Consolidated Subsidiaries, taken as a whole, to any other Person in one
transaction or a series of related transactions; provided that (A) the Company and any Consolidated
Subsidiary may merge with another Person (other than a merger of a Consolidated Subsidiary with the
Company) if the Company or such Consolidated Subsidiary is the corporation surviving such merger
and if, immediately after giving effect to such merger, no Default shall have occurred and be
continuing, (B) the Company and any Consolidated Subsidiary may merge with each other if
immediately after giving effect to such merger, no Default shall have occurred and be continuing;
provided that, if the Company is not the Person surviving such merger, such Person (1) is a
corporation organized under the laws of any State of the United States of America and (2) shall
have assumed all obligations of the Company under this Agreement and any Note pursuant to an
instrument satisfactory in form and substance to the Administrative Agent, and (C) any Consolidated
Subsidiary may merge with or into any other Consolidated Subsidiary, so long as a Consolidated
Subsidiary is the Person surviving such merger.

     Section 5.10 . Use of Proceeds. The proceeds of the Loans made under this Agreement will be
used by the Borrowers for general corporate purposes.

29

 

None of such proceeds will be used, directly or indirectly, for the purpose, whether
immediate, incidental or ultimate, of buying or carrying any “margin stock” within the meaning of
Regulation U which violates Regulation U or Regulation X.

ARTICLE 6

Defaults

     Section 6.01 . Events of Default. If one or more of the following events (“Events of
Default”) shall have occurred and be continuing:

     (a) any principal of any Loan shall not be paid when due, or any interest, any fees or any
other amount payable hereunder, shall not be paid within five days of the due date therefor;

     (b) the Company shall fail to observe or perform any covenant contained in Sections 5.07 to
5.10, inclusive;

     (c) any Borrower shall fail to observe or perform any covenant or agreement contained in this
Agreement (other than those covered by clause (a) or (b) above) for 30 days after written notice
thereof has been given to the Company by the Administrative Agent at the request of any Lender;

     (d) at any time when there are Loans outstanding to an Eligible Subsidiary, the guaranty
provided by the Company under Section 10.01 of this Agreement shall cease to be in full force and
effect;

     (e) any representation, warranty, certification or statement made by any Borrower in this
Agreement or in any certificate, financial statement or other document delivered pursuant to this
Agreement shall prove to have been incorrect in any material respect when made (or deemed made);

     (f) the Company or any Consolidated Subsidiary shall fail to make any payment in respect of
any Material Debt when due or within any applicable grace period other than any payment in respect
of purchase money debt permitted under Section 5.08(c) or capital leases but only to the extent
that such payments are being contested in good faith by appropriate action and the Company or such
Consolidated Subsidiary, as applicable, has set aside on its books adequate reserves for such
payment;

     (g) any event or condition shall occur which results in the acceleration of the maturity of
any Material Debt or enables (or, with the giving of notice or lapse of time or both, would enable)
the holder of such Debt or any Person acting on such holder’s behalf to accelerate the maturity
thereof;

30

 

     (h) the Company or any Consolidated Subsidiary shall commence a voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other proceeding commenced against
it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay
its debts as they become due, or shall take any corporate action to authorize any of the foregoing;

     (i) an involuntary case or other proceeding shall be commenced against the Company or any
Consolidated Subsidiary seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
it or any substantial part of its property, and such involuntary case or other proceeding shall
remain undismissed and unstayed for a period of 60 days; or an order for relief shall be entered
against the Company or any Consolidated Subsidiary under the federal bankruptcy laws as now or
hereafter in effect;

     (j) any member of the ERISA Group shall fail to pay when due an amount or amounts aggregating
in excess of $75,000,000 which it shall have become liable to pay under Title IV of ERISA; or
notice of intent to terminate a Material Plan shall be filed under Title IV of ERISA by any member
of the ERISA Group, any plan administrator or any combination of the foregoing; or the PBGC shall
institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for
premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to
administer any Material Plan; or a condition shall exist by reason of which the PBGC would be
entitled to obtain a decree adjudicating that any Material Plan must be terminated; or there shall
occur a complete or partial withdrawal from, or a default, within the meaning of Section 4219(c)(5)
of ERISA, with respect to, one or more Multiemployer Plans which could reasonably be expected to
cause one or more members of the ERISA Group to incur a current payment obligation in excess of
$75,000,000;

     (k) a judgment or order for the payment of money in excess of $100,000,000 shall be rendered
against the Company or any Consolidated Subsidiary and such judgment or order shall continue
unsatisfied and unstayed for the shorter of (x) a period of 30 days and (y) the period during which
a request or proceeding for stay of enforcement of such judgment or order is permitted under the
rules of the relevant jurisdiction; or

     (l) any person or group of persons (within the meaning of Section 13 or 14 of the Securities
Exchange Act of 1934, as amended) shall have acquired

31

 

beneficial ownership (within the meaning of Rule 13d-3 promulgated by the Securities and
Exchange Commission under said Act) of 20% or more of the outstanding shares of common stock of the
Company; or, during any period of 18 consecutive calendar months, individuals who were directors of
the Company on the first day of such period shall cease to constitute a majority of the board of
directors of the Company;

then, and in every such event, the Administrative Agent shall (i) if requested by Lenders having
more than 50% in aggregate amount of the Commitments, by notice to the Company terminate the
Commitments and they shall thereupon terminate, and (ii) if requested by Lenders holding more than
50% in aggregate principal amount of the Loans, by notice to the Company declare the Loans
(together with accrued interest thereon) to be, and the Loans shall thereupon become, immediately
due and payable without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by each Borrower; provided that in the case of any of the Events of Default specified
in clause 6.01(h) or 6.01(i) above with respect to any Borrower, without any notice to any Borrower
or any other act by the Administrative Agent or the Lenders, the Commitments shall thereupon
terminate and the Loans (together with accrued interest thereon) shall become immediately due and
payable without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by each Borrower.

     Section 6.02 . Notice of Default. The Administrative Agent shall give notice to the Company
under Section 6.01(c) promptly upon being requested to do so by any Lender and shall thereupon
notify all the Lenders thereof.

ARTICLE 7

The Administrative Agent

     Section 7.01 . Appointment and Authorization. Each Lender irrevocably appoints and
authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such
powers under this Agreement and the Notes as are delegated to the Administrative Agent by the terms
hereof or thereof, together with all such powers as are reasonably incidental thereto.

     Section 7.02 . Administrative Agent and Affiliates. Citibank, N.A. shall have the same
rights and powers under this Agreement as any other Lender and may exercise or refrain from
exercising the same as though it were not the Administrative Agent, and Citibank, N.A. and its
affiliates may accept deposits from, lend money to, and generally engage in any kind of business
with any Borrower or any Consolidated Subsidiary or affiliate of any Borrower as if it were not the
Administrative Agent.

32

 

     Section 7.03 . Action by Administrative Agent. The obligations of the Administrative Agent
hereunder are only those expressly set forth herein. Without limiting the generality of the
foregoing, the Administrative Agent shall not be required to take any action with respect to any
Default, except as expressly provided in Article 6.

     Section 7.04 . Consultation with Experts. The Administrative Agent shall not be liable for
any action taken or omitted to be taken by it in good faith in accordance with the advice of legal
counsel (who may be counsel for any Borrower), independent public accountants and other experts
selected by it.

     Section 7.05 . Liability of Administrative Agent. Neither the Administrative Agent nor any
of its affiliates nor any of their respective directors, officers, agents or employees shall be
liable for any action taken or not taken by it in connection herewith (i) with the consent or at
the request of the Required Lenders or (ii) in the absence of its own gross negligence or willful
misconduct. Neither the Administrative Agent nor any of its affiliates nor any of their respective
directors, officers, agents or employees shall be responsible for or have any duty to ascertain,
inquire into or verify (i) any statement, warranty or representation made in connection with this
Agreement or any Borrowing hereunder; (ii) the performance or observance of any of the covenants or
agreements of any Borrower; (iii) the satisfaction of any condition specified in Article 3 except
receipt of items required to be delivered to the Administrative Agent; or (iv) the validity,
effectiveness or genuineness of this Agreement, the Notes or any other instrument or writing
furnished in connection herewith. The Administrative Agent shall not incur any liability by acting
in reliance upon any notice, consent, certificate, statement, or other writing (which may be a bank
wire or similar writing) believed by it to be genuine or to be signed by the proper party or
parties.

     Section 7.06 . Indemnification. Each Lender shall, ratably in accordance with its
Commitment, indemnify the Administrative Agent, its affiliates and their respective directors,
officers, agents and employees (to the extent not reimbursed by the Borrowers) against any cost,
expense (including counsel fees and disbursements), claim, demand, action, loss or liability
(except such as result from such indemnitees’ gross negligence or willful misconduct) that such
indemnitees may suffer or incur in connection with this Agreement or any action taken or omitted by
such indemnitees hereunder.

     Section 7.07 . Credit Decision. Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Administrative Agent or any other Lender, and based

33

 

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 any action under this Agreement.

     Section 7.08 . Successor Administrative Agent. The Administrative Agent may resign at any
time by giving written notice thereof to the Lenders and the Company. Upon any such resignation,
the Required Lenders shall have the right to appoint a successor Administrative Agent. If no
successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative Agent gives notice of
resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent, which shall be a commercial bank organized or licensed under the
laws of the United States of America or of any State thereof and having a combined capital and
surplus of at least $50,000,000. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring Administrative Agent,
and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. After any retiring Administrative Agent’s resignation hereunder as Administrative
Agent, the provisions of this Article shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent.

     Section 7.09 . Administrative Agent’s Fee. The Company shall pay to the Administrative Agent
for its own account fees in the amounts and at the times previously agreed upon between the
Borrower and the Administrative Agent.

     Section 7.10 . Co-Syndication Agents. Nothing in this Agreement shall impose any duty or
liability whatsoever on any of the Co-Syndication Agents in such capacity.

ARTICLE 8

Change in Circumstances

     Section 8.01 . Basis for Determining Interest Rate Inadequate or Unfair. If on or prior to
the first day of any Interest Period for any Euro-Dollar Loan:

     (a) the Administrative Agent determines that adequate and fair means do not exist for
determining the applicable London Interbank Offered Rate for such Interest Period, or

     (b) Lenders having 50% or more of the aggregate amount of the Commitments advise the
Administrative Agent that the London Interbank Offered Rate as determined by the Administrative
Agent will not adequately and fairly

34

 

reflect the cost to such Lenders of funding their Euro-Dollar Loans for such Interest Period,

the Administrative Agent shall forthwith give notice thereof to the Company and the Lenders,
whereupon, until the Administrative Agent notifies the Company that the circumstances giving rise
to such suspension no longer exist, (i) the obligations of the Lenders to make Euro-Dollar Loans,
or to continue or convert outstanding Loans as or into Euro-Dollar Loans, shall be suspended and
(ii) each outstanding Euro-Dollar Loan shall be converted into a Base Rate Loan on the last day of
the then current Interest Period applicable thereto. Unless the Borrower notifies the
Administrative Agent at least one Domestic Business Day before the date of any Euro-Dollar
Borrowing for which a Notice of Borrowing has previously been given that it elects not to borrow on
such date, such Borrowing shall instead be made as a Base Rate Borrowing in an equal amount.

     Section 8.02 . Illegality. If, on or after the date of this Agreement, the adoption of any
applicable law, rule or regulation, or any change in any applicable law, rule or regulation, or any
change in the interpretation or administration thereof by any governmental authority, central bank
or comparable agency charged with the interpretation or administration thereof, or compliance by
any Lender (or its Euro-Dollar Lending Office) with any request or directive (whether or not having
the force of law) of any such authority, central bank or comparable agency shall make it unlawful
or impossible for any Lender (or its Euro-Dollar Lending Office) to make, maintain or fund its
Euro-Dollar Loans to any Borrower and such Lender shall so notify the Administrative Agent, the
Administrative Agent shall forthwith give notice thereof to the other Lenders and the Company,
whereupon until such Lender notifies the Company and the Administrative Agent that the
circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make
Euro-Dollar Loans to such Borrower shall be suspended. Before giving any notice to the
Administrative Agent pursuant to this Section 8.02, such Lender shall designate a different
Euro-Dollar Lending Office if such designation will avoid the need for giving such notice and will
not, in the judgment of such Lender, be otherwise disadvantageous to such Lender. If such notice
is given, each affected Euro-Dollar Loan of such Lender then outstanding shall be converted to a
Base Rate Loan either (a) on the last day of the then current Interest Period applicable to such
Euro-Dollar Loan if such Lender may lawfully continue to maintain and fund such Loan as a
Euro-Dollar Loan to such day or (b) immediately if such Lender shall determine that it may not
lawfully continue to maintain and fund such Loan as a Euro-Dollar Loan to such day.

     Section 8.03 . Increased Cost and Reduced Return.

     (a) If on or after the date of this Agreement, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any

35

 

governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or its Applicable Lending Office) with any
request or directive (whether or not having the force of law) of any such authority, central bank
or comparable agency, shall impose, modify or deem applicable any reserve (including, without
limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System,
but excluding with respect to any Euro-Dollar Loan any such requirement with respect to which such
Lender is entitled to compensation during the relevant Interest Period under Section 2.14), special
deposit, insurance assessment or similar requirement against assets of, deposits with or for the
account of, or credit extended by, such Lender (or its Applicable Lending Office) or shall impose
on any Lender (or its Applicable Lending Office) or on the London interbank market any other
condition affecting its Euro-Dollar Loans, its Note(s) or its obligation to make Euro-Dollar Loans
and the result of any of the foregoing is to increase the cost to such Lender (or its Applicable
Lending Office) of making or maintaining any Euro-Dollar Loan, or to reduce the amount of any sum
received or receivable by such Lender (or its Applicable Lending Office) under this Agreement or
under its Note(s) with respect thereto, by an amount deemed by such Lender to be material, then,
within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Company
shall pay to such Lender such additional amount or amounts as will compensate such Lender for such
increased cost or reduction.

     (b) If any Lender shall have determined that, after the date of this Agreement, the adoption
of any applicable law, rule or regulation regarding capital adequacy, or any change in any such
law, rule or regulation, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or any request or directive regarding capital adequacy (whether or not
having the force of law) of any such authority, central bank or comparable agency, has or would
have the effect of reducing the rate of return on capital of such Lender (or its Parent) as a
consequence of such Lender’s obligations hereunder to a level below that which such Lender (or its
Parent) could have achieved but for such adoption, change, request or directive (taking into
consideration its policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, within 15 days after demand by such Lender (with a copy to the
Administrative Agent), the Company shall pay to such Lender such additional amount or amounts as
will compensate such Lender (or its Parent) for such reduction.

     (c) Each Lender will promptly notify the Company and the Administrative Agent of any event of
which it has knowledge, occurring after the date hereof, which will entitle such Lender to
compensation pursuant to this Section 8.03 and will designate a different Applicable Lending Office
if such

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designation will avoid the need for, or reduce the amount of, such compensation and will not,
in the judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate of any
Lender claiming compensation under this Section 8.03 shall accompany any demand for payment and
shall set forth in reasonable detail the calculation of the additional amount or amounts to be paid
to it hereunder, which certificate shall be conclusive in the absence of manifest error. In
determining such amount, such Lender may use any reasonable averaging and attribution methods.

     Section 8.04 . Taxes.

     (a) Any and all payments by any Borrower to or for the account of any Lender or the
Administrative Agent hereunder or under any Note shall be made free and clear of and without
deduction for any and all present or future taxes, duties, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender and
the Administrative Agent, taxes imposed on or measured by its income, and franchise taxes imposed
on it, by the jurisdiction under the laws of which such Lender or the Administrative Agent (as the
case may be) is organized or any political subdivision thereof and, in the case of each Lender,
taxes imposed on or measured by its income, and franchise or similar taxes imposed on it, by the
jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, duties, levies, imposts, deductions, charges, withholdings and liabilities
being hereinafter referred to as its “Taxes”, and all such excluded taxes being hereinafter
referred to as its “Domestic Taxes”). If a Borrower shall be required by law to deduct any Taxes
from or in respect of any sum payable hereunder or under any Note to any Lender or the
Administrative Agent, (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
8.04) such Lender or the Administrative Agent (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Borrower shall make such
deductions, (iii) such Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law and (iv) such Borrower shall furnish
to the Administrative Agent, at its address referred to in Section 11.01, the original or a
certified copy of a receipt evidencing payment thereof.

     (b) In addition, the Company agrees to pay any present or future stamp or documentary taxes
and any other excise or property taxes, or charges or similar levies which arise from any payment
made hereunder or under any Note or from the execution or delivery of, or otherwise with respect
to, this Agreement or any Note (hereinafter referred to as “Other Taxes”).

     (c) The Company agrees to indemnify each Lender and the Administrative Agent for the full
amount of Taxes or Other Taxes (including,

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without limitation, any Taxes or Other Taxes imposed or asserted by any jurisdiction on
amounts payable under this Section 8.04) paid by such Lender or the Administrative Agent (as the
case may be) and any liability (including penalties, interest and expenses) arising therefrom or
with respect thereto. In addition, the Company agrees to indemnify the Administrative Agent and
each Lender for all Domestic Taxes and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, in each case to the extent that such Domestic Taxes
result from any payment or indemnification pursuant to this Section for (i) Taxes or Other Taxes
imposed by any jurisdiction other than the United States or (ii) Domestic Taxes of the
Administrative Agent or such Lender, as the case may be. This indemnification shall be made within
15 days from the date such Lender or the Administrative Agent (as the case may be) makes demand
therefor.

     (d) At the times indicated herein, each Lender organized under the laws of a jurisdiction
outside the United States shall provide the Company with Internal Revenue Service form W-8BEN or
W-8ECI (in each case accompanied by any statements which may be required under applicable Treasury
regulations), as appropriate, or any successor form prescribed by the Internal Revenue Service,
certifying that such Lender is entitled to receive payments under this Agreement (i) without
deduction or withholding of any United States federal income taxes or (ii) subject to a reduced
rate of United States federal withholding tax, unless, in each case of clause (i) and (ii) of this
Section 8.04(d), an event (including, without limitation, any change in treaty, law or regulation)
has occurred prior to the date on which any such delivery would otherwise be required which renders
such forms inapplicable or which would prevent the Lender from duly completing and delivering any
such form with respect to it and the Lender advises the Company and the Administrative Agent that
it is not capable of receiving payments without any deduction or withholding of such taxes. Such
forms shall be provided (x) on or prior to the date of the Lender’s execution and delivery of this
Agreement in the case of each Lender listed on the signature pages hereof, and on or prior to the
date on which it becomes a Lender in the case of each other Lender, and (y) on or before the date
that such form expires or becomes obsolete or after the occurrence of any event requiring a change
in the most recent form so delivered by the Lender. If the form provided by a Lender at the time
such Lender first becomes a party to this Agreement indicates a United States interest withholding
tax rate in excess of zero, United States withholding tax at such rate shall be considered excluded
from “Taxes” as defined in Section 8.04(a). In addition, to the extent that for reasons other than
a change of treaty, law or regulation any Lender becomes subject to an increased rate of United
States interest withholding tax while it is a party to this Agreement, United States withholding
tax at such increased rate shall be considered excluded from “Taxes” as defined in Section 8.04(a).

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     (e) For any period with respect to which a Lender has failed to provide the Company with the
appropriate form in accordance with Section 8.04(d) (unless such failure is excused by the terms of
Section 8.04(d)), such Lender shall not be entitled to indemnification under Section 8.04(a) or
8.04(c) with respect to Taxes imposed by the United States; provided, however, that should a
Lender, which is otherwise exempt from or subject to a reduced rate of withholding tax, become
subject to Taxes because of its failure to deliver a form required hereunder, the Company shall
take such steps as such Lender shall reasonably request to assist such Lender to recover such
Taxes.

     (f) If the Company is required to pay additional amounts to or for the account of any Lender
pursuant to this Section 8.04, then such Lender will change the jurisdiction of its Applicable
Lending Office so as to eliminate or reduce any such additional payment which may thereafter accrue
if such change, in the judgment of such Lender in the good faith exercise of its discretion, is not
otherwise disadvantageous to such Lender.

     Section 8.05 . Requests For Compensation. With respect to any Lender’s claim for
compensation under Section 2.12, Section 2.14, Section 8.03 or Section 8.04, no Borrower shall be
required to compensate such Lender for any amount incurred more than 180 days prior to the date
that such Lender notifies the relevant Borrower of the event that gives rise to such claim;
provided that, if the circumstance giving rise to such increased cost or reduction is retroactive,
then such 180-day period referred to above shall be extended to include the period of retroactive
effect thereof.

     Section 8.06 . Base Rate Loans Substituted for Affected Euro-Dollar Loans. If (i) the
obligation of any Lender to make, or to continue or convert outstanding Loans as or to, Euro-Dollar
Loans to any Borrower has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded
compensation under Section 8.03 or 8.04 with respect to its Euro-Dollar Loans and the Company
shall, by at least five Euro-Dollar Business Days’ prior notice to such Lender through the
Administrative Agent, have elected that the provisions of this Section shall apply to such Lender,
then, unless and until such Lender notifies the Company that the circumstances giving rise to such
suspension or demand for compensation no longer exist, all Loans which would otherwise be made by
such Lender as (or continued as or converted to) Euro-Dollar Loans to such Borrower shall instead
be Base Rate Loans on which interest and principal shall be payable contemporaneously with the
related Euro-Dollar Loans of the other Lenders. If such Lender notifies the Company that the
circumstances giving rise to such suspension or demand for compensation no longer exist, the
principal amount of each such Base Rate Loan shall be converted into a Euro-Dollar Loan on the
first day of the next succeeding Interest Period applicable to the related Euro-Dollar Loans of the
other Lenders.

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ARTICLE 9

Representations and Warranties of Eligible Subsidiaries

     Each Eligible Subsidiary shall be deemed by the execution and delivery of its Election to
Participate to have represented and warranted as of the date thereof that:

     Section 9.01 . Corporate Existence and Power. It is duly organized, validly existing and in
good standing or active status under the laws of its jurisdiction of organization and is a
Wholly-Owned Consolidated Subsidiary of the Company.

     Section 9.02 . Corporate and Governmental Authorization; No Contravention. The execution and
delivery by it of its Election to Participate and its Notes, and the performance by it of this
Agreement and its Notes, are within its legal powers, have been duly authorized by all necessary
legal action, require no action by or in respect of, or filing with, any governmental body, agency
or official other than filings on Form 8-K with the Securities and Exchange Commission and do not
contravene, or constitute a default under, any provision of applicable law or regulation or of its
organizational documents or of any agreement, judgment, injunction, order, decree or other
instrument binding upon the Company or such Eligible Subsidiary or result in the creation or
imposition of any Lien on any asset of the Company or any of its Consolidated Subsidiaries.

     Section 9.03 . Binding Effect. This Agreement constitutes a valid and binding agreement of
such Eligible Subsidiary and its Notes, if and when executed and delivered in accordance with this
Agreement, will constitute valid and binding obligations of such Eligible Subsidiary.

     Section 9.04 . Taxes. Except as disclosed in such Election to Participate, there is no
income, stamp or other tax of any country, or any taxing authority thereof or therein, imposed by
or in the nature of withholding or otherwise, which is imposed on any payment to be made by such
Eligible Subsidiary pursuant hereto or on its Notes, or is imposed on or by virtue of the
execution, delivery or enforcement of its Election to Participate or of its Notes.

ARTICLE 10

Guaranty

     Section 10.01 . The Guaranty. The Company hereby unconditionally guarantees the full and
punctual payment (whether at stated maturity, upon acceleration or otherwise) of the principal of
and interest on each Loan made to any Eligible Subsidiary pursuant to this Agreement, and the full
and punctual payment of all other amounts payable by any Eligible Subsidiary under this

40

 

Agreement. Upon failure by any Eligible Subsidiary to pay punctually any such amount, the
Company shall forthwith on demand pay the amount not so paid at the place and in the manner
specified in this Agreement.

     Section 10.02 . Guaranty Unconditional. The obligations of the Company hereunder shall be
unconditional and absolute and, without limiting the generality of the foregoing, shall not be
released, discharged or otherwise affected by:

     (a) any extension, renewal, settlement, compromise, waiver or release in respect of any
obligation of any Eligible Subsidiary under this Agreement or any Note, by operation of law or
otherwise;

     (b) any modification or amendment of or supplement to this Agreement or any Note;

     (c) any release, impairment, non-perfection or invalidity of any direct or indirect security
for any obligation of any Eligible Subsidiary under this Agreement or any Note;

     (d) any change in the corporate existence, structure or ownership of any Eligible Subsidiary,
or any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Eligible
Subsidiary or its assets or any resulting release or discharge of any obligation of any Eligible
Subsidiary contained in this Agreement or any Note;

     (e) the existence of any claim, set-off or other rights which the Company may have at any time
against any Eligible Subsidiary, the Administrative Agent, any Lender or any other Person, whether
in connection herewith or any unrelated transactions, provided that nothing herein shall prevent
the assertion of any such claim by separate suit or compulsory counterclaim;

     (f) any invalidity or unenforceability relating to or against any Eligible Subsidiary for any
reason of this Agreement or any Note, or any provision of applicable law or regulation purporting
to prohibit the payment by any Eligible Subsidiary of the principal of or interest on any Loan or
any other amount payable by it under this Agreement; or

     (g) any other act or omission to act or delay of any kind by any Eligible Subsidiary, the
Administrative Agent, any Lender or any other Person or any other circumstance whatsoever which
might, but for the provisions of this paragraph, constitute a legal or equitable discharge of or
defense to the Company’s obligations hereunder.

     Section 10.03 . Discharge Only Upon Payment In Full; Reinstatement In Certain Circumstances.
The Company’s obligations hereunder shall remain in

41

 

full force and effect until the Commitments shall have terminated and the principal of and
interest on the Loans and all other amounts payable by the Company and each Eligible Subsidiary
under this Agreement shall have been paid in full. If at any time any payment of the principal of
or interest on any Loan or any other amount payable by any Eligible Subsidiary under this Agreement
is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of any Eligible Subsidiary or otherwise, the Company’s obligations hereunder with
respect to such payment shall be reinstated at such time as though such payment had been due but
not made at such time.

     Section 10.04 . Waiver by the Company. The Company irrevocably waives acceptance hereof,
presentment, demand, protest and any notice not provided for herein, as well as any requirement
that at any time any action be taken by any Person against any Eligible Subsidiary or any other
Person.

     Section 10.05 . Subrogation. The Company irrevocably waives any and all rights to which it
may be entitled, by operation of law or otherwise, upon making any payment hereunder to be
subrogated to the rights of the payee against an Eligible Subsidiary with respect to such payment
or otherwise to be reimbursed, indemnified or exonerated by or for the account of an Eligible
Subsidiary in respect thereof.

     Section 10.06 . Stay of Acceleration. In the event that acceleration of the time for payment
of any amount payable by any Eligible Subsidiary under this Agreement or its Notes is stayed upon
insolvency, bankruptcy or reorganization of such Eligible Subsidiary, all such amounts otherwise
subject to acceleration under the terms of this Agreement shall nonetheless be payable by the
Company hereunder forthwith on demand by the Administrative Agent made at the request of the
Required Lenders.

ARTICLE 11

Miscellaneous

     Section 11.01 . Notices. (a) All notices, requests and other communications to any party
hereunder shall be in writing (including bank wire, facsimile transmission or similar writing) and
shall be given to such party: (i) in the case of the Company at its address or facsimile number set
forth below, (ii) in the case of the Administrative Agent, at its address or facsimile number set
forth below, (iii) in the case of an Eligible Subsidiary, at its address or facsimile number set
forth in its Election to Participate), (iv) in the case of any Lender, at its address or facsimile
number set forth in its Administrative Questionnaire or (v) in the case of any party, such other
address or facsimile number as such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Company. Each such notice, request or other communication shall be
effective

42

 

(A) if given by facsimile, when such facsimile is transmitted to the facsimile number
specified in this Section 11.01 and the appropriate answerback is received, (B) if given by mail,
72 hours after such communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid or (C) if given by any other means, when delivered at the address specified
in this Section 11.01; provided that notices to the Administrative Agent under Article 2 or Article
8 shall not be effective until received.

Company’s Address:

Johnson Controls, Inc.

Attention: Treasurer

5757 North Green Bay Avenue

Post Office Box 591

Milwaukee, WI 53209

Fax: (414) 524-2443

Administrative Agent’s Address:

Citibank, N.A.

Two Penns Way

Suite 100

New Castle, DE 19720

Fax Number: 212 994-0847

Attention: Bank Loan Syndication

     (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the Company may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

     Section 11.02 . No Waivers. No failure or delay by the Administrative Agent or any Lender in
exercising any right, power or privilege hereunder or under any Note shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies provided by law.

     Section 11.03 . Expenses; Indemnification.

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     (a) The Company shall pay (i) all reasonable out-of-pocket expenses of the Administrative
Agent, including fees and disbursements of special counsel for the Administrative Agent, in
connection with the preparation of this Agreement, any waiver or consent hereunder or any amendment
hereof or any Default or alleged Default hereunder and (ii) if an Event of Default occurs, all
out-of-pocket expenses incurred by the Administrative Agent and each Lender, including the fees and
disbursements of outside counsel and the allocated cost of inside counsel, in connection with such
Event of Default and collection, bankruptcy, insolvency and other enforcement proceedings resulting
therefrom.

     (b) The Company agrees to indemnify the Administrative Agent and each Lender, their respective
affiliates and the respective directors, officers, agents and employees of the foregoing (each an
“Indemnitee”) and hold each Indemnitee harmless from and against any and all liabilities, losses,
damages, costs and expenses of any kind (including, without limitation, the reasonable fees and
disbursements of counsel) which may be incurred by such Indemnitee in connection with any
investigative, administrative or judicial proceeding (whether or not such Indemnitee shall be
designated a party thereto) brought or threatened relating to or arising out of this Agreement or
any actual or proposed use of proceeds of Loans hereunder; provided that no Indemnitee shall have
the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful
misconduct or violation by such Indemnitee of any statute or regulation (provided that such
violation was not the result of any breach of statute or regulation or of any provision of this
Agreement by the Company or any of its Consolidated Subsidiaries), all as determined by a court of
competent jurisdiction.

     Section 11.04 . Sharing of Set-offs. Each Lender agrees that if it shall, by exercising any
right of set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of principal and interest due with respect to the Loans held by it which is greater than the
proportion received by any other Lender in respect of the aggregate amount of principal and
interest due with respect to the Loans held by such other Lender, the Lender receiving such
proportionately greater payment shall purchase such participations in the Loans held by the other
Lenders, and such other adjustments shall be made, as may be required so that all such payments of
principal and interest with respect to the Loans held by the Lenders shall be shared by the Lenders
pro rata; provided that nothing in this Section 11.04 shall impair the right of any Lender or its
affiliates to exercise any right of set-off or counterclaim it may have and to apply the amount
subject to such exercise to the payment of indebtedness of a Borrower other than its indebtedness
hereunder. Each Borrower agrees, to the fullest extent it may effectively do so under applicable
law, that any holder of a participation in the Loans, whether or not acquired pursuant to the
foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with
respect to such

44

 

participation as fully as if such holder of a participation were a direct creditor of such
Borrower in the amount of such participation.

     Section 11.05 . Amendments and Waivers. Any provision of this Agreement or the Notes may be
amended or waived if, but only if, such amendment or waiver is in writing and is signed by the
Company and the Required Lenders (and, if the rights or duties of the Administrative Agent are
affected thereby, by it); provided that no such amendment or waiver shall:

     (a) unless signed by each affected Lender, (i) increase the Commitment of any Lender
or subject any Lender to any additional obligation, (ii) reduce the principal of or rate of
interest on any Loan or any interest thereon or any fees hereunder, (iii) postpone the date
fixed for any payment of principal of or interest on any Loan or interest thereon or any
fees hereunder or for termination of any Commitment, (iv) release the Company from any
obligation under Article 10, (v) permit the subordination of any payment or right of
payment due to the Lenders under the Loan Documents or (vi) modify the right of a Lender to
receive a pro rata share of payments as provided herein;

     (b) unless signed by all the Lenders, change the definition of “Required Lenders” or
the provisions of this Section 11.05; or

     (c) unless signed by an Eligible Subsidiary, (w) subject such Eligible Subsidiary to
any additional obligation, (x) increase the principal of or rate of interest on any
outstanding Loan of such Eligible Subsidiary, (y) accelerate the stated maturity of any
outstanding Loan of such Eligible Subsidiary or (z) change this proviso.

It is understood that the operation of Section 2.01(c) in accordance with its terms is not an
amendment subject to this Section 11.05.

     Section 11.06 . 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, except that no Borrower may assign or
otherwise transfer any of its rights under this Agreement without the prior written consent of all
Lenders.

     (b) Any Lender may at any time grant to one or more Persons (each a “Participant”)
participating interests in its Commitment and/or any or all of its Loans. In the event of any such
grant by a Lender of a participating interest to a Participant, whether or not upon notice to any
Borrower and the Administrative Agent, such Lender shall remain responsible for the performance of
its obligations hereunder, and the Borrowers, and the Administrative Agent shall continue to

45

 

deal solely and directly with such Lender in connection with such Lender’s rights and/or
obligations hereunder. Any agreement pursuant to which any Lender may grant such a participating
interest shall provide that such Lender shall retain the sole right and responsibility to enforce
the obligations of the Borrowers hereunder including, without limitation, the right to approve any
amendment, modification or waiver of any provision hereof; provided that such participation
agreement may provide that such Lender will not agree to any modification, amendment or waiver of
this Agreement described in clause (a) of Section 11.05 without the consent of the Participant. The
Borrowers agree that each Participant shall, to the extent provided in its participation agreement,
be entitled to the benefits of Section 2.14 and Article 8 with respect to its participating
interest. An assignment or other transfer which is not permitted by subsection 11.06(c), 11.06(d)
or 11.06(f) below shall be given effect for purposes of this Agreement only to the extent of a
participating interest granted in accordance with this subsection 11.06(b).

     (c) Any Lender may at any time assign to one or more banks or other institutions (each an
“Assignee”) all, or a proportionate part (equivalent to an initial Commitment of not less than
$10,000,000) of all, of its rights and obligations under this Agreement and the Notes, and such
Assignee shall assume such rights and obligations, pursuant to an Assignment and Assumption
Agreement in substantially the form of Exhibit F hereto executed by such Assignee and such
transferor Lender, with (and subject to) the subscribed consent of the Company and the
Administrative Agent, such consents not to be unreasonably withheld or delayed; provided that if an
Assignee is a Lender Affiliate of such transferor Lender or was a Lender immediately prior to such
assignment, no such consent of the Company shall be required. Upon execution and delivery of such
instrument and payment by such Assignee to such transferor Lender of an amount equal to the
purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a
Lender party to this Agreement and shall have all the rights and obligations of a Lender with a
Commitment as set forth in such instrument of assumption, and the transferor Lender shall be
released from its obligations hereunder to a corresponding extent, and no further consent or action
by any party shall be required. Upon the consummation of any assignment pursuant to this
subsection, the transferor Lender, the Administrative Agent and the Borrowers shall make
appropriate arrangements so that, if required, new Notes are issued to the Assignee. In connection
with any such assignment, the transferor Lender shall pay to the Administrative Agent an
administrative fee for processing such assignment in the amount of $3,500.

     (d) Any Lender may at any time assign all or any portion of its rights under this Agreement
and its Notes to a Federal Reserve Bank. No such assignment shall release the transferor Lender
from its obligations hereunder.

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     (e) No Assignee, Participant or other transferee of any Lender’s rights shall be entitled to
receive any greater payment under Section 8.03 or 8.04 than such Lender would have been entitled to
receive with respect to the rights transferred, unless such transfer is made with the Company’s
prior written consent or by reason of the provisions of Section 8.02, 8.03 or 8.04 requiring such
Lender to designate a different Applicable Lending Office under certain circumstances or at a time
when the circumstances giving rise to such greater payment did not exist.

     (f) Notwithstanding anything to the contrary contained in this Section 11.06, but subject to
the terms and conditions set forth in this subsection (f), any Lender may from time to time, elect
to designate a Conduit to provide all or any part of any Loan required to be made by such Lender
pursuant to this Agreement or to acquire a participation interest in any Loans extended by such
Lender hereunder (a “Conduit Designation”), provided the designation of a Conduit by any Lender for
purposes of this Section 11.06(f) shall be subject to the approval of the Company, which shall not
be unreasonably withheld. No additional Note shall be required with regard to a Conduit
Designation; provided, however, to the extent any Conduit shall advance funds under a Conduit
Designation, the designating Lender shall be deemed to hold the Note in its possession as an
Administrative Agent for such Conduit to the extent of the Loan funded by such Conduit.
Notwithstanding any such Conduit Designation, (x) the designating Lender shall remain solely
responsible to the other parties hereto for its obligations under this Agreement and (y) the
Borrowers and the Administrative Agent may continue to deal solely and directly with the
designating Lender as Administrative Agent for such designating Lender’s Conduit, in connection
with all of such Conduit’s rights and obligations under this Agreement, unless and until the
Company and the Administrative Agent are notified that the designating Lender has been replaced as
Administrative Agent for its Conduit; any payments for the benefit of any designating Lender and
its Conduit shall be paid to such designating Lender for itself as Administrative Agent for its
Conduit, as applicable; provided neither the Administrative Agent nor any Borrower shall be
responsible for any designating Lender’s application of any such payments. In addition, any
Conduit may (i) with notice to, but without the consent of the Company and the Administrative
Agent, and without paying any processing fee therefor, assign all or portions of its interest in
any Loans to the Lender that designated such Conduit or to any financial institutions consented to
by the Company and the Administrative Agent providing liquidity and/or credit facilities to or for
the account of such Conduit to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any non-public information relating to its Loans to any rating agency,
commercial paper dealer or provider of any guarantee, surety, credit or liquidity enhancement to
such Conduit.

47

 

     (g) Each party to this Agreement hereby agrees that, at any time a Conduit Designation is in
effect, it shall not institute against, or join any other person in instituting against, any
Conduit any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law, for one year and a day after the
latest maturing commercial paper note issued by such Conduit is paid. This Section 11.06(g) shall
survive the termination of this Agreement.

     Section 11.07 . Collateral. Each of the Lenders represents to the Administrative Agent and
each of the other Lenders that it in good faith is not relying upon any “margin stock” (as defined
in Regulation U) as collateral in the extension or maintenance of the credit provided for in this
Agreement.

     Section 11.08 . Governing Law; Submission to Jurisdiction. This Agreement and each Note
shall be governed by and construed in accordance with the laws of the State of New York. Each
Borrower and each Lender hereby submits, to the fullest extent permitted by applicable law, to the
nonexclusive jurisdiction of the United States District Court for the Southern District of New York
and of any New York State court sitting in New York City for purposes of all legal proceedings
arising out of or relating to this Agreement or the transactions contemplated hereby. Each
Borrower and each Lender irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of any such proceeding brought in
such a court and any claim that any such proceeding brought in such a court has been brought in an
inconvenient forum.

     Section 11.09 . Counterparts; Integration. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument. This Agreement constitutes the entire agreement and
understanding among the parties hereto and supersedes any and all prior agreements and
understandings, oral or written, relating to the subject matter hereof.

     Section 11.10 . Waiver of Jury Trial. EACH OF THE BORROWERS, THE ADMINISTRATIVE AGENT AND
THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 11.11 . Confidentiality. The Lenders agree not to disclose, directly or indirectly,
any information obtained from the Company or any of its Consolidated Subsidiaries in connection
with this Agreement and identified as proprietary at the time it is so disclosed, and will keep
such information confidential; provided that (i) each Lender may use,
retain and disclose any such information to its affiliates, directors, officers, agents, employees,
counsel, public

48

 

accountants, any Participants, potential Assignees and Participants and any governmental
agency or instrumentality or other supervisory body requesting such disclosure, provided that any
Participants or potential Assignees or Participants shall have agreed to keep such information
confidential in accordance with this Section 11.11 and use such information solely for the purposes
permitted hereunder, (ii) each Lender may use, retain and disclose any such
information which has been publicly disclosed (other than by such Lender or any Lender Affiliate
thereof in breach of this Section 11.11), and (iii) to the extent that such
Lender may have received a subpoena or other legal demand for such information, such Lender may
disclose such information; provided that such Lender shall notify the Company of such demand (to
the extent permitted by law and as promptly as practicable) and shall cooperate with the Company,
at the Company’s expense, to take actions necessary to obtain a protective order limiting the scope
of the demand and the use and disclosure of such information.

     Section 11.12 . USA Patriot Act. Each Lender that is subject to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby
notifies the Company that pursuant to the requirements of the Act, it is required to obtain, verify
and record information that identifies the Company, which information includes the name and address
of the Company and other information that will allow such Lender to identify the Company in
accordance with the Act.

49

 

     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.

	 	 	 	 	 
	 	JOHNSON CONTROLS, INC.

 	 
	 	By:  	/s/ R. Bruce McDonald
 	 
	 	 	Name:  	R. Bruce McDonald 	 
	 	 	Title:  	VP/Chief Financial Officer 	 
	 
	 	 	 
	 	By:  	            /s/ Frank Voltolina
 	 
	 	 	Name:  	Frank Voltolina 	 
	 	 	Title:  	VP/Treasurer 	 
	 
	 	CITIBANK, N.A., as Administrative

     Agent and as Lender

 	 
	 	By:  	/s/ Judith Green
 	 
	 	 	Name:  	Judith Green 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Chas McDonnell
 	 
	 	 	Name:  	Chas McDonnell 	 
	 	 	Title:  	SVP 	 
	 
	 	BARCLAYS BANK PLC

 	 
	 	By:  	/s/ Alison McGuigan
 	 
	 	 	Name:  	Alison McGuigan 	 
	 	 	Title:  	Associate Director 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Karen M. Sharf
 	 
	 	 	Name:  	Karen M. Sharf 	 
	 	 	Title:  	Vice President 	 
	 
	 	COMMERZBANK AG, NEW YORK 

     AND GRAND CAYMAN BRANCHES

 	 
	 	By:  	/s/ John Marlati
 	 
	 	 	Name:  	John Marlati 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Hajo Neugartner
 	 
	 	 	Name:  	Hajo Neugartner 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ING BANK N.V. DUBLIN BRANCH

 	 
	 	By:  	/s/ Maurice Kenny
 	 
	 	 	Name:  	Maurice Kenny 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Aidan Neill
 	 
	 	 	Name:  	Aidan Neill 	 
	 	 	Title:  	Vice President 	 
	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	/s/ Robert Gallagher
 	 
	 	 	Name:  	Robert Gallagher 	 
	 	 	Title:  	Senior Vice President & Team Leader 	 
	 
	 	U.S. BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Caroline Krider
 	 
	 	 	Name:  	Caroline Krider 	 
	 	 	Title:  	Vice President & Senior Lender 	 
	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Charles Reed
 	 
	 	 	Name:  	Charles Reed 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Peter Martinets
 	 
	 	 	Name:  	Peter Martinets 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO BANK N.V.

 	 
	 	By:  	/s/ Pradeep K. Bhatia
 	 
	 	 	Name:  	Pradeep K.Bhatia 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Terrence J. Ward
 	 
	 	 	Name:  	Terrence J. Ward 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BANCA INTESA, S.p.A., NEW YORK BRANCH

 	 
	 	By:  	/s/ Frank Maffei
 	 
	 	 	Name:  	Frank Maffei 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Anthony F. Giobbi
 	 
	 	 	Name:  	Anthony F. Giobbi 	 
	 	 	Title:  	First Vice President 	 
	 
	 	CALYON NEW YORK BRANCH

 	 
	 	By:  	/s/ Corey J. Billups
 	 
	 	 	Name:  	Corey J. Billups 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Lee E. Greve
 	 
	 	 	Name:  	Lee E. Greve 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KBC BANK N.V.

 	 
	 	By:  	/s/  Stefano Snozzi
 	 
	 	 	Name:  	Stefano Snozzi 	 
	 	 	Title:  	First Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Robert Snauffer
 	 
	 	 	Name:  	Robert Snauffer 	 
	 	 	Title:  	First Vice President 	 
	 
	 	TORONTO DOMINION (TEXAS) LLC

 	 
	 	By:  	/s/ Jim Bridwell
 	 
	 	 	Name:  	Jim Bridwell 	 
	 	 	Title:  	Authorized Signatory 	 

 

 

	 	 	 	 	 

COMMITMENT SCHEDULE

	 	 	 	 	 
	Lender	 	Commitment
	Citibank, N.A.

	 	$	756,000,000	 
	 
	 	 	 	 
	Bank of America, N.A.

	 	$	756,000,000	 
	 
	 	 	 	 
	JPMorgan Chase Bank, N.A.

	 	$	616,000,000	 
	 
	 	 	 	 
	Barclays Bank PLC

	 	$	196,000,000	 
	 
	 	 	 	 
	ING Bank N.V. Dublin Branch

	 	$	67,200,000	 
	 
	 	 	 	 
	Wells Fargo Bank, N.A.

	 	$	67,200,000	 
	 
	 	 	 	 
	U.S. Bank, National Association

	 	$	67,200,000	 
	 
	 	 	 	 
	Commerzbank AG, New York and Grand Cayman Branches

	 	$	67,200,000	 
	 
	 	 	 	 
	Mizuho Corporate Bank, Ltd.

	 	$	67,200,000	 
	 
	 	 	 	 
	ABN AMRO Bank, N.V.

	 	$	28,000,000	 
	 
	 	 	 	 
	Calyon New York Branch

	 	$	28,000,000	 
	 
	 	 	 	 
	KBC Bank N.V.

	 	$	28,000,000	 
	 
	 	 	 	 
	Toronto Dominion (Texas) LLC

	 	$	28,000,000	 
	 
	 	 	 	 
	Banca Intesa, S.p.A., New York Branch

	 	$	28,000,000	 
	 
	 	 	 	 
	Total Commitments

	 	$	2,800,000,000	 

 

 

PRICING SCHEDULE

     Each of “Facility Fee Rate”and “Euro-Dollar Margin” means, for any day, the rate set forth
below, in basis points per annum, in the row opposite such term and in the column corresponding to
the Pricing Level that applies for such day:

	 	 	 	 	 	 	 	 	 
	 	 	LEVEL I	 	LEVEL II
	Facility Fee Rate
	 	 	5.00	 	 	 	6.50	 
	Euro-Dollar Margin:
	 	 	 	 	 	 	 	 
	Utilization
£ 50%
	 	 	20.00	 	 	 	28.50	 
	Utilization > 50%
	 	 	32.50	 	 	 	41.00	 

     For purposes of this Schedule, the following terms have the following meanings, subject
to the concluding paragraph of this Schedule:

     “Fitch” means Fitch, Inc.

     “Level I” status exists at any date if, at such date, the Company has senior unsecured
long-term debt outstanding, without third-party credit enhancement, which is rated A or higher by
S&P or A2 or higher by Moody’s or A or higher by Fitch.

     “Level II” status exists at any date if, at such date, Level I Status does not exist.

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

     “Pricing Level” refers to the determination of which of Level I or Level II, status exists at
any date.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     “Utilization” means, at any date, the percentage equivalent of a fraction (i) the numerator of
which is the Total Outstanding Amount at such date (after giving effect to any borrowing,
prepayment or repayment on such date) and (ii) the denominator of which is the aggregate amount of
the Commitments at such date (after giving effect to any reduction or termination of the
Commitments on such date). If for any reason the Total Outstanding Amount is not zero immediately
following the termination of the Commitments, Utilization will be deemed to be 100%.

 

 

     The credit ratings to be utilized for purposes of this Schedule are those assigned to the
senior unsecured long-term debt securities of the Company without third-party credit enhancement,
and any rating assigned to any other debt security of the Company shall be disregarded. The rating
in effect at any date is that in effect at the close of business on such date. If the Company is
split-rated and the ratings differential between the highest rating and the next highest rating is
one notch, the highest of the three ratings will apply. If the Company is split-rated and the
ratings differential between the highest rating and the next highest rating is more than one notch,
a rating that is one notch lower than the highest of the three ratings shall be used. In the event
that the Company’s senior unsecured long-term debt securities are not rated by any two of S&P,
Moody’s or Fitch, then Level II shall apply.

 

 

SCHEDULE I

ENVIRONMENTAL MATTERS

     The following is a list of sites which the Company or any of its Subsidiaries have been
notified of status as a Potentially Responsible Party (“PRP”) under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (“Superfund”) or its state
counterparts, and as to which the Company does not have information sufficient to determine whether
potential liabilities associated with such sites may have a material adverse effect on the
business, financial condition, results of operations or prospects of the Company and its
Consolidated Subsidiaries, considered as a whole. The type of liability may include, but not be
limited to, liability for clean-up and liability to third parties arising out of the business
operations of the sites. The amount of expenditures that will be incurred in connection with
remedial measures at these sites is uncertain because (i) the costs associated with the clean-ups
have not been determined, (ii) the number of companies contributing to the clean-ups has not been
finalized, and/or (iii) the availability of insurance coverage is currently uncertain.

	1.	 	230 Monroe, Michigan
	 
	2.	 	290 Monroe, Michigan
	 
	3.	 	900 N. Michigan Ave. Fuel Spill, Chicago, IL
	 
	4.	 	American Fibrit Oil Spill, Battle Creek, MI
	 
	5.	 	American Lead Secondary Smelter Site, Indianapolis, IN
	 
	6.	 	Auto-Ion Site

Kalamazoo, MI
	 
	7.	 	Avanti Smelter

Indianapolis, IN
	 
	8.	 	Badger Facility, Milwaukee, WI
	 
	9.	 	Bill Johns Waste Oil
	 
	10.	 	Dura Site

Adrian, MI
	 
	11.	 	El Monte Site 

El Monte, CA

I-1

 

	12.	 	Fullerton, CA Plant
	 
	13.	 	Goshen Plan, Goshen, IN
	 
	14.	 	HTWP Site, Thomson, GA
	 
	15.	 	Humboldt Plant, Milwaukee, WI
	 
	16.	 	Interstate Lead Company (ILCO)

Leeds, AL
	 
	17.	 	Keefe Plant, Milwaukee, WI
	 
	18.	 	Lapeer, MI facility
	 
	19.	 	M&J Solvents Remediation Site, Atlanta, GA
	 
	20.	 	Master Metals, Detroit, MI and Cleveland, OH
	 
	21.	 	Metamora Landfill

Lapeer County, MI
	 
	22.	 	National Smelting and Refining Site

Atlanta, GA
	 
	23.	 	NL Industries/Dutchboy Paints

Perth Amboy, NJ
	 
	24.	 	NL Industries/National Smelting of New Jersey Site

Pedricktown, NJ
	 
	25.	 	NL Industries/Taracorp Site

Granite City, IL
	 
	26.	 	Noble Oil Site
	 
	27.	 	Northside Drive Site, Atlanta, GA
	 
	28.	 	Rasmussen Dump Site

Green Oak Township, MI
	 
	29.	 	Renosol Site, Farwell, MI
	 
	30.	 	Ross Metals Site
	 
	31.	 	Servco Pacific v Dixie Wood

I-2

 

	32.	 	Shiawassee River Site, Howell, MI
	 
	33.	 	Snedicker Site, Saline, MI
	 
	34.	 	Stanley Tool Site

Fowlerville, MI
	 
	35.	 	Tonolli, Corp. Site

Nesquehoning, PA
	 
	36.	 	USS Lead

East Chicago, IN
	 
	37.	 	Watertown Plant, Watertown, WI
	 
	38.	 	Whitmore Lake Facility, Whitmore Lake, MI
	 
	39.	 	Williams-Mesena Landfill, Thomson, GA

     Inclusion of a site on this Schedule I is not an admission that the site poses a material
risk, but rather reflects the inherent uncertainty of the extent of any such liability.

I-3

 

EXHIBIT A

Form of Note

NOTE

New York, New York

___________ __, ____

     For value received, <NAME OF RELEVANT BORROWER>, a <RELEVANT BORROWER’S JURISDICTION
OF INCORPORATION> corporation (the “Borrower”), promises to pay to the order of
                                         (the “Lender”), for the account of its Applicable Lending Office, the unpaid
principal amount of each Loan made by the Lender to the Borrower pursuant to the Credit Agreement
referred to below on the Termination Date. The Borrower promises to pay interest on the unpaid
principal amount of each such Loan on the dates and at the rate or rates provided for in the Credit
Agreement. All such payments of principal and interest shall be made in lawful money of the United
States in Federal or other immediately available funds at the office of Citibank, N.A., at 399 Park
Avenue, New York, New York.

     All Loans made by the Lender, the respective Types thereof and all repayments of the principal
thereof shall be recorded by the Lender and, if the Lender so elects in connection with any
transfer or enforcement hereof, appropriate notations to evidence the foregoing information with
respect to each such Loan then outstanding may be endorsed by the Lender on the schedule attached
hereto, or on a continuation of such schedule attached to and made a part hereof; provided that the
failure of the Lender to make any such recordation or endorsement shall not affect the obligations
of the Borrower hereunder or under the Credit Agreement.

     This note is one of the Notes referred to in the Credit Agreement dated as of October 31, 2005
among Johnson Controls, Inc., the Eligible Subsidiaries referred to therein, the Lenders party
thereto and Citibank, N.A., as Administrative Agent (as the same may be amended from time to time,
the “Credit Agreement”). Terms defined in the Credit Agreement are used herein with the same
meanings. Reference is made to the Credit Agreement for provisions for the prepayment hereof and
the acceleration of the maturity hereof.

     [The payment in full of the principal and interest on this note has, pursuant to the
provisions of the Credit Agreement, been unconditionally guaranteed by Johnson Controls,
Inc.]1

 

			
	1	 	To be deleted in case of Notes executed and
delivered by the Company.

A-1

 

	 	 	 	 	 
	 	<NAME OF RELEVANT BORROWER>

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-2

 

LOANS AND PAYMENTS OF PRINCIPAL

	 
	 	 	 	 	 	 	 	 	Amount of Principal	 	 	 	 	 	 
	Date	 	Amount of Loan	 	 	Type of Loan	 	 	Repaid	 	 	Notation	 	 	Made By
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

A-3

 

 

EXHIBIT B

Opinion of General

Counsel of the Company

October 31, 2005

To the Lenders and the Administrative Agent
   
Referred to Below

c/o Citibank, N.A.,
   as
Administrative Agent

399 Park Avenue

New York, New York 10017

Dear Sirs:

     I have acted as counsel for Johnson Controls, Inc. (the “Company”) in connection with the
Credit Agreement (the “Credit Agreement”) dated as of October 31, 2005 among the Company, the
Eligible Subsidiaries referred to therein, the Lenders party thereto, and Citibank, N.A., as
Administrative Agent. Terms defined in the Credit Agreement are used herein as therein defined.

     For purposes of this opinion, I or others under my supervision have examined originals or
copies, certified or otherwise identified to my satisfaction, of such documents, corporate records,
certificates of public officials and other instruments and have conducted such other investigations
of fact and law as I have deemed necessary or advisable for purposes of this opinion.

     In making such examination, I have assumed the genuineness of all signatures other than those
of the Company, the authenticity of all documents submitted as originals and the conformity to
authentic original documents of all documents submitted as certified, conformed and photostatic
copies. As to questions of facts material to such opinions, I have, when relevant facts were not
independently established by me, relied upon statements made in the documents, records and
certificates referred to above.

     Upon the basis of the foregoing, I am of the opinion that:

     1. The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of Wisconsin and has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now conducted.

B-1

 

 

     2. The execution, delivery and performance by the Company of the Credit Agreement and its
Notes are within the Company’s corporate powers, have been duly authorized by all necessary
corporate action, require no action by or in
respect of, or filing with, any governmental body, agency or official and do not contravene,
or constitute a default under, any provision of applicable law or regulation or of the certificate
of incorporation or by-laws of the Company or of any agreement, judgment, injunction, order, decree
or other instrument binding upon the Company or result in the creation or imposition of any Lien on
any asset of the Company or any of its Consolidated Subsidiaries.

     3. The Credit Agreement has been duly executed by the Company and constitutes a valid and
binding agreement of the Company enforceable against the Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights and to general principles of equity.
Each of the Notes has been duly executed by the Company, and each of such Notes constitutes a valid
and binding obligation of the Company, and each of such Notes is enforceable against the Company in
accordance with its respective terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights and to general principles of equity.

     4. Except as set forth in the Company’s reports on Form 8-K, Form 10-K and Form 10-Q filed
with the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934,
there is no action, suit or proceeding pending against, or to the best of my knowledge threatened
against or affecting, the Company or any of its Consolidated Subsidiaries before any court or
arbitrator or any governmental body, agency or official, in which there is a reasonable possibility
of an adverse decision which could materially adversely affect the business, consolidated financial
position or consolidated results of operations of the Company and its Consolidated Subsidiaries,
considered as a whole, or which in any manner draws into question the validity of the Credit
Agreement or the Notes.

     5. Each of the Company’s corporate Consolidated Subsidiaries is a corporation validly existing
and in good standing under the laws of its jurisdiction of incorporation, and has all corporate
powers and all material governmental licenses, authorizations, consents and approvals required to
carry on its business as now conducted.

     In connection with the foregoing opinion, I wish to point out that I am a member of the Bar of
the State of Wisconsin and do not hold myself out as expert in the laws of other jurisdictions.
However, I have made, or caused to be made, such investigations or such consultations with counsel
as I have deemed appropriate with respect to the laws of other jurisdictions in connection with such

B-2

 

 

opinion, and nothing has come to my attention in the course of such investigation which would
lead me to question the correctness of such opinion.

     This opinion may not be relied upon by any other parties without my express written consent;
provided, however, that Davis Polk & Wardwell, counsel for the Administrative Agent, may rely upon
this opinion.

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 
	 	 
	 

	 	Jerome D. Okarma

B-3

 

 

EXHIBIT C

Opinion of Special Counsel

of the Administrative Agent

October 31, 2005

To the Lenders and the Administrative Agent
   Referred
to Below

c/o Citibank, N.A.,
   as
Administrative Agent

399 Park Avenue

New York, New York 10017

Dear Sirs:

     We have participated in the preparation of the Credit Agreement (the “Credit Agreement”) dated
as of October 31, 2005 among Johnson Controls, Inc., a Wisconsin corporation (the “Company”), the
Eligible Subsidiaries referred to therein, the Lenders party thereto (the “Lenders”), and Citibank,
N.A., as Administrative Agent (the “Administrative Agent”), and have acted as special counsel for
the Administrative Agent for the purpose of rendering this opinion pursuant to Section 3.01(c) of the Credit Agreement. Terms defined in the Credit Agreement are used herein
as therein defined.

     We have examined originals or copies, certified or otherwise identified to our satisfaction,
of such documents, corporate records, certificates of public officials and other instruments and
have conducted such other investigations of fact and law as we have deemed necessary or advisable
for purposes of this opinion.

     Upon the basis of the foregoing, we are of the opinion that the Credit Agreement constitutes a
valid and binding agreement of the Company and each of the Company’s Notes constitutes a valid and
binding obligation of the Company, in each case enforceable in accordance with its terms except as
the same may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and by general principles of equity.

     We are members of the Bar of the State of New York and the foregoing opinion is limited to the
laws of the State of New York and the federal laws of the United States of America. Insofar as the
laws of any other jurisdiction are relevant, we have relied, without independent investigation,
upon the opinion of Jerome D. Okarma, general counsel for the Company, a copy of which has been
delivered to you. In giving the foregoing opinion, we express no opinion as to the effect (if any)
of any law of any jurisdiction (except the State of New York) in

C-1

 

 

which any Lender is located which
limits the rate of interest that such Lender may charge or collect.

     This opinion is rendered solely to you in connection with the above matter. This opinion may
not be relied upon by you for any other purpose or relied upon by any other person without our
prior written consent.

	 	 	 
	 

	 	Very truly yours,

C-2

 

 

EXHIBIT D

Form of Election to Participate

                    , 20__     

CITIBANK, N.A.
  as
Administrative Agent for the
  Lenders
named in the Credit
  Agreement
dated as of October 31, 2005
  among
Johnson Controls, Inc.,
  the
Eligible Subsidiaries referred to therein, the
  Lenders
party thereto and the Administrative Agent
  (the
“Credit Agreement”)

Dear Sirs:

     Reference is made to the Credit Agreement described above. Terms not defined herein which are
defined in the Credit Agreement shall have for the purposes hereof the meaning provided therein.

     The undersigned, <NAME OF ELIGIBLE SUBSIDIARY>, a <JURISDICTION OF INCORPORATION>
corporation, hereby elects to be an Eligible Subsidiary for purposes of the Credit Agreement,
effective from the date hereof until an Election to Terminate shall have been delivered on behalf
of the undersigned in accordance with the Credit Agreement. The undersigned confirms that the
representations and warranties set forth in Article 9 of the Credit
Agreement are true and correct as to the undersigned as of the date hereof, and the undersigned
hereby agrees to perform all the obligations of an Eligible Subsidiary under, and to be bound in
all respects by the terms of, the Credit Agreement, including without limitation Section 11.08 thereof, as if the undersigned were a signatory party thereto.

     [Tax disclosure pursuant to Section 9.04]

     The address to which all notices to the undersigned under the Credit Agreement should be
directed is:

D-1

 

 

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

	 	 	 
	 

	 	Very truly yours,

	 	 	 	 	 
	 	<NAME OF ELIGIBLE SUBSIDIARY>

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     The undersigned hereby confirms that <NAME OF ELIGIBLE SUBSIDIARY> is an Eligible
Subsidiary for purposes of the Credit Agreement described above.

	 	 	 	 	 
	 	JOHNSON CONTROLS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     Receipt of the above Election to Participate is hereby acknowledged on and as of the date set
forth above.

	 	 	 	 	 
	 	CITIBANK, N.A.,

     as Administrative Agent 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

D-2

 

 

EXHIBIT E

Form of Election to Terminate

                    , 20__     

CITIBANK, N.A.,
  as
Administrative Agent for
  the
Lenders named in the Credit
  Agreement
dated as of October 31, 2005
  among
Johnson Controls, Inc.,
  the
Eligible Subsidiaries referred
  to
therein, the Lenders party thereto
  and
the Administrative Agent (the
  “Credit
Agreement”)

Dear Sirs:

     Reference is made to the Credit Agreement described above. Terms not defined herein which are
defined in the Credit Agreement shall have for the purposes hereof the meaning provided therein.

     The undersigned, <NAME OF ELIGIBLE SUBSIDIARY>, a <JURISDICTION OF INCORPORATION>
corporation, hereby elects to terminate its status as an Eligible Subsidiary for purposes of the
Credit Agreement, effective as of the date hereof. The undersigned hereby represents and warrants
that all principal and interest on all Notes of the undersigned and all other amounts payable on or
prior to the date hereof by the undersigned pursuant to the Credit Agreement have been paid in full
on or prior to the date hereof. Notwithstanding the foregoing, this Election to Terminate shall
not affect any obligation of the undersigned under the Credit Agreement or under any Note
heretofore incurred.

E-1

 

 

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

	 	 	 
	 

	 	Very truly yours,

	 	 	 	 	 
	 	<NAME OF ELIGIBLE SUBSIDIARY>

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     The undersigned hereby confirms that the status of <NAME OF ELIGIBLE SUBSIDIARY> as an
Eligible Subsidiary for purposes of the Credit Agreement described above is terminated as of the
date hereof.

	 	 	 	 	 
	 	JOHNSON CONTROLS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     Receipt of the above Election to Terminate is hereby acknowledged on and as of the date set
forth above.

	 	 	 	 	 
	 	CITIBANK, N.A.,

     as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-2

 

 

EXHIBIT F

Opinion of Counsel of the

Borrower (Borrowings by Eligible

Subsidiaries)

[Dated as provided in     

Section 3.03 of the          

Credit Agreement]          

To the Lenders and the Administrative Agent
  Referred
to Below

c/o Citibank, N.A.,
  as
Administrative Agent

399 Park Avenue

New York, New York 10017

Dear Sirs:

     I am counsel to <NAME OF ELIGIBLE SUBSIDIARY, JURISDICTION OF INCORPORATION> (the
“Borrower”) and give this opinion pursuant to Section 3.03 of the Credit
Agreement (the “Credit Agreement”) dated as of October 31, 2005 among Johnson Controls, Inc. (the
“Company”), the Eligible Subsidiaries referred to therein, the Lenders party thereto and Citibank,
N.A., as Administrative Agent. Terms defined in the Credit Agreement are used herein as therein
defined.

     I have examined originals or copies, certified or otherwise identified to my satisfaction, of
such documents, corporate records, certificates of public officials and other instruments and have
conducted such other investigations of fact and law as I have deemed necessary or advisable for
purposes of this opinion.

     Upon the basis of the foregoing, I am of the opinion that:

     1. The Borrower is duly organized, validly existing and in good standing under the laws of
<JURISDICTION OF ORGANIZATION>, and is a Wholly-Owned Consolidated Subsidiary of the Company.

     2. The execution and delivery by the Borrower of its Election to Participate and its Notes and
the performance by the Borrower of the Credit Agreement and its Notes are within the Borrower’s
legal powers, have been duly authorized by all necessary legal action, require no action by or in
respect of, or filing with, any governmental body, agency or official and do not contravene, or
constitute a default under, any provision of applicable law or regulation or of the organizational
documents of the Borrower or of any agreement, judgment,

F-1

 

 

injunction, order, decree or other
instrument binding upon the Borrower or the
Company or any of its Consolidated Subsidiaries or result in the creation or imposition of any
Lien on any asset of the Company or any of its Consolidated Subsidiaries.

     3. The Credit Agreement constitutes a valid and binding agreement of the Borrower and its
Notes constitute valid and binding obligations of the Borrower, in each case enforceable in
accordance with its own terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance
or similar laws affecting the enforcement of creditors’ rights and to general principles of equity.

     4. Except as disclosed in the Borrower’s Election to Participate, there is no income, stamp or
other tax of <JURISDICTION OF INCORPORATION AND, IF DIFFERENT, PRINCIPAL PLACE OF BUSINESS>,
or any taxing authority thereof or therein, imposed by or in the nature of withholding or
otherwise, which is imposed on any payment to be made by the Borrower pursuant to the Credit
Agreement or its Notes, or is imposed on or by virtue of the execution, delivery or enforcement of
its Election to Participate or of its Notes.

	 	 	 
	 

	 	Very truly yours,

F-2

 

EXHIBIT G

Assignment and Assumption Agreement

     AGREEMENT dated as of                     , 20___between <NAME OF ASSIGNOR> (the “Assignor”) and
<NAME OF ASSIGNEE> (the “Assignee”).

     WHEREAS, this Assignment and Assumption Agreement (the “Agreement”) relates to the Credit
Agreement dated as of October 31, 2005 among Johnson Controls, Inc. (the “Company”), the Eligible
Subsidiaries referred to therein, the Assignor and the other Lenders thereto, as Lenders, and
Citibank, N.A., as Administrative Agent (the “Administrative Agent”) (as amended from time to time,
the “Credit Agreement”);

     WHEREAS, as provided under the Credit Agreement, the Assignor has a Commitment to make Loans
in an aggregate principal amount at any time outstanding not to exceed $___,000,000;

     WHEREAS, Loans made to the Borrowers by the Assignor under the Credit Agreement in the
aggregate principal amount of $                     are outstanding at the date hereof;

     WHEREAS, the Assignor proposes to assign to the Assignee all of the rights of the Assignor
under the Credit Agreement in respect of a portion of its Commitment thereunder in an amount equal
to $                     (the “Assigned Amount”), together with a corresponding portion of its outstanding
Loans, and the Assignee proposes to accept assignment of such rights and assume the corresponding
obligations from the Assignor on such terms;

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein,
the parties hereto agree as follows:

     Section 1. Definitions. All capitalized terms not otherwise defined herein shall
have the respective meanings set forth in the Credit Agreement.

     Section 2. Assignment. The Assignor hereby assigns and sells to the Assignee all of
the rights of the Assignor under the Credit Agreement to the extent of the Assigned Amount, and the
Assignee hereby accepts such assignment from the Assignor and assumes all of the obligations of the
Assignor under the Credit Agreement to the extent of the Assigned Amount, including the purchase
from the Assignor of the corresponding portion of the principal amount of the Loans made by the
Assignor outstanding at the date hereof. Upon the execution and delivery hereof by the Assignor,
the Assignee and the Company and the payment of the amounts specified in Section 3 required to be
paid on the date hereof (i) the Assignee shall, as of the date hereof, succeed to the rights and be

I-1

 

 

obligated to perform the obligations of a Lender under the Credit Agreement with a Commitment
in an amount equal to the Assigned Amount, and (ii) the Commitment of the Assignor shall, as of the
date hereof, be reduced by a like amount and the Assignor released from its obligations under the
Credit Agreement to the extent such obligations have been assumed by the Assignee. The assignment
provided for herein shall be without recourse to the Assignor and without any representations or
warranties of any kind, except that the Assignor is the legal and beneficial owner of the interest
being assigned by it hereunder and that such interest is free and clear of any adverse claim
created by the Assignor.

     Section 3. Payments. As consideration for the assignment and sale contemplated in
Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in Federal funds the
amount heretofore agreed between them.1 It is understood that facility fees accrued to
the date hereof in respect of the Assigned Amount are for the account of the Assignor and such fees
accruing from and including the date hereof are for the account of the Assignee. Each of the
Assignor and the Assignee hereby agrees that if it receives any amount under the Credit Agreement
which is for the account of the other party hereto, it shall receive the same for the account of
such other party to the extent of such other party’s interest therein and shall promptly pay the
same to such other party.

     Section 4. Consent of the Company. This Agreement is conditioned upon the consent
of [the Company and] the Administrative Agent pursuant to Section 11.06(c) of the
Credit Agreement. The execution of this Agreement by them is evidence of this consent. Pursuant
to Section 11.06(c), the Company shall execute and deliver a Note and to cause
each Eligible Subsidiary to execute and deliver a Note payable to the order of the Assignee to
evidence the assignment and assumption provided for herein.

     Section 5. Non-reliance on Assignor. The Assignor makes no representation or
warranty in connection with, and shall have no responsibility with respect to, the solvency,
financial condition, or statements of any Borrower, or the validity and enforceability of the
obligations of any Borrower in respect of the Credit Agreement or any Note. The Assignee
acknowledges that it has, independently and without reliance on the Assignor, and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement and will continue to be responsible for making its own independent
appraisal of the business, affairs and financial condition of the Borrowers.

 

			
	1	 	Amount should combine principal together
with accrued interest and breakage compensation, if any, to be paid by the
Assignee, net of any portion of any upfront fee to be paid by the Assignor to
the Assignee. It may be preferable in an appropriate case to specify these
amounts generically or by formula rather than as a fixed sum.

F-2

 

 

     Section 6. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

     Section 7. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

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

	 	 	 	 	 
	 	<NAME OF ASSIGNOR>

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	<NAME OF ASSIGNEE>

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	JOHNSON CONTROLS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CITIBANK, N.A.,

     as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

F-3Exhibit 10.1

 

[COMPANY LETTERHEAD]

 

November 1, 2005

 

 

James G. Berges

[Address]

 

 

Dear Jim:

 

I want to express to you on behalf of the entire Emerson Electric Co. organization our appreciation for your nearly 30 years of service to the company and the significant contributions you have made to Emerson as an executive officer and director.  This letter agreement (“Agreement”) serves to memorialize your resignation as an officer and director of Emerson and any other Emerson Entities of which you are an officer or director, all effective as of November 1, 2005, and your voluntary retirement from Emerson effective as of November 1, 2005, and sets forth our agreements in connection with your resignation and retirement.  In this Agreement, references to “Emerson” means Emerson Electric Co. and references to “Emerson Entities” means Emerson and its business and operating units and its direct and indirect subsidiaries and affiliates, as the same may exist now
or in the future, including those corporations or other legal entities in which Emerson has a direct or indirect ownership or investment interest of 20% or more.

 

In consideration of the good and valuable consideration provided to you pursuant to this Agreement, you agree:

 

	
             
 	
            1.
 	
            You will not, without first obtaining written approval from Emerson: (a) make any public statement in the nature of a press release or media interview with respect to any aspect of your employment with any of the Emerson Entities, or (b) make any statement, written or oral, with respect to the past or projected future financial or operational  performance, plans or methods of any of the Emerson Entities or concerning any of the directors, officers, employees or business or financial activities of any of the Emerson Entities.  You also agree that you will not use, directly or indirectly for yourself or use for or disclose to any person or legal entity, other than Emerson or another Emerson Entity, any secret or confidential information or data regarding the business of any of the Emerson Entities.  You will immediately
deliver to Emerson without reproduction all such information or data in your possession.  This includes, but is not limited to, business plans or strategies, product information, engineering information, customer lists, company policies and procedures, financial information and information concerning operational methods, employees, product development techniques or plans and business acquisition plans or programs.
 

	
             
 	
            2.
 	
            You will not hire or solicit to hire or assist anyone in soliciting or hiring any employee of Emerson or any of the other Emerson Entities for the longer of (a) a period of five (5) years from the effective date of your retirement or (b) a period ending five (5) years after the termination by Emerson or expiration of the term during which you are required to provide consulting services to Emerson and the Emerson Entities, as described in more detail in the accompanying Consulting Contract.
 

 

 

James G. Berges

November 1, 2005

Page 2 of 4

 

 

	
             
 	
            3.
 	
            Without Emerson’s prior written consent, you will not compete, directly or indirectly, with Emerson or any of the other Emerson Entities for the longer of (a) a period of five (5) years from the effective date of your retirement or (b) a period ending five (5) years after the termination by Emerson or expiration of the term during which you are required to provide consulting services to Emerson and the Emerson Entities, as described in more detail in the accompanying Consulting Contract.  For purposes of this Agreement, the term “compete” includes, without limitation, (a) any investment in, or providing services to (in any capacity), any equity fund, hedge fund or other investment vehicle (however structured) that, either directly or indirectly (through portfolio company investments or otherwise), competes directly
or indirectly with Emerson or any of the other Emerson Entities (provided, however, that such investments shall not be covered if the fund or investment vehicle is open to the public and/or your interest is five percent (5%) or less) and/or (b) entering the employ of, providing consulting services to, or otherwise assisting or having any interest (financial or otherwise) in, any person, firm, corporation or other entity engaged in business activities competitive with any business of Emerson or of any of the other Emerson Entities.  The foregoing shall not restrict you, however, from owning five percent (5%) or less of the securities of any competitor of Emerson or of any the other Emerson Entities listed on any national securities exchange or traded over-the-counter as long as you have no other connection or relationship with the issuer of such securities.  You agree that this non-compete restriction, including the time and scope, is reasonable in light of your in-depth knowledge of
the total business of the Emerson Entities and as a result of your present and prior positions, duties and responsibilities with Emerson and the Emerson Entities and as a member of the Board of Directors of Emerson and as a result of your access to confidential and trade secret information relating to all of the businesses and units of the Emerson Entities.  Also, we agree that if we have any dispute, which we feel sure will not occur, then Missouri law will apply and courts in Missouri will have exclusive jurisdiction.  You also hereby reaffirm your obligations under all existing non-compete agreements that you have with Emerson, including your obligations (and the rights and remedies of Emerson) under the Emerson non-qualified supplemental executive retirement plan, the Emerson Incentive Share plans, the Emerson stock option plans and grant agreements (including the clawback provisions therein) and the Consulting Contract referred to in Paragraph A below, and you agree that your
obligations under this Paragraph 3 are in addition to, and do not invalidate or otherwise supersede, your obligations under such other plans, agreements or contracts.
 

	
             
 	
            4.
 	
            You agree to release and discharge Emerson and the other Emerson Entities and their respective directors, officers, employees and agents from any and all liability except as set forth herein and, to that end, you agree to sign the accompanying Release of All Claims and the accompanying Covenant Not to Sue.  The execution by you, and the effectiveness, of these accompanying documents are conditions precedent to the effectiveness of this Agreement.  Further, if said documents are not effective, then this Agreement shall be null and void.
 

 

 

James G. Berges

November 1, 2005

Page 3 of 4

 

 

	
             
 	
            5.
 	
            You agree to keep this Agreement and any accompanying agreements or undertakings and their contents in strictest confidence and you will not divulge this Agreement or any accompanying agreements or undertakings or their contents to anyone other than members of your immediate family or financial advisors whom you ensure will comply with this provision as long as this Agreement and any accompanying agreements or undertakings and their contents are not made public by Emerson.  You understand and agree that Emerson may disclose this Agreement and/or the terms hereof in its filings with the Securities and Exchange Commission or otherwise.
 

Subject to, and conditioned upon, your compliance with your obligations under Paragraphs 1 through 5 above, you will receive the compensation and benefits outlined below in connection with your retirement from Emerson:

	
             
 	
            A.
 	
            You will provide consulting services to Emerson and the Emerson Entities as provided in the accompanying Consulting Contract.  
 

	
             
 	
            B.
 	
            In accordance with the terms of the applicable Emerson stock option plans, your unvested stock options will automatically vest on your retirement date and you will have up to five years from the date of your retirement (but no longer than the original term of your respective options) to exercise your stock options.  You should note, however, that any of these stock options that are not exercised by you within ninety (90) days of the date of your retirement will become non-qualified stock options as required by Internal Revenue Service regulations.
 

	
             
 	
            C.
 	
            In accordance with the Emerson Incentive Shares Plan, as a result of your retirement, the Emerson Compensation and Human Resources Committee has approved that you receive, subject to the other applicable terms of the 2004 Performance Share Program, a pro rata payout (i.e., 50%) of the performance shares you would otherwise be eligible to receive under the 2004 Performance Share Program, consistent with the Emerson performance multiplier to target for all participants as determined by the Emerson Compensation and Human Resources Committee and payable at the time(s) provided therefor under the program.  You will forfeit any payment under the 2004 Performance Share Program if you violate any of your obligations to Emerson or the other Emerson Entities.
 

	
             
 	
            D.
 	
            In accordance with the Emerson Incentive Shares Plan, as a result of your retirement, the Emerson Compensation and Human Resources Committee has approved that your unvested Restricted Stock Awards continue to vest at the time that they were normally scheduled to vest in October, 2007 and October, 2010, as applicable, and that you will continue to receive dividends and have voting rights.  You will forfeit any dividends and the Restricted Stock will be cancelled if you violate any of your obligations to Emerson or the other Emerson Entities.
 

	
             
 	
            E.
 	
            Upon the date of your retirement, you will be eligible to receive your existing monthly pension benefits earned to date under the qualified all-employee Emerson Co. Retirement Plan and the related non-qualified supplemental executive retirement plan (which plan covers the benefits you would have been entitled to under the all-employee Retirement 
 

 

James G. Berges

November 1, 2005

Page 4 of 4

 

 

Plan were it not for the compensation limitations imposed under the Internal Revenue Code (“Code”)).  You will forfeit the pension benefits under the non-qualified supplemental executive retirement plan if you violate any of your obligations to Emerson or the other Emerson Entities.  Payments of your pension benefits will be paid monthly in the manner set forth in the plans, subject to the terms and conditions of the plans, including reduction for early retirement and annuity options provided under the plans; provided, however, that the portion of your non-qualified supplemental executive retirement plan benefits which are not “grandfathered” from coverage under Section 409A of the Code shall be deferred for six months to the extent required by Code Section 409A.

	
             
 	
            F.
 	
            This Agreement shall be interpreted in accordance with and governed by the laws of the State of Missouri, without regard to conflict of law principles.  It is conclusively deemed that this Agreement was entered into in the State of Missouri.
 

	
             
 	
            G.
 	
            Emerson and you agree that any legal action or proceeding with respect to this Agreement shall be brought and determined in the federal or state courts located in the State of Missouri, and Emerson and you submit with regard to any such action or proceeding to the exclusive jurisdiction of such courts.
 

	
             
 	
            H.
 	
            If I need assistance in reviewing or understanding this Agreement or any of the documents referenced in this Agreement, I acknowledge Emerson Electric Co. has advised me to consult with an attorney.
 

Please confirm that the foregoing represents your understanding of our entire agreement by signing in the space provided below.

	
             
 	
            Sincerely,
 

	
             
 	
            /s/ David N. Farr
 

	
             
 	
            David N. Farr

Chairman & Chief Executive Officer
 

 

 

ACCEPTED AND AGREED TO THIS 1st

DAY OF NOVEMBER, 2005:

 

      /s/ James G. Berges                                
                    

	
             
 	
            James G. Berges

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