Document:

exv10w2

 

Exhibit 10.2

CORPORATE INTEGRITY AGREEMENT

 between the 

Office of Inspector General

 of the 

Department of Health and Human Services

and

Odyssey HealthCare, inc.

I. Preamble

     Odyssey HealthCare, Inc., and its wholly-owned subsidiaries, (Odyssey) hereby enters into this
Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG) of the United States
Department of Health and Human Services (HHS) to promote compliance with the statutes, regulations,
and written directives of Medicare, Medicaid, and all other Federal health care programs (as
defined in 42 U.S.C. § 1320a-7b(f)) (Federal health care program requirements). Contemporaneously
with this CIA, Odyssey is entering into a Settlement Agreement with, among others, the United
States.

     Odyssey has an established corporate compliance program (Compliance Program), which preceded
the execution of this CIA. The Compliance Program includes written policies and procedures,
numerous education and training programs, ongoing compliance monitoring mechanisms and auditing
functions for employees and agents to report incidents of noncompliance in an anonymous and
confidential manner, disciplinary actions for individuals violating Odyssey policies and
procedures, oversight by the Odyssey Compliance Officer and its Board of Directors Compliance
Committee. Odyssey will continue to operate its Compliance Program throughout the term of this
CIA. The Compliance Program may be modified, as appropriate, which modifications shall be
consistent with this CIA.

II. Term and Scope of the CIA

     A. Odyssey’s compliance obligations under this CIA shall be for a period of five years from
the effective date of this CIA, unless otherwise specified. The effective date shall be the date
on which the final signatory of this CIA executes this CIA (Effective Date). Each one-year period,
beginning with the one-year period following the Effective Date, shall be referred to as a
“Reporting Period.”

     B. Sections VII, VIII, X, and XI shall expire no later than 120 days after OIG’s receipt of:
(1) Odyssey’s final annual report; or (2) any additional materials submitted by Odyssey pursuant to
OIG’s request, whichever is later.

 

 

     C. The scope of this CIA shall be governed by the following definitions:

1. “Odyssey” or the “Company” means Odyssey HealthCare, Inc. and its wholly-owned
subsidiaries.

2. “Covered Persons” includes:

a. owners (other than shareholders who: 1) have an ownership interest of
less than 5%; and 2) acquired the ownership interest through public
trading), officers, directors, employees, and medical directors of Odyssey;
and

b. all contractors, subcontractors, agents, and other persons who provide
patient care items or services or who perform billing or coding functions on
behalf of Odyssey (but not including Hospital Covered Contractors).

With the exception of medical directors, this term does not include part-time or per
diem employees, contractors, subcontractors, agents, or other persons who are not
reasonably expected to work on behalf of Odyssey for more than 160 hours per year,
except that any such individuals shall become “Covered Persons” at the point when
they work on behalf of Odyssey for more than 160 hours during the calendar year.

3. “Relevant Covered Persons” includes Regional Clinical Directors, Regional
Clinical Trainers, Compliance Liaisons, and other individuals who are engaged
directly (or in a supervisory role) in the determination of whether Odyssey patients
meet applicable benefit eligibility requirements and guidelines included in the
Clinical Review Protocol, including, but not limited to: Interdisciplinary Team
Members, Clinical Reviewers, Medical Directors, General Managers, and CQI Managers.

4. “Hospital Covered Contractors” shall mean any acute care hospital, skilled
nursing facility or nursing home that Odyssey contracts with and pays to provide (a)
general inpatient care to Odyssey’s patients during acute periods, (b) respite care,
or (c) room and board services in connection with routine home care.

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III. Corporate Integrity Obligations

     Odyssey has established and shall maintain a Compliance Program that includes the following
elements:

     A. Compliance Officer and Committee.

               1. Compliance Officer. To the extent not completed prior to the Effective Date, within 90
days after the Effective Date, Odyssey shall appoint an individual to serve as its full-time
dedicated Compliance Officer and shall maintain a Compliance Officer for the term of the CIA. The
Compliance Officer shall be responsible for developing and implementing policies, procedures, and
practices designed to ensure compliance with the requirements of this CIA and Federal health care
programs. The Compliance Officer shall be a member of senior management of Odyssey, shall make
periodic (at least quarterly) reports regarding compliance matters directly to the Compliance
Committee of the Board of Directors of Odyssey, and shall be authorized to report on such matters
to the Board of Directors at any time. The Compliance Officer shall not be subordinate to the
General Counsel or Chief Financial Officer, although he or she may report to those individuals for
administrative purposes from time-to-time. The Compliance Officer shall be responsible for
managing a compliance department that shall monitor Odyssey’s day-to-day compliance activities
engaged in by as well as for any reporting obligations created under this CIA.

     Odyssey shall report to OIG, in writing, any changes in the identity or position description
of the Compliance Officer, or any actions or changes that would affect the Compliance Officer’s
ability to perform the duties necessary to meet the obligations in this CIA, within 15 days after
such a change.

               2. HealthCare Compliance Committee. To the extent not already completed prior to the
Effective Date, within 90 days after the Effective Date, Odyssey shall appoint a HealthCare
Compliance Committee (Compliance Committee). The Compliance Committee shall, at a minimum, include
the Compliance Officer and other members of senior management necessary to meet the requirements of
this CIA (e.g., senior executives of relevant departments, such as billing, clinical, human
resources, audit, and operations). The Compliance Officer shall chair the Compliance Committee and
the Committee shall support the Compliance Officer in fulfilling his/her responsibilities
(e.g., shall assist in the analysis of the organization’s risk areas and shall oversee
monitoring of internal and external audits and investigations).

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     Odyssey shall report to OIG, in writing, any changes in the composition of the Compliance
Committee, or any actions or changes that would affect the Compliance Committee’s ability to
perform its duties under this CIA, within 15 days after such a change.

     B. Written Standards.

               1. Code of Conduct. To the extent not already completed prior to the Effective Date, within
90 days after the Effective Date, Odyssey shall develop, implement, and distribute a written Code
of Conduct to all Covered Persons. Distribution may include publishing the Code of Conduct on
Odyssey’s intranet or other internal web site available to all employees and Covered Persons. If
Odyssey uses such an electronic distribution method, it must notify the individuals of the
distribution of the Code of Conduct in that manner and it must monitor the distribution to ensure
that all appropriate individuals receive the revised Code of Conduct. Odyssey shall make the
promotion of, and adherence to, the Code of Conduct an element in evaluating the performance of all
employees. The Code of Conduct shall, at a minimum, set forth:

a. Odyssey’s commitment to full compliance with all applicable Federal
health care program requirements, including its commitment to prepare and
submit accurate claims consistent with such requirements;

b. Odyssey’s requirement that all of its Covered Persons shall be expected
to comply with all Federal health care program requirements and with
Odyssey’s own Policies and Procedures as implemented pursuant to this
Section III.B (including the requirements of this CIA);

c. the requirement that all of Odyssey’s Covered Persons shall be expected
to report to the Compliance Officer or other appropriate individual
designated by Odyssey suspected violations of any Federal health care
program requirements or of Odyssey’s own Policies and Procedures;

d. the possible consequences to both Odyssey and Covered Persons of failure
to comply with Federal health care program requirements and with Odyssey’s
own Policies and Procedures and the failure to report such noncompliance;
and

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e. the right of all individuals to use the Disclosure Program described in
Section III.E, and Odyssey’s commitment to nonretaliation and to maintain,
as appropriate, confidentiality and anonymity with respect to such
disclosures.

     Within 90 days after the Effective Date, each Covered Person shall certify, in writing, that
he or she has received, read, understood, and shall abide by Odyssey’s Code of Conduct. New
Covered Persons shall receive the Code of Conduct and shall complete
the required certification within 30 days after becoming a Covered Person or within 90 days
after the Effective Date, whichever is later.

     Odyssey shall periodically review the Code of Conduct to determine if revisions are
appropriate and shall make any necessary revisions based on such review. Any revised Code of
Conduct shall be distributed within 30 days after any revisions to the Code of Conduct are
finalized. Each Covered Person shall certify, in writing, that he or she has received, read,
understood, and shall abide by the revised Code of Conduct within 60 days after the distribution of
the revised Code of Conduct.

               2. Hospital Covered Contractor Requirements.

               Odyssey shall make available a copy of its Code of Conduct to each Hospital Covered Contractor
that (1) furnishes general inpatient or respite care to patients who remain as Odyssey patients
(i.e., who are not discharged following the initiation of the inpatient or respite care) or (2)
provides room and board services to its residents who are Odyssey hospice patients. Odyssey shall
request each such Hospital Covered Contractor to make available a copy of the Odyssey Code of
Conduct to its employees and/or agents that it believes are reasonably expected to provide care to
Odyssey patients for more than 160 hours in any calendar year. Upon the execution of a new
Hospital Covered Contractor agreement or an amendment to an existing Hospital Covered Contractor
agreement, Odyssey shall confirm that the Hospital Covered Contractor has its own compliance
program.

               3. Policies and Procedures. To the extent not already completed prior to the Effective Date,
within 120 days after the Effective Date, Odyssey shall implement written Policies and Procedures
regarding the operation of Odyssey’s compliance program and its compliance with Federal health care
program requirements. At a minimum, the Policies and Procedures shall address:

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a. the subjects relating to the Code of Conduct identified in Section
III.B.1; and

b. OIG’s Compliance Program Guidance for Hospice; and

c. Odyssey’s internal Billing Review Protocol (Billing Protocol), Clinical
Sampling Plan for Admissions and Long Length of Stay Review Protocols
(Clinical Review Protocol), and Systems Review Protocol (Systems Protocol).

     Within 120 days after the Effective Date, the relevant portions of the Policies and Procedures
shall be made available to all individuals whose job functions relate to the
respective Policies and Procedures. Appropriate and knowledgeable staff shall be available to
explain the Policies and Procedures.

     At least annually (and more frequently, if appropriate), Odyssey shall assess and update, as
necessary, the Policies and Procedures. Within 30 days after the effective date of any revisions,
the relevant portions of any such revised Policies and Procedures shall be made available to all
individuals whose job functions relate to the Policies and Procedures at issue.

     C. Training and Education.

     Prior to the Effective Date, Odyssey had established compliance training programs for all its
Covered Persons and agrees that it shall continue to conduct appropriate training programs that
meet the CIA requirements.

     Odyssey provides training on a regular basis to its employees and medical directors concerning
a variety of regulatory and compliance topics. The training required by this CIA need not be
separate and distinct from the regular training Odyssey provides, but instead may be fully
integrated into regular training. The Compliance Officer, with prior approval of the OIG, shall be
responsible for determining how many hours of regular training shall be credited toward the general
and specific training requirements of this CIA.

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          1. General Training. Within 120 days after the Effective Date, Odyssey shall provide at
least one hour of General Training to each Covered Person. This training, at a minimum, shall
explain Odyssey’s:

a. CIA requirements; and

b. Odyssey’s Compliance Program (including the Code of Conduct and the
Policies and Procedures as they pertain to general compliance issues).

     New Covered Persons shall receive the General Training described above within 30 days after
becoming a Covered Person or within 120 days after the Effective Date, whichever is later. Each
Covered Person shall receive reasonable and appropriate General Training annually (Refresher
Training). Such Refresher Training shall reinforce the importance of Odyssey’s Compliance Program
and shall address material changes in Federal health care program requirements, changes in
Odyssey’s compliance policies and procedures, and other relevant compliance-related topics.
Notwithstanding the above, Odyssey will not have to provide General Training to Covered Persons who
received general compliance training that meets the requirements of this Section III.C.1 within the
six month period prior to the Effective Date in the event Odyssey distributes to those Covered
Persons a detailed memorandum explaining the CIA requirements. To the extent a Covered Person is
on a leave of absence when the required training is offered, the Covered Person shall receive the
training within 30 days of the conclusion of the leave of absence.

          2. Specific Training. Within 120 days after the Effective Date, each Relevant Covered Person
shall complete at least four hours of Specific Training in addition to the General Training
required above. This Specific Training shall include, at a minimum, a discussion of:

a. Federal health care program requirements regarding the hospice benefit;

b. policies, procedures, and other requirements applicable to the
documentation of medical records;

c. applicable reimbursement statutes, regulations, and program requirements
and directives; and

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d. the legal sanctions for violations of the Federal health care
program requirements.

     Relevant Covered Persons shall receive this training within 60 days after the beginning of
their employment or becoming Relevant Covered Persons, or within 120 days after the Effective Date,
whichever is later. An Odyssey employee who has completed the Specific Training shall adequately
supervise a new Relevant Covered Person’s work, to the extent that the work relates to the delivery
of patient care items or services and/or the preparation or submission of claims for reimbursement
from any Federal health care program, until such time as the new Relevant Covered Person completes
his or her Specific Training.

     After receiving the initial Specific Training described in this Section, each Relevant Covered
Person shall receive at least two hours of Specific Training annually.

          3. Certification. Each individual who is required to attend training shall certify, in
writing, or in electronic form, if applicable, that he or she has received the required training.
The certification shall specify the type of training received and the date received. The
Compliance Officer (or designee) shall retain the certifications, along with all course materials.
Copies of these certifications shall be made available to OIG, upon request.

          4. Qualifications of Trainer. Persons providing the training shall be knowledgeable about
the hospice benefits.

          5. Update of Training. Odyssey shall annually review the training, and, where appropriate,
update the training to reflect changes in Federal health care program requirements related to
hospice, significant issues discovered during internal audits, the Independent Verification
Organization (IVO) Review and any other relevant information.

          6. Computer-based Training. Odyssey may provide the training required under this CIA through
appropriate computer-based training approaches. If Odyssey chooses to provide computer-based
training, it shall make available appropriately qualified and knowledgeable staff or trainers to
answer questions or provide additional information to the individuals receiving such training. All
applicable references to “hours” in this section shall mean “normative hours,” as that term is used
in the computer-based training industry.

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     D. Review Procedures.

          1. General Description.

a. Retention of Independent Verification Organization. Within 90 days
after the Effective Date, Odyssey shall retain an entity (or entities), such as an
accounting, auditing, or consulting firm to perform reviews to assist Odyssey in
assessing and evaluating its clinical admission and discharge practices. Each IVO
retained by Odyssey shall have expertise in the billing, coding, reporting, and
other requirements of the hospice industry, including the requirements of the
Federal health care program(s) from which Odyssey seeks reimbursement. Each IVO
shall assess, along with Odyssey, whether it can perform the IVO review in a
professionally independent fashion taking into account any other business
relationships or engagements that may exist. The IVO(s) review shall address and
analyze Odyssey’s Clinical Review Protocol described below, and shall analyze
whether Odyssey sought payment for certain unallowable costs (“Unallowable Cost
Review”).

b. Frequency of IVO Review. The IVO Review shall be performed annually and
shall cover each of the Reporting Periods. Odyssey shall perform all components of
the Clinical Review Protocol review, subject to Section III.D.2. The IVO shall
perform a verification review, described in Section III.D.1.c, below.

c. IVO Verification Review. The IVO shall conduct a verification review
of 30 of the sampling units reviewed by Odyssey pursuant to its Clinical Review
Protocol (“Verification Review”). The Verification Review shall involve the random
selection by the IVO of 15 records selected from the Admissions Reviews and 15
records selected from the Long Length of Stay Reviews, as described in Section
III.D.2.a below.

As part of Odyssey’s Annual Report, the IVO shall submit a report in connection with
its verification that the requirements outlined in Section III.D and in Appendices A
and B to this CIA have been satisfied and shall report the findings of the
Verification Review performed (the “Verification Review Report”), described in
Section III.D.3 to Odyssey.

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d. IVO Reviews. Following its review of any of Odyssey’s Annual Reports,
if, in its sole discretion, OIG determines that Odyssey’s Clinical Review Protocol
internal reviews did not meet the Clinical Review Protocol terms, OIG can require
that all aspects of future Reviews conducted be done by the IVO.

e. Frequency of Unallowable Cost Review. The IVO shall perform the
Unallowable Cost Review for the first Reporting Period.

f. Retention of Records. The IVO and Odyssey shall retain and make
available to OIG, upon request, all pertinent work papers, supporting documentation,
correspondence, and draft reports (those exchanged between the IVO and Odyssey)
related to its Clinical Review Protocol reviews.

	 	2.	 	Internal Reviews. Prior to the Effective Date, Odyssey established a Clinical
Review Protocol, as submitted to OIG on April 29, 2006. The applicable procedures and
reporting requirements under this CIA are outlined in Appendices A and B as it pertains
to the Clinical Review Protocol.

a. Clinical Review Protocol Procedures.

The Clinical Review Protocol (“Clinical Protocol”) shall be conducted to determine
whether Medicare beneficiaries meet hospice clinical criteria. The Clinical
Protocol reviews shall be conducted annually and shall focus on two timeframes: 1)
initial admission; and 2) the most recent recertification period for long length of
stay patients. Odyssey shall randomly select 16 Medicare-certified hospice programs
from a universe of all Odyssey hospice programs. Odyssey shall randomly select two
programs from each of its eight regions.

     i. Admissions Review: For each of the 16 selected programs, Odyssey
shall create a list of all the Medicare beneficiaries who were admitted to that
program in the prior calendar year. Odyssey shall then randomly select 10 patients
from each list creating a final sample of 160 Medicare beneficiaries. The sampling
unit for selected new admission patients is the initial certification.

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     ii. Long Length of Stay Review: Odyssey shall also identify Medicare
beneficiaries at each of the 16 selected locations who were Odyssey patients during
the Clinical Review Period and who received uninterrupted services from Odyssey for
210 days or more. Odyssey shall then randomly select 10 Long Length of Stay
Patients from each of the
selected programs which will result in a total review of up to 160 certification
periods. The sampling unit for selected long length of stay patients is the most
recent recertification period.

     iii. Qualifications of Reviewers: The Clinical Protocol reviews shall
be conducted by licensed nurses or physicians (“Clinical Reviewers”) with
demonstrated hospice experience or expertise. To ensure independence of the
Clinical Protocol reviews, the Clinical Reviewers shall not review their own
clinical decisions and shall not review patients from their own facility. Any
proposed changes to the Clinical Protocol shall be submitted to the OIG for prior
approval.

b. Repayment of Identified Overpayments. In accordance with Section
III.H.1, Odyssey shall repay within 30 days any overpayment(s) identified in the
Internal Reviews, regardless of the Error Rate, to the appropriate Federal health
care program payor (Payor) and in accordance with Payor refund policies. Odyssey
shall make available to the OIG any and all documentation that reflects the refunds,
if any, of overpayment(s) to each Payor.

     3. Verification Review Report. The IVO shall prepare a report (Verification Review Report)
based upon Odyssey’s internal Clinical Protocol reviews. The Verification Review Report shall
include the IVO’s findings, consistent with Appendix B, with respect to: (a) whether Odyssey has
generally implemented the Clinical Protocol described in Section III.D.2.a; (b) specific findings
as to whether Odyssey has complied with the Clinical Protocol; (c) any observations, findings, and
recommendations on possible improvements to Odyssey’s clinical policies, procedures, and systems;
and (d) a narrative explanation of the IVO’s findings and supporting rationale (including reasons
for errors, patterns noted, concerns relating to the eligibility or appropriateness of hospice
patients etc.) regarding the Clinical Protocol Internal Reviews.

     4. Unallowable Cost Review. The IVO shall conduct a review of Odyssey’s compliance with the
unallowable cost provisions of the Settlement Agreement.

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a. The IVO shall determine whether Odyssey has complied with its obligations not to
charge to, or otherwise seek payment from, Federal or State Payors for unallowable
costs (as defined in the Settlement Agreement) and its obligation to identify to
applicable Federal or State Payors any unallowable costs included in payments
previously sought from the United
States, or any State Medicaid program. This unallowable cost analysis shall
include, but not be limited to, payments sought in any cost reports, cost
statements, information reports, or payment requests already submitted by Odyssey or
any of its subsidiaries. To the extent such cost reports, cost statements,
information reports or payment requests, even if already settled, have been adjusted
to account for the effect of the inclusion of the unallowable costs, the IVO will
determine if such adjustments were proper. In making this determination, the IVO may
need to review cost reports and/or financial statements from the year in which the
Settlement Agreement was executed, as well as from previous years.

     5. Unallowable Cost Review Report. The IVO shall prepare a report based upon the Unallowable
Cost Review performed. The Unallowable Cost Review Report shall include the IVO’s findings and
supporting rationale regarding the Unallowable Costs Review and whether Odyssey has complied with
its obligation not to charge to, or otherwise seek payment from, Federal or State Payors for
unallowable costs (as defined in the Settlement Agreement) and its obligation to identify to
applicable Federal or State Payors any unallowable costs included in payments previously sought
from such Payor.

     6. Validation Review. In the event the OIG has reason to believe that: (a) the Verification
Review or Unallowable Cost Review fails to conform to the requirements of this CIA; or (b) Odyssey
and/or the IVO’s findings or Review results are inaccurate, the OIG may, at its sole discretion,
conduct its own review to determine whether the Verification Review or Unallowable Cost Review
complied with the requirements of the CIA and/or the findings or review results are inaccurate
(“Validation Review”). Odyssey agrees to pay for the reasonable cost of any such review performed
by the OIG or any of its designated agents so long as it is initiated before one year after
Odyssey’s final submission (as described in Section II) is received by the OIG.

     Prior to initiating a Validation Review, the OIG shall notify Odyssey of its intent to do so
and provide a written explanation of why the OIG believes such a review is necessary. To resolve
any concerns raised by the OIG, Odyssey may request a meeting with the OIG to discuss the results
of any Verification Review or Unallowable Cost Review submissions or findings; present any
additional or relevant information to clarify

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the results of the Verification Review or Unallowable
Cost Review or to correct inaccuracies of the Verification Review or the Unallowable Cost Review;
and/or propose alternatives to the proposed Validation Review. Odyssey agrees to provide any
additional information as may be requested by the OIG under this section in an expedited manner.
The OIG will attempt in good faith to resolve any Verification Review or
Unallowable Cost Review with Odyssey prior to conducting a Validation Review. However, the
final determination as to whether or not to proceed with a Validation Review shall be made at the
sole discretion of the OIG.

     7. Independence Certification. The IVO shall include in its report(s) to Odyssey a
certification or sworn affidavit that it has evaluated its professional independence with regard to
the Clinical Protocol Review and that it has concluded that it was, in fact, independent.

     E. Disclosure Program

     Prior to the Effective Date, Odyssey established and shall continue to maintain a Disclosure
Program that includes a mechanism (e.g., a toll-free compliance telephone line) to enable
individuals to disclose, to the Compliance Officer or some other person who is not in the
disclosing individual’s chain of command any identified issues or questions associated with
Odyssey’s policies, conduct, practices, or procedures with respect to a Federal health care program
believed by the individual to be a potential violation of criminal, civil, or administrative law.
Odyssey has and shall continue to appropriately publicize the existence of the disclosure mechanism
(e.g., via periodic e-mails to employees or by posting the information in prominent common
areas).

     The Disclosure Program shall emphasize a nonretribution, nonretaliation policy, and shall
include a reporting mechanism for anonymous communications for which appropriate confidentiality
shall be maintained. Upon receipt of a disclosure, the Compliance Officer (or designee) shall
gather all relevant information from the disclosing individual. The Compliance Officer (or
designee) shall make a preliminary, good faith inquiry into the allegations set forth in every
disclosure to ensure that he or she has obtained all of the information necessary to determine
whether a further review should be conducted. For any disclosure that is sufficiently specific so
that it reasonably: (1) permits a determination of the appropriateness of the alleged improper
practice; and (2) provides an opportunity for taking corrective action, Odyssey shall conduct an
internal review of the allegations set forth in the disclosure and ensure that proper follow-up is
conducted.

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The Compliance Officer (or designee) shall maintain a disclosure log, which shall include a record
and summary of each disclosure received (whether anonymous or not), the status of the respective
internal reviews, and any corrective action taken in response to the internal reviews. The
disclosure log shall be made available to OIG upon request.

     F. Ineligible Persons.

          1. Definitions. For purposes of this CIA:

a. an “Ineligible Person” shall include an individual or entity who:

i. is currently excluded, debarred, suspended, or otherwise
ineligible to participate in the Federal health care programs or in
Federal procurement or nonprocurement programs; or

ii. has been convicted of a criminal offense that falls within the
ambit of 42 U.S.C. § 1320a-7(a), but has not yet been excluded,
debarred, suspended, or otherwise declared ineligible.

b. “Exclusion Lists” include:

i. the HHS/OIG List of Excluded Individuals/Entities (available
through the Internet at http://oig.hhs.gov); and

ii. the General Services Administration’s List of Parties Excluded
from Federal Programs (available through the Internet at
http://epls.arnet.gov).

c. “Screened Persons” include prospective and current owners (other than
shareholders who: 1) have an ownership interest of less than 5%; and 2)
acquired the ownership interest through public trading), officers,
directors, employees, contractors, and agents of Odyssey.

          2. Screening Requirements. Odyssey shall ensure that all Screened Persons are not Ineligible
Persons, by implementing the following screening requirements.

a. Odyssey shall screen all Screened Persons against the Exclusion Lists
prior to engaging their services and, as part of the hiring or

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contracting process, shall require such persons to disclose whether they are an
Ineligible Person.

b. Odyssey shall screen all Screened Persons against the Exclusion Lists
within 90 days after the Effective Date and on an annual basis thereafter.

c. Odyssey shall implement a policy requiring all Screened Persons to
disclose immediately any debarment, exclusion, suspension, or other event
that makes that person an Ineligible Person.

          Nothing in this Section affects the responsibility of (or liability for) Odyssey to refrain
from billing Federal health care programs for items or services furnished, ordered, or prescribed
by an Ineligible Person.

          3. Removal Requirement. If Odyssey has actual notice that a Screened Person has become an
Ineligible Person, Odyssey shall remove such person from responsibility for, or involvement with,
Odyssey’s business operations related to Federal health care programs and shall remove such person
from any position for which the person’s compensation or the items or services furnished, ordered,
or prescribed by the person are paid in whole or part, directly or indirectly, by Federal health
care programs or otherwise with Federal funds at least until such time as the person is reinstated
into participation in the Federal health care programs.

          4. Pending Charges and Proposed Exclusions. If Odyssey has actual notice that a Screened
Person is charged with a criminal offense that falls within the ambit of 42 U.S.C. §§ 1320a-7(a),
1320a-7(b)(1)-(3), or is proposed for exclusion during his or her employment or contract term,
Odyssey shall take appropriate actions to ensure that the responsibilities of that person have not
and shall not adversely affect the quality of care rendered to any beneficiary, patient or
resident, or the accuracy of any claims submitted to any Federal health care program.

     G. Notification of Government Investigation or Legal Proceedings.

     Within 30 days once the matter is known by senior management, Odyssey shall notify OIG in
writing of any ongoing investigation or legal proceeding known to Odyssey conducted or brought by a
governmental entity or its agents involving an allegation that Odyssey has committed a crime or has
engaged in fraudulent activities. This notification shall include a description of the allegation,
the identity of the investigating or

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prosecuting agency, and the status of such investigation or
legal proceeding. To the extent OIG was not involved in the matter or legal proceeding, Odyssey
shall also provide written notice to OIG within 30 days after the resolution of the matter, and
shall provide OIG with a description of the findings and/or results of the investigation or proceedings, if
any.

     H. Reporting.

          1. Overpayments.

a. Definition of Overpayments. For purposes of this CIA, an
“Overpayment” shall mean the amount of money Odyssey has received in excess
of the amount due and payable under any Federal health care program
requirements.

b. Reporting of Overpayments. If, at any time, Odyssey identifies
or learns of any Overpayment, Odyssey shall notify the Payor (e.g.,
Medicare fiscal intermediary or carrier) within 30 days after identification
of the Overpayment and take remedial steps within 60 days after
identification (or such additional time as may be agreed to by the Payor) to
correct the problem, including preventing the underlying problem and the
Overpayment from recurring. Also, within 30 days after identification of
the Overpayment, Odyssey shall repay the Overpayment to the appropriate
Payor to the extent such Overpayment has been quantified. If not yet
quantified, within 30 days after identification, Odyssey shall notify the
Payor of its efforts to quantify the Overpayment amount along with a
schedule of when such work is expected to be completed. Notification and
repayment to the Payor shall be done in accordance with the Payor’s
policies, and, for Medicare contractors, shall include the information
contained on the Overpayment Refund Form, provided as Appendix C to this
CIA. Notwithstanding the above, notification and repayment of any
Overpayment amount that routinely is reconciled or adjusted pursuant to
policies and procedures established by the Payor should be handled in
accordance with such policies and procedures.

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     2. Reportable Events.

a. Definition of Reportable Event. For purposes of this CIA, a
“Reportable Event” means anything that involves:

i. a substantial Overpayment; or

ii. a matter that a reasonable person would consider a probable
violation of criminal, civil, or administrative laws applicable to
any Federal health care program for which penalties or exclusion may
be authorized.

A Reportable Event may be the result of an isolated event or a series of
occurrences.

b. Reporting of Reportable Events. If Odyssey determines (after a
reasonable opportunity to conduct an appropriate review or investigation of
the allegations) through any means that there is a Reportable Event, Odyssey
shall notify OIG, in writing, within 30 days after making the determination
that the Reportable Event exists. The report to OIG shall include the
following information:

i. If the Reportable Event results in an Overpayment, the report to
OIG shall be made at the same time as the notification to the Payor
required in Section III.H.1, and shall include all of the information
on the Overpayment Refund Form, as well as:

(A) the Payor’s name, address, and contact person to
whom the Overpayment was sent; and

(B) the date of the check and identification number (or
electronic transaction number) by which the Overpayment was
repaid/refunded;

ii. a complete description of the Reportable Event, including the
relevant facts, persons involved, and legal and Federal health care
program authorities implicated;

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iii. a description of Odyssey’s actions taken to correct the
Reportable Event; and

iv. any further steps Odyssey plans to take to address the
Reportable Event and prevent it from recurring.

IV. New Business Units or Locations

     In the event that, after the Effective Date, Odyssey changes locations or sells, closes,
purchases, or establishes a new business unit or location related to the furnishing of items or
services that may be reimbursed by Federal health care programs, Odyssey shall notify OIG of this
fact as soon as possible, but no later than within 30 days after the date of change of location,
sale, closure, purchase, or establishment. This notification shall include the address of the new
business unit or location, phone number, fax number, Medicare Provider number, provider
identification number and/or supplier number, and the corresponding contractor’s name and address
that has issued each Medicare number. Each new business unit or location shall be subject to all
the requirements of this CIA.

V. Implementation and Annual Reports

     A. Implementation Report. Within 150 days after the Effective Date, Odyssey shall
submit a written report to OIG summarizing the status of its implementation of the requirements of
this CIA (Implementation Report). The Implementation Report shall, at a minimum, include:

          1. the name, address, phone number, and position description of the Compliance Officer
required by Section III.A, and a summary of other noncompliance job responsibilities the Compliance
Officer may have;

          2. the names and positions of the members of the Compliance Committee required by Section
III.A;

          3. a copy of Odyssey’s Code of Conduct required by Section III.B.1;

          4. a copy of all Policies and Procedures required by Section III.B.2;

          5. the number of individuals required to complete the Code of Conduct certification required
by Section III.B.1, the percentage of individuals who have

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completed such certification, and an explanation of any exceptions (the documentation
supporting this information shall be available to OIG, upon request);

          6. the following information regarding each type of training required by Section III.C:

a. a description of such training, including a summary of the topics
covered, the length of sessions and a schedule of training sessions;

b. the number of individuals required to be trained, percentage of
individuals actually trained, and an explanation of any exceptions.

A copy of all training materials and the documentation supporting this information shall be
available to OIG, upon request.

          7. a description of the Disclosure Program required by Section III.E;

          8. the following information regarding the IVO(s): (a) identity, address, and phone number;
(b) a copy of the engagement letter; (c) a summary and description of any and all current and prior
engagements and agreements between Odyssey and the IVO; and (d) the proposed start and completion
dates of the IVO Verification Review of Clinical Protocol Internal Reviews and of Unallowable
Costs.

          9. a certification from the IVO regarding its professional independence and/or objectivity
with respect to Odyssey;

          10. a description of the process by which Odyssey fulfills the requirements of Section III.F
regarding Ineligible Persons;

          11. the name, title, and responsibilities of any person who is determined to be an Ineligible
Person under Section III.F; the actions taken in response to the screening and removal obligations
set forth in Section III.F; and the actions taken to identify, quantify, and repay any Federal
health care program Overpayments relating to items or services furnished, ordered or prescribed by
an Ineligible Person;

          12. a list of all of Odyssey’s locations (including locations and mailing addresses); the
corresponding name under which each location is doing business; the corresponding phone numbers and
fax numbers; each location’s Medicare Provider

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number(s), provider identification number(s), and/or supplier number(s); and the name and
address of each Medicare contractor to which Odyssey currently submits claims;

          13. a description of Odyssey’s corporate structure, including identification of any parent
and sister companies, subsidiaries, and their respective lines of business; and

          14. the certifications required by Section V.C.

     B. Annual Reports. Odyssey shall submit to OIG annually a report with respect to the
status of, and findings regarding, Odyssey’s compliance activities for each of the five Reporting
Periods (Annual Report).

Each Annual Report shall include, at a minimum:

          1. any change in the identity, position description, or other noncompliance job
responsibilities of the Compliance Officer and any change in the membership of the Compliance
Committee described in Section III.A;

          2. a summary of any significant changes or amendments to the Policies and Procedures required
by Section III.B and the reasons for such changes (e.g., change in contractor policy) and
copies of any compliance-related Policies and Procedures;

          3. the number of individuals required to complete the Code of Conduct certification required
by Section III.B.1, the percentage of individuals who have completed such certification, and an
explanation of any exceptions (the documentation supporting this information shall be available to
OIG, upon request);

          4. the following information regarding each type of training required by Section III.C:

a. a description of such training, including a summary of the topics
covered, the length of sessions and a schedule of training sessions;

b. the number of individuals required to be trained, percentage of
individuals actually trained, and an explanation of any exceptions.

A copy of all training materials and the documentation supporting this information shall be
available to OIG, upon request.

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          5. a complete copy of all reports prepared pursuant to Section III.D, along with a copy of
the IVO’s engagement letter (if applicable);

          6. Odyssey’s response and corrective action plan(s) related to any issues raised by the
reports prepared pursuant to Section III.D;

          7. summary and description of any and all current and prior engagements and agreements
between Odyssey and the IVO, if different from what was submitted as part of the Implementation
Report;

          8. a certification from the IVO regarding its professional independence and/or objectivity
with respect to Odyssey;

          9. a summary of Reportable Events (as defined in Section III.H) identified during the
Reporting Period and the status of any corrective and preventative action relating to all such
Reportable Events;

          10. a report of the aggregate Overpayments that have been returned to the Federal health care
programs. Overpayment amounts shall be broken down into the following categories, as applicable to
Odyssey: Medicare and Medicaid (report each applicable state separately, if applicable), and other
Federal health care programs. Overpayment amounts that are routinely reconciled or adjusted
pursuant to policies and procedures established by the Payor do not need to be included in this
aggregate Overpayment report;

          11. a summary of the disclosures in the disclosure log required by Section III.E that: (a)
relate to Federal health care programs; or (b) allege abuse or neglect of patients;

          12. any changes to the process by which Odyssey fulfills the requirements of Section III.F
regarding Ineligible Persons;

          13. the name, title, and responsibilities of any person who is determined to be an Ineligible
Person under Section III.F; the actions taken by Odyssey in response to the screening and removal
obligations set forth in Section III.F; and the actions taken to identify, quantify, and repay any
Federal health care program Overpayments relating to items or services furnished, ordered or prescribed by an Ineligible Person;

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          14. a summary describing any ongoing investigation or legal proceeding required to
have been reported pursuant to Section III.G. The summary shall include a description of the
allegation, the identity of the investigating or prosecuting agency, and the status of such
investigation or legal proceeding;

          15. a description of all changes to the most recently provided list of Odyssey’s locations
(including addresses) as required by Section V.A.11; the corresponding name under which each
location is doing business; the corresponding phone numbers and fax numbers; each location’s
Medicare Provider number(s), provider identification number(s), and/or supplier number(s); and the
name and address of each Medicare contractor to which Odyssey currently submits claims; and

          16. the certifications required by Section V.C.

     The first Annual Report shall be received by OIG no later than 120 days after the end of the
first Reporting Period. Subsequent Annual Reports shall be received by OIG no later than the
anniversary date of the due date of the first Annual Report.

     C. Certifications. The Implementation Report and Annual Reports shall include a
certification by the Compliance Officer that:

          1. to the best of his or her knowledge, except as otherwise described in the applicable
report, Odyssey is in compliance with all of the requirements of this CIA;

          2. he or she has reviewed the Report and has made reasonable inquiry regarding its
content and, based on such inquiry, believes that the information in the Report is accurate and
truthful; and

          3. Odyssey has complied with its obligations under the Settlement Agreement: (a) not to
resubmit to any Federal healthcare program Payors any previously denied claims related to the
Covered Conduct addressed in the Settlement Agreement, and not to appeal any such denials of claims
following the Settlement Agreement effective date; (b) not to charge to or otherwise seek payment
from Federal or State Payors for unallowable costs (as defined in the Settlement Agreement); and
(c) to identify and adjust any past charges or claims for unallowable costs.

     D. Designation of Information. Odyssey shall clearly identify any portions of its
submissions that it believes are trade secrets, or information that is commercial or financial and
privileged or confidential, and therefore potentially exempt from disclosure

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under the Freedom of
Information Act (FOIA), 5 U.S.C. § 552. Odyssey shall refrain from identifying any information as
exempt from disclosure if that information does not meet the criteria for exemption from disclosure
under FOIA.

VI. Notifications and Submission of Reports

     Unless otherwise stated in writing after the Effective Date, all notifications and reports
required under this CIA shall be submitted to the following entities:

          OIG:

	 	 	 	Administrative and Civil Remedies Branch

Office of Counsel to the Inspector General

Office of Inspector General

U.S. Department of Health and Human Services

Cohen Building, Room 5527

330 Independence Avenue, S.W.

Washington, DC 20201

Telephone: 202.619.2078

Facsimile: 202.205.0604

          Odyssey:

	 	 	 	Odyssey HealthCare, Inc.

Attn: Chief Compliance Officer

Attn: General Counsel

717 North Harwood

Suite 1500

Dallas, TX 75201
	 
	 	 	 	Telephone: 214.922.9711

Facsimile: 214.245.3336

Unless otherwise specified, all notifications and reports required by this CIA may be made by
certified mail, overnight mail, hand delivery, email attachment, or other means, provided that
there is proof that such notification was received. For purposes of this requirement, internal
facsimile confirmation sheets do not constitute proof of receipt.

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VII. OIG Inspection, Audit, and Review Rights

     In addition to any other rights OIG may have by statute, regulation, or contract, OIG or its
duly authorized representative(s) may examine or request copies of Odyssey’s books, records, and
other documents and supporting materials and/or conduct on-site reviews of any of Odyssey’s
locations for the purpose of verifying and evaluating: (a) Odyssey’s compliance with the terms of
this CIA; and (b) Odyssey’s compliance with the requirements of the Federal health care programs in
which it participates. The documentation described above shall be made available by Odyssey to OIG
or its duly authorized representative(s) at all reasonable times for inspection, audit, or
reproduction. Furthermore, for purposes of this provision, OIG or its duly authorized
representative(s) may interview any of Odyssey’s employees, contractors, or agents who consent to
be interviewed at the individual’s place of business during normal business hours or at such other
place and time as may be mutually agreed upon between the individual and OIG. Odyssey shall assist
OIG or its duly authorized representative(s) in contacting and arranging interviews with such
individuals upon OIG’s request. Odyssey’s employees may elect to be interviewed with or without a
representative of Odyssey present.

VIII. Document and Record Retention

     Odyssey shall maintain for inspection all documents and records relating to reimbursement from
the Federal health care programs, or to compliance with this CIA, for six years (or longer if
otherwise required by law).

IX.  Disclosures

     Consistent with HHS’s FOIA procedures, set forth in 45 C.F.R. Part 5, OIG shall make a
reasonable effort to notify Odyssey prior to any release by OIG of information submitted by Odyssey
pursuant to its obligations under this CIA and identified upon submission by Odyssey as trade
secrets, or information that is commercial or financial and privileged or confidential, under the
FOIA rules. With respect to such releases, Odyssey shall have the rights set forth at 45 C.F.R. §
5.65(d).

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X. Breach and Default Provisions

     Odyssey is expected to fully and timely comply with all of its CIA obligations.

     A. Stipulated Penalties for Failure to Comply with Certain Obligations. As a
contractual remedy, Odyssey and OIG hereby agree that failure to comply with certain obligations as
set forth in this CIA may lead to the imposition of the following monetary penalties (hereinafter
referred to as “Stipulated Penalties”) in accordance with the following provisions.

          1. A Stipulated Penalty of $2,500 (which shall begin to accrue on the day after the date the
obligation became due) for each day Odyssey fails to establish and implement any of the following
obligations as described in Section III:

a. a Compliance Officer;

b. a Compliance Committee;

c. a written Code of Conduct;

d. written Policies and Procedures;

e. the training of Covered Persons;

f. a Disclosure Program;

g. Ineligible Persons screening and removal requirements; and

h. Notification of Government investigations or legal proceedings.

          2. A Stipulated Penalty of $2,500 (which shall begin to accrue on the day after the
date the obligation became due) for each day Odyssey fails to engage an IVO, as required in Section
III.D and Appendices A and B.

          3. A Stipulated Penalty of $2,500 (which shall begin to accrue on the day after the date the
obligation became due) for each day Odyssey fails to submit the Implementation Report or the Annual
Reports to OIG in accordance with the requirements of Section V by the deadlines for submission.

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          4. A Stipulated Penalty of $2,500 (which shall begin to accrue on the day after the date the
obligation became due) for each day Odyssey fails to submit the annual IVO Review Report in
accordance with the requirements of Section III.D and Appendices A and B.

          5. A Stipulated Penalty of $1,500 for each day Odyssey fails to grant access to the
information or documentation as required in Section VII. (This Stipulated Penalty shall begin to
accrue on the date Odyssey fails to grant access.)

          6. A Stipulated Penalty of $5,000 for each false certification submitted by or on behalf of
Odyssey as part of its Implementation Report, Annual Report, additional documentation to a report
(as requested by the OIG), or otherwise required by this CIA.

          7. A Stipulated Penalty of $1,000 for each day Odyssey fails to comply fully and
adequately with any obligation of this CIA. OIG shall provide notice to Odyssey, stating the
specific grounds for its determination that Odyssey has failed to comply fully and adequately with
the CIA obligation(s) at issue and steps Odyssey shall take to comply with the CIA. (This
Stipulated Penalty shall begin to accrue 30 days after Odyssey receives this notice from OIG of the
failure to comply.) A Stipulated Penalty as described in this Subsection shall not be demanded for
any violation for which OIG has sought a Stipulated Penalty under Subsections 1-6 of this Section.

     B. Timely Written Requests for Extensions. Odyssey may, in advance of the due date,
submit a timely written request for an extension of time to perform any act or file any
notification or report required by this CIA. Notwithstanding any other provision in this Section,
if OIG grants the timely written request with respect to an act, notification, or report,
Stipulated Penalties for failure to perform the act or file the notification or report shall not
begin to accrue until one day after Odyssey fails to meet the revised deadline set by OIG.
Notwithstanding any other provision in this Section, if OIG denies such a timely written request,
Stipulated Penalties for failure to perform the act or file the notification or report shall not
begin to accrue until three business days after Odyssey receives OIG’s written denial of such
request or the original due date, whichever is later. A “timely written request” is defined as a
request in writing received by OIG at least five business days prior to the date by which any act
is due to be performed or any notification or report is due to be filed.

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     C. Payment of Stipulated Penalties.

          1. Demand Letter. Upon a finding that Odyssey has failed to comply with
any of the obligations described in Section X.A and after determining that Stipulated
Penalties are appropriate, OIG shall notify Odyssey of: (a) Odyssey’s failure to comply; and (b)
OIG’s exercise of its contractual right to demand payment of the Stipulated Penalties (this
notification is referred to as the “Demand Letter”).

          2. Response to Demand Letter. Within 10 days after the receipt of the Demand Letter, Odyssey
shall either: (a) cure the breach to OIG’s satisfaction and pay the applicable Stipulated
Penalties; or (b) request a hearing before an HHS administrative law judge (ALJ) to dispute OIG’s
determination of noncompliance, pursuant to the agreed upon provisions set forth below in Section
X.E. In the event Odyssey elects to request an ALJ hearing, the Stipulated Penalties shall
continue to accrue until Odyssey cures, to OIG’s satisfaction, the alleged breach in dispute.
Failure to respond to the Demand Letter in one of these two manners within the allowed time period
shall be considered a material breach of this CIA and shall be grounds for exclusion under Section
X.D.

          3. Form of Payment. Payment of the Stipulated Penalties shall be made by certified or
cashier’s check, payable to: “Secretary of the Department of Health and Human Services,” and
submitted to OIG at the address set forth in Section VI.

          4. Independence from Material Breach Determination. Except as set forth in Section X.D.1.c,
these provisions for payment of Stipulated Penalties shall not affect or otherwise set a standard
for OIG’s decision that Odyssey has materially breached this CIA, which decision shall be made at
OIG’s discretion and shall be governed by the provisions in Section X.D, below.

     D. Exclusion for Material Breach of this CIA.

          1. Definition of Material Breach. A material breach of this CIA means:

	 	a.   a failure by Odyssey to report a Reportable Event, take corrective
action, and make the appropriate refunds, as required in Section III.H;
	 
	 	b.   a repeated or flagrant violation of the obligations under this CIA,
including, but not limited to, the obligations addressed in Section X.A;

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	 	c.	 	a failure to respond to a Demand Letter concerning the payment of
Stipulated Penalties in accordance with Section X.C; or
	 
	 	d.	 	a failure to engage and use an IVO in accordance with Section III.D.

          2. Notice of Material Breach and Intent to Exclude. The parties agree that a material
breach of this CIA by Odyssey constitutes an independent basis for Odyssey’s exclusion from
participation in the Federal health care programs. Upon a determination by OIG that Odyssey has
materially breached this CIA and that exclusion is the appropriate remedy, OIG shall notify Odyssey
in writing of: (a) Odyssey’s material breach; and (b) OIG’s intent to exercise its contractual
right to impose exclusion (this notification is hereinafter referred to as the “Notice of Material
Breach and Intent to Exclude”).

          3. Opportunity to Cure. Odyssey shall have 30 days from the date of receipt of the Notice of
Material Breach and Intent to Exclude to demonstrate to OIG’s satisfaction that:

	 	a.	 	Odyssey is in compliance with the obligations of the CIA cited by OIG as
being the basis for the material breach;
	 
	 	b.	 	the alleged material breach has been cured; or
	 
	 	c.   the alleged material breach cannot be cured within the 30-day period,
but that: (i) Odyssey has begun to take action to cure the material breach;
(ii) Odyssey is pursuing such action with due diligence; and (iii) Odyssey
has provided to OIG a reasonable timetable for curing the material breach.

          4. Exclusion Letter. If, at the conclusion of the 30-day period, Odyssey fails to satisfy
the requirements of Section X.D.3, OIG may exclude Odyssey from participation in the Federal health
care programs. OIG shall notify Odyssey in writing of its determination to exclude Odyssey (this
letter shall be referred to hereinafter as the “Exclusion Letter”). Subject to the Dispute
Resolution provisions in Section X.E, below, the exclusion shall go into effect 30 days after the
date of Odyssey’s receipt of the Exclusion Letter. The exclusion shall have national effect and
shall also apply to all other Federal procurement and nonprocurement programs. Reinstatement to
program

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participation is not automatic. After the end of the period of exclusion, Odyssey may
apply for reinstatement by submitting a written request for reinstatement in accordance with the
provisions at 42 C.F.R. §§ 1001.3001-.3004.

     E. Dispute Resolution

          1. Review Rights. Upon OIG’s delivery to Odyssey of its Demand Letter or of its Exclusion
Letter, and as an agreed-upon contractual remedy for the resolution of disputes arising under this
CIA, Odyssey shall be afforded certain review rights comparable to the ones that are provided in 42
U.S.C. § 1320a-7(f) and 42 C.F.R. Part 1005 as if they applied to the Stipulated Penalties or
exclusion sought pursuant to this CIA. Specifically, OIG’s determination to demand payment of
Stipulated Penalties or to seek exclusion shall be subject to review by an HHS ALJ and, in the
event of an appeal, the HHS Departmental Appeals Board (DAB), in a manner consistent with the
provisions in 42 C.F.R. § 1005.2-1005.21. Notwithstanding the language in 42 C.F.R. § 1005.2(c),
the request for a hearing involving Stipulated Penalties shall be made within 10 days after receipt
of the Demand Letter and the request for a hearing involving exclusion shall be made within 25 days
after receipt of the Exclusion Letter.

          2. Stipulated Penalties Review. Notwithstanding any provision of Title 42 of the United
States Code or Title 42 of the Code of Federal Regulations, the only issues in a proceeding for
Stipulated Penalties under this CIA shall be: (a) whether Odyssey was in full and timely
compliance with the obligations of this CIA for which OIG demands payment; and (b) the period of
noncompliance. Odyssey shall have the burden of proving its full and timely compliance and the
steps taken to cure the noncompliance, if any. OIG shall not have the right to appeal to the DAB
an adverse ALJ decision related to Stipulated Penalties. If the ALJ agrees with OIG with regard to
a finding of a breach of this CIA and orders Odyssey to pay Stipulated Penalties, such Stipulated
Penalties shall become due and payable 20 days after the ALJ issues such a decision unless Odyssey
requests review of the ALJ decision by the DAB. If the ALJ decision is properly appealed to the
DAB and the DAB upholds the determination of OIG, the Stipulated Penalties shall become due and
payable 20 days after the DAB issues its decision.

          3. Exclusion Review. Notwithstanding any provision of Title 42 of the United States
Code or Title 42 of the Code of Federal Regulations, the only issues in a proceeding for exclusion
based on a material breach of this CIA shall be:

	 	a.	 	whether Odyssey was in material breach of this CIA;

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	 	b.	 	whether such breach was continuing on the date of the Exclusion Letter;
and
	 
	 	c.   whether the alleged material breach could not have been cured within the
30-day period, but that: (i) Odyssey had begun to take action to cure the
material breach within that period; (ii) Odyssey has pursued and is pursuing
such action with due diligence; and (iii) Odyssey provided to OIG within
that period a reasonable timetable for curing the material breach and
Odyssey has followed the timetable.

          For purposes of the exclusion herein, exclusion shall take effect only after an ALJ decision
favorable to OIG, or, if the ALJ rules for Odyssey, only after a DAB decision in favor of OIG.
Odyssey’s election of its contractual right to appeal to the DAB shall not abrogate OIG’s authority
to exclude Odyssey upon the issuance of an ALJ’s decision in favor of OIG. If the ALJ sustains the
determination of OIG and determines that exclusion is authorized, such exclusion shall take effect
20 days after the ALJ issues such a decision, notwithstanding that Odyssey may request review of
the ALJ decision by the DAB. If the DAB finds in favor of OIG after an ALJ decision adverse to
OIG, the exclusion shall take effect 20 days after the DAB decision. Odyssey shall waive its right
to any notice of such an exclusion if a decision upholding the exclusion is rendered by the ALJ or
DAB. If the DAB finds in favor of Odyssey, Odyssey shall be reinstated effective on the date of
the original exclusion.

          4. Finality of Decision. The review by an ALJ or DAB provided for above shall not be
considered to be an appeal right arising under any statutes or regulations. Consequently, the
parties to this CIA agree that the DAB’s decision (or the ALJ’s decision if not appealed) shall be
considered final for all purposes under this CIA.

XI. Effective and Binding Agreement

     Consistent with the provisions in the Settlement Agreement pursuant to which this CIA is
entered, and into which this CIA is incorporated, Odyssey and OIG agree as follows:

     A. This CIA shall be binding on the successors, assigns, and transferees of Odyssey;

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     B. This CIA shall become final and binding on the date the final signature is obtained on the
CIA;

     C. Any modifications to this CIA shall be made with the prior written consent of the parties
to this CIA;

     D. OIG may agree to suspend Odyssey’s obligations under the CIA in the event of Odyssey’s
cessation of participation in Federal health care programs. If Odyssey withdraws from
participation in Federal health care programs and is relieved of its CIA obligations by OIG,
Odyssey shall notify OIG at least 30 days in advance of Odyssey’s intent to reapply as a
participating provider or supplier with any Federal health care program. Upon receipt of such
notification, OIG shall evaluate whether the CIA should be reactivated or modified; and

     E. The undersigned Odyssey signatories represent and warrant that they are authorized to
execute this CIA. The undersigned OIG signatory represents that he is signing this CIA in his
official capacity and that he is authorized to execute this CIA.

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On Behalf of Odyssey HealthCare, Inc. 

	 	 	 	 	 	 	 
	 

	 	 

	 	 

	 	 
	BY:

	 	 	 	DATE	 	 
	 

	 	Gadi Weinreich	 	 	 	 
	 

	 	Howard J. Young	 	 	 	 
	 

	 	Elizabeth McCubrey	 	 	 	 
	 

	 	SONNENSCHEIN NATH & ROSENTHAL LLP	 	 	 	 
	 

	 	Counsel for Odyssey HealthCare, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	W. Bradley Bickham
	 	DATE	 	 
	 

	 	VP and General Counsel	 	 	 	 
	 	 	Odyssey HealthCare, Inc. and its wholly-owned subsidiaries	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	DATE	 	 

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On behalf of the Office of Inspector General 

of the Department of Health and Human Services

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	BY:

	 	GREGORY E. DEMSKE
	 	 	 	DATE	 	 	 	 
	 

	 	Assistant Inspector General for Legal Affairs	 	 	 	 	 	 	 	 
	 

	 	Office of Inspector General	 	 	 	 	 	 	 	 
	 

	 	U. S. Department of Health and Human Services	 	 	 	 	 	 	 	 

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APPENDIX A

INDEPENDENT VERIFICATION ORGANIZATION

A. IVO Engagement.

     Odyssey shall engage an IVO that possesses the qualifications set forth in Paragraph B, below,
to perform the responsibilities in Paragraph C, below. The IVO shall conduct the review in a
professionally independent and/or objective fashion, as set forth in Paragraph D. Within 30 days
after OIG receives written notice of the identity of the selected IVO, OIG will notify Odyssey if
the IVO is unacceptable. Absent notification from OIG that the IVO is unacceptable, Odyssey may
continue to engage the IVO.

     If Odyssey engages a new IVO during the term of the CIA, this IVO shall also meet the
requirements of this Appendix. If a new IVO is engaged, Odyssey shall submit the information
identified in Section V.A.8 to OIG within 30 days of engagement of the IVO. Within 30 days after
OIG receives written notice of the identity of the selected IVO, OIG will notify Odyssey if the IVO
is unacceptable. Absent notification from OIG that the IVO is unacceptable, Odyssey may continue
to engage the IVO.

B. IVO Qualifications.

The IVO shall:

     1. assign individuals to conduct the Clinical Protocol Verification Review and Unallowable
Cost Review engagement who have expertise in the clinical, billing and other standards and
requirements of hospice and in the general requirements of the Federal health care program(s) from
which Odyssey seeks reimbursement; and

     2. have sufficient staff and resources to conduct the reviews required by the CIA on a timely
basis.

C. IVO Responsibilities.

       The IVO shall:

     1. perform each Clinical Protocol Verification Review and Unallowable Cost Review in
accordance with the specific requirements of the CIA;

Odyssey Corporate Integrity Agreement

1

 

     2. follow all applicable Medicare rules and consider applicable hospice eligibility
guidelines in making assessments of the Clinical Review Protocols reviews;

     3. if in doubt of the application of a particular Medicare policy or regulation, request
clarification from the appropriate authority (e.g., fiscal intermediary or carrier);

     4. respond to all OIG inquires in a prompt, objective, and factual manner; and

     5. prepare timely, clear, well-written reports that include all the information
required by Appendix B.

D. IVO Independence/Objectivity.

The IVO must perform the Verification Reviews in a professionally independent and/or objective
fashion, as appropriate to the nature of the engagement, taking into account any other business
relationships or engagements that may exist between the IVO and Odyssey.

E. IVO Removal/Termination.

     1. Provider. If Odyssey terminates its IVO during the course of the engagement, Odyssey must
submit a notice explaining its reasons to OIG no later than 30 days after termination. Odyssey
must engage a new IVO in accordance with Paragraph A of this Appendix.

     2. OIG Removal of IVO. In the event OIG has reason to believe that the IVO does not possess
the qualifications described in Paragraph B, is not independent and/or objective as set forth in
Paragraph D, or has failed to carry out its responsibilities as described in Paragraph C, OIG may,
at its sole discretion, require Odyssey to engage a new IVO in accordance with Paragraph A of this
Appendix.

     Prior to requiring Odyssey to engage a new IVO, OIG shall notify Odyssey in writing of its
intent to do so and provide a written explanation of why OIG believes such a step is necessary. To
resolve any concerns raised by OIG, Odyssey may request a meeting with OIG to discuss any aspect of
the IVO’s qualifications, independence or performance of its responsibilities and to present
additional information regarding these matters. Odyssey shall provide any additional information
as may be requested by OIG under this Paragraph in an expedited manner. OIG will attempt in good
faith to resolve any differences regarding the IVO with Odyssey prior to requiring Odyssey to terminate

Odyssey Corporate Integrity Agreement

2

 

the IVO. However, the final determination as to whether or not to require Odyssey to engage a new IVO shall
be made at the sole discretion of OIG.

Odyssey Corporate Integrity Agreement

3

 

APPENDIX B

VERIFICATION REVIEW REPORT

	A.	 	The IVO shall prepare a report based upon the Internal Reviews performed (Verification
Review Report).
	 
	B.	 	Verification Review Report Findings:
	 
	 	 	The following information shall be included in the IVO’s Verification Review Report:

	 	1.	 	the IVO’s findings with respect to whether Odyssey
has generally implemented the Clinical Protocol described in Section
III.D.2;
	 
	 	2.	 	specific findings as to whether Odyssey has
complied with the Clinical Protocol described in Section III.D.2;
	 
	 	3.	 	the IVO’s observations, findings, and
recommendations on possible improvements to Odyssey’s policies,
procedures, and systems in place to ensure that Odyssey is in compliance
with its Clinical Protocol; and
	 
	 	4.	 	a narrative explanation of the IVO’s findings and
supporting rationale (including reasons for errors, patterns noted,
concerns relating to the eligibility or appropriateness of hospice
patients, etc.) regarding the Internal Reviews.

C. Credentials. The names and credentials of the individuals who prepared the IVO Internal
Review Reports.

Odyssey Corporate Integrity Agreement

1exv10w45

 

Exhibit 10.45

EXECUTION COPY

LOAN AGREEMENT

dated as of

March 31, 2006

among

NETWORK APPLIANCE GLOBAL LTD., as the Borrower

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent

 

J.P. MORGAN SECURITIES INC.,

as Sole Bookrunner and Sole Lead Arranger

 

 

	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I Definitions
	 	 	 
	 
	 	 	 	 	 
	SECTION 1.01.

	 	Defined Terms
	 	 	1
	SECTION 1.02.

	 	Classification of Loans and Borrowings
	 	 	18
	SECTION 1.03.

	 	Terms Generally
	 	 	18
	SECTION 1.04.

	 	Accounting Terms; GAAP
	 	 	18
	 
	 	 	 	 	 
	ARTICLE II The Credits	 	 	18
	 
	 	 	 	 	 
	SECTION 2.01.

	 	Commitments and Loans
	 	 	18
	SECTION 2.02.

	 	Loans and Borrowings
	 	 	19
	SECTION 2.03.

	 	Requests for Borrowings
	 	 	19
	SECTION 2.04.

	 	Repayment of Tranche A Term Loans
	 	 	20
	SECTION 2.05.

	 	Repayment and Amortization of Tranche B Term Loans
	 	 	20
	SECTION 2.06.

	 	Intentionally Omitted.
	 	 	20
	SECTION 2.07.

	 	Funding of Borrowings
	 	 	20
	SECTION 2.08.

	 	Interest Elections
	 	 	21
	SECTION 2.09.

	 	Termination of Commitments
	 	 	22
	SECTION 2.10.

	 	Repayment of Loans; Evidence of Debt
	 	 	22
	SECTION 2.11.

	 	Prepayment of Loans
	 	 	23
	SECTION 2.12.

	 	Fees
	 	 	24
	SECTION 2.13.

	 	Interest
	 	 	24
	SECTION 2.14.

	 	Alternate Rate of Interest
	 	 	24
	SECTION 2.15.

	 	Increased Costs
	 	 	25
	SECTION 2.16.

	 	Break Funding Payments
	 	 	26
	SECTION 2.17.

	 	Taxes
	 	 	26
	SECTION 2.18.

	 	Payments Generally; Allocation of Proceeds; Sharing of Set-offs
	 	 	28
	SECTION 2.19.

	 	Mitigation Obligations; Replacement of Lenders
	 	 	29
	SECTION 2.20.

	 	Judgment Currency
	 	 	30
	 
	 	 	 	 	 
	ARTICLE III Representations and Warranties	 	 	31
	 
	 	 	 	 	 
	SECTION 3.01.

	 	Organization; Powers
	 	 	31
	SECTION 3.02.

	 	Authorization; Enforceability
	 	 	31
	SECTION 3.03.

	 	Governmental Approvals; No Conflicts
	 	 	31
	SECTION 3.04.

	 	Financial Condition; No Material Adverse Change
	 	 	32
	SECTION 3.05.

	 	Properties and Insurance
	 	 	32
	SECTION 3.06.

	 	Litigation, Labor Matters and Environmental Matters
	 	 	32
	SECTION 3.07.

	 	Compliance with Laws and Agreements; No Burdensome Restrictions
	 	 	33
	SECTION 3.08.

	 	Investment and Holding Company Status
	 	 	33
	SECTION 3.09.

	 	Taxes
	 	 	33
	SECTION 3.10.

	 	ERISA
	 	 	33
	SECTION 3.11.

	 	Disclosure
	 	 	33
	SECTION 3.12.

	 	No Default
	 	 	34

 

 

	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE IV Conditions	 	 	34
	 
	 	 	 	 	 
	SECTION 4.01.

	 	Effective Date
	 	 	34
	 
	 	 	 	 	 
	ARTICLE V Affirmative Covenants	 	 	35
	 
	 	 	 	 	 
	SECTION 5.01.

	 	Financial Statements and Other Information
	 	 	35
	SECTION 5.02.

	 	Notices of Material Events
	 	 	37
	SECTION 5.03.

	 	Existence; Conduct of Business
	 	 	37
	SECTION 5.04.

	 	Payment of Obligations
	 	 	37
	SECTION 5.05.

	 	Maintenance of Properties; Insurance
	 	 	37
	SECTION 5.06.

	 	Books and Records; Inspection Rights
	 	 	37
	SECTION 5.07.

	 	Compliance with Laws and Contractual Obligations
	 	 	38
	SECTION 5.08.

	 	Use of Proceeds
	 	 	38
	SECTION 5.09.

	 	Subsidiary Guaranty
	 	 	38
	SECTION 5.10.

	 	Collateral
	 	 	38
	 
	 	 	 	 	 
	ARTICLE VI Negative Covenants	 	 	39
	 
	 	 	 	 	 
	SECTION 6.01.

	 	Indebtedness
	 	 	39
	SECTION 6.02.

	 	Liens
	 	 	40
	SECTION 6.03.

	 	Fundamental Changes and Sales of Assets
	 	 	41
	SECTION 6.04.

	 	Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	42
	SECTION 6.05.

	 	Swap Agreements
	 	 	44
	SECTION 6.06.

	 	Restricted Payments
	 	 	44
	SECTION 6.07.

	 	Transactions with Affiliates
	 	 	44
	SECTION 6.08.

	 	Restrictive Agreements
	 	 	44
	SECTION 6.09.

	 	Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents
	 	 	45
	SECTION 6.10.

	 	Financial Covenants.
	 	 	45
	 
	 	 	 	 	 
	ARTICLE VII Events of Default	 	 	46
	 
	 	 	 	 	 
	ARTICLE VIII The Administrative Agent	 	 	48
	 
	 	 	 	 	 
	ARTICLE IX Miscellaneous	 	 	52
	 
	 	 	 	 	 
	SECTION 9.01.

	 	Notices
	 	 	52
	SECTION 9.02.

	 	Waivers; Amendments
	 	 	53
	SECTION 9.03.

	 	Expenses; Indemnity; Damage Waiver
	 	 	53
	SECTION 9.04.

	 	Successors and Assigns
	 	 	54
	SECTION 9.05.

	 	Survival
	 	 	57
	SECTION 9.06.

	 	Counterparts; Integration; Effectiveness
	 	 	57
	SECTION 9.07.

	 	Severability
	 	 	58
	SECTION 9.08.

	 	Right of Setoff
	 	 	58
	SECTION 9.09.

	 	Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Immunity
	 	 	58
	SECTION 9.10.

	 	WAIVER OF JURY TRIAL
	 	 	59
	 
	 	 	 	 	 
	 ii
	 	 	 

 

 

	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 9.11.

	 	Headings
	 	 	60
	SECTION 9.12.

	 	Confidentiality
	 	 	60
	SECTION 9.13.

	 	USA PATRIOT Act
	 	 	61

	 	 	 
	EXHIBITS:	 	 
	Exhibit A

	 	— Form of Assignment and Assumption
	Exhibit B-1

	 	— Form of Opinion of Borrower’s Bermuda Counsel
	Exhibit B-2

	 	— Form of Opinion of Loan Parties’ U.S. Counsel
	Exhibit B-3

	 	— Form of Opinion of Loan Parties’ Dutch Counsel
	Exhibit B-4

	 	— Form of Opinion of Loan Parties’ Cyprus Counsel
	Exhibit C

	 	— List of Closing Documents
	Exhibit D

	 	— Form of Subsidiary Guaranty
	Exhibit E

	 	— Form of Pledge Agreement
	Exhibit F

	 	— Form of Control Agreement
	Exhibit G

	 	— Margin Requirements
	Exhibit H

	 	— Form of Compliance Certificate

 iii

 

 

          LOAN AGREEMENT dated as of March 31, 2006, among NETWORK APPLIANCE GLOBAL LTD., as the
Borrower, the LENDERS party hereto, and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as
Administrative Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

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

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

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means JPMorgan Chase Bank, National Association, in its
capacity as administrative agent for the Lenders hereunder.

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

          “Affected Foreign Subsidiary” means any Subsidiary to the extent such Subsidiary
acting as a Subsidiary Guarantor would be prohibited by applicable law.

          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment. If the Commitments have terminated or
expired, the Applicable Percentages shall be determined at any time based upon
the percentage obtained by dividing such Lender’s Term Loan Exposure by the sum of the
outstanding principal amount of all Loans.

 

 

          “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar Loan,
as the case may be, 0.125% in the case of Eurodollar Tranche A Term Loans, 0% in the case of ABR
Tranche A Term Loans and, in the case of Tranche B Term Loans, the applicable rate per annum set
forth below under the caption “Tranche B Term Loans ABR Spread” or “Tranche B Term Loans Eurodollar
Spread”, as the case may be, based upon the Leverage Ratio as reflected in the then most recently
delivered Financials:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Tranche B Term	 	 
	 	 	 	 	Loans Eurodollar	 	Tranche B Term
	Pricing Level	 	Leverage Ratio	 	Spread	 	Loans ABR Spread
	I

	 	3 2.25 to 1.0
	 	 	1.125	%	 	 	0.125	%
	 
	 	 	 	 	 	 	 	 	 	 
	II

	 	<2.25 to 1.0 but

3 2.0 to 1.0
	 	 	0.875	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 
	III

	 	< 2.0 to 1.0 but

3 1.5 to 1.0
	 	 	0.625	%	 	 	0	%
	 
	 	 	 	 	 	 	 	 	 	 
	IV

	 	< 1.5 to 1.0
	 	 	0.500	%	 	 	0	%

          For purposes of the foregoing,

     (i) if at any time the Borrower fails to deliver the Financials required under
Section 5.01(a) or 5.01(b) on or before the date such Financials are due, Pricing
Level I shall be deemed applicable for the period commencing five (5) Business Days
after such required date of delivery and ending on the date on which such Financials
are actually delivered, after which the Pricing Level shall be determined in
accordance with the table above as applicable;

     (ii) adjustments, if any, to the Pricing Level then in effect shall be
effective on the date the Administrative Agent has received the applicable
Financials (it being understood and agreed that each change in Pricing Level shall
apply during the period commencing on the effective date of such change and ending
on the date immediately preceding the effective date of the next such change); and

     (iii) each determination of the Applicable Rate made by the Administrative
Agent in accordance with the foregoing shall, if reasonably determined, be
conclusive and binding on the Borrower and each Lender.

          Notwithstanding the foregoing, Pricing Level III shall be deemed to be applicable until the
Administrative Agent’s receipt of the applicable Financials for the fiscal year ended April 28,
2006 and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance
with the preceding provisions.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

2

 

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by
the Administrative Agent.

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

          “Borrower” means Network Appliance Global Ltd., an exempted company incorporated with
limited liability under the laws of Bermuda.

          “Borrowing” means Loans of the same Type, made, converted or continued on the same
date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

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

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

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

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof), of Equity Interests representing more than 40% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Parent; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Parent by Persons
who were neither (i) nominated by the board of directors of the Parent nor (ii) appointed by
directors so nominated; (c) the Parent ceasing to own 100% of the issued and outstanding Equity
Interests of the Borrower or (d) the Borrower ceasing to own, directly or indirectly, 100% of the
issued and outstanding Equity Interests of each Subsidiary Guarantor (excluding directors’
qualifying shares as required by law).

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.15(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive

3

 

(whether or not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

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

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

          “Collateral” means all assets upon which a security interest or Lien is from time to
time granted to the Administrative Agent, for the benefit of the relevant Holders of Secured
Obligations, under any of the Collateral Documents or under any of the other Loan Documents.

          “Collateral Documents” means the Pledge Agreement, the Control Agreement, the Dutch
Pledge Agreement and all agreements, instruments and documents executed in connection with this
Agreement pursuant to which the Administrative Agent is granted a security interest in the
Collateral, including, without limitation, all security agreements, loan agreements, notes,
guarantees, subordination agreements, pledges, powers of attorney, consents, assignments,
contracts, fee letters, notices, leases, financing statements and all other written matter whether
heretofore, now, or hereafter executed by or on behalf of the Borrower or any of its Subsidiaries
and delivered to the Administrative Agent or any of the Lenders in connection with this Agreement,
together with all agreements and documents referred to therein or contemplated thereby.

          “Commissionaires” means the Subsidiaries and Affiliates of the Dutch Pledgor party to
commissionaire agreements with the Dutch Pledgor pursuant to which such Subsidiaries or Affiliates
agree to act as commissionaires for the Dutch Pledgor.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Tranche A Term Loans and/or Tranche B Term B Loans hereunder on the Effective Date. The amount of
each Lender’s Commitment is set forth on Schedule 2.01. The aggregate amount of the Lenders’
Commitments is $300,000,000. After advancing the Loans on the Effective Date, each reference to a
Lender’s Commitment shall refer to that Lender’s Applicable Percentage of the Loans.

          “Consolidated EBITDA” means, with reference to any period, the sum of the following:
(a) Consolidated Net Income for such period, plus (b) without duplication and to the extent
deducted in determining such Consolidated Net Income, the sum of (i) Consolidated Interest Expense
for such period, (ii) expense for taxes paid or accrued during such period, (iii) all amounts
attributable to depreciation and amortization during such period, (v) extraordinary non-cash
charges incurred other than in the ordinary course of business during such period, and (vi)
nonrecurring extraordinary non-cash restructuring charges, minus (c) without duplication
and to the extent included in determining such Consolidated Net Income, extraordinary non-cash
gains realized other than in the ordinary course of business; all calculated for the Borrower and
its Subsidiaries in accordance with GAAP on a consolidated basis.

          “Consolidated Interest Expense” means, with reference to any period, the interest
expense (including without limitation interest expense under Capital Lease Obligations that is

4

 

treated as interest in accordance with GAAP) of the Borrower and its Subsidiaries calculated on a
consolidated basis for such period with respect to (a) all outstanding Indebtedness of the Borrower
and its Subsidiaries allocable to such period in accordance with GAAP and (b) Swap Agreements
(including, without limitation, all commissions, discounts and other fees and charges owed with
respect to letters of credit and bankers acceptance financing and net costs under interest rate
Swap Agreements to the extent such net costs are allocable to such period in accordance with GAAP).

          “Consolidated Net Income” means, with reference to any period, the net income (or
loss) of the Borrower and its Subsidiaries calculated in accordance with GAAP on a consolidated
basis (without duplication) for such period.

          “Consolidated Total Assets” means, as of the date of any determination thereof, total
assets of the Borrower and its Subsidiaries calculated in accordance with GAAP on a consolidated
basis as of such date.

          “Consolidated Total Indebtedness” means, at any time, the aggregate Indebtedness of
the Borrower and its Subsidiaries calculated on a consolidated basis as of such time.

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

          “Control Agreement” means the Tri-Party Control Agreement of even date herewith in the
form of Exhibit F by and among the Borrower, the Administrative Agent and J.P. Morgan Securities
Inc. (as amended, restated, supplemented or otherwise modified from time to time).

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

          “Determination Date” shall mean (i) so long as no Event of Default has occurred and is
continuing, the last Business Day of each successive two week period, beginning on April 10, 2006
and (ii) if an Event of Default has occurred and is continuing, any date as the Administrative
Agent may elect in its sole discretion.

          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06 to the Disclosure Letter.

          “Disclosure Letter” means the disclosure letter from the Borrower dated as of the date
hereof, as amended or supplemented from time to time by the Borrower with the written consent of
the Administrative Agent, delivered to the Administrative Agent for the benefit of the Lenders.

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

5

 

          “Domestic Subsidiary” means any Subsidiary that is incorporated or organized under the
laws of the United States of America, any state thereof or in the District of Columbia.

          “Dutch Pledge Agreement” means the Dutch Pledge of Receivables of even date herewith
by the Dutch Pledgor in favor of the Administrative Agent (as amended, restated, supplemented or
otherwise modified from time to time).

          “Dutch Pledgor” means Network Appliance B.V., a company organized under the laws of
the Netherlands.

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

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

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

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

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

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

          “ERISA Event” means (1) with respect to the Parent and any Domestic Subsidiary, (a)
any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder
with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section
412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section
412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (d) the incurrence by the

6

 

Borrower or any of its ERISA
Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Parent or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by the Parent or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan;
or (g) the receipt by the Parent or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Parent or any ERISA Affiliate of any notice, concerning the imposition
of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of ERISA and (2) with respect to the
Borrower and any Foreign Subsidiary that is a Loan Party, (a) the occurrence of an event which is
comparable to any of the events described in the foregoing clause (1) in respect of such Person or
the Foreign Benefit Plan or Foreign Pension Plan of such Person, (b) the institution by the
relevant Governmental Authority of proceedings to terminate or appoint a trustee to administer any
Foreign Benefit Plan or Foreign Pension Plan in respect of such Person; (c) any event or condition
which might constitute grounds for the termination of, or the appointment of a trustee to
administer, any Foreign Benefit Plan or Foreign Pension Plan of such Person; or (d) the partial or
complete withdrawal of the Parent or any of its ERISA Affiliates from any Foreign Benefit Plan or
Foreign Pension Plan.

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

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

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income, franchise or similar taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction and (c) in the case of a Foreign
Lender (other than an assignee pursuant to a request by the Borrower under Section 2.19(b)), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement (or designates a new lending office) or is attributable to
such Foreign Lender’s failure to comply with Section 2.17(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 2.17(a).

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

7

 

by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or controller, or member of the board of directors, of the Borrower.

          “Financials” means the annual or quarterly financial statements, and accompanying
certificates and other documents, of the Borrower or Parent, as applicable, required to be
delivered pursuant to Section 5.01(a) or 5.01(b).

          “Foreign Benefit Plan” means any employee benefit plan as defined in Section 3(3) of
ERISA which is maintained or contributed to for the benefit of the employees of the Parent or any
of its ERISA Affiliates, but which is not covered by ERISA pursuant to Section 4(b)(4) of ERISA.

          “Foreign Lender” means any Lender that is incorporated or organized under the laws of
a jurisdiction other than (a) Bermuda or (b) the United States of America, any State thereof or the
District of Columbia.

          “Foreign Pension Plan” means any employee pension benefit plan (as defined in Section
3(2) of ERISA) which (i) is maintained or contributed to for the benefit of employees of the Parent
or any of its ERISA Affiliates, (ii) is not covered by ERISA pursuant to Section 4(b)(4) thereof
and (iii) under applicable local law, is required to be funded through a trust or other funding
vehicle.

          “Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.

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

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

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

8

 

Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

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

          “Holders of Secured Obligations” means the holders of the Secured Obligations from
time to time and shall include (i) each Lender in respect of its Loans, (ii) the Administrative
Agent and the Lenders in respect of all other present and future obligations and liabilities of the
Borrower and each Subsidiary of every type and description arising under or in connection with the
Loan Agreement or any other Loan Document, (iii) each Lender and affiliate of such Lender in
respect of Swap Agreements entered into with such Person by the the Borrower or any Subsidiary,
(iv) each indemnified party under Section 9.03 in respect of the obligations and liabilities of the
Borrower to such Person hereunder and under the other Loan Documents, and (v) their respective
successors and (in the case of a Lender, permitted) transferees and assigns.

          “Hostile Acquisition” means (a) the acquisition of the Equity Interests of a Person
through a tender offer or similar solicitation of the owners of such Equity Interests which has not
been approved (prior to such acquisition) by the board of directors (or any other applicable
governing body) of such Person or by similar action if such Person is not a corporation and (b) any
such acquisition as to which such approval has been withdrawn.

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

          “Indemnified Taxes” means Taxes other than (i) Excluded Taxes and (ii) Other Taxes.

9

 

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

          “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
March, June, September and December and (b) with respect to any Eurodollar Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period.

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

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

          “Leverage Ratio” means the ratio, determined as of the end of each fiscal quarter of
the Borrower, of Consolidated Total Indebtedness as of the end of such fiscal quarter to
Consolidated EBITDA for the period of 4 consecutive fiscal quarters ending with the end of such
fiscal quarter.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period,
as the rate for dollar deposits with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then the “LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

10

 

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or other security interest in, on or of such asset and
(b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or
title retention agreement (or any financing lease having substantially the same economic effect as
any of the foregoing) relating to such asset.

          “Liquid Investments” means cash and other Permitted Investments reasonably
satisfactory to the Administrative Agent.

          “Liquidity Ratio” means the ratio, determined as of the end of each fiscal quarter of
the Borrower, of (i) current assets minus the aggregate amount of cash and other
investments subject to any Lien (including without limitation Liens created under the Collateral
Documents) minus the aggregate amount of inventory minus the aggregate amount of
intercompany accounts receivable due and owing from any Subsidiary or Affiliate, in each case
determined as of the end of such fiscal quarter on a consolidated basis for the Borrower in
accordance with GAAP to (ii) current liabilities minus the aggregate amount of intercompany
accounts payable due and owing to any Subsidiary or Affiliate minus the aggregate amount of
any deferred revenue, in each case determined as of the end of such fiscal quarter on a
consolidated basis for the Borrower in accordance with GAAP.

          “Loans” means the Tranche A Term Loans and the Tranche B Term Loans.

          “Loan Documents” means this Agreement, the Subsidiary Guaranty, the Collateral
Documents, any promissory notes executed and delivered pursuant to Section 2.10(e) and any and all
other instruments and documents executed and delivered in connection with any of the foregoing.

          “Loan Parties” means, collectively, the Borrower and the Subsidiary Guarantors.

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

          “Material Indebtedness” means Indebtedness (other than the Loans), or obligations
in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries
in an aggregate principal amount exceeding $20,000,000. For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in
respect of any Swap Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be
required to pay if such Swap Agreement were terminated at such time.

          “Material Subsidiary” means each Subsidiary (a) which, as of the most recent fiscal
quarter of the Borrower, for the period covering the then most recently ended fiscal year and the
portion of the then current fiscal year ending at the end of such fiscal quarter, for which
financial statements have been delivered pursuant to Section 5.01, contributed greater than five
percent (5%) of the Borrower’s Consolidated EBITDA for such period or (b) which contributed greater
than five

11

 

percent (5%) of the Borrower’s Consolidated Total Assets as of such date.

          “Maturity Date” means March 31, 2008.

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

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

          “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such Person arising from
each Swap Agreement transaction. “Unrealized losses” means the fair market value of the cost to
such Person of replacing such transaction as of the date of determination (assuming such
transaction were to be terminated as of that date), and “unrealized profits” means the fair market
value of the gain to such Person of replacing such transaction as of the date of determination
(assuming such transaction was to be terminated as of that date).

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

          “Parent” means Network Appliance, Inc., a Delaware corporation.

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

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

          “Permitted Acquisition” means any acquisition (whether by purchase, merger,
consolidation or otherwise but excluding in any event a Hostile Acquisition) or series of related
acquisitions by the Borrower or any Subsidiary of all or substantially all the assets of, or more
than fifty percent (50%) of the Equity Interests in, a Person or division or line of business of a
Person if, at the time of and immediately after giving effect thereto, (a) no Default has occurred
and is continuing or would arise after giving effect thereto, (b) such Person or division or line
of business is engaged in the same or a similar line of business as the Borrower and the
Subsidiaries or a line of business reasonably related thereto, (c) all actions required to be taken
with respect to such acquired or newly formed Subsidiary under Section 5.09 shall have been taken,
(d) the Borrower and the Subsidiaries are in compliance, on a pro forma basis reasonably acceptable
to the Administrative Agent after giving effect to such acquisition (without giving effect to any
cost savings), with the covenants contained in Section 6.10 recomputed as of the last day of the
most recently ended fiscal quarter of the Borrower for which financial statements are available, as
if such acquisition (and any related incurrence or repayment of Indebtedness, with any new
Indebtedness being deemed to be amortized over the applicable testing period in accordance with its
terms) had occurred on the first day of each relevant period for testing such compliance and the
Borrower shall have delivered to the Administrative Agent a certificate of a Financial Officer of
the Borrower to such effect, together with all relevant financial information, statements and

12

 

projections reasonably requested by the Administrative Agent and (e) in the case of an acquisition
or merger involving the Borrower or a Subsidiary, the Borrower or such Subsidiary is the surviving
entity of such merger and/or consolidation.

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for Taxes or other governmental charges that are not yet due
or are being contested in compliance with Section 5.04;

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s and
other like Liens imposed by law, arising in the ordinary course of business and securing
obligations that are not overdue by more than 60 days or are being contested in compliance
with Section 5.04;

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

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

     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII;

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere in any material respect with the ordinary conduct of business of the Borrower
or any Subsidiary;

     (g) leases or subleases granted to other Persons and not interfering in any material
respect with the business of the lessor or sublessor;

     (h) Liens arising from precautionary Uniform Commercial Code filings or similar filings
relating to operating leases;

     (i) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection within the importation of goods;

     (j) Liens on insurance proceeds securing the premium of financed insurance proceeds;

     (k) Liens on cash collateral to secure letters of credit, bank guarantees and banker’s
acceptances and Swap Agreements;

     (l) licenses of intellectual property in the ordinary course of business;

13

 

     (m) any interest or title of a lessor or sublessor under any lease of real property or
personal property; and

     (n) other Liens on assets (excluding Collateral) securing Indebtedness or other
obligations not prohibited hereunder in an aggregate amount not to exceed $10,000,000 at any
time outstanding;

provided that the term “Permitted Encumbrances” shall not include any Lien securing
Indebtedness.

     “Permitted Investments” means:

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

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of “A-2” (or better)
from S&P or “P-2” (or better) from Moody’s;

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

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

     (e) money market funds that (i) comply with the criteria set forth in Securities and
Exchange Commission Rule 2a-7 under the Investment Company Act of 1940 to the extent such
money market fund is governed thereby, (ii) are rated AA by S&P and Aa by Moody’s and (iii)
have portfolio assets of at least $5,000,000,000;

     (f) investments described in Exhibit G, with a valuation percentage of greater than 0%;
and

     (g) investments made pursuant to a cash management investment policy approved by the
board of directors of the Person making such investment and as in effect on the Effective
Date, as such policy may be amended or otherwise modified from time to time with the written
consent of the Administrative Agent.

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

14

 

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

          “Pledge Agreement” means the Pledge Agreement of even date herewith in the form of
Exhibit E and executed by the Borrower in favor of the Administrative Agent (as amended, restated,
supplemented or otherwise modified from time to time).

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

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

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

          “Relevant Permitted Liens” means Liens permitted under clauses (a) through (m) of the
definition of Permitted Encumbrances and clause (e) of Section 6.02.

          “Required Lenders” means, at any time, Lenders having Term Loan Exposures representing
more than 50% of the total Term Loan Exposures at such time.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Borrower or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the Borrower.

          “Sale and Leaseback Transaction” means any sale or other transfer of assets or
property by any Person with the intent to lease any such asset or property as lessee.

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

          “Secured Obligations” means all indebtedness (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless
of whether allowed or allowable in such proceeding), obligations and liabilities of any of the
Borrower and its Subsidiaries to any of the Lenders and the Administrative Agent, individually or
collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or
several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or
unsecured, arising by contract, operation of law or otherwise, arising or incurred under this
Agreement or any of the other Loan Documents or any Swap Agreement or in respect of any of the
Loans or other instruments at any time evidencing any thereof.

15

 

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject, with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

          “Subordinated Indebtedness” of the Borrower or any Subsidiary means any Indebtedness
of such Person the payment of which is subordinated to payment of the obligations under the Loan
Documents to the written satisfaction of the Administrative Agent.

          “Subordinated Indebtedness Documents” means any document, agreement or instrument
evidencing any Subordinated Indebtedness or entered into in connection with any Subordinated
Indebtedness.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of the Borrower.

          “Subsidiary Guarantor” means the Dutch Pledgor, Network Appliance Holding &
Manufacturing B.V., a company organized under the laws of the Netherlands, NetApp Holdings Limited,
a company organized under the laws of Cyprus, each other Material Subsidiary (other than Affected
Foreign Subsidiaries) and any other Subsidiary that becomes a party to a
Subsidiary Guaranty (including pursuant to a joinder or supplement thereto). The Subsidiary
Guarantors on the Effective Date are identified as such in Schedule 3.01 hereto.

          “Subsidiary Guaranty” means that certain Guaranty dated as of the Effective Date in
the form of Exhibit D (including any and all supplements thereto) and executed by each Subsidiary
Guarantor, and any other guaranty agreements as are requested by the Administrative Agent and its
counsel, in each case as amended, restated, supplemented or otherwise modified from time to time.

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          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a
Swap Agreement.

          “Swap Obligations” of a Person means any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Swap Agreement transaction.

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

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

          “Tranche A Term Loans” means the loans made by the Lenders to the Borrower pursuant to
Section 2.01(a).

          “Tranche A Term Loan Commitment” means, with respect to each Lender, the commitment of
such Lender to make Tranche A Term Loans hereunder on the Effective Date. The amount of each
Lender’s Tranche A Term Loan Commitment is set forth on Schedule 2.01. The aggregate amount of the
Lenders’ Tranche A Term Loan Commitments is $220,000,000.

          “Tranche B Term Loans” means the loans made by the Lenders to the Borrower pursuant to
Section 2.01(b).

          “Tranche B Term Loan Commitment” means, with respect to each Lender, the commitment of
such Lender to make Tranche B Term Loans hereunder on the Effective Date. The amount of each
Lender’s Tranche B Term Loan Commitment is set forth on Schedule 2.01. The aggregate amount of the
Lenders’ Tranche B Term Loan Commitments is $80,000,000.

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

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

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

17

 

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

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

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the Administrative Agent
that the Borrower requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

ARTICLE II

The Credits

          SECTION 2.01. Commitments and Loans. (a) Subject to the terms and conditions set
forth herein, each Lender agrees to make Tranche A Term Loans to the Borrower on the Effective Date
in an aggregate principal amount equal to such Lender’s Tranche A Term Loan Commitment. Amounts
repaid in respect of Tranche A Term Loans may not be reborrowed.

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          (b) Subject to the terms and conditions set forth herein, each Lender agrees to make Tranche B
Term Loans to the Borrower on the Effective Date in an aggregate principal amount equal to such
Lender’s Tranche B Term Loan Commitment. Amounts repaid in respect of Tranche B Term Loans may not
be reborrowed.

          SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective
Commitments. The failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder.

          (b) Subject to Section 2.14, each Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not affect the obligation
of the Borrower to repay such Loan in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than
$1,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than $1,000,000. Borrowings of more
than one Type and Class may be outstanding at the same time; provided that there shall not
at any time be more than a total of seventy-five (75) Eurodollar Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request any Borrowing other than the initial Borrowings on the Effective Date and shall not be
entitled to elect to convert or continue any Borrowing as a Eurodollar Loan if the Interest Period
requested with respect thereto would end after the Maturity Date.

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

(i) the aggregate amount of the requested Borrowing and whether such Borrowing is a
Tranche A Term Loan Borrowing or a Tranche B Term Loan Borrowing;

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

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

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

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

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

          SECTION 2.04. Repayment of Tranche A Term Loans. To the extent not previously repaid,
the Borrower shall repay Tranche A Term Loans in full in cash on the Maturity Date.

          SECTION 2.05. Repayment and Amortization of Tranche B Term Loans. The Borrower shall
repay Tranche B Term Loans in installments on the end of last day of each April, July, October, and
January (commencing with July 31, 2006), with the amount of each such principal installment to
equal $10,000,000. To the extent not previously repaid, all unpaid Tranche B Term Loans shall be
paid in full in cash by the Borrower on the Maturity Date.

          SECTION 2.06. Intentionally Omitted.

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

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

20

 

rules on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing.

          SECTION 2.08. Interest Elections. (a) Each Borrowing initially shall be of the
Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing,
shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the
Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and,
in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this
Section. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.

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

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

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

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

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

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

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

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

21

 

          (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
continued as a Eurodollar Borrowing with an Interest Period of one month’s duration unless such
Interest Period would end after the Maturity Date, in which event such Borrowing shall be converted
to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has
occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so
notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing may be converted to or continued beyond its then current Interest Period as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing
at the end of the Interest Period applicable thereto.

          SECTION 2.09. Termination of Commitments. The Commitments shall terminate on the
Effective Date in accordance with Section 4.01.

          SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) To the extent not
previously repaid in accordance herewith, the Borrower hereby unconditionally promises to pay to
the Administrative Agent for the account of each Lender the then unpaid principal amount of each
Loan on the Maturity Date.

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

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

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

          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 9.04) be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

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          SECTION 2.11. Prepayment of Loans. (a) The Borrower shall have the right at any
time and from time to time to prepay any Borrowing without premium or penalty (but subject to
Section 2.16) in whole or in part, subject to prior notice in accordance with paragraph (c) of this
Section.

          (b) If as of any Determination Date, and for any reason, the aggregate outstanding principal
amount of the Tranche A Term Loans exceeds the value (on a margin-adjusted basis based on the
requirements described on Exhibit G, as amended, restated, supplemented or otherwise modified from
time to time by the Administrative Agent with the consent of the Borrower) of Liquid Investments of
the Borrower maintained with the Administrative Agent (or an Affiliate thereof) and pledged to the
Administrative Agent for the benefit of the relevant Holders of Secured Obligations pursuant to the
Collateral Documents (the “Pledged Investments”), then the Borrower shall, within five (5)
Business Days of the determination of such excess, make a mandatory prepayment of the Tranche A
Term Loans in an amount equal to such excess. Furthermore, (i) upon the maturity of each Pledged
Investment, the Borrower shall, within five (5) Business Days of such maturity, make a mandatory
prepayment of the Tranche A Term Loans in an amount equal to the amount of the Pledged Investment
so matured and (ii) all interest and cash dividends received by Borrower on any Pledged Investment
shall be deposited in an escrow account described in the following sentence and applied as a
prepayment of the Tranche A Term Loans upon the expiration of an Interest Period to be continued
for a Tranche A Term Loan for which the underlying Pledged Investment is not maturing.
Notwithstanding the foregoing, so long as no Default has occurred and is then continuing and at the
Borrower’s option, the Administrative Agent shall hold any such prepayment to be applied to
Eurodollar Loans in escrow (either (x) in an account under the sole dominion and control of the
Administrative Agent or (y) in an account maintained with the Administrative Agent or an Affiliate
thereof and in respect of which the Borrower has executed and delivered the Pledge Agreement and
the Control Agreement or other Collateral Documents in form and substance reasonably satisfactory
to the Administrative Agent) for the benefit of the Lenders and shall release such amounts upon the
expiration of the Interest Periods applicable to any such Eurodollar Loans being prepaid (it being
understood and agreed that interest shall continue to accrue on the Obligations until such time as
such prepayments are released from escrow and applied to reduce the Obligations); provided,
however, that upon the occurrence of a Default, such escrowed amounts may be applied to
Eurodollar Loans without regard to the expiration of any Interest Period and the Borrower shall
make all payments under Section 3.4 resulting therefrom.

          (c) The Borrower shall notify the Administrative Agent by telephone (confirmed by email to
deborah.a.turner@jpmchase.com and victor.perez@jpmchase.com or such other email addresses as are
specified by the Administrative Agent to the Borrower from time to time) of any prepayment
hereunder (other than a mandatory prepayment in accordance with paragraph (b) of this Section) (i)
in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time,
three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid. Promptly following receipt of
any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the
contents thereof. Each prepayment of a

23

 

Borrowing shall be applied to the Loans included in the prepaid Borrowing, and in the case of
Tranche B Term Loans, in the inverse order of maturity. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.13.

          SECTION 2.12. Fees. (a) The Borrower agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately agreed upon between
the Borrower and the Administrative Agent.

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

          SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c) [Intentionally Omitted].

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

          (e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan; provided that (i) interest accrued pursuant to paragraph (d) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan, accrued
interest on the principal amount repaid or prepaid shall be payable on the date of such repayment
or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of
the current Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

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

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

24

 

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

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

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective, (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

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

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

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

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

          (c) A certificate of a Lender setting forth in reasonable detail the calculation of the amount
or amounts necessary to compensate such Lender or its holding company, as the case

25

 

may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the
amount shown as due on any such certificate within 30 days after receipt thereof.

          (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 270 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s intention to claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
270-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to convert,
continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant
hereto (regardless of whether such notice may be revoked under Section 2.11(b) and is revoked in
accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section
2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and
expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense
to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if
any, of (i) the amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such Lender would bid
were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender setting forth in
reasonable detail the calculation of any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest
error. The Borrower shall pay such Lender the amount shown as due on any such certificate within
30 days after receipt thereof.

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation
of the Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
the Borrower shall make such deductions and (iii) the Borrower shall

26

 

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

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

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

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

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

          (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower
or with respect to which the Borrower has paid additional amounts pursuant to this Section 2.17, it
shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.17 with respect to the Taxes or Other
Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or
such Lender and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided, that the Borrower, upon the request of the
Administrative Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental Authority. This Section shall not be construed
to require the Administrative Agent or any Lender to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Borrower or any other Person.

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          SECTION 2.18. Payments Generally; Allocation of Proceeds; Sharing of Set-offs. (a)
The Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest or fees, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to
3:00 p.m., New York City time, on the date when due, in immediately available funds, without
set-off or counterclaim. Any amounts received after such time on any date may, in the discretion
of the Administrative Agent, be deemed to have been received on the next succeeding Business Day
for purposes of calculating interest thereon. All such payments shall be made to the
Administrative Agent at its offices at 270 Park Avenue, New York, New York, except that payments
pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled
thereto. The Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following receipt thereof. If
any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall
be extended to the next succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments hereunder shall
be made in dollars.

          (b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting
either (A) a specific payment of principal, interest, fees or other sum payable under the Loan
Documents (which shall be applied as specified by the Borrower) or (B) a mandatory prepayment
(which shall be applied in accordance with Section 2.11) or (ii) after an Event of Default has
occurred and is continuing and the Administrative Agent so elects or the Required Lenders so
direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense
reimbursements under the Loan Documents, including amounts then due under the Loan Documents to the
Administrative Agent from the Borrower or any other Loan Party (other than in connection with Swap
Obligations), second, to pay any fees or expense reimbursements then due under the Loan
Documents to the Lenders from the Borrower or any other Loan Party (other than in connection with
Swap Obligations), third, to pay interest then due and payable on the relevant Loans
secured by such Collateral ratably, fourth, to prepay principal on the relevant Loans
secured by such Collateral ratably (with amounts applied to the relevant Loans applied to
installments of such Loans in inverse order of maturity), fifth, to payment of any amounts
owing with respect to Swap Obligations, and sixth, to the payment of any other Secured
Obligation due to the Administrative Agent or any Lender by any Loan Party. The Administrative
Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and
reapply any and all such proceeds and payments to any portion of the Secured Obligations.

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

          (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its Loans and accrued
interest thereon than the proportion received by any other Lender, then the Lender

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

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

          (f) If any Lender shall fail to make any payment required to be made by it pursuant to Section
2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding
any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent
for the account of such Lender to satisfy such Lender’s obligations under such Sections until all
such unsatisfied obligations are fully paid.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

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          (b) If any Lender requests compensation under Section 2.15, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, or if any Lender defaults in its obligation to fund Loans hereunder, then
the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have
received the prior written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any
such assignment resulting from a claim for compensation under Section 2.15 or payments required to
be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation
or payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

          SECTION 2.20. Judgment Currency. If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from a Loan Party hereunder in the currency expressed to
be payable herein (the “specified currency”) into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Administrative Agent could
purchase the specified currency with such other currency at the Administrative Agent’s main New
York City office on the Business Day preceding that on which final, non-appealable judgment is
given. The obligations of each Loan Party in respect of any sum due to any Lender or the
Administrative Agent hereunder shall, notwithstanding any judgment in a currency other than the
specified currency, be discharged only to the extent that on the Business Day following receipt by
such Lender or the Administrative Agent (as the case may be) of any sum adjudged to be so due in
such other currency such Lender or the Administrative Agent (as the case may be) may in accordance
with normal, reasonable banking procedures purchase the specified currency with such other
currency. If the amount of the specified currency so purchased is less than the sum originally due
to the Lender or the Administrative Agent, as the case may be, in the specified currency, each Loan
Party party hereto agrees, to the fullest extent that it may effectively do so, as a separate
obligation and notwithstanding any such judgment, to indemnify such Lender or the Administrative
Agent, as the case may be, against such loss, and if the amount of the specified currency so
purchased exceeds (a) the sum originally due to any Lender or the Administrative Agent, as the case
may be, in the specified currency and (b) any amounts shared with other Lenders as a result of
allocations of such excess as a disproportionate payment to such Lender under Section 2.18, such
Lender or the Administrative Agent, as the case may be, agrees to remit such excess to the
Borrower.

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ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers. Each of the Borrower and its Subsidiaries is duly
incorporated or organized, validly existing and in good standing (to the extent such concept
applies to such entity) under the laws of the jurisdiction of its incorporation or organization, as
the case may be, has all requisite power and authority to carry on its business as now conducted
and, except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required. Schedule 3.01 to the
Disclosure Letter (as supplemented from time to time) identifies each Subsidiary, if such
Subsidiary is a Material Subsidiary, the jurisdiction of its incorporation or organization, as the
case may be, the percentage of issued and outstanding shares of each class in its capital or other
equity interests owned by the Borrower and the other Subsidiaries and, if such percentage is not
100% (excluding directors’ qualifying shares as required by law), a description of each class
issued and outstanding. All of the outstanding shares in its capital and other equity interests of
each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such
shares and other equity interests indicated on Schedule 3.01 to the Disclosure Letter as owned by
the Borrower or another Subsidiary are owned, beneficially, legally and/or of record, by the
Borrower or any Subsidiary free and clear of all Liens other than Permitted Encumbrances. Except
as indicated on Schedule 3.01 to the Disclosure Letter, there are no outstanding commitments or
other obligations of the Borrower or any Subsidiary to issue, and no options, warrants or other
rights of any Person to acquire, any shares of any class in its capital or other equity interests
of the Borrower or any Subsidiary.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within each Loan
Party’s corporate or other powers and have been duly authorized by all necessary corporate and, if
required, stockholder or shareholder action. This Agreement has been duly executed and delivered
by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

          SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions (a) do not
require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except such as have been obtained or made and are in full force and effect,
(b) will not violate any applicable law or regulation or the charter, memorandum of association,
by-laws or other organizational documents of the Borrower or any Loan Party or any order of any
Governmental Authority, (c) will not violate or result in a default under any indenture, material
agreement or other material instrument binding upon the Borrower or any of its Subsidiaries or its
assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any
of its Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset
of the Borrower or any of its Subsidiaries, other than Liens created pursuant to the Collateral
Documents.

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          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Borrower
has heretofore furnished to the Lenders the (i) audited consolidated financial statements of the
Parent and the Dutch Pledgor as of and for the fiscal year ended 2005, reported on, in the case of
the Parent, by Deloitte & Touche LLP and, in the case of the Dutch Pledgor, by Deloitte & Touche
LLP, independent public accountants, respectively and (ii) the consolidated balance sheet and
statements of income, stockholders equity and cash flows of the Parent, the Borrower and the Dutch
Pledgor as of and for the subsequent fiscal quarters and the portion of the fiscal year ended 2006,
certified by their respective chief financial officer, principal accounting officer, financial
controller or corporate treasurer. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of the Parent, the
Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with
GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the
statements referred to in clause (ii) above.

          (b) Since April 30, 2005, there has been no material adverse change in the business, assets,
operations or condition, financial or otherwise, of the Borrower and its Subsidiaries, taken as a
whole.

          SECTION 3.05. Properties and Insurance. (a) Each of the Borrower and its
Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, except for minor defects in title that do not interfere with its ability
to conduct its business as currently conducted or to utilize such properties for their intended
purposes. The Borrower maintains, and has caused each Subsidiary to maintain, with financially
sound and reputable insurance companies insurance on all their real and personal property in such
amounts, subject to such deductibles and self-insurance retentions and covering such properties and
risks as are customarily maintained by companies engaged in the same or similar businesses
operating in the same or similar locations.

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

          SECTION 3.06. Litigation, Labor Matters and Environmental Matters. (a) There are
no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of the Borrower, threatened against the Borrower or any of its
Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve this
Agreement or the Transactions.

          (b) There are no labor controversies pending against or, to the knowledge of the Borrower,
threatened against the Borrower or any of its Subsidiaries (i) which could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect or (ii) that involve this
Agreement or the Transactions.

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          (c) Except for the Disclosed Matters and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, none of the Borrower or any of its Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

          (d) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

          SECTION 3.07. Compliance with Laws and Agreements; No Burdensome Restrictions. Each
of the Borrower and its Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except, in each case, where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect. Neither the Borrower nor any Subsidiary is party or subject to any law, regulation, rule
or order, or any obligation under any agreement or instrument, that has had, or could reasonably be
expected to result in, a Material Adverse Effect.

          SECTION 3.08. Investment and Holding Company Status. Neither the Borrower nor any of
its Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.

          SECTION 3.09. Taxes. Each of the Borrower and its Subsidiaries has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused
to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
has set aside on its books adequate reserves or (b) to the extent that the failure to do so could
not reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.11. Disclosure. To the extent not previously disclosed pursuant to the
Parent’s filings with the Securities and Exchange Commission on or prior to the Effective Date, the
Borrower has disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which the Parent, the Borrower or any of their respective Affiliates is subject,
and all other matters known to it, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect. None of the written reports, financial
statements, certificates or other written information furnished by or on behalf of the Parent or
the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this
Agreement or delivered hereunder (as modified or supplemented by other information so

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furnished) contains any material misstatement of fact or, when taken together with the
Parent’s filings with the Securities and Exchange Commission, omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial information or
results, the Borrower represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

          SECTION 3.12. No Default. No Default has occurred and is continuing.

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 9.02):

     (a) The Administrative Agent (or its counsel) shall have received from (i) each party
hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B)
written evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of this Agreement) that such party has signed a
counterpart of this Agreement and (ii) each initial Subsidiary Guarantor either (A) a
counterpart of the Subsidiary Guaranty signed on behalf of such Subsidiary Guarantor or (B)
written evidence satisfactory to the Administrative Agent (which may include telecopy
transmission of a signed signature page of the Subsidiary Guaranty) that such Subsidiary
Guarantor has signed a counterpart of the Subsidiary Guaranty.

     (b) The Administrative Agent shall have received the favorable written opinions
(addressed to the Administrative Agent and the Lenders and dated the Effective Date) of
Appleby Spurling Hunter, Wilson Sonsini Goodrich & Rosati, Kennedy Van der Laan and Chrysses
Demetriades & Co, counsels for the Loan Parties, substantially in the forms of Exhibit B-1,
B-2, B-3 and B-4, and covering such other matters relating to the Loan Parties, this
Agreement or the Transactions as the Required Lenders shall reasonably request. The
Borrower hereby requests such counsels to deliver such opinions.

     (c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the incorporation or
organization, existence and good standing of the initial Loan Parties, the authorization of
the Transactions and any other legal matters relating to such Loan Parties, the Loan
Documents or the Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel and as further described in the list of closing
documents attached as Exhibit C.

     (d) The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the Chief Executive Officer or a Financial Officer or a member of the
board of directors of the Borrower, confirming compliance with the conditions set forth in
paragraphs (f) and (g) of this Section 4.01.

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

     (f) The representations and warranties of the Borrower set forth in this Agreement
shall be true and correct on and as of the date of such Loans.

     (g) At the time of and immediately after giving effect to such Loans, no Default shall
have occurred and be continuing

The Borrowing on the Effective Date shall be deemed to constitute a representation and warranty by
the Borrower on the date thereof as to the matters specified in paragraphs (f) and (g) of this
Section. The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date,
and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of
the Lenders to make Loans hereunder shall not become effective unless each of the foregoing
conditions is satisfied (or waived pursuant to Section 9.02) at or prior to 3:00 p.m., New York
City time, on March 31, 2006 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).

ARTICLE V

Affirmative Covenants

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

          SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish
to the Administrative Agent and each Lender:

     (a) within 150 days after the end of each fiscal year of the Borrower, the audited
consolidated balance sheet and related statements of operations, shareholders’ equity and
cash flows of the Parent and the Dutch Pledgor as of the end of and for such year, setting
forth in each case in comparative form the figures for the previous fiscal year, all
reported on by Deloitte & Touche LLP, or other independent public accountants of recognized
international standing (without a “going concern” or like qualification or exception and
without any qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material respects the financial
condition and results of operations of the Parent, the Borrower, the Dutch Pledgor and their
respective consolidated subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;

     (b) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Borrower, the unaudited consolidated balance sheet and related statements
of operations, shareholders’ equity and cash flows of each of the Parent, the Borrower and
the Dutch Pledgor as of the end of and for such fiscal quarter and the then elapsed portion
of the fiscal year, setting forth in each case in comparative form the

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figures for the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by one of the Borrower’s
Financial Officers as presenting fairly in all material respects the financial condition and
results of operations of the Parent, the Borrower and their respective consolidated
subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments and the absence of footnotes;

     (c) concurrently with any delivery of financial statements under clause (a) or (b)
above, a compliance certificate of a Financial Officer of the Borrower in the form of
Exhibit H hereto (i) certifying as to whether a Default has occurred and is continuing and,
if a Default has occurred and is continuing, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed
calculations demonstrating compliance with Section 6.10 and setting forth the computations
necessary to determine the Applicable Rate and (iii) stating whether any change in GAAP or
in the application thereof has occurred since the date of the audited financial statements
referred to in Section 3.04 and, if any such change has occurred, specifying the effect of
such change on the financial statements accompanying such certificate;

     (d) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Parent, the Borrower or any
Subsidiary with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national
securities exchange, or distributed by the Borrower to its shareholders generally, as the
case may be;

     (e) within 15 days after the end of each calendar month, a detailed description of the
Dutch Pledgor’s accounts receivable (prepared in a manner reasonably acceptable to the
Administrative Agent), together with a summary specifying the name, address, other contact
information and balance due for each account debtor in respect of such accounts, and any
other information reasonably requested by the Administrative Agent in connection therewith,
all certified by one of the Borrower’s Financial Officers or their designee, which may
include Parent’s Assistant Treasurer, as presenting fairly in all material respects the
description of such receivables; and

     (f) promptly following any request therefor, such other information regarding the
operations, business affairs, assets and financial condition of the Parent, the Borrower or
any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent
or any Lender may reasonably request.

Reports or financial information required to be delivered pursuant to Sections 5.01(a), 5.01(b) or
5.01(d) (to the extent any such financial statements, reports, proxy statements or other materials
are included in materials otherwise filed with the Securities and Exchange Commission) may be
delivered electronically and if so, shall be deemed to have been delivered on the date on which
Borrower or Parent posts such report or provides a link thereto on the Parent’s website on the
internet; provided that Borrower shall provide paper copies to the Administrative Agent of the
compliance certificates required by Section 5.01(c). Notwithstanding the foregoing, the

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Borrower shall provide paper copies to the Administrative Agent of the
compliance certificates required by Section 5.01(c). Notwithstanding the foregoing, the Borrower
shall deliver paper copies of any financial statement referred to in Section 5.01 to the
Administrative Agent if the Administrative Agent requests the Borrower to furnish such paper copies
until written notice to cease delivering such paper copies is given by the Administrative Agent.

          SECTION 5.02. Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

     (a) the occurrence of any Default;

     (b) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against the Borrower or any Affiliate thereof that
could reasonably be expected to result in a Material Adverse Effect; and

     (c) any other development that results in a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. The Borrower will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business except where the failure to do so would not
reasonably be expected to result in a Material Adverse Effect; provided that the foregoing
shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section
6.03.

          SECTION 5.04. Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could
reasonably be expected to result in a Material Adverse Effect before the same shall become
delinquent or in default, except where (a) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its
books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make
payment pending such contest could not reasonably be expected to result in a Material Adverse
Effect.

          SECTION 5.05. Maintenance of Properties; Insurance. The Borrower will, and will
cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of
its business in good working order and condition, ordinary wear and tear excepted, except where the
failure to do so could not reasonably be expected to result in a Material Adverse Effect and (b)
maintain, with financially sound and reputable insurance companies, insurance in such amounts and
against such risks as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations.

          SECTION 5.06. Books and Records; Inspection Rights. The Borrower will, and will
cause each of its Subsidiaries to, keep proper books of record and account in which full, true and
correct entries are made in all material respects and sufficient to prepare financial statements

37

 

in
accordance with GAAP. The Borrower will, and will cause each of its Material Subsidiaries to,
permit any representatives designated by the Administrative Agent or any Lender, upon reasonable
prior notice, to visit and inspect its properties, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested. Notwithstanding
the foregoing, neither the Borrower nor its Subsidiaries shall be required to disclose or discuss,
or permit the inspection, examination or making of extracts of any document, book, record or other
matter that (i) constitutes non-financial trade secrets or non-financial proprietary information,
(ii) in respect of which disclosure to the Administrative Agent, such Lender or their
representatives is then prohibited by applicable law or any agreement binding on Borrower or its
Subsidiaries or (iii) is protected from disclosure by the attorney-client privilege or the attorney
work product privilege.

          SECTION 5.07. Compliance with Laws and Contractual Obligations. The Borrower will,
and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of
any Governmental Authority (including without limitation Environmental Laws), and all agreements
and other contractual instruments, applicable to it or its property, except where the failure to do
so, individually or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

          SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used to fund a
dividend to Parent in accordance with Section 965 of the Code. No part of the proceeds of any Loan
will be used, whether directly or indirectly, for any purpose that entails a violation of any of
the Regulations of the Board, including Regulations T, U and X.

          SECTION 5.09. Subsidiary Guaranty. As promptly as possible but in any event within
thirty (30) days (or such later date as may be agreed upon by the Administrative Agent) after any
Person becomes a Subsidiary or any Subsidiary qualifies independently as, or is designated by the
Borrower or the Administrative Agent as, a Subsidiary Guarantor pursuant to the definition of
“Material Subsidiary”, the Borrower shall provide the Administrative Agent with written notice
thereof setting forth information in reasonable detail describing the material assets of such
Person and shall cause each such Subsidiary which also qualifies as a Subsidiary Guarantor to
deliver to the Administrative Agent the Subsidiary Guaranty pursuant to which such Subsidiary
agrees to be bound by the terms and provisions of thereof, such Subsidiary Guaranty to be
accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions
in form and substance reasonably satisfactory to the Administrative Agent and its counsel.

          SECTION 5.10. Collateral. (a) The Borrower will cause Liquid Investments of the
Borrower in an aggregate amount of not less than the then outstanding principal amount of the
Tranche A Term Loans (on a margin-adjusted basis based on the requirements described on Exhibit G,
as amended, restated supplemented or otherwise modified from time to time by the Administrative
Agent with the consent of the Borrower) to be subject at all times (subject to the 5-Business Day
period for mandatory prepayment set forth in Section 2.11(b)) to first priority, perfected Liens
(subject only to Relevant Permitted Liens) in favor of the Administrative Agent for the benefit of
the relevant Holders of Secured Obligations to secure the Secured Obligations in respect of Tranche
A Term Loans and the Secured Obligations in respect of Swap Agreements

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in accordance with the terms
and conditions of the Collateral Documents and to take all such actions reasonably requested by the
Administrative Agent in connection therewith.

     (b) The Borrower will cause the Dutch Pledgor (and, to the extent requested by the
Administrative Agent after the occurrence and during the continuation of an Event of Default, the
Commissionaires) to grant first priority perfected Liens, subject only to Relevant Permitted Liens,
on its accounts receivable and related assets in favor of the Administrative Agent for the benefit
of the relevant Holders of Secured Obligations to secure the Secured Obligations in respect of the
Tranche B Term Loans and the Secured Obligations in respect of Swap Agreements in accordance with
the terms and conditions of the Dutch Pledge Agreement and the other Collateral Documents and to
take all such actions reasonably requested by the Administrative Agent in connection therewith.
Furthermore, the Borrower will not permit the Dutch Pledgor, any of the Dutch Pledgor’s
Subsidiaries and the Commissionaires to amend or otherwise modify (in any respect materially
adverse to such Holders of Secured Obligations or the liens granted to the Administrative Agent in
connection with such accounts receivable and related assets) the systems, structure and process (as
in effect on, and disclosed to the Administrative Agent prior to, the Effective Date) applicable to
the origination and collection of such accounts and related assets of the Dutch Pledgor, such
Subsidiaries and such Commissionaires. This clause (b) shall cease to apply upon the repayment in
full in cash of the Secured Obligations in respect of the Tranche B Term Loans.

     (c) The Borrower further agrees to deliver, and (so long as the Secured Obligations in
respect of the Tranche B Term Loans are not repaid in full in cash) cause (i) its applicable
Material Subsidiaries and (ii) in the event an Event of Default has occurred and is continuing, the
Commissionaires to deliver, in each case to the Administrative Agent all such Collateral Documents
as are requested by the Administrative Agent, together with appropriate corporate resolutions and
other corporate documentation (including, to the extent requested by the Administrative Agent,
legal opinions and such other documents as shall be reasonably requested to perfect the Liens under
the Collateral Documents) in each case in form and substance reasonably satisfactory to the
Administrative Agent and its counsel, and in a manner that the Administrative Agent shall be
reasonably satisfied that the Administrative Agent has a first priority perfected pledge of or
charge over the Collateral related thereto, subject only to Relevant Permitted Liens.

ARTICLE VI

Negative Covenants

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

          SECTION 6.01. Indebtedness. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

     (a) the Secured Obligations and any other Indebtedness created under the Loan
Documents;

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     (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 to the
Disclosure Letter and extensions, renewals and replacements of any such Indebtedness that do
not increase the then outstanding principal amount thereof;

     (c) Indebtedness of (i) any Loan Party to any other Loan Party, (ii) any Subsidiary to
any Loan Party, (iii) any Subsidiary that is not a Loan Party to any other Subsidiary that
is not a Loan Party and (iv) any Loan Party to any Subsidiary that is not a Loan Party, if
permitted under Section 6.04(d);

     (d) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary
of Indebtedness of the Borrower or any other Subsidiary;

     (e) Indebtedness of the Borrower or any Subsidiary incurred to finance the
acquisition, construction or improvements of any fixed or capital assets, including Capital
Lease Obligations and any Indebtedness assumed in connection with the acquisition of any
such assets or secured by a Lien on any such assets (and additions, accessions, parts,
improvement and attachments thereto and the proceeds thereof) prior to the acquisition
thereof, and extensions, renewals and replacements of any such Indebtedness that do not
increase the then outstanding principal amount thereof; provided that (i) such
Indebtedness is incurred prior to or within 120 days after such acquisition or the
completion of such construction or improvement and (ii) the aggregate principal amount of
Indebtedness permitted by this clause (e) shall not exceed $25,000,000 at any time
outstanding; and extensions, renewals and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof;

     (f) Indebtedness of any Person that becomes a Subsidiary after the date hereof;
provided that (i) such Indebtedness exists at the time such Person becomes a
Subsidiary and is not created in contemplation of or in connection with such Person becoming
a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this
clause (f) shall not exceed $10,000,000 at any time outstanding and extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding principal amount
thereof;

     (g) Indebtedness of the Borrower or any Subsidiary as an account party in respect of
letters of credit, bank guarantees and bankers’ acceptances;

     (h) Subordinated Indebtedness in an aggregate principal amount not to exceed
$20,000,000 at any time outstanding;

     (i) Indebtedness in respect of Swap Agreements permitted under Section 6.05; and

     (j) other Indebtedness in an aggregate principal amount not exceeding $20,000,000 at
any time outstanding.

          SECTION 6.02. Liens. The Borrower will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now

40

 

owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

     (a) Permitted Encumbrances;

     (b) any Lien on any property or asset of the Borrower or any Subsidiary existing on
the date hereof and set forth in Schedule 6.02 to the Disclosure Letter; provided
that (i) such Lien shall not apply to any other property or asset of the Borrower or any
Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the
date hereof and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

     (c) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a
Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien
shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii)
such Lien shall secure only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount
thereof;

     (d) Liens on fixed or capital assets (and additions, accessions, parts, improvements
and attachments thereto and the proceeds thereof) acquired, constructed or improved by the
Borrower or any Subsidiary; provided that (i) such security interests secure
Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the
Indebtedness secured thereby are incurred prior to or within 120 days after such acquisition
or the completion of such construction or improvement, (iii) the Indebtedness secured
thereby does not exceed the cost of acquiring, constructing or improving such fixed or
capital assets and (iv) such security interests shall not apply to any other property or
assets of the Borrower or any Subsidiary;

     (e) customary bankers’ Liens and rights of setoff arising by operation of law or
contract and incurred on deposits made in the ordinary course of business; and

     (f) Liens created under the Collateral Documents.

          SECTION 6.03. Fundamental Changes and Sales of Assets. (a) The Borrower will not,
and will not permit any Subsidiary to, merge into, consolidate with, or otherwise be acquired by,
any other Person, or permit any other Person to merge into, consolidate with, or otherwise be
acquired by, it, or sell, transfer, lease or otherwise dispose (including pursuant to a Sale and
Leaseback Transaction) of (in one transaction or in a series of transactions) any of its assets
(other than (1) sales, leases, transfers or other dispositions of inventory in the ordinary course
of business, (2) sales or dispositions of obsolete, damaged or worn-out or surplus equipment
disposed of in the ordinary course of business, (3) non-exclusive licenses of intellectual
property, (4) the granting of Liens permitted under Section 6.02, (5) the surrender or

41

 

waiver of
litigation rights or settlement, release or surrender of tort or other litigation claims of any
kind, and (6) dispositions of cash and cash equivalents), or all or substantially all of the stock
of any of its Subsidiaries (in each case, whether now owned or here-after acquired), or liquidate
or dissolve, except that, if at the time thereof and immediately after giving effect thereto no
Default shall have occurred and be continuing (i) the Borrower and its Subsidiaries may enter into
and consummate Permitted Acquisitions, (ii) any Subsidiary may merge into a Loan Party in a
transaction in which the surviving entity is such Loan Party (provided that any such merger
involving the Borrower must result in the Borrower as the surviving entity), (iii) any wholly owned
Subsidiary may merge into or consolidate with any wholly owned Subsidiary in a transaction in which
the surviving entity is a wholly owned Subsidiary and no Person other than the Borrower or a wholly
owned Subsidiary receives any consideration, provided that if any such merger described in this
clause (iii) shall involve a Loan Party, the surviving entity of such merger shall be a Loan Party,
(iv) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to a Loan Party or
any wholly owned Subsidiary pursuant to a transaction not otherwise prohibited under this
Agreement, (v) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith
that such liquidation or dissolution is in the best interests of the Borrower and is not materially
disadvantageous to the Lenders and (vi) the Borrower or any Subsidiary may otherwise sell,
transfer, lease or dispose (including pursuant to a Sale and Leaseback Transaction) of its assets
(other than all or substantially all of the assets of the Dutch Pledgor) so long as the assets sold
or disposed by the Borrower and its Subsidiaries in any fiscal year do not exceed, in the
aggregate, $20,000,000.

          (b) The Borrower will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Borrower and its
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

          (c) The Borrower will not, and will not permit any of its Subsidiaries to, change its fiscal
year to end on a day other than as such fiscal year end is currently determined or change the
Borrower’s method of determining fiscal quarters.

          SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The
Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to
such merger) any capital stock, evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or
any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a
series of transactions) any assets of any other Person constituting a business unit, except:

          (a) Permitted Investments;

          (b) Permitted Acquisitions;

          (c) investments by the Borrower existing on the date hereof in the capital stock of its
Subsidiaries;

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          (d) investments, loans or advances made by the Borrower to any Subsidiary and made by any
Subsidiary to the Borrower or any other Subsidiary (provided that (A) not more than an aggregate of
$10,000,000 in investments, loans, advances or capital contributions (other than payments of
commissions to Commissionaires) may be made and remain outstanding, during the term of this
Agreement, by Loan Parties to Persons which are not Loan Parties, (B) not more than an aggregate
of $50,000,000 in payments of commissions may be outstanding at any time during the term of this
Agreement by Loan Parties to Commissionaires and (C) payments to Commissionaires for value added
taxes owed by such Commissionaire for receivables transferred to the Dutch Pledgor may be made);

          (e) Guarantees constituting Indebtedness permitted by Section 6.01;

          (f) investments received in connection with the bankruptcy or reorganization of, or
settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the
ordinary course of business;

          (g) receivables owing to the Borrower or a Subsidiary if created or acquired in the ordinary
course of business and payable or dischargeable in accordance with customary trade terms; provided
that such trade terms may include such concessionary trade terms as the Borrower or any such
Subsidiary deems reasonable under the circumstances;

          (h) investments consisting of Equity Interests, obligations, securities or other property
received in settlement of delinquent accounts in the ordinary course of business and owing to the
Borrower or any Subsidiary or in satisfaction of judgments;

          (i) investments in payroll, travel and similar advances to cover matters that are expected at
the time of such advances ultimately to be treated as expenses for accounting purposes and that are
made in the ordinary course of business;

          (j) loans or advances to employees made in the ordinary course of business of the Borrower or
a Subsidiary not exceeding $2,000,000 in the aggregate outstanding at any one time;

          (k) Guarantees by the Borrower and the Subsidiaries of leases entered into by any Subsidiary
as lessee;

          (l) investments in the form of Swap Agreements permitted under Section 6.05;

          (m) investments consisting of deposit and securities accounts maintained in the ordinary
course of business;

          (n) investments acquired by Borrower or any of its Subsidiaries (i) in exchange for any other
investment held by Borrower or such Subsidiary in connection with or as a result of a bankruptcy,
workout, reorganization or recapitalization of the issuer of such investment, or (ii) as a result
of a foreclosure by Borrower or any of its Subsidiaries with respect to any secured investment or
other transfer of title with respect to any secured investment in default;

          (o) Indebtedness permitted under Section 6.01(c)(i), (ii) or (iii); and

43

 

          (p) other investments in an aggregate amount, as valued at the time each such investment is
made, not exceeding $15,000,000 in the aggregate for all such investments made from and after the
Effective Date.

          SECTION 6.05. Swap Agreements. The Borrower will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in
respect of Equity Interests or Subordinated Indebtedness of the Borrower or any of its
Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or exchange
interest rates (from fixed to floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or investment of the Borrower or any
Subsidiary.

          SECTION 6.06. Restricted Payments. The Borrower will not, and will not permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except (a) the Borrower may declare and pay dividends with respect to its
Equity Interests payable solely in additional shares of its capital stock, (b) Subsidiaries may
declare and pay dividends ratably with respect to their Equity Interests, (c) the Borrower may make
Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans
for current or former management, directors or employees of the Borrower and its Subsidiaries and
(d) Borrower may declare and pay the dividend contemplated by Section 5.08.

          SECTION 6.07. Transactions with Affiliates. The Borrower will not, and will not
permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices
and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among
the Borrower and its wholly owned Subsidiaries not involving any other Affiliate, (c) any
Restricted Payment permitted by Section 6.06, any Indebtedness permitted by Section 6.01 and any
investment permitted by Section 6.04, (d) to pay customary fees and reimburse out-of-pocket
expenses of directors or (e) as set forth on the Disclosure Letter.

          SECTION 6.08. Restrictive Agreements. The Borrower will not, and will not permit any
of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the
Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to the Borrower or any
other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary;
provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
law or by this Agreement, (ii) the foregoing shall not apply to restrictions and conditions
existing on the date hereof identified on Schedule 6.08 to the Disclosure Letter (but shall apply
to any extension or renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of assets or of a Subsidiary pending such
sale, provided such restrictions and conditions apply only to such assets or such Subsidiary that

44

 

are to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not
apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement if such restrictions or conditions apply only to the property or assets
securing such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary
provisions in leases, licenses, joint venture agreements and other agreements entered into in the
ordinary course of business restricting the assignment thereof.

          SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness
Documents. The Borrower will not, and will not permit any Subsidiary to, directly or
indirectly voluntarily prepay, defease or in substance defease, purchase, redeem, retire or
otherwise acquire, any Subordinated Indebtedness or any Indebtedness from time to time outstanding
under the Subordinated Indebtedness Documents. Furthermore, the Borrower will not, and will not
permit any Subsidiary to, amend the Subordinated Indebtedness Documents or any document, agreement
or instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness
Documents (or any replacements, substitutions, extensions or renewals thereof) or pursuant to which
such Indebtedness is issued where such amendment, modification or supplement provides for the
following or which has any of the following effects:

     (a) increases the overall principal amount of any such Indebtedness or increases the
amount of any single scheduled installment of principal or interest;

     (b) shortens or accelerates the date upon which any installment of principal or
interest becomes due or adds any additional mandatory redemption provisions;

     (c) shortens the final maturity date of such Indebtedness or otherwise accelerates the
amortization schedule with respect to such Indebtedness;

     (d) increases the rate of interest accruing on such Indebtedness;

     (e) provides for the payment of additional fees or increases existing fees;

     (f) amends or modifies any financial or negative covenant (or covenant which prohibits
or restricts the Borrower or any Subsidiary from taking certain actions) in a manner which
is more onerous or more restrictive in any material respect to the Borrower or such
Subsidiary or which is otherwise materially adverse to the Borrower, any Subsidiary and/or
the Lenders or, in the case of any such covenant, which places material additional
restrictions on the Borrower or such Subsidiary or which requires the Borrower or such
Subsidiary to comply with more restrictive financial ratios or which requires the Borrower
to better its financial performance, in each case from that set forth in the existing
applicable covenants in the Subordinated Indebtedness Documents or the applicable covenants
in this Agreement; or

     (g) amends, modifies or adds any affirmative covenant in a manner which (i) when taken
as a whole, is materially adverse to the Borrower, any Subsidiary and/or the Lenders or (ii)
is more onerous than the existing applicable covenant in the Subordinated Indebtedness
Documents or the applicable covenant in this Agreement.

          SECTION 6.10. Financial Covenants.

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     (a) The Borrower will not permit the Liquidity Ratio to be less than 1.0 to 1.0.

     (b) The Borrower will not permit the Leverage Ratio to be greater than 2.5 to 1.0;
provided that this Section 6.10(b) shall cease to apply upon the repayment in full
in cash of the Tranche B Term Loans.

ARTICLE VII

Events of Default

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

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

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

     (c) any written representation or warranty made or deemed made by or on behalf of any
Loan Party in or in connection with Agreement or any other Loan Document or any amendment or
modification thereof or waiver thereunder, or in any written report, certificate, financial
statement or other document furnished pursuant to or in connection with this Agreement or
any other Loan Document or any amendment or modification thereof or waiver thereunder, shall
prove to have been incorrect in any material respect when made or deemed made;

     (d) (i) the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in Section 5.02(a), 5.03 (with respect to the Borrower’s existence),
5.08, 5.09 or 5.10 or in Article VI or (ii) any Loan Document shall for any reason not be or
shall cease to be in full force and effect or is declared to be null and void, or the
Borrower or any Subsidiary takes any action for the purpose of terminating, repudiating or
rescinding any Loan Document or any of its obligations thereunder or any Lien in favor of
the Administrative Agent under the Loan Documents shall not have the priority contemplated
by the Loan Documents, subject to Relevant Permitted Liens;

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

     (f) the Borrower or any Subsidiary shall fail to make any payment of principal or
interest in respect of any Material Indebtedness, when and as the same shall become due and
payable after giving effect to any applicable grace period;

46

 

     (g) with respect to any Material Indebtedness, any event or condition occurs that
results in such Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of such Material Indebtedness or any trustee or agent on its or their
behalf to cause such Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (g) shall not apply to secured Indebtedness that becomes
due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness;

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

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

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

     (k) one or more judgments for the payment of money in an aggregate amount in excess of
$40,000,000 (to the extent not covered by a creditworthy insurer) shall be rendered against
the Borrower, any Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor holding a
judgment in excess of $40,000,000 to attach or levy upon any assets of the Borrower or any
Subsidiary to enforce any such judgment;

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

     (m) a Change in Control shall occur;

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then, and in every such event (other than an event with respect to the Parent or the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter during the continuance
of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take the following actions, at the same or different times: declare the
Loans then outstanding to be due and payable in whole (or in part, in which case any principal not
so declared to be due and payable may thereafter be declared to be due and payable), and thereupon
the principal of the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other Secured Obligations accrued under the Loan Documents, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to the Parent or
the Borrower described in clause (h) or (i) of this Article, the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other Secured Obligations
accrued under the Loan Documents, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. Upon
the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and
at the request of the Required Lenders shall, exercise any rights and remedies provided to the
Administrative Agent under the Loan Documents or at law or equity, including all remedies provided
under the Uniform Commercial Code (as in effect from time to time in the State of New York or any
other state the laws of which are required to be applied in connection with the issue of perfection
of security interests under any of the Collateral Documents) and the Netherlands Civil Code.

ARTICLE VIII

The Administrative Agent

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

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

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth herein, the Administrative Agent

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shall not have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Parent, the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent
shall not be liable for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by the Borrower or a
Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection with any Loan Document, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, (v) the creation, perfection or priority of Liens on the Collateral or the
existence of the Collateral, or (vi) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent..

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

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

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the
Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor. If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may,
on behalf of the Lenders, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank.

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Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while it was acting as Administrative Agent.

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

          None of the Lenders, if any, identified in this Agreement as a Syndication Agent or
Co-Documentation Agent shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than those applicable to all Lenders as such. Without limiting the
foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any
Lender. Each Lender hereby makes the same acknowledgments with respect to the relevant Lenders in
their respective capacities as Syndication Agent or Co-Documentation Agents, as applicable, as it
makes with respect to the Administrative Agent in the preceding paragraph.

          Except with respect to the exercise of setoff rights of any Lender, in accordance with Section
9.08, the proceeds of which are applied in accordance with this Agreement, each Lender agrees that
it will not take any action, nor institute any actions or proceedings, against the Borrower or with
respect to any Loan Document, without the prior written consent of the Required Lenders or, as may
be provided in this Agreement or the other Loan Documents, with the consent of the Administrative
Agent.

          The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or
omissions of, or (except as otherwise set forth herein in case of the Administrative Agent)
authorized to act for, any other Lender. The Administrative Agent shall have the exclusive right
on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after
the date such principal or interest has become due and payable pursuant to the terms of this
Agreement.

          In its capacity, the Administrative Agent is a “representative” of the Holders of Secured
Obligations within the meaning of the term “secured party” as defined in the New York Uniform
Commercial Code. Each Lender authorizes the Administrative Agent to enter into each of the
Collateral Documents to which it is a party and to take all action contemplated by such

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documents.
Each Lender agrees that no Holder of Secured Obligations (other than the Administrative Agent)
shall have the right individually to seek to realize upon the security granted by any Collateral
Document, it being understood and agreed that such rights and remedies may be exercised solely by
the Administrative Agent for the benefit of the relevant Holders of Secured Obligations upon the
terms of the Collateral Documents. In the event that any Collateral is hereafter pledged by any
Person as collateral security for the Secured Obligations, the Administrative Agent is hereby
authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the
relevant Holders of Secured Obligations any Loan Documents necessary or appropriate to grant and
perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the relevant
Holders of Secured Obligations. The Lenders hereby authorize the Administrative Agent, at its
option and in its discretion, to release any Lien granted to or held by the Administrative Agent
upon any Collateral (i) upon termination of the Commitments and payment and satisfaction of all of
the Secured Obligations (other than contingent indemnity obligations and Secured Obligations in
respect of Swap Agreements) at any time arising under or in respect of this Agreement or the Loan
Documents or the transactions contemplated hereby or thereby; (ii) as permitted by, but only in
accordance with, the terms of the applicable Loan Document; or (iii) if approved, authorized or
ratified in writing by the Required Lenders, unless such release is required to be approved by all
of the Lenders hereunder. Upon request by the Administrative Agent at any time, the Lenders will
confirm in writing the Administrative Agent’s authority to release particular types or items of
Collateral pursuant hereto. Upon any sale or transfer of assets constituting Collateral which is
permitted pursuant to the terms of any Loan Document, or consented to in writing by the Required
Lenders or all of the Lenders, as applicable, and upon at least five Business Days’ prior written
request by the Borrower to the Administrative Agent, the Administrative Agent shall (and is hereby
irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence
the release of the Liens granted to the Administrative Agent for the benefit of the relevant
Holders of Secured Obligations herein or pursuant hereto upon the Collateral that was sold or
transferred; provided, however, that (i) the Administrative Agent shall not be
required to execute any such document on terms which, in the Administrative Agent’s opinion, would
expose the Administrative Agent to liability or create any obligation or entail any consequence
other than the release of such Liens without recourse or warranty, and (ii) such release shall not
in any manner discharge, affect or impair the Secured Obligations or any Liens upon (or obligations
of the Borrower or any Subsidiary in respect of) all interests retained by the Borrower or any
Subsidiary, including (without limitation) the proceeds of the sale, all of which shall continue to
constitute part of the Collateral.

          The Administrative Agent is hereby authorized to execute and deliver any documents necessary
or appropriate to create and perfect the rights of pledge for the benefit of the relevant Holders
of Secured Obligations, including a right of pledge with respect to the assets and other interests
of the Dutch Pledgor (including without limitation the Dutch Pledge Agreement, a “Dutch
Pledge”). Without prejudice to the provisions of this Agreement and the other Loan Documents,
the parties hereto acknowledge and agree with the creation of parallel debt obligations of the
Borrower or any relevant Subsidiary as will be described in any Dutch Pledge (the “Parallel
Debt”), including that any payment received by the Administrative Agent in respect of the
Parallel Debt will — conditionally upon such payment not subsequently being avoided or reduced by
virtue of any provisions or enactments relating to bankruptcy, insolvency, preference, liquidation
or similar laws of general application — be deemed a satisfaction of a pro

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rata portion of the
corresponding amounts of the Secured Obligations, and any payment to the Holders of Secured
Obligations in satisfaction of the Secured Obligations shall — conditionally upon such payment not
subsequently being avoided or reduced by virtue of any provisions or enactments relating to
bankruptcy, insolvency, preference, liquidation or similar laws of general application — be deemed
as satisfaction of the corresponding amount of the Parallel Debt. The parties hereto acknowledge
and agree that, for purposes of a Dutch Pledge, any resignation by the Administrative Agent is not
effective until its contractual relationship under the Parallel Debt, including all of its rights
and obligations thereunder, is transferred to the successor Administrative Agent.

ARTICLE IX

Miscellaneous

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

     (i) if to the Borrower, to it at 495 East Java Drive, Sunnyvale, California 94089,
Attention of Steve Gomo, Chief Financial Officer (Telecopy No. (408) 822-4412), with a copy
to 495 East Java Drive, Sunnyvale, California 94089, Attention of Christopher Afarian
(Telecopy No. (408) 822-4455);

     (ii) if to the Administrative Agent, to JPMorgan Chase Bank, National Association, 10
South Dearborn, 19th Floor, Chicago, Illinois 60603, Attention of Deborah Turner
(Telecopy No. (312) 385-7096), with a copy to JPMorgan Chase Bank, National Association, 560
Mission Street, 18th Floor, San Francisco, California 94105, Attention of Alex
McKindra (Telecopy No. (415) 315-8483) and JPMorgan Chase Bank, National Association, 277
Park Avenue, 16th Floor, New York, New York 10172, Attention of Anthony Galea
(Telecopy No. (866) 682-7113); and

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

          (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 Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other

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communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent or any Lender in exercising any right or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or consent to any
departure by the Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless
of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default
at the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) reduce the principal amount of any Loan or reduce
the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (ii) postpone the scheduled date of payment of the principal amount
of any Loan, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive
or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of each Lender affected thereby, (iii) change Section 2.18(c) or (d) in a
manner that would alter the pro rata sharing of payments required thereby, without the written
consent of each Lender, (iv) change any of the provisions of this Section or the definition of
“Required Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder or (v) release all or substantially all of the Subsidiary Guarantors from, their
respective obligations under the Subsidiary Guaranty or release all or substantially all of the
Collateral, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent hereunder without the prior written consent of the Administrative Agent.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i)
all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent,
in connection with the preparation and administration of the Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated) and (ii) all reasonable out-of-pocket expenses incurred by
the Administrative Agent or any Lender, including the reasonable fees, charges and disbursements of
any counsel for the Administrative Agent or any Lender, in connection with the enforcement or
protection of its rights in connection with the Loan Documents, including its rights under this
Section, or in connection with the

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Loans made hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans.

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

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

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

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

          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that (i) the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in
accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed
to confer upon any Person (other than the parties hereto, their respective successors

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and assigns
permitted hereby, Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent
and the Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Loans at the time owing to it) with the prior written consent
(such consent not to be unreasonably withheld) of the Administrative Agent and (so long as no Event
of Default has occurred and is continuing or the assignment is to a Person other than a Lender, an
Affiliate of a Lender or an Approved Fund) upon consultation with the Borrower.

          (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Loans of any Class, the
amount of the Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent) shall not be less than $5,000,000 unless the Administrative Agent
otherwise consents;

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided
that this clause shall not be construed to prohibit the assignment of a proportionate part
of all the assigning Lender’s rights and obligations in respect of one Class of Loans;

          (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; and

          (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or more credit
contacts to whom all syndicate-level information (which may contain material non-public
information about the Borrower and its affiliates, the Loan Parties and their related
parties or their respective securities) will be made available and who may receive such
information in accordance with the assignee’s compliance procedures and applicable laws,
including Federal and state securities laws.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

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     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of
this Section, from and after the effective date specified in each Assignment and Assumption
the assignee thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

     (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant to the terms hereof as
a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the Register;
provided that if either the assigning Lender or the assignee shall have failed to
make any payment required to be made by it pursuant to Section 2.07(b), 2.18(e) or 9.03(c),
the Administrative Agent shall have no obligation to accept such Assignment and Assumption
and record the information therein in the Register unless and until such payment shall have
been made in full, together with all accrued interest thereon. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities (a “Participant”) in all or a
portion of such Lender’s rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans owing to it); provided that (A) such Lender’s obligations
under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and

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directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement
or instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to
Section 2.18(d) as though it were a Lender.

     (ii) A Participant shall not be entitled to receive any greater payment under Section
2.15 or 2.17 than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent. A Participant shall not be
entitled to the benefits of Section 2.17 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 2.17(e) and (f) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any accrued interest on any
Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid and so
long as the Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16,
2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans and the
Commitments or the termination of this Agreement or any provision hereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and any separate letter agreements with respect to fees payable to the

57

 

Administrative Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

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

          SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the Secured Obligations now or hereafter existing held by such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process; Waiver of
Immunity. (a) This Agreement shall be construed in accordance with and governed by the law
of the State of New York.

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

          (c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to

58

 

the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law. The Borrower irrevocably
designates and appoints the Parent as its authorized agent, to accept and acknowledge on its
behalf, service of any and all process which may be served in any suit, action or proceeding of the
nature referred to in Section 9.09(b) in any federal or New York State court sitting in New York
City. Said designation and appointment shall be irrevocable by the Borrower until all Loans, all
interest thereon and all other amounts payable by the Borrower hereunder and under the other Loan
Documents shall have been paid in full in accordance with the provisions hereof and thereof. The
Borrower hereby consents to process being served in any suit, action or proceeding of the nature
referred to in Section 9.09(b) in any federal or New York State court sitting in New York City by
service of process upon the Parent as provided in this Section 9.09(d). The Borrower irrevocably
waives, to the fullest extent permitted by law, all claim of error by reason of any such service in
such manner and agrees that such service shall be deemed in every respect effective service of
process upon the Borrower in any such suit, action or proceeding and shall, to the fullest extent
permitted by law, be taken and held to be valid and personal service upon and personal delivery to
the Borrower. Nothing in this Agreement or any other Loan Document will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          (e) To the extent that the Borrower may be or become entitled to claim for itself or its
property any immunity on the ground of sovereignty or the like from suit, court jurisdiction,
attachment prior to judgment, attachment in aid of execution of a judgment or execution of a
judgment, and to the extent that in any such jurisdiction there may be attributed such an immunity
(whether or not claimed), the Borrower hereby irrevocably agrees not to claim and hereby
irrevocably waives such immunity with respect to its obligations under the Loan Documents.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

59

 

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) on a need to know basis to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any assignee of or Participant
in, or any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and their respective obligations, (g) with the
consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other
than as a result of a breach of this Section or any agreement contemplated by clause (f) of this
Section or (ii) becomes available to the Administrative Agent or any Lender on a nonconfidential
basis from a source other than the Borrower. For the purposes of this Section,
“Information” means all information received from the Borrower relating to the Borrower,
the Parent, any Subsidiary or their respective business, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure
by the Borrower; provided that, in the case of information received from the Borrower after
the date hereof, such information is clearly identified at the time of delivery as confidential.
Any Person required to maintain the confidentiality of Information as provided in this Section
shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord
to its own confidential information.

     EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12 FURNISHED TO IT PURSUANT
TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS
RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE
PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING
FEDERAL AND STATE SECURITIES LAWS.

     ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR
THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER

60

 

AND ITS AFFILIATES, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES) AND
ITS SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER
AND THE ADMINISTRATIVE AGENT
THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE
INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE
PROCEDURES AND APPLICABLE LAW.

          SECTION 9.13. USA PATRIOT Act. Each Lender 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 Borrower that pursuant to the requirements of the Act, it is required to
obtain, verify and record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such Lender to identify the
Borrower in accordance with the Act.

[Signature Pages Follow]

61

 

          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.

	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE GLOBAL LTD., as the Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
individually as a Lender and as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TRANCHE A	 	TRANCHE B	 	 
	 	 	TERM LOAN	 	TERM LOAN	 	TOTAL
	LENDER	 	COMMITMENT	 	COMMITMENT	 	COMMITMENT
	JPMORGAN CHASE
BANK, NATIONAL
ASSOCIATION
	 	$	220,000,000	 	 	$	80,000,000	 	 	$	300,000,000	 

 

 

EXHIBIT A

FORM OF ASSIGNMENT AND ASSUMPTION

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

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

	 	 	 	 	 	 	 	 	 
	1.

	 	Assignor:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	2.

	 	Assignee:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 
	 	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 	 	 	 	 
	3.	 	Borrower(s):	 	Network Appliance Global Ltd.
   
	 

	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	4.	 	Administrative Agent:	 	JPMorgan Chase Bank, National Association, as the administrative agent under the Loan Agreement

 

	
	1 Select as applicable.

 

 

	 	 	 	 	 	 	 
	5.	 	Loan Agreement:	 	The Loan Agreement dated as of March 31, 2006 among Network
Appliance Global Ltd., the Lenders parties thereto and
JPMorgan Chase Bank, National Association, as Administrative
Agent
	 
	 	 	 	 	 	 
	6.

	 	Assigned Interest:	 	 	 	 

	 	 	 	 	 
	Aggregate Amount of	 	 	 	 
	Commitment/Loans for all	 	Amount of Commitment/	 	Percentage Assigned of
	Lenders	 	Loans Assigned	 	Commitment/Loans2
	$
	 	$	 	%
	$
	 	$	 	%
	$
	 	$	 	%

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

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire
in which the Assignee designates one or more credit contacts to whom all syndicate-level
information (which may contain material non-public information about the Borrower, the Loan
Parties and their related parties or their respective securities) will be made available and who
may receive such information in accordance with the Assignee’s compliance procedures and applicable
laws, including Federal and state securities laws.

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

	 	 	 	 	 	 	 
	 	 	ASSIGNOR	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Title:	 	 

 

	
	2 Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

2

 

	 	 	 	 	 
	Consented to and Accepted:	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, NATIONAL

ASSOCIATION, as Administrative

Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 

3

 

ANNEX 1

[                    ]1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

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

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Loan Agreement, (ii) it satisfies the requirements, if any, specified in the Loan Agreement that
are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender,
(iii) from and after the Effective Date, it shall be bound by the provisions of the Loan Agreement
as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Loan Agreement, together with copies of the
most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of the Loan Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance
with their terms all of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

 

	
	1 Describe Loan Agreement at option of
Administrative Agent.

 

 

          2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

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

2

 

EXHIBIT B-1

FORM OF OPINION OF BORROWER’S BERMUDA COUNSEL

[ATTACHED]

 

 

EXHIBIT B-2

FORM OF OPINION OF LOAN PARTIES’ U.S. COUNSEL

[ATTACHED]

 

 

EXHIBIT B-3

FORM OF OPINION OF LOAN PARTIES’ DUTCH COUNSEL

[ATTACHED]

 

 

EXHIBIT B-4

FORM OF OPINION OF LOAN PARTIES’ CYPRUS COUNSEL

[ATTACHED]

 

 

EXHIBIT C

LIST OF CLOSING DOCUMENTS

NETWORK APPLIANCE GLOBAL LTD.

CREDIT FACILITIES

March 31, 2006

LIST OF CLOSING DOCUMENTS1

A. LOAN DOCUMENTS

	1.	 	Loan Agreement (the “Loan Agreement”) by and among Network Appliance Global Ltd., an
exempted company incorporated with limited liability under the laws of Bermuda (the
“Borrower”), the institutions from time to time parties thereto as Lenders (the
“Lenders”) and JPMorgan Chase Bank, National Association, in its capacity as
Administrative Agent for itself and the other Lenders (the “Administrative Agent”),
evidencing term loan facilities to the Borrower from the Lenders in an aggregate principal
amount of $300,000,000.

EXHIBITS

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Assumption
	Exhibit B-1

	 	—
	 	Form of Opinion of Borrower’s Bermuda Counsel
	Exhibit B-2

	 	—
	 	Form of Opinion of Loan Parties’ U.S. Counsel
	Exhibit B-3

	 	—
	 	Form of Opinion of Loan Parties’ Dutch Counsel
	Exhibit B-4

	 	—
	 	Form of Opinion of Loan Parties’ Cyprus Counsel
	Exhibit C

	 	—
	 	List of Closing Documents
	Exhibit D

	 	—
	 	Form of Subsidiary Guaranty
	Exhibit E

	 	—
	 	Form of Pledge Agreement
	Exhibit F

	 	—
	 	Form of Control Agreement
	Exhibit G

	 	—
	 	Margin Requirements
	Exhibit H

	 	—
	 	Form of Compliance Certificate

	2.	 	Disclosure Letter executed by the Borrower in favor of the Administrative Agent and the
Lenders.

 

	
	1 Each capitalized term used herein and not
defined herein shall have the meaning assigned to such term in the
above-defined Loan Agreement. Items appearing in bold and italics shall be
prepared and/or provided by the Loan Parties and/or Loan Parties’ counsel

 

 

	3.	 	Guaranty executed by the initial Subsidiary Guarantors (collectively with the Borrower, the
“Loan Parties”) in favor of the Administrative Agent.
	 
	4.	 	Pledge Agreement executed by the Borrower in favor of the Administrative Agent.
	 
	5.	 	Tri-Party Control Agreement executed by the Borrower, the Administrative Agent and J.P.
Morgan Securities Inc.
	 
	6.	 	Dutch Pledge of Receivables executed by the Dutch Pledgor in favor of the Administrative
Agent.

B. CORPORATE DOCUMENTS

	7.	 	Certificate of a Director, Secretary, Assistant Secretary or other duly appointed and
authorized officer of each Loan Party certifying (i) that there have been no changes in the
Certificate of Incorporation or other charter document of such Loan Party, as attached thereto
and as certified as of a recent date by the Registrar of Companies or Secretary of State (or
analogous governmental entity) of the jurisdiction of its incorporation or organization, since
the date of the certification thereof by such registrar of companies or secretary of state,
(ii) the Memorandum and Articles of Incorporation, By-Laws or other applicable organizational
or constitutional document, as attached thereto, of such Loan Party as in effect on the date
of such certification, (iii) resolutions of the Board of Directors or other governing body of
such Loan Party authorizing the execution, delivery and performance of each Loan Document to
which it is a party, and (iv) the names and true signatures of the incumbent officers of each
Loan Party authorized to sign the Loan Documents to which it is a party, and (in the case of
the Borrower) authorized to request a Borrowing under the Loan Agreement.
	 
	8.	 	Good Standing Certificate for each Loan Party from the Registrar of Companies or Secretary of
State (or analogous governmental entity) of the jurisdiction of its organization.

2

 

C. OPINIONS

	9.	 	Opinion of Appleby Spurling Hunter, Bermuda counsel for the Borrower.
	 
	10.	 	Opinion of Wilson Sonsini Goodrich & Rosati, U.S. counsel for the Loan Parties.
	 
	11.	 	Opinion of Kennedy Van der Laan, Dutch counsel for the Loan Parties.
	 
	12.	 	Opinion of Chrysses Demetriades & Co, Cyprus counsel for the Loan Parties.

D. CLOSING CERTIFICATES AND MISCELLANEOUS

	13.	 	A Certificate signed by a member of the Board of Directors (including without limitation the
Financial Officer) of the Borrower certifying the following: (i) all of the representations
and warranties of the Borrower set forth in the Loan Agreement are true and correct and (ii)
no Default has occurred and is then continuing.

3

 

EXHIBIT D

FORM OF SUBSIDIARY GUARANTY

GUARANTY

          THIS GUARANTY (as amended, restated, supplemented or otherwise modified from time to time,
this “Guaranty”) is made as of the 31st day of March, 2006, by and among each of the
undersigned (the “Initial Guarantors” and along with any additional Subsidiaries of the
Borrower which become parties to this Guaranty by executing a supplement hereto in the form
attached as Annex I, the “Guarantors”) in favor of the Administrative Agent, for the
ratable benefit of the Holders of Secured Obligations (as defined below), under the Loan Agreement
referred to below.

WITNESSETH

          WHEREAS, NETWORK APPLIANCE GLOBAL LTD., an exempted company incorporated with limited
liability under the laws of Bermuda (the “Borrower”), the institutions from time to time
parties thereto as lenders (the “Lenders”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
in its capacity as contractual representative (the “Administrative Agent”) for itself and
the other Lenders, have entered into a certain Loan Agreement dated as of March 31, 2006 (as the
same may be amended, modified, supplemented and/or restated, and as in effect from time to time,
the “Loan Agreement”), providing, subject to the terms and conditions thereof, for
extensions of credit and other financial accommodations to be made by the Lenders to the Borrower;

          WHEREAS, it is a condition precedent to the extension of credit by the Lenders under the Loan
Agreement that each of the Guarantors (constituting all of the Subsidiaries of the Borrower
required to execute this Guaranty pursuant to Section 5.09 of the Loan Agreement) execute and
deliver this Guaranty, whereby each of the Guarantors shall guarantee the payment when due of all
Secured Obligations; and

          WHEREAS, in consideration of the direct and indirect financial and other support that the
Borrower has provided, and such direct and indirect financial and other support as the Borrower may
in the future provide, to the Guarantors, and in order to induce the Lenders and the Administrative
Agent to enter into the Loan Agreement, each of the Guarantors is willing to guarantee the Secured
Obligations of the Borrower;

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

          SECTION 1. Definitions. Terms defined in the Loan Agreement and not otherwise
defined herein have, as used herein, the respective meanings provided for therein.

 

 

          SECTION 2. Representations, Warranties and Covenants. Each of the Guarantors
represents and warrants that:

     (A) It is a corporation, partnership or limited liability company duly and properly
incorporated or organized, as the case may be, validly existing and (to the extent such
concept applies to such entity) in good standing under the laws of its jurisdiction of
incorporation, organization or formation and has all requisite authority to conduct its
business in each jurisdiction in which its business is conducted, except to the extent that
the failure to have such authority could not reasonably be expected to have a Material
Adverse Effect.

     (B) It (to the extent applicable) has the requisite power and authority and legal
right to execute and deliver this Guaranty and to perform its obligations hereunder. The
execution and delivery by each Guarantor of this Guaranty and the performance by each of its
obligations hereunder have been duly authorized by proper proceedings, and this Guaranty
constitutes a legal, valid and binding obligation of such Guarantor, respectively,
enforceable against such Guarantor, respectively, in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

     (C) Neither the execution and delivery by it of this Guaranty, nor the consummation by
it of the transactions herein contemplated, nor compliance by it with the provisions hereof
will (i) violate any law, rule, regulation, order, writ, judgment, injunction, decree or
award binding on it or its articles or certificate of incorporation (or equivalent charter
documents), limited liability company or partnership agreement, certificate of partnership,
articles or certificate of organization, by-laws, or operating agreement or other management
agreement, as the case may be, or the provisions of any indenture, material instrument or
material agreement to which the Borrower or any of its Subsidiaries is a party or is
subject, or by which it, or its property, is bound, or (ii) conflict with, or constitute a
default under, or result in, or require, the creation or imposition of any Lien in, of or on
its property pursuant to the terms of, any such indenture, material instrument or material
agreement (other than any Loan Document). No order, consent, adjudication, approval,
license, authorization, or validation of, or filing, recording or registration with, or
exemption by, or other action in respect of any governmental or public body or authority, or
any subdivision thereof, which has not been obtained by it, is required to be obtained by it
in connection with the execution, delivery and performance by it of, or the legality,
validity, binding effect or enforceability against it of, this Guaranty.

          In addition to the foregoing, each of the Guarantors covenants that, so long as any Lender has
any Commitment outstanding under the Loan Agreement or any amount payable under the Loan Agreement
or any other Guaranteed Obligations (as defined below) shall remain unpaid, it will, and, if
necessary, will enable the Borrower to, fully comply with those covenants and agreements of the
Borrower applicable to such Guarantor set forth in the Loan Agreement.

2

 

          SECTION 3. The Guaranty. Each of the Guarantors hereby unconditionally guarantees,
jointly with the other Guarantors and severally, the full and punctual payment and performance when
due (whether at stated maturity, upon acceleration or otherwise) of the Secured Obligations,
including, without limitation, (i) the principal of and interest on each Loan made to the Borrower
pursuant to the Loan Agreement, (ii) all obligations of the Borrower owing to any Lender or any
affiliate of any Lender under any Swap Agreement, (iii) all other amounts payable by the Borrower
or any of its Subsidiaries under the Loan Agreement, any Swap Agreement and the other Loan
Documents and (iv) the punctual and faithful performance, keeping, observance, and fulfillment by
the Borrower of all of the agreements, conditions, covenants, and obligations of the Borrower
contained in the Loan Documents (all of the foregoing being referred to collectively as the
“Guaranteed Obligations” and the holders from time to time of the Guaranteed Obligations being
referred to collectively as the “Holders of Secured Obligations”). Upon (x) the failure by
the Borrower or any of its Affiliates, as applicable, to pay punctually any such amount or perform
such obligation, and (y) such failure continuing beyond any applicable grace or notice and cure
period, each of the Guarantors agrees that it shall forthwith on demand pay such amount or perform
such obligation at the place and in the manner specified in the Loan Agreement, any Swap Agreement
or the relevant Loan Document, as the case may be. Each of the Guarantors hereby agrees that this
Guaranty is an absolute, irrevocable and unconditional guaranty of payment and is not a guaranty of
collection.

          SECTION 4. Guaranty Unconditional. The obligations of each of the Guarantors
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, indulgence, compromise, waiver or release of
or with respect to the Guaranteed Obligations or any part thereof or any agreement relating
thereto, or with respect to any obligation of any other guarantor of any of the Guaranteed
Obligations, whether (in any such case) by operation of law or otherwise, or any failure or
omission to enforce any right, power or remedy with respect to the Guaranteed Obligations or
any part thereof or any agreement relating thereto, or with respect to any obligation of any
other guarantor of any of the Guaranteed Obligations;

     (B) any modification or amendment of or supplement to the Loan Agreement, any Swap
Agreement or any other Loan Document, including, without limitation, any such amendment
which may increase the amount of, or the interest rates applicable to, any of the Secured
Obligations guaranteed hereby;

     (C) any release, surrender, compromise, settlement, waiver, subordination or
modification, with or without consideration, of any collateral securing the Guaranteed
Obligations or any part thereof, any other guaranties with respect to the Guaranteed
Obligations or any part thereof, or any other obligation of any person or entity with
respect to the Guaranteed Obligations or any part thereof, or any nonperfection or
invalidity of any direct or indirect security for the Guaranteed Obligations;

3

 

     (D) any change in the corporate, partnership or other existence, structure or
ownership of the Borrower or any other guarantor of any of the Guaranteed Obligations, or
any insolvency, bankruptcy, reorganization or other similar proceeding affecting the
Borrower or any other guarantor of the Guaranteed Obligations, or any of their respective
assets or any resulting release or discharge of any obligation of the Borrower or any other
guarantor of any of the Guaranteed Obligations;

     (E) the existence of any claim, setoff or other rights which the Guarantors may have
at any time against the Borrower, any other guarantor of any of the Guaranteed Obligations,
the Administrative Agent, any Holder of Secured Obligations or any other Person, whether in
connection herewith or in connection with any unrelated transactions; provided that nothing
herein shall prevent the assertion of any such claim by separate suit or compulsory
counterclaim;

     (F) the enforceability or validity of the Guaranteed Obligations or any part thereof
or the genuineness, enforceability or validity of any agreement relating thereto or with
respect to any collateral securing the Guaranteed Obligations or any part thereof, or any
other invalidity or unenforceability relating to or against the Borrower or any other
guarantor of any of the Guaranteed Obligations, for any reason related to the Loan
Agreement, any Swap Agreement, any other Loan Document, or any provision of applicable law,
decree, order or regulation of any jurisdiction purporting to prohibit the payment by the
Borrower or any other guarantor of the Guaranteed Obligations, of any of the Guaranteed
Obligations or otherwise affecting any term of any of the Guaranteed Obligations;

     (G) the failure of the Administrative Agent to take any steps to perfect and maintain
any security interest in, or to preserve any rights to, any security or collateral for the
Guaranteed Obligations, if any;

     (H) the election by, or on behalf of, any one or more of the Holders of Secured
Obligations, in any proceeding instituted under Chapter 11 of Title 11 of the United States
Code (11 U.S.C. 101 et seq.) (the “Bankruptcy Code”), of the application of Section
1111(b)(2) of the Bankruptcy Code;

     (I) any borrowing or grant of a security interest by the Borrower, as
debtor-in-possession, under Section 364 of the Bankruptcy Code;

     (J) the disallowance, under Section 502 of the Bankruptcy Code, of all or any portion
of the claims of the Holders of Secured Obligations or the Administrative Agent for
repayment of all or any part of the Guaranteed Obligations;

     (K) the failure of any other guarantor to sign or become party to this Guaranty or any
amendment, change, or reaffirmation hereof; or

     (L) any other act or omission to act or delay of any kind by the Borrower, any other
guarantor of the Guaranteed Obligations, the Administrative Agent, any Holder of

4

 

Secured
Obligations or any other Person or any other circumstance whatsoever which might, but for
the provisions of this Section 4, constitute a legal or equitable discharge of any
Guarantor’s obligations hereunder except as provided in Section 5.

          SECTION 5. Discharge Only Upon Payment In Full: Reinstatement In Certain
Circumstances. Each of the Guarantors’ obligations hereunder shall remain in full force and
effect until all Guaranteed Obligations (other than contingent indemnity obligations and Guaranteed
Obligations in respect of Swap Agreements) shall have been paid in full in cash. If at any time
any payment of the principal of or interest on any Loan or any other amount payable by the Borrower
or any other party under the Loan Agreement, any Swap Agreement or any other Loan Document is
rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of the Borrower or otherwise, each of the Guarantors’ obligations hereunder with
respect to such payment shall be reinstated as though such payment had been due but not made at
such time. The parties hereto acknowledge and agree that each of the Guaranteed Obligations shall
be due and payable in the same currency as such Guaranteed Obligation is denominated but if
currency control or exchange regulations are imposed in the country which issues such currency with
the result such currency (the “Original Currency”) no longer exists or the relevant
Guarantor is not able to make payment in such Original Currency, then all payments to be made by
such Guarantor hereunder in such currency shall instead be made when due in dollars in an amount
equal to the Dollar Amount (as of the date of payment) of such payment due, it being the intention
of the parties hereto that each Guarantor takes all risks of the imposition of any such currency
control or exchange regulations. As used herein, “Dollar Amount” of any currency means the
equivalent in such currency of such amount of dollars, most recently calculated by the
Administrative Agent on the basis of the arithmetical mean of the buy and sell spot rates of
exchange of the Administrative Agent for such currency on the London market.

          SECTION 6. General Waivers; Additional Waivers.

     (A) General Waivers. Each of the Guarantors irrevocably waives acceptance hereof,
presentment, demand or action on delinquency, protest, the benefit of any statutes of
limitations and, to the fullest extent permitted by law, any notice not provided for herein,
as well as any requirement that at any time any action be taken by any Person against the
Borrower, any other guarantor of the Guaranteed Obligations, or any other Person.

     (B) Additional Waivers. Notwithstanding anything herein to the contrary, each of the
Guarantors hereby absolutely, unconditionally, knowingly, and expressly waives:

     (i) any right it may have to revoke this Guaranty as to future indebtedness under
the Loan Documents;

     (ii) (a) notice of acceptance hereof; (b) notice of any loans or other financial
accommodations made or extended under the Loan Documents or the creation or existence of
any Guaranteed Obligations; (c) notice of the amount of the Guaranteed Obligations,
subject, however, to each Guarantor’s right to make inquiry of

5

 

Administrative Agent and
Holders of Secured Obligations to ascertain the amount of the Guaranteed Obligations at
any reasonable time; (d) notice of any adverse change in the financial condition of the
Borrower or of any other fact that might increase such Guarantor’s risk hereunder; (e)
notice of presentment for payment, demand, protest, and notice thereof as to any
instruments among the Loan Documents; (f) notice of any Default or Event of Default; and
(g) all other notices (except if such notice is specifically required to be given to such
Guarantor hereunder or under the Loan Documents) and demands to which each Guarantor
might otherwise be entitled;

     (iii) its right, if any, to require the Administrative Agent and the other Holders
of Secured Obligations to institute suit against, or to exhaust any rights and remedies
which the Administrative Agent and the other Holders of Secured Obligations has or may
have against, the other Guarantors or any third party, or against any Collateral provided
by the other Guarantors, or any third party; and each Guarantor further waives any
defense arising by reason of any disability or other defense (other than the defense that
the Guaranteed Obligations shall have been fully and finally performed and indefeasibly
paid) of the other Guarantors or by reason of the cessation from any cause whatsoever of
the liability of the other Guarantors in respect thereof;

     (iv) (a) any rights to assert against the Administrative Agent and the other
Holders of Secured Obligations any defense (legal or equitable), set-off, counterclaim,
or claim which such Guarantor may now or at any time hereafter have against the other
Guarantors or any other party liable to the Administrative Agent and the other Holders of
Secured Obligations; (b) any defense, set-off, counterclaim, or claim, of any kind or
nature, arising directly or indirectly from the present or future lack of perfection,
sufficiency, validity, or enforceability of the Guaranteed Obligations or any security
therefor; (c) any defense such Guarantor has to performance hereunder, and any right such
Guarantor has to be exonerated, arising by reason of: the impairment or suspension of
the Administrative Agent’s and the other Holders of Secured Obligations’ rights or
remedies against the other Guarantors; the alteration by the Administrative Agent and the
other Holders of Secured Obligations of the Guaranteed Obligations; any discharge of the
other Guarantors’ obligations to the Administrative Agent and the other Holders of
Secured Obligations by operation of law as a result of the Administrative Agent’s and the
other Holders of Secured Obligations’ intervention or omission; or the acceptance by the
Administrative Agent and the other Holders of Secured Obligations of anything in partial
satisfaction of the Guaranteed Obligations; and (d) the benefit of any statute of
limitations affecting such Guarantor’s liability hereunder or the enforcement thereof,
and any act which shall defer or delay the operation of any statute of limitations
applicable to the Guaranteed Obligations shall similarly operate to defer or delay the
operation of such statute of limitations applicable to such Guarantor’s liability
hereunder; and

     (v) any defense arising by reason of or deriving from (a) any claim or defense
based upon an election of remedies by the Administrative Agent and the other Holders of
Secured Obligations; or (b) any election by the Administrative Agent and the other
Holders of Secured Obligations under Section 1111(b) of Title 11 of the United States

6

 

Code entitled “Bankruptcy”, as now and hereafter in effect (or any successor statute), to
limit the amount of, or any collateral securing, its claim against the Guarantors.

          SECTION 7. Subordination of Subrogation; Subordination of Intercompany Indebtedness.

     (A) Subordination of Subrogation. Until the Guaranteed Obligations (other than
contingent indemnity obligations and Guaranteed Obligations in respect of Swap Agreements)
have been indefeasibly paid in full in cash, the Guarantors (i) shall have no right of
subrogation with respect to such Guaranteed Obligations and (ii) waive any right to enforce
any remedy which the Holders of Secured Obligations or the Administrative Agent now have or
may hereafter have against the Borrower, any endorser or any guarantor of all or any part of
the Guaranteed Obligations or any other Person, and, until the Guaranteed Obligations (other
than contingent indemnity obligations and Guaranteed Obligations in respect of Swap
Agreements) have been indefeasibly paid in full in cash, the Guarantors waive any benefit
of, and any right to participate in, any security or collateral given to the Holders of
Secured Obligations and the Administrative Agent to secure the payment or performance of all
or any part of the Guaranteed Obligations or any other liability of the Borrower to the
Holders of Secured Obligations. Should any Guarantor have the right, notwithstanding the
foregoing, to exercise its subrogation rights, each Guarantor hereby expressly and
irrevocably (A) subordinates any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification or set off that such Guarantor may
have to the indefeasible payment in full in cash of the Guaranteed Obligations (other than
contingent indemnity obligations and Guaranteed Obligations in respect of Swap Agreements)
and (B) waives any and all defenses available to a surety, guarantor or accommodation
co-obligor until the Guaranteed Obligations (other than contingent indemnity obligations and
Guaranteed Obligations in respect of Swap Agreements) are indefeasibly paid in full in cash.
Each Guarantor acknowledges and agrees that this subordination is intended to benefit the
Administrative Agent and the other Holders of Secured Obligations and shall not limit or
otherwise affect such Guarantor’s liability hereunder or the enforceability of this
Guaranty, and that the Administrative Agent, the other Holders of Secured Obligations and
their respective successors and assigns are intended third party beneficiaries of the
waivers and agreements set forth in this Section 7(a).

     (B) Subordination of Intercompany Indebtedness. Each Guarantor agrees that any and
all claims of such Guarantor against the Borrower or any other Guarantor hereunder (each an
“Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined),
any endorser, obligor or any other guarantor of all or any part of the Guaranteed
Obligations, or against any of its properties shall be subordinate and subject in right of
payment to the prior payment, in full and in cash, of all Guaranteed Obligations (other than
contingent indemnity obligations and Guaranteed Obligations in respect of Swap Agreements);
provided that, as long as no Event of Default has occurred and is continuing, such
Guarantor may receive payments of principal and interest from any Obligor with respect to
Intercompany Indebtedness. Notwithstanding any right of any Guarantor to ask, demand, sue
for, take or receive any payment from any Obligor, all

7

 

rights, liens and security interests
of such Guarantor, whether now or hereafter arising and howsoever existing, in any assets of
any other Obligor shall be and are subordinated to the rights of the Holders of Secured
Obligations and the Administrative Agent in those assets. No Guarantor shall have any right
to possession of any such asset or to foreclose upon any such asset, whether by judicial
action or otherwise, unless and until all of the Guaranteed Obligations (other than
contingent indemnity obligations and Guaranteed Obligations in respect of Swap Agreements)
shall have been fully paid and satisfied (in cash) and all financing arrangements pursuant
to any Loan Document have been terminated. If all or any part of the assets of any Obligor,
or the proceeds thereof, are subject to any distribution, division or application to the
creditors of such Obligor, whether partial or complete, voluntary or involuntary, and
whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the
benefit of creditors or any other action or proceeding, or if the business of any such
Obligor is dissolved or if substantially all of the assets of any such Obligor are sold,
then, and in any such event (such events being herein referred to as an “Insolvency
Event”), any payment or distribution of any kind or character, either in cash,
securities or other property, which shall be payable or deliverable upon or with respect to
any indebtedness of any Obligor to any Guarantor (“Intercompany Indebtedness”) shall
be paid or delivered directly to the Administrative Agent for application on any of the
Guaranteed Obligations, due or to become due, until such Guaranteed Obligations (other than
contingent indemnity obligations and Guaranteed Obligations in respect of Swap Agreements)
shall have first been fully paid and satisfied (in cash). Should any payment, distribution,
security or instrument or proceeds thereof be received by the applicable Guarantor upon or
with respect to the Intercompany Indebtedness after any Insolvency Event and prior to the
satisfaction of all of the Guaranteed Obligations (other than contingent indemnity
obligations and Guaranteed Obligations in respect of Swap Agreements) and the termination of
all financing arrangements pursuant to any Loan Document among the Borrower and the Holders
of Secured Obligations, such Guarantor shall receive and hold the same in trust, as trustee,
for the benefit of the Holders of Secured Obligations and shall forthwith deliver the same
to the Administrative Agent, for the benefit of the Holders of Secured Obligations, in
precisely the form received (except for the endorsement or assignment of the Guarantor where
necessary), for application to any of the Guaranteed Obligations, due or not due, and, until
so delivered, the same shall be held in trust by the Guarantor as the property of the
Holders of Secured Obligations. If any such Guarantor fails to make any such endorsement or
assignment to the Administrative Agent, the Administrative Agent or any of its officers or
employees is irrevocably authorized to make the same. Each Guarantor agrees that until the
Guaranteed Obligations (other than the contingent indemnity obligations and Guaranteed
Obligations in respect of Swap Agreements) have been paid in full (in cash) and satisfied
and all financing arrangements pursuant to any Loan Document among the Borrower and the
Holders of Secured Obligations have been terminated, except as otherwise permitted by the
Loan Agreement, no Guarantor will assign or transfer to any Person (other than the
Administrative Agent) any claim any such Guarantor has or may have against any Obligor.

          SECTION 8. Contribution with Respect to Guaranteed Obligations.

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     (A) To the extent that any Guarantor shall make a payment under this Guaranty (a
“Guarantor Payment”) which, taking into account all other Guarantor Payments then
previously or concurrently made by any other Guarantor, exceeds the amount which otherwise
would have been paid by or attributable to such Guarantor if each Guarantor had paid the
aggregate Guaranteed Obligations (other than contingent indemnity obligations and Guaranteed
Obligations in respect of Swap Agreements) satisfied by such Guarantor Payment in the same
proportion as such Guarantor’s “Allocable Amount” (as defined below) (as determined
immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each
of the Guarantors as determined immediately prior to the making of such Guarantor Payment,
then, following indefeasible payment in full in cash of the Guaranteed Obligations (other
than contingent indemnity obligations and Guaranteed Obligations in respect of Swap
Agreements) and termination of the Loan Agreement, such Guarantor shall be entitled to
receive contribution and indemnification payments from, and be reimbursed by, each other
Guarantor for the amount of such excess, pro rata based upon their respective Allocable
Amounts in effect immediately prior to such Guarantor Payment.

     (B) As of any date of determination, the “Allocable Amount” of any Guarantor shall be
equal to the maximum amount of the claim which could then be recovered from such Guarantor
under this Guaranty without rendering such claim voidable or avoidable under Section 548 of
Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act or similar statute or common law.

     (C) This Section 8 is intended only to define the relative rights of the Guarantors,
and nothing set forth in this Section 8 is intended to or shall impair the obligations of
the Guarantors, jointly and severally, to pay any amounts as and when the same shall become
due and payable in accordance with the terms of this Guaranty.

     (D) The parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution
and indemnification is owing.

     (E) The rights of the indemnifying Guarantors against other Guarantors under this
Section 8 shall be exercisable upon the full and indefeasible payment of the Guaranteed
Obligations (other than contingent indemnity obligations and Guaranteed Obligations in
respect of Swap Agreements) in cash and the termination of the Loan Agreement.

          SECTION 9. Stay of Acceleration. If acceleration of the time for payment of any
amount payable by the Borrower under the Loan Agreement, any Swap Agreement or any other Loan
Document is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such
amounts otherwise subject to acceleration under the terms of the Loan Agreement, any Swap Agreement
or any other Loan Document shall nonetheless be payable by each of the Guarantors hereunder
forthwith on demand by the Administrative Agent.

9

 

          SECTION 10. Notices. All notices, requests and other communications to any party
hereunder shall be given in the manner prescribed in Article IX of the Loan Agreement with respect
to the Administrative Agent at its notice address therein and with respect to any Guarantor, in
care of the Borrower at the address of the Borrower set forth in the Loan Agreement or such other
address or telecopy number as such party may hereafter specify for such purpose by notice to the
Administrative Agent in accordance with the provisions of such Article IX.

          SECTION 11. No Waivers. No failure or delay by the Administrative Agent or any other
Holder of Secured Obligations in exercising any right, power or privilege hereunder 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
provided in this Guaranty, the Loan Agreement, any Swap Agreement and the other Loan Documents
shall be cumulative and not exclusive of any rights or remedies provided by law.

          SECTION 12. Successors and Assigns. This Guaranty is for the benefit of the
Administrative Agent and the other Holders of Secured Obligations and their respective successors
and permitted assigns; provided, that no Guarantor shall have any right to assign its rights or
obligations hereunder without the consent of the Required Lenders, and any such assignment in
violation of this Section 12 shall be null and void; and in the event of an assignment of any
amounts payable under the Loan Agreement, any Swap Agreement or the other Loan Documents in
accordance with the respective terms thereof, the rights hereunder, to the extent applicable to the
indebtedness so assigned, may be transferred with such indebtedness. This Guaranty shall be binding
upon each of the Guarantors and their respective successors and assigns.

          SECTION 13. Changes in Writing. Other than in connection with the addition of
additional Subsidiaries, which become parties hereto by executing a supplement hereto in the form
attached as Annex I, neither this Guaranty nor any provision hereof may be changed, waived,
discharged or terminated orally, but only in writing signed by each of the Guarantors and the
Administrative Agent with the consent of the Required Lenders under the Loan Agreement.

          SECTION 14. GOVERNING LAW. THIS GUARANTY SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

          SECTION 15. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL; IMMUNITY.

     (A) CONSENT TO JURISDICTION. EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR

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RELATING TO THIS GUARANTY
AND EACH GUARANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING
HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS
AGAINST ANY GUARANTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY
ANY GUARANTOR AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE
ADMINISTRATIVE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT SHALL
BE BROUGHT ONLY IN A COURT IN THE CITY OF NEW YORK.

     (B) EACH GUARANTOR WHICH IS A FOREIGN SUBSIDIARY (A “FOREIGN GUARANTOR”) IRREVOCABLY
DESIGNATES AND APPOINTS THE BORROWER, AS ITS AUTHORIZED AGENT, TO ACCEPT AND ACKNOWLEDGE ON
ITS BEHALF, SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUIT, ACTION OR
PROCEEDING OF THE NATURE REFERRED TO IN CLAUSE (A) ABOVE. SAID DESIGNATION AND APPOINTMENT
SHALL BE IRREVOCABLE BY EACH SUCH FOREIGN GUARANTOR UNTIL ALL GUARANTEED OBLIGATIONS PAYABLE
BY SUCH FOREIGN GUARANTOR HEREUNDER AND UNDER THE OTHER LOAN DOCUMENTS SHALL HAVE BEEN PAID
IN FULL IN ACCORDANCE WITH THE PROVISIONS HEREOF AND THEREOF. EACH FOREIGN GUARANTOR HEREBY
CONSENTS TO PROCESS BEING SERVED IN ANY SUIT, ACTION OR PROCEEDING OF THE NATURE REFERRED TO
IN CLAUSE (A) ABOVE BY SERVICE OF PROCESS UPON THE BORROWER AS PROVIDED IN THIS CLAUSE (B);
PROVIDED THAT, TO THE EXTENT LAWFUL AND POSSIBLE, NOTICE OF SAID SERVICE UPON SUCH
AGENT SHALL BE MAILED BY REGISTERED OR CERTIFIED AIR MAIL, POSTAGE PREPAID, RETURN RECEIPT
REQUESTED, TO THE BORROWER OR TO ANY OTHER ADDRESS OF WHICH SUCH FOREIGN GUARANTOR SHALL
HAVE GIVEN WRITTEN NOTICE TO THE ADMINISTRATIVE AGENT (WITH A COPY THEREOF TO THE BORROWER).
EACH FOREIGN GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL
CLAIM OF ERROR BY REASON OF ANY SUCH SERVICE IN SUCH MANNER AND AGREES THAT SUCH SERVICE
SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON SUCH FOREIGN GUARANTOR IN
ANY SUCH SUIT, ACTION OR PROCEEDING AND SHALL, TO THE FULLEST EXTENT PERMITTED BY LAW, BE
TAKEN AND HELD TO BE VALID AND PERSONAL SERVICE UPON AND PERSONAL DELIVERY TO SUCH FOREIGN
GUARANTOR. NOTHING HEREIN WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW.

11

 

     (C) WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT
OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER AND FURTHER WAIVES ANY RIGHT
TO INTERPOSE ANY COUNTERCLAIM (OTHER THAN ANY COMPULSORY COUNTERCLAIM) RELATED TO THIS
GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY IN SUCH ACTION.

     (D) TO THE EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR
OTHERWISE), EACH GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS GUARANTY.

          SECTION 16. No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Guaranty. In the event an ambiguity or question of intent or
interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto
and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any provisions of this Guaranty.

          SECTION 17. Taxes, Expenses of Enforcement, etc.

          (A) Taxes.

          (i) All payments by any Guarantor to or for the account of any Lender, the
Administrative Agent or any other Holder of Secured Obligations hereunder or under any
promissory note shall be made free and clear of and without deduction for any and all Taxes
(other than Excluded Taxes). If any Guarantor shall be required by law to deduct any Taxes
(other than Excluded Taxes) from or in respect of any sum payable hereunder to any Lender,
the Administrative Agent or any other Holder of Secured Obligations, (a) 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 17(A)) such Lender, the
Administrative Agent or any other Holder of Secured Obligations (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made,
(b) such Guarantor shall make such deductions, (c) such Guarantor shall pay the full amount
deducted to the relevant authority in accordance with applicable law and (d) such Guarantor
shall furnish to the Administrative Agent the original copy of a receipt evidencing payment
thereof within thirty (30) days after such payment is made.

12

 

          (ii) In addition, the Guarantors hereby agree to pay any present or future stamp or
documentary taxes and any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or under any promissory note or from the execution or
delivery of, or otherwise with respect to, this Guaranty or any promissory note (“Other
Taxes”).

          (iii) The Guarantors hereby agree to indemnify the Administrative Agent, each Lender
and any other Holder of Secured Obligations for the full amount of Taxes or Other Taxes
(including, without limitation, any Taxes or Other Taxes imposed on amounts payable under
this Section 17(A)) paid by the Administrative Agent, such Lender or such other Holder of
Secured Obligations and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto. Payments due under this indemnification shall be made
within thirty (30) days of the date the Administrative Agent, such Lender or such other
Holder of Secured Obligations makes demand therefor.

          (iv) By accepting the benefits hereof, each Lender agrees that it will comply with
Section 2.17(e) of the Loan Agreement.

     (B) Expenses of Enforcement, Etc. Subject to the terms of the Loan Agreement, after
the occurrence and during the continuance of an Event of Default under the Loan Agreement,
the Lenders shall have the right at any time to direct the Administrative Agent to commence
enforcement proceedings with respect to the Guaranteed Obligations. The Guarantors agree to
reimburse the Administrative Agent and the other Holders of Secured Obligations for any
reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees and time
charges of attorneys for the Administrative Agent and the other Holders of Secured
Obligations, which attorneys may be employees of the Administrative Agent or the other
Holders of Secured Obligations) paid or incurred by the Administrative Agent or any other
Holder of Secured Obligations in connection with the collection and enforcement of amounts
due under the Loan Documents, including without limitation this Guaranty. The
Administrative Agent agrees to distribute payments received from any of the Guarantors
hereunder to the other Holders of Secured Obligations on a pro rata basis for application in
accordance with the terms of the Loan Agreement.

          SECTION 18. Setoff. At any time after all or any part of the Guaranteed Obligations
have become due and payable (by acceleration or otherwise), each Holder of Secured Obligations
(including the Administrative Agent) may, without notice to any Guarantor and regardless of the
acceptance of any security or collateral for the payment hereof, appropriate and apply in
accordance with the terms of the Loan Agreement toward the payment of all or any part of the
Guaranteed Obligations (i) any indebtedness due or to become due from such Holder of Secured
Obligations or the Administrative Agent to any Guarantor, and (ii) any moneys, credits or other
property belonging to any Guarantor, at any time held by or coming into the possession of such
Holder of Secured Obligations (including the Administrative Agent) or any of their respective
affiliates.

13

 

          SECTION 19. Financial Information. Each Guarantor hereby assumes responsibility for
keeping itself informed of the financial condition of the Borrower and any and all endorsers and/or
other Guarantors of all or any part of the Guaranteed Obligations, and of all other circumstances
bearing upon the risk of nonpayment of the Guaranteed Obligations, or any part thereof, that
diligent inquiry would reveal, and each Guarantor hereby agrees that none of the Holders of Secured
Obligations (including the Administrative Agent) shall have any duty to advise such Guarantor of
information known to any of them regarding such condition or any such circumstances. In the event
any Holder of Secured Obligations (including the Administrative Agent), in its sole discretion,
undertakes at any time or from time to time to provide any such information to a Guarantor, such
Holder of Secured Obligations (including the Administrative Agent) shall be under no obligation (i)
to undertake any investigation not a part of its regular business routine, (ii) to disclose any
information which such Holder of Secured Obligations (including the Administrative Agent), pursuant
to accepted or reasonable commercial finance or banking practices, wishes to maintain confidential
or (iii) to make any other or future disclosures of such information or any other information to
such Guarantor.

          SECTION 20. Severability. Wherever possible, each provision of this Guaranty shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Guaranty shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity without invalidating the remainder
of such provision or the remaining provisions of this Guaranty.

          SECTION 21. Merger. This Guaranty represents the final agreement of each of the
Guarantors with respect to the matters contained herein and may not be contradicted by evidence of
prior or contemporaneous agreements, or subsequent oral agreements, between the Guarantor and any
Holder of Secured Obligations (including the Administrative Agent).

          SECTION 22. Headings. Section headings in this Guaranty are for convenience of
reference only and shall not govern the interpretation of any provision of this Guaranty.

          SECTION 23. Judgment Currency. If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from any Guarantor hereunder in the currency expressed
to be payable herein (the “specified currency”) into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Administrative Agent could
purchase the specified currency with such other currency at the Administrative Agent’s main New
York City office on the Business Day preceding that on which final, non-appealable judgment is
given. The obligations of each Guarantor in respect of any sum due hereunder shall,
notwithstanding any judgment in a currency other than the specified currency, be discharged only to
the extent that on the Business Day following receipt by any Holder of Secured Obligations
(including the Administrative Agent), as the case may be, of any sum adjudged to be so due in such
other currency such Holder of Secured Obligations (including the Administrative Agent), as the case
may be, may in accordance with normal, reasonable banking procedures purchase the specified
currency with such other currency. If the amount of the specified currency so purchased is less
than the sum originally due to such Holder of Secured Obligations (including the Administrative
Agent), as the case may be, in the specified currency, each

14

 

Guarantor agrees, to the fullest extent
that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to
indemnify such Holder of Secured Obligations (including the Administrative Agent), as the case may
be, against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum
originally due to any Holder of Secured Obligations (including the Administrative Agent), as the
case may be, in the specified currency and (b) amounts shared with other Holders of Secured
Obligations as a result of allocations of such excess as a disproportionate payment to such other
Holder of Secured Obligations under Section 2.18 of the Loan Agreement, such Holder of Secured
Obligations (including the Administrative Agent), as the case may be, agrees, by accepting the
benefits hereof, to remit such excess to such Guarantor.

Remainder of Page Intentionally Blank.

15

 

     IN WITNESS WHEREOF, each of the Initial Guarantors has caused this Guaranty to be duly
executed by its authorized officer as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	[INITIAL GUARANTORS TO COME]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

16

 

Acknowledged and Agreed

as of the date first written above:

	 	 	 	 	 
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

17

 

ANNEX I TO GUARANTY

          Reference is hereby made to the Guaranty (the “Guaranty”) made as of the 31st day of
March, 2006 by and among [INITIAL GUARANTORS] (the “Initial Guarantors” and along with any
additional Subsidiaries of the Borrower, which become parties thereto and together with the
undersigned, the “Guarantors”) in favor of the Administrative Agent, for the ratable
benefit of the Holders of Secured Obligations, under the Loan Agreement. Capitalized terms used
herein and not defined herein shall have the meanings given to them in the Guaranty. By its
execution below, the undersigned [NAME OF NEW GUARANTOR], a [corporation] [partnership] [limited
liability company], agrees to become, and does hereby become, a Guarantor under the Guaranty and
agrees to be bound by such Guaranty as if originally a party thereto. By its execution below, the
undersigned represents and warrants as to itself that all of the representations and warranties
contained in Section 2 of the Guaranty are true and correct in all respects as of the date hereof.

          IN WITNESS WHEREOF, [NAME OF NEW GUARANTOR], a [corporation] [partnership] [limited liability
company] has executed and delivered this Annex I counterpart to the Guaranty as of this                     
day of                     , 20___.

	 	 	 	 	 	 	 
	 	 	[NAME OF NEW GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Its:
	 	 

	 	 

18

 

EXHIBIT E

FORM OF PLEDGE AGREEMENT

PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT (this “Agreement”) is made as of the 31st day of March, 2006, by
NETWORK APPLIANCE GLOBAL LTD., an exempted company incorporated with limited liability under the
laws of Bermuda (the “undersigned” or the “Borrower”), in favor of the
Administrative Agent, for the ratable benefit of the Holders of Secured Obligations, under the Loan
Agreement referred to below. Terms defined in the Loan Agreement (as hereinafter defined) and not
otherwise defined herein have, as used herein, the respective meanings provided for therein.

WITNESSETH

          WHEREAS, the Borrower, the institutions from time to time parties thereto as lenders (the
“Lenders”), and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, individually and in its capacity
as contractual representative (the “Administrative Agent”) for itself and the other
Lenders, have entered into a certain Loan Agreement dated as of March 31, 2006 (as the same may be
amended, modified, supplemented and/or restated, and as in effect from time to time, the “Loan
Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit
and other financial accommodations to be made by the Lenders to the Borrower;

          WHEREAS, it is a condition precedent to the extension of credit by the Lenders under the Loan
Agreement that the undersigned execute and deliver this Agreement as security for certain of its
obligations under the Loan Agreement; and

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

     In consideration of one of more loans, or other financial accommodations extended by the
Lenders (including the Administrative Agent in its individual capacity), the undersigned and the
Administrative Agent agree as follows:

     1. Definitions.

          “Account Assets” means all Deposits, Securities, securities entitlements and any other
assets held in trust, or in any custody, subcustody, safekeeping, investment management accounts,
or other

 

 

accounts of the undersigned with the Administrative Agent or any other custodian, trustee
or Clearing System or held by any Intermediary (all of which shall be considered “financial assets”
under the UCC).

          “Clearing System” means the Depository Trust Company (“DTC”) and such other
clearing or safekeeping system that may from time to time be used in connection with transactions
relating to or the custody of any Securities, and any depository for any of the foregoing.

          “Collateral” means: (i) the Deposits, Securities and Account Assets (as defined
below) that are listed on Exhibit A; (ii) all additions to, and proceeds, renewals, investments,
reinvestments and substitutions of, the foregoing, whether or not listed on Exhibit A; (iii) all
certificates, receipts and other instruments evidencing any of the foregoing.

          “Deposits” means the deposits of the undersigned with the Administrative Agent
(whether or not held in trust, or in any custody, subcustody, safekeeping, investment management
accounts, or other accounts of the undersigned with the Administrative Agent).

          “Liabilities” means all Secured Obligations in respect of the Tranche A Term Loans and
the Swap Agreements, whether now existing or hereafter incurred or acquired, whether matured or
unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, primary or
secondary, sole, joint, several or joint and several, secured or unsecured, arising by operation of
law or otherwise arising in connection with the Collateral, this Agreement or any other Liability
Document and all related costs and expenses incurred by the Administrative Agent.

          “Liability Document” means any Loan Document or any other instrument, agreement or
document evidencing, governing or delivered in connection with the Liabilities.

          “Securities” means the stocks, bonds and other instruments and securities, whether or
not held in trust or in any custody, subcustody, safekeeping, investment management accounts or
other accounts of the undersigned with the Administrative Agent or any other custodian, trustee or
Clearing System or held by any party as a financial intermediary or securities intermediary (the
“Intermediary”).

          “UCC” means the Uniform Commercial Code in effect in the State of New York. Unless
the context otherwise requires, all terms used in this Agreement which are defined in the UCC will
have the meanings stated in the UCC.

     2. Grant of Security Interest.

     As security for the payment of all the Liabilities, the undersigned pledges to the
Administrative Agent and grants to the Administrative Agent, in each case for the ratable benefit
of the Holders of Secured Obligations in respect of the Liabilities, a security interest in and a
right of setoff against, the Collateral.

     3. Agreements of the Undersigned and Rights of the Administrative Agent.

     The undersigned agrees as follows and irrevocably authorizes, upon the occurrence and during
the continuance of an Event of Default (as defined in Section 7 below), the Administrative Agent to
exercise the rights listed below, at its option, for its own benefit, either in its own name or in
the name of the undersigned, and appoints the Administrative Agent as its attorney-in-fact to take
all action permitted under this Agreement.

     (a) Deposits: The Administrative Agent may: (i) renew the Deposits on terms and for periods
the Administrative Agent deems appropriate; (ii) demand, collect, and receive payment of any

2

 

monies
or proceeds due or to become due under the Deposits; (iii) execute any instruments required for the
withdrawal or repayment of the Deposits; (iv) in all respects deal with the Deposits as the owner.

     (b) Securities: The Administrative Agent may: (i) transfer to the account of the
Administrative Agent any Securities whether in the possession of, or registered in the name of, any
Clearing System or held otherwise; (ii) transfer to the account of the Administrative Agent with
any Federal Reserve Administrative Agent any Securities held in book entry form with any such
Federal Reserve Administrative Agent; and (iii) transfer to the name of the Administrative Agent or
its nominee any Securities registered in the name of the undersigned and held by the Administrative
Agent and complete and deliver any necessary stock powers or other transfer instruments.

     The undersigned grants to the Administrative Agent an irrevocable proxy to vote any and all
Securities and give consents, waivers and ratifications in connection with those Securities after
the occurrence and during the continuance of an Event of Default.

     All payments, distributions and dividends in securities, property or cash shall be paid
directly to and, at the discretion of the Administrative Agent, retained by the Administrative
Agent and held by it, until applied as provided in this Agreement, as additional Collateral;
provided that interest on Deposits and Securities and cash dividends on Securities shall be applied
in accordance with Section 2.11(b) of the Loan Agreement.

     (c) General: The Administrative Agent may, in its name, or in the name of the undersigned:
(i) execute and file financing statements under the UCC or any other filings or notices necessary
or desirable to create, perfect or preserve its security interest, all without notice (except as
required by applicable law and not waivable) and without liability except to account for property
actually received by it and (ii) after the occurrence and during the continuance of an Event of
Default (x) demand, sue for, collect or receive any money or property at any time payable or
receivable on account of or in exchange for, or make any compromise or settlement deemed desirable
with respect to, any item of the Collateral (but shall be under no obligation to do so); (y) make
any notification (to the issuer of any certificate or Security, or otherwise, including giving any
notice of exclusive control to the Intermediary) or take any other action in connection with the
perfection or preservation of its security interest or any enforcement of remedies, and retain any
documents evidencing the title of the undersigned to any item of the Collateral; (iv) issue
entitlement orders with respect to any of the Collateral to any Intermediary without the consent of
the undersigned.

     The undersigned agrees that it will not file or permit to be filed any financing or like
statement with respect to the Collateral in which the Administrative Agent is not named as the sole
secured party, consent or be a party to any securities account control agreement or other similar
agreement with any Intermediary (an “Account Control Agreement”) to which the
Administrative Agent is not also a party or sell, assign, or otherwise dispose of, grant any option
with respect to, or pledge, or otherwise encumber the Collateral. At the reasonable request of the
Administrative Agent the undersigned agrees to do all other things which the Administrative Agent
may deem necessary or advisable in order to perfect and preserve the security interest and to give
effect to the rights granted to the Administrative Agent under this Agreement or enable the
Administrative Agent to comply with any applicable laws or regulations. Notwithstanding the
foregoing, subject to compliance with any mandatory legal requirements placed upon it to the
contrary, the Administrative Agent does not assume any duty with respect to the Collateral and is
not required to take any action to collect, preserve or protect its or the undersigned’s rights in
any item of the Collateral. The undersigned releases the Administrative Agent and agrees to hold
the Administrative Agent harmless from any claims, causes of action and demands at any time arising
with respect to this Agreement, the use or disposition of any item of the Collateral or any action
taken or omitted to be taken by the Administrative Agent with respect thereto, subject to
Administrative Agent’s compliance with such mandatory legal

3

 

requirements and other than claims, causes of action and demands arising from the gross negligence
or willful misconduct of Administrative Agent.

     The rights granted to the Administrative Agent pursuant to this Agreement are in addition to
the rights granted to the Administrative Agent in any custody, investment management, trust,
Account Control Agreement or similar agreement. In case of conflict between the provisions of this
Agreement and of any other such agreement, the provisions of this Agreement will prevail.

     4. Application to Tranche A Term Loans. Upon the maturity of each item of Collateral or the
receipt by Borrower of any interest on Deposits and Securities and cash dividends on Securities,
the Borrower hereby directs the Administrative Agent to make a mandatory prepayment (in accordance
with and subject to Sections 2.11 and 2.16 of the Loan Agreement) of the Tranche A Term Loans in an
amount equal to the amount of such item of Collateral so matured or the interest or cash dividends
so received.

     5. Value of the Collateral.

     The undersigned agrees that at all times the aggregate value of the Collateral may not be less
than the amount required under Section 5.10 of the Loan Agreement, subject to the grace
period set forth therein. The undersigned will supplement the Collateral to the extent necessary
to ensure compliance with this provision.

     6. Currency Conversion.

     For calculation purposes, any currency in which the Collateral is denominated (the
“Collateral Currency”) will be converted into the currency of the Liabilities (the
“Liability Currency”) at the spot rate of exchange for the purchase of the Liability
Currency with the Collateral Currency quoted by the Administrative Agent at such place as the
Administrative Agent deems appropriate (or, if no such rate is quoted on any relevant date,
estimated by the Administrative Agent on the basis of the Administrative Agent’s last quoted spot
rate) or another prevailing rate that the Administrative Agent reasonably deems more appropriate.

     7. Representations and Warranties.

     The undersigned represents and warrants: (a) the undersigned is the sole owner of the
Collateral; (b) the Collateral is free of all encumbrances except for the security interest in
favor of the Administrative Agent created by this Agreement or any other Loan Document and except
for Relevant Permitted Liens; (c) no authorizations, consents or approvals and no notice to or
filing with any governmental authority or regulatory body is required for the execution and
delivery of this Agreement; (d) the execution, delivery and performance of this Agreement will not
violate any provisions of applicable law, regulation or order and will not result in the breach of,
or constitute a default, or require any consent under, any agreement, instrument or document to
which the undersigned is a party or by which it or any of its property may be bound or affected;
(e) the Securities are not subject to any restrictions or limitations relating to a holding period,
manner of sale, volume limitation, public information or notice requirements; and (f) it is duly
organized and validly existing under the laws of the jurisdiction of its organization, it has full
power and authority to execute, deliver and perform this Agreement, the execution, delivery and
performance have been duly authorized, will not conflict with any provisions of its governing
instruments and the Agreement is a legal, valid and binding obligation of the undersigned,
enforceable against it in accordance with its terms.

     8. Event of Default.

4

 

     If an Event of Default under the Loan Agreement (an “Event of Default”) shall occur
and be continuing, then, the Administrative Agent will be entitled to exercise any of the rights
and remedies under this Agreement.

     9. Remedies.

     The Administrative Agent will have the rights and remedies under the UCC and the other rights
granted to the Administrative Agent under this Agreement, and, without limiting the foregoing, but
subject to the occurrence and continuance of an Event of Default , without notice or demand, to
sell, redeem, offset, setoff, debit, charge or otherwise dispose of or liquidate into cash any such
Collateral and/or to apply it or the proceeds thereof to repay any of the Liabilities in accordance
with Section 2.18 of the Loan Agreement (regardless of whether any such Liabilities are contingent,
unliquidated or unmatured or whether the Administrative Agent has any other recourse to the
undersigned or any other Loan Party or any other collateral or assets). The Administrative Agent
may exercise its rights without regard to any premium or penalty from liquidation of any Collateral
and without regard to the undersigned’s basis or holding period for any Collateral.

     In connection with the exercise of its remedies, the Administrative Agent may sell in the
Borough of Manhattan, New York City, or elsewhere, in one or more sales or parcels, at the price as
the Administrative Agent deems best, for cash or on credit or for other property, for immediate or
future delivery, any item of the Collateral, at any broker’s board or at public or private sale, in
any reasonable manner permissible under the UCC (except that, to the extent permissible under the
UCC, the undersigned waives any requirements of the UCC) and the Administrative Agent or anyone
else may be the purchaser of the Collateral and hold it free from any claim or right including,
without limitation, any equity of redemption of the undersigned, which right the undersigned
expressly waives. The Administrative Agent may in its sole discretion elect to conduct any sale
(and related offers) of any Collateral in such a manner as to avoid the need for registration or
qualification thereof under any Federal or state securities laws, that such conduct may include
restrictions (including as to potential purchasers) and other requirements (such as purchaser
representations) which may result in prices or other terms less favorable than those which might
have been obtained through a public sale not subject to such restrictions and requirements and that
any offer and sale so conducted shall be deemed to have been made in a commercially reasonable
manner.

     In connection with the exercise of its remedies, the Administrative Agent may also, in its
sole discretion: (i) convert any part of the Collateral Currency into the Liability Currency; (ii)
hold any monies or proceeds representing the Collateral in a cash collateral account in the
Liability Currency or other currency that the Administrative Agent reasonably selects; (iii) invest
such monies or proceeds on behalf of the undersigned; and (iv) apply any portion of the Collateral,
first, to all costs and expenses of the Administrative Agent, second, to the payment of interest on
the Liabilities and any fees or commissions to which the Administrative Agent may be entitled,
third, to the payment of principal of the Liabilities, whether or not then due, and fourth, to the
undersigned.

     The undersigned will pay to the Administrative Agent all expenses (including reasonable
attorneys’ fees and legal expenses incurred by the Administrative Agent and the allocated costs of
its in-house counsel) in connection with the exercise of any of the Administrative Agent’s rights
or obligations under this Agreement or the Liability Documents. The undersigned will take any
action reasonably requested by the Administrative Agent to allow it to sell or dispose of the
Collateral. Notwithstanding that the Administrative Agent may continue to hold Collateral and
regardless of the value of the Collateral, the undersigned will remain liable for the payment in
full of any unpaid balance of the Liabilities.

     10. Jurisdiction.

5

 

     The undersigned consents to the non-exclusive jurisdiction of the State and Federal courts
sitting in the City of New York and agrees that suit may be brought against the undersigned in
those courts or in any other jurisdiction where the undersigned or any of its assets may be found,
and the undersigned irrevocably submits to the jurisdiction of those courts. The undersigned
consents to the service of process by mailing copies of process to the Parent at its most recent
mailing address in the records of the Administrative Agent. The undersigned further agrees that
any action or proceeding brought against the Administrative Agent may be brought only in a New York
State or United States Federal court sitting in New York County. To the extent that the Borrower
may be or become entitled to claim for itself or its property any immunity on the ground of
sovereignty or the like from suit, court jurisdiction, attachment prior to judgment, attachment in
aid of execution of a judgment or execution of a judgment, and to the extent that in any such
jurisdiction there may be attributed such an immunity (whether or not claimed), the Borrower hereby
irrevocably agrees not to claim and hereby irrevocably waives such immunity with respect to its
obligations hereunder or under the other Liability Documents.

     The undersigned agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in any other jurisdiction by suit or proceeding in such state and
hereby waives any defense on the basis of an inconvenient forum. Nothing herein shall affect the
right of the Administrative Agent to serve legal process in any other manner permitted by law or
affect the right of the Administrative Agent to bring any action or proceeding against the
undersigned or its property in the courts of any other jurisdiction.

     11. Waiver of Jury Trial.

     THE UNDERSIGNED AND THE BANK EACH WAIVE ANY RIGHT TO JURY TRIAL.

     12. Notices.

     Unless otherwise agreed in writing, notices may be given to the Administrative Agent and the
undersigned in accordance with Section 9.01 of the Loan Agreement.

     13. Miscellaneous.

     (a) The Administrative Agent may assign any of the Collateral and any of its interests in
this Agreement (and may assign the Liabilities to any party) in accordance with the Loan Agreement
and will be fully discharged from all responsibility as to the assigned Collateral. That assignee
will have all the obligations, powers and rights of the Administrative Agent hereunder, but only as
to the assigned Collateral.

     (b) No amendment or waiver of any provision of this Agreement nor consent to any departure by
the undersigned will be effective unless it is in writing and signed by the undersigned and the
Administrative Agent and will be effective only in that specific instance and for that specific
purpose. No failure on the part of the Administrative Agent to exercise, and no delay in
exercising, any right will operate as a waiver or preclude any other or further exercise or the
exercise of any other right.

     (c) The rights and remedies in this Agreement are cumulative and not exclusive of any rights
and remedies which the Administrative Agent may have under law or under other agreements or
arrangements with the undersigned or any other Loan Party.

     (d) The provisions of this Agreement are intended to be severable. If for any reason any
provision of this Agreement is not valid or enforceable in whole or in part in any jurisdiction,
that provision will, as to that jurisdiction, be ineffective to the extent of that invalidity or
unenforceability without in any manner

6

 

affecting the validity or enforceability in any other jurisdiction or the remaining provisions of
this Agreement.

     (e) The term “undersigned” will include the heirs, executors, administrators, assigns and
successors of the undersigned.

     (f) The undersigned hereby waives presentment, notice of dishonor and protest of all
instruments included in or evidencing the Liabilities or the Collateral and any other notices and
demands, whether or not relating to those instruments.

     (g) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF
NEW YORK.

     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.

	 	 	 	 	 
	 	 	NETWORK APPLIANCE GLOBAL LTD.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

	 	 	 	 	 
	Address for notices: 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Telecopier:	 	 
	Telephone:	 	 
	 
	 	 	 	 
	ACCEPTED:	 	 
	 
	 	 	 	 
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

as Administrative Agent
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Address for notices to the	 	 
	Administrative Agent:	 	 
	 
	 	 	 	 
	JPMorgan Chase Bank, National Association
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	Attn:	 	 
	Telecopier:	 	 
	Telephone:	 	 

7

 

EXHIBIT A

DESCRIPTION OF THE COLLATERAL

     1. Deposits

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Type of	 	Location	 	 	 	 	 	 	 	 	 	 	 	 	 
	Deposit	 	(NY,	 	 	 	 	 	 	 	 	 	 	 	 	 
	(CD, TD,	 	IBF-NY,	 	 	Contract or	 	 	Issue or	 	 	Maturity	 	 	Principal	 
	etc.)	 	etc.)	 	 	Certificate No.	 	 	Opening Date	 	 	Date	 	 	Amount	 
	None
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     2. Stocks, Bonds and Other Instruments and Securities

	 	 	 	 	 	 	 	 	 	 	 	 
	Nature of Security	 	 	 	 	Number of	 	 	Face Amount	 	 	Certificate
	or Obligation	 	Name of Issuer	 	 	Units	 	 	(if Applicable)	 	 	Number

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Quantity	 	 	Issuer	 	Cpn	 	 	Yld	 	 	Value	 	 	Maturity	 	 	Cost	 
	 	2,865,000	 	 	Bear Sterns
	 	 	6.500	 	 	 	3.005	 	 	 	05/03/04	 	 	 	5/1/2006	 	 	 	3,082,883.25	 
	 	3,400,000	 	 	Pitney Bowes
	 	 	5.875	 	 	 	2.957	 	 	 	11/05/04	 	 	 	5/1/2006	 	 	 	3,556,230.00	 
	 	5,000,000	 	 	Citicorp
	 	 	5.750	 	 	 	3.412	 	 	 	01/07/05	 	 	 	5/10/2006	 	 	 	5,163,650.00	 
	 	2,000,000	 	 	American General (A)
	 	 	6.100	 	 	 	3.218	 	 	 	10/26/04	 	 	 	5/22/2006	 	 	 	2,096,140.00	 
	 	3,000,000	 	 	Federal Home Loan Bank
	 	 	2.180	 	 	 	2.152	 	 	 	03/10/04	 	 	 	6/2/2006	 	 	 	3,001,875.00	 
	 	3,000,000	 	 	Abbott Laboratories
	 	 	5.625	 	 	 	3.117	 	 	 	11/13/03	 	 	 	7/1/2006	 	 	 	3,215,250.00	 
	 	4,000,000	 	 	Prudential Ins
	 	 	6.375	 	 	 	3.929	 	 	 	03/10/05	 	 	 	7/23/2006	 	 	 	4,140,640.00	 
	 	3,000,000	 	 	JPMC BANK NEW YORK
	 	 	5.625	 	 	 	3.226	 	 	 	11/12/03	 	 	 	8/15/2006	 	 	 	3,215,790.00	 
	 	4,000,000	 	 	Fannie Mae
	 	 	2.550	 	 	 	2.550	 	 	 	02/24/04	 	 	 	8/24/2006	 	 	 	4,000,000.00	 
	 	2,315,000	 	 	Lehman Brothers
	 	 	7.500	 	 	 	3.292	 	 	 	02/06/04	 	 	 	9/1/2006	 	 	 	2,600,045.95	 
	 	5,000,000	 	 	American Express
	 	 	5.500	 	 	 	3.448	 	 	 	05/18/04	 	 	 	9/12/2006	 	 	 	5,253,700.00	 
	 	1,000,000	 	 	Coca Cola
	 	 	2.500	 	 	 	2.714	 	 	 	11/07/03	 	 	 	9/15/2006	 	 	 	993,850.00	 
	 	5,000,000	 	 	Federal Home Loan Bank
	 	 	2.510	 	 	 	2.510	 	 	 	03/22/04	 	 	 	9/22/2006	 	 	 	5,000,000.00	 
	 	5,000,000	 	 	General Electric Credit Corp
	 	 	2.750	 	 	 	2.717	 	 	 	11/28/03	 	 	 	9/25/2006	 	 	 	5,004,750.00	 
	 	3,000,000	 	 	Freddie Mac
	 	 	3.000	 	 	 	3.000	 	 	 	09/29/04	 	 	 	9/29/2006	 	 	 	3,000,000.00	 
	 	5,000,000	 	 	US Treasury
	 	 	2.625	 	 	 	2.409	 	 	 	11/26/03	 	 	 	11/15/2006	 	 	 	5,032,812.50	 
	 	3,000,000	 	 	Eli Lilly Co.
	 	 	8.375	 	 	 	3.940	 	 	 	12/08/03	 	 	 	12/1/2006	 	 	 	3,464,820.00	 
	 	3,100,000	 	 	Fleet Boston
	 	 	4.875	 	 	 	3.870	 	 	 	03/03/05	 	 	 	12/1/2006	 	 	 	3,156,203.00	 
	 	5,000,000	 	 	Federal Home Loan Bank
	 	 	3.500	 	 	 	3.500	 	 	 	01/25/05	 	 	 	1/25/2007	 	 	 	5,000,000.00	 
	 	5,050,000	 	 	Toyota Motor Credit
	 	 	2.700	 	 	 	3.122	 	 	 	11/22/04	 	 	 	1/30/2007	 	 	 	5,003,186.50	 
	 	5,300,000	 	 	ASIF Global
	 	 	2.500	 	 	 	3.548	 	 	 	02/15/05	 	 	 	1/30/2007	 	 	 	5,192,039.00	 
	 	5,000,000	 	 	US Treasury
	 	 	3.125	 	 	 	3.264	 	 	 	01/31/05	 	 	 	1/31/2007	 	 	 	4,985,937.50	 
	 	5,000,000	 	 	Freddie Mac
	 	 	2.375	 	 	 	2.501	 	 	 	04/12/04	 	 	 	2/15/2007	 	 	 	4,981,950.00	 
	 	5,000,000	 	 	Freddie Mac
	 	 	2.375	 	 	 	3.509	 	 	 	06/15/04	 	 	 	2/15/2007	 	 	 	4,850,950.00	 
	 	2,500,000	 	 	International Lease
	 	 	5.750	 	 	 	3.509	 	 	 	11/05/04	 	 	 	2/15/2007	 	 	 	2,636,575.00	 
	 	7,000,000	 	 	Federal Home Loan Bank
	 	 	3.375	 	 	 	3.420	 	 	 	01/24/05	 	 	 	2/23/2007	 	 	 	6,993,420.00	 
	 	5,000,000	 	 	Citicorp
	 	 	5.000	 	 	 	3.119	 	 	 	04/22/04	 	 	 	3/6/2007	 	 	 	5,289,600.00	 
	 	4,000,000	 	 	General Electric Credit Corp
	 	 	5.375	 	 	 	3.501	 	 	 	11/16/04	 	 	 	3/15/2007	 	 	 	4,185,000.00	 
	 	5,000,000	 	 	General Electric Credit Corp
	 	 	5.375	 	 	 	3.732	 	 	 	01/28/05	 	 	 	3/15/2007	 	 	 	5,183,550.00	 
	 	6,000,000	 	 	Pfizer Inc.
	 	 	2.500	 	 	 	3.923	 	 	 	04/06/05	 	 	 	3/15/2007	 	 	 	5,836,680.00	 
	 	3,500,000	 	 	BP Capital
	 	 	2.625	 	 	 	3.885	 	 	 	04/26/05	 	 	 	3/15/2007	 	 	 	3,417,680.00	 

8

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Quantity	 	 	Issuer	 	Cpn	 	 	Yld	 	 	Value	 	 	Maturity	 	 	Cost	 
	 	5,000,000	 	 	Morgan Stanley Dean Witter
	 	 	5.800	 	 	 	3.655	 	 	 	11/24/04	 	 	 	4/1/2007	 	 	 	5,269,350.00	 
	 	5,000,000	 	 	Fannie Mae
	 	 	2.820	 	 	 	3.155	 	 	 	04/28/04	 	 	 	4/19/2007	 	 	 	4,950,000.00	 
	 	5,000,000	 	 	General Electric Credit Corp
	 	 	5.000	 	 	 	3.776	 	 	 	01/18/05	 	 	 	6/15/2007	 	 	 	5,153,900.00	 
	 	5,000,000	 	 	Wal Mart
	 	 	4.375	 	 	 	3.376	 	 	 	11/16/04	 	 	 	7/12/2007	 	 	 	5,137,950.00	 
	 	2,000,000	 	 	Wal Mart
	 	 	4.375	 	 	 	3.639	 	 	 	01/21/05	 	 	 	7/12/2007	 	 	 	2,037,560.00	 
	 	5,000,000	 	 	Fannie Mae
	 	 	3.410	 	 	 	4.161	 	 	 	07/28/05	 	 	 	8/30/2007	 	 	 	4,921,650.00	 
	 	3,000,000	 	 	Bank One NA
	 	 	4.125	 	 	 	3.274	 	 	 	10/20/04	 	 	 	9/1/2007	 	 	 	3,076,020.00	 
	 	5,000,000	 	 	Chevron Texaco
	 	 	3.500	 	 	 	3.065	 	 	 	09/24/04	 	 	 	9/17/2007	 	 	 	5,066,600.00	 
	 	5,000,000	 	 	CIT Group
	 	 	5.750	 	 	 	4.082	 	 	 	01/28/05	 	 	 	9/25/2007	 	 	 	5,235,250.00	 
	 	3,250,000	 	 	Federal Farm Credit Bank
	 	 	3.280	 	 	 	3.952	 	 	 	04/20/05	 	 	 	9/27/2007	 	 	 	3,196,862.50	 
	 	5,000,000	 	 	Freddie Mac
	 	 	3.500	 	 	 	3.916	 	 	 	05/19/05	 	 	 	10/19/2007	 	 	 	4,949,500.00	 
	 	5,000,000	 	 	US Treasury
	 	 	3.000	 	 	 	3.056	 	 	 	11/15/04	 	 	 	11/15/2007	 	 	 	4,991,462.50	 
	 	3,000,000	 	 	General Electric Credit Corp
	 	 	4.250	 	 	 	4.138	 	 	 	05/25/05	 	 	 	1/15/2008	 	 	 	3,009,000.00	 
	 	3,000,000	 	 	Lehman Brothers
	 	 	4.000	 	 	 	3.883	 	 	 	01/24/05	 	 	 	1/22/2008	 	 	 	3,010,680.00	 
	 	10,000,000	 	 	HBOS PLC
	 	 	3.800	 	 	 	4.096	 	 	 	05/25/05	 	 	 	1/30/2008	 	 	 	9,920,200.00	 
	 	3,000,000	 	 	Canadian Imp Bank Comm
	 	 	3.800	 	 	 	4.470	 	 	 	08/08/05	 	 	 	2/1/2008	 	 	 	2,950,170.00	 
	 	1,000,000	 	 	BANK OF NEW YORK
	 	 	3.800	 	 	 	4.006	 	 	 	06/03/05	 	 	 	2/1/2008	 	 	 	994,450.00	 
	 	5,000,000	 	 	US Treasury
	 	 	3.375	 	 	 	3.459	 	 	 	02/15/05	 	 	 	2/15/2008	 	 	 	4,987,282.00	 
	 	3,000,000	 	 	Federal Home Loan Bank
	 	 	3.900	 	 	 	3.900	 	 	 	02/25/05	 	 	 	2/25/2008	 	 	 	3,000,000.00	 
	 	7,000,000	 	 	Monumental Global Funding
	 	 	3.850	 	 	 	4.144	 	 	 	06/15/05	 	 	 	3/3/2008	 	 	 	6,943,720.00	 
	 	5,000,000	 	 	American Honda Finance
	 	 	4.250	 	 	 	4.261	 	 	 	07/14/05	 	 	 	3/11/2008	 	 	 	4,998,500.00	 
	 	4,100,000	 	 	Lehman Brothers
	 	 	6.500	 	 	 	4.537	 	 	 	07/13/05	 	 	 	4/15/2008	 	 	 	4,338,251.00	 
	 	10,000,000	 	 	ANZ National Bank
	 	 	4.265	 	 	 	4.174	 	 	 	07/13/05	 	 	 	5/16/2008	 	 	 	10,026,400.00	 
	 	5,000,000	 	 	Fannie Mae
	 	 	4.500	 	 	 	4.500	 	 	 	07/21/05	 	 	 	7/21/2008	 	 	 	5,000,000.00	 
	 	3,000,000	 	 	Federal Farm Credit Bank
	 	 	4.600	 	 	 	4.600	 	 	 	08/25/05	 	 	 	8/25/2008	 	 	 	3,000,000.00	 
	 
	 	241,380,000	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	244,699,966	 
	 

3. All Assets Held or To Be Held in the Following Custody or Subcustody Accounts, Safekeeping
Accounts, Investment Management Accounts and/or other account with Intermediary:

	 	 	 	 	 	 	 	 	 
	Type of Account	 	Account Number	 	 	Entity/Location	 
	Securities Account
	 	36064111	 	 	J.P. Morgan Securities Inc.

9

 

EXHIBIT G

FORM OF CONTROL AGREEMENT

TRI-PARTY CONTROL AGREEMENT

(“Control Agreement”)

Date: March 31, 2006

Re: Pledge of Collateral described in attached Pledge Agreement (the “Pledge”)

     The undersigned (“Debtor”) has granted to JPMORGAN CHASE BANK, National Association, as
Administrative Agent (“Secured Party”) a security interest in Collateral held in account number
36064111 (such account or any successor accounts, collectively, the “Securities Account”) to secure
indebtedness owing to Secured Party in connection with that certain Loan Agreement dated as of
March 31, 2006 by and among the Debtor, the Lenders party thereto and the Secured Party (as such
agreement may be amended, restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”). J.P. MORGAN SECURITIES INC., or any affiliate including JPMORGAN CHASE BANK, National
Association (Capital Markets Department) (“Securities Intermediary”) represents to Secured Party as
follows: (a) The Collateral described in the Pledge is a complete and accurate statement of the
Securities Account and all of the listed Collateral has been endorsed to Securities Intermediary or
in blank. (b) The Securities Account and the rights of Debtor in the account are valid and legally
binding obligations of the Securities Intermediary. (c) On the date of this Control Agreement,
Securities Intermediary does not know of any claim to or interest in the Securities Account other
than the interests of Debtor and Secured Party.

     Debtor irrevocably directs Securities Intermediary to make all notations in Security
Intermediary’s records pertaining to the Securities Account that are necessary or appropriate to
reflect the above Pledge, to move Collateral from the existing Securities Account to establish a
new Securities Account, with a new account number, for the purpose of holding the Collateral, if
need be, and to style the Securities Account to read:

          “JPMORGAN CHASE BANK, NATIONAL ASSOCIATION — Collateral Account for Network Appliance Global Ltd.”

or any abbreviations made by Securities Intermediary for operational purposes.

     Debtor irrevocably instructs Securities Intermediary to follow only instructions received from
the Secured Party, furnished in writing, without further consent of Debtor concerning (1) the
payment or reinvestment of dividends or distributions and (2) the redemption, transfer, sale or any
other disposition or transaction concerning the Collateral or the income and principal proceeds,
substitutions and reinvestment of Collateral. However, until further notice from Secured Party,
(i) Debtor may receive all income, including dividends and interest (but not stock splits, stock
dividends, cash equity distributions, liquidating distributions or other non cash principal
disbursements) from either Securities Intermediary or Secured Party, and (ii) Debtor may originate
trading instructions to the Securities Intermediary to make substitutions for and additions to the
Collateral, all of which are Collateral to be held in the Securities Account subject to the Pledge
in favor of Secured Party. Without the prior written consent of Secured Party, no withdrawal of
Collateral from the Securities Account by Debtor will be permitted under any circumstances, except
for prepayments required under the Loan Agreement and (if permitted by this Control Agreement and
then only until further notice by Secured Party) distributions of income or substitution of new
Collateral of equal or greater value. Any additional securities delivered to the Securities
Account and noted on Security Intermediary’s records to reflect the Pledge will be subject to the
Pledge without any further documentation. Any distribution privileges granted to Debtor may be
revoked in writing solely by Secured Party if an Event of Default (as defined in the Loan
Agreement) has occurred and is continuing.

     Debtor also irrevocably authorizes and directs Securities Intermediary to send all notices,
statements and all other communications concerning the Collateral or the Securities Account, in
addition to Debtor, to the following address or any other address Secured Party may specify in
writing:

Attn: Alex McKindra

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

560 Mission Street

18th Floor

San Francisco, California 94105

Telecopy No. (415) 315-8483

     Secured Party may exercise its rights under the Pledge, this Control Agreement or other loan
documents without any further consent of Debtor or any other person. Securities Intermediary is
directed to follow all of Secured Party’s instructions without investigating the reason for any
action taken by the Secured Party or the existence of any default. Secured Party’s signature alone
will be sufficient authority for the exercise of any rights by Secured Party and a receipt from
Secured Party alone will be a full release and discharge for Securities Intermediary. Except as
otherwise permitted above with respect to distributions of income to Debtor, checks for all or any
part of the Collateral will be payable only to the order of Secured Party if, when and in such
amounts as may be requested by Secured Party.

     Neither Securities Intermediary nor any of its respective partners, trustees, officers,
employees or affiliates will breach any duty to Debtor if it complies in good faith with the
instructions contained in this Control Agreement or fails to comply with any contrary or
inconsistent instructions that may

 

 

subsequently be issued by the Debtor. The Debtor further holds harmless and indemnifies each of
them against any claim, loss, cost or expense arising out of any actions or omissions taken by any
person in reliance on or compliance with the instructions and authorizations contained in this
Control Agreement except for any claim, loss, cost or expense arising from such person’s gross
negligence or willful misconduct. The instructions contained in this Control Agreement may be
revoked and the terms of this Control Agreement may be amended by Debtor only if Securities
Intermediary receives (i) Secured Party’s written consent to the revocation or amendment, or (ii)
Secured Party’s written notification that the Pledge has been terminated. The rights and powers
granted to Secured Party in this Control Agreement are powers coupled with an interest and will
neither be affected by the bankruptcy of Debtor nor by the lapse of time.

     Securities Intermediary agrees to hold the Collateral and the Securities Account (including
any free credit balances) for and on behalf of the Secured Party and as bailee in possession for
Secured Party. Securities Intermediary subordinates any liens, claims or rights it may have
against the Securities Account or any Collateral carried in the Securities Account in favor of
Secured Party except for its standard commission or fee and any unsettled trades. Securities
Intermediary will not agree to comply with any third party orders or instructions concerning the
Securities Account without the prior written consent of Secured Party.

     All items of income including dividends, interest and other income, gain, expense and loss
recognized in the Securities Account must be reported by Securities Intermediary or Secured Party
in the name and tax identification number of Debtor.

     This Control Agreement benefits the Secured Party and its successors and assigns and is
binding on Debtor and Securities Intermediary and their respective successors and assigns. This
Control Agreement is governed by, and construed in accordance with, the laws of the State of New
York, which shall also be deemed to be Securities Intermediary’s jurisdiction. This Control
Agreement is intended to be “an agreement” within the meaning of Section 8-110(e) of the New York
Uniform Commercial Code.

[Signature Page Follows]

2

 

This written agreement represents the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.

     There are no unwritten oral agreements between the parties.

	 	 	 	 	 
	DEBTOR:	 	 
	 
	 	 	 	 
	NETWORK APPLIANCE GLOBAL LTD.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 
	SECURED PARTY: JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, AS ADMINISTRATIVE AGENT
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO BY SECURITIES INTERMEDIARY:
	 
	 	 	 	 	 	 
	J.P. MORGAN SECURITIES INC., or any affiliate including

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (Capital Markets Department)
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 	 	 	 	 

3

 

EXHIBIT G

MARGIN REQUIREMENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Remaining Maturity/ S&P/
Moody’s	 	 	 	 
	Type of Security	 	Rating	 	Valuation Percentage	 	Ratio Level
	 
	JPMorgan Certificates
of Deposit (Must be
through JPMorgan)
	 	 	 	 	100	%	 	 	1.00x	 
	 
	 	 	 	 	 	 	 	 	 	 
	US Treasury Treasuries
	 	Less than 1 year	 	 	99	%	 	 	1.01x	 
	 
	 	More than 1 year less than 5 years	 	 	98	%	 	 	1.02x	 
	 
	 	More than 5 years less than 10 years	 	 	97	%	 	 	1.03x	 
	 
	 	Over 10 years	 	 	96	%	 	 	1.04x	 
	 
	 	 	 	 	 	 	 	 	 	 
	US Agency Securities
	 	Less than 1 year	 	 	99	%	 	 	1.01x	 
	 
	 	More than 1 year less than 5 years	 	 	98	%	 	 	1.02x	 
	 
	 	More than 5 years less than 10 years	 	 	97	%	 	 	1.03x	 
	 
	 	Over 10 years less than 30 years	 	 	96	%	 	 	1.04x	 
	 
	 	 	 	 	 	 	 	 	 	 
	USD Commercial Paper
	 	A1/P1 Less than or equal to 270 days	 	 	95	%	 	 	1.05x	 
	 
	 	 	 	 	 	 	 	 	 	 
	Money Market Funds
(Must be through
JPMorgan)
	 	US Gov’t	 	 	95	%	 	 	1.05x	 
	 
	 	Treasury Plus	 	 	95	%	 	 	1.05x	 
	 
	 	Cash Management	 	 	90	%	 	 	1.11x	 
	 
	 	100% US Treasury	 	 	95	%	 	 	1.05x	 
	 
	 	Federal Money Market	 	 	95	%	 	 	1.05x	 
	 
	 	 	 	 	 	 	 	 	 	 
	Medium Term Notes,
Corporate Bonds,
Corporate
	 	AAA	 	 	95	%	 	 	1.05x	 
	 
	 	 	 	 	 	 	 	 	 	 
	Debentures, Floating
Rate Notes, and
Auction
	 	AA	 	 	93	%	 	 	1.08x	 
	 
	 	 	 	 	 	 	 	 	 	 
	Rate Securities
	 	A (with Maturity less than 3 months)	 	 	90	%	 	 	1.11x	 
	 
	 	A (with Maturity more than 3 months)	 	 	80	%	 	 	1.25x	 
	 
	 	 	 	 	 	 	 	 	 	 
	Other (Bankers
Acceptances,
Eurodollar deposits,
Time Deposits,
Repurchase
Agreements, Sovereign
& Supranational
Issuers)
	 	 	 	 	0	%	 	NM

 

 

EXHIBIT H

FORM OF COMPLIANCE CERTIFICATE

	 	 	 
	To:

	 	The Lenders parties to the

Loan Agreement Described Below

     This Compliance Certificate is furnished pursuant to that certain Loan Agreement dated as of
March 31, 2006 (as amended, modified, renewed or extended from time to time, the “Agreement”) among
Network Appliance Global Ltd. (the “Borrower”), the Lenders party thereto and JPMorgan
Chase Bank, National Association, as Administrative Agent for the Lenders. Unless otherwise
defined herein, capitalized terms used in this Compliance Certificate have the meanings ascribed
thereto in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

	 	1.	I am the duly elected ___of the Borrower;
	 
	 	2.	I have reviewed the terms of the Agreement and I have made, or have caused to be made
under my supervision, a detailed review of the transactions and conditions of the Borrower
and its Subsidiaries during the accounting period covered by the attached financial
statements [for quarterly financial statements add: and such financial statements present
fairly in all material respects the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes];
	 
	 	3.	The examinations described in paragraph 2 did not disclose, except as set forth below,
and I have no knowledge of (i) the existence of any condition or event which constitutes a
Default during or at the end of the accounting period covered by the attached financial
statements or as of the date of this Certificate or (ii) any change in GAAP or in the
application thereof that has occurred since the date of the audited financial statements
referred to in Section 3.04 of the Agreement; and
	 
	 	4.	Schedule I attached hereto sets forth financial data and computations
evidencing the Borrower’s compliance with Section 6.10 of the Agreement and sets forth the
computations necessary to determine the Applicable Rate, all of which data and computations
are true, complete and correct.

     Described below are the exceptions, if any, to paragraph 3 by listing, in detail, (i) the
nature of the condition or event, the period during which it has existed and the action which the
Borrower has taken, is taking, or proposes to take with respect to each such condition or event or
(ii) the change in GAAP or the application thereof and the effect of such change on the attached
financial statements:

 

 

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

     The foregoing certifications, together with the computations set forth in Schedule I
hereto and the financial statements delivered with this Certificate in support hereof, are made and
delivered this ___day of ___, ___.

	 	 	 	 	 	 	 
	 	 	NETWORK APPLIANCE GLOBAL LTD.
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	     Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Title:	 	 
	 

	 	 	 	 	 	 

2

 

SCHEDULE I

Compliance as of _________, ____ with

Provisions of ____ and ____ of

the Agreement

and Borrower’s Applicable Rate Calculation

3

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