Document:

exv4w01

 

Exhibit 4.01

TRINITY INDUSTRIES, INC.,

AND

WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS TRUSTEE

37/8 % Convertible Subordinated Notes due 2036

INDENTURE

Dated as of June 7, 2006

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	ARTICLE I	 	 	 	 
	 
	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	 	 
	 
	 	SECTION 1.1.	 	Definitions	 	 	1	 
	 
	 	SECTION 1.2.	 	Other Definitions	 	 	10	 
	 
	 	SECTION 1.3.	 	Incorporation by Reference of Trust Indenture Act	 	 	11	 
	 
	 	SECTION 1.4.	 	Rules of Construction	 	 	12	 
	 
	 
	 	ARTICLE II	 	 	 	 
	 
	 	THE SECURITIES	 	 	 	 
	 
	 	SECTION 2.1.	 	Title and Terms	 	 	12	 
	 
	 	SECTION 2.2.	 	Form of Securities	 	 	14	 
	 
	 	SECTION 2.3.	 	Legends	 	 	15	 
	 
	 	SECTION 2.4.	 	Execution and Authentication	 	 	16	 
	 
	 	SECTION 2.5.	 	Registrar and Paying Agent	 	 	17	 
	 
	 	SECTION 2.6.	 	Paying Agent To Hold Money in Trust	 	 	18	 
	 
	 	SECTION 2.7.	 	Securityholder Lists	 	 	18	 
	 
	 	SECTION 2.8.	 	General Provisions Relating to Transfer and Exchange	 	 	18	 
	 
	 	SECTION 2.9.	 	Book-Entry Provisions for the Global Securities	 	 	19	 
	 
	 	SECTION 2.10.	 	Mutilated, Destroyed, Lost or Stolen Securities	 	 	21	 
	 
	 	SECTION 2.11.	 	Outstanding Securities	 	 	22	 
	 
	 	SECTION 2.12.	 	Temporary Securities	 	 	22	 
	 
	 	SECTION 2.13.	 	Cancellation	 	 	23	 
	 
	 	SECTION 2.14.	 	Payment of Interest; Defaulted Interest	 	 	23	 
	 
	 	SECTION 2.15.	 	Computation of Interest	 	 	24	 
	 
	 	SECTION 2.16.	 	CUSIP and ISIN Numbers	 	 	24	 
	 
	 
	 	ARTICLE III	 	 	 	 
	 
	 	COVENANTS	 	 	 	 
	 
	 	SECTION 3.1.	 	Payment of Securities	 	 	25	 
	 
	 	SECTION 3.2.	 	Maintenance of Office or Agency	 	 	25	 
	 
	 	SECTION 3.3.	 	Corporate Existence	 	 	26	 
	 
	 	SECTION 3.4.	 	Payment of Taxes and Other Claims	 	 	26	 
	 
	 	SECTION 3.5.	 	Payments for Consent	 	 	26	 
	 
	 	SECTION 3.6.	 	Compliance Certificate	 	 	27	 
	 
	 	SECTION 3.7.	 	Further Instruments and Acts	 	 	27	 
	 
	 	SECTION 3.8.	 	Statement by Officers as to Default	 	 	27	 
	 
	 	SECTION 3.9.	 	Tax Treatment	 	 	27	 
	 
	 	SECTION 3.10.	 	Delivery of Certain Information	 	 	28	 
	 
	 
	 	ARTICLE IV	 	 	 	 
	 
	 	SUCCESSOR COMPANY	 	 	 	 
	 
	 	SECTION 4.1.	 	Consolidation, Merger and Sale of Assets	 	 	28	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	ARTICLE V	 	 	 	 
	 
	 	REDEMPTION OF SECURITIES	 	 	 	 
	 
	 	SECTION 5.1.	 	Optional Redemption	 	 	29	 
	 
	 	SECTION 5.2.	 	Applicability of Article	 	 	29	 
	 
	 	SECTION 5.3.	 	Election to Redeem; Notice to Trustee	 	 	29	 
	 
	 	SECTION 5.4.	 	Selection by Trustee of Securities to Be Redeemed	 	 	29	 
	 
	 	SECTION 5.5.	 	Notice of Redemption	 	 	30	 
	 
	 	SECTION 5.6.	 	Deposit of Redemption Price	 	 	31	 
	 
	 	SECTION 5.7.	 	Securities Payable on Redemption Date	 	 	31	 
	 
	 	SECTION 5.8.	 	Securities Redeemed in Part	 	 	32	 
	 
	 
	 	ARTICLE VI	 	 	 	 
	 
	 	DEFAULTS AND REMEDIES	 	 	 	 
	 
	 	SECTION 6.1.	 	Events of Default	 	 	32	 
	 
	 	SECTION 6.2.	 	Acceleration	 	 	34	 
	 
	 	SECTION 6.3.	 	Other Remedies	 	 	35	 
	 
	 	SECTION 6.4.	 	Waiver of Past Defaults	 	 	35	 
	 
	 	SECTION 6.5.	 	Control by Majority	 	 	35	 
	 
	 	SECTION 6.6.	 	Limitation on Suits	 	 	35	 
	 
	 	SECTION 6.7.	 	Rights of Holders to Receive Payment	 	 	36	 
	 
	 	SECTION 6.8.	 	Collection Suit by Trustee	 	 	36	 
	 
	 	SECTION 6.9.	 	Trustee May File Proofs of Claim	 	 	36	 
	 
	 	SECTION 6.10.	 	Priorities	 	 	37	 
	 
	 	SECTION 6.11.	 	Undertaking for Costs	 	 	37	 
	 
	 
	 	ARTICLE VII	 	 	 	 
	 
	 	TRUSTEE	 	 	 	 
	 
	 	SECTION 7.1.	 	Duties of Trustee	 	 	37	 
	 
	 	SECTION 7.2.	 	Rights of Trustee	 	 	39	 
	 
	 	SECTION 7.3.	 	Individual Rights of Trustee	 	 	40	 
	 
	 	SECTION 7.4.	 	Trustee’s Disclaimer	 	 	40	 
	 
	 	SECTION 7.5.	 	Notice of Defaults	 	 	40	 
	 
	 	SECTION 7.6.	 	Reports by Trustee to Holders	 	 	41	 
	 
	 	SECTION 7.7.	 	Compensation and Indemnity	 	 	41	 
	 
	 	SECTION 7.8.	 	Replacement of Trustee	 	 	42	 
	 
	 	SECTION 7.9.	 	Successor Trustee by Merger	 	 	42	 
	 
	 	SECTION 7.10.	 	Eligibility; Disqualification	 	 	43	 
	 
	 	SECTION 7.11.	 	Preferential Collection of Claims Against Company	 	 	43	 
	 
	 	SECTION 7.12.	 	Trustee’s Application for Instruction from the Company	 	 	43	 
	 
	 
	 	ARTICLE VIII	 	 	 	 
	 
	 	DISCHARGE OF INDENTURE	 	 	 	 
	 
	 	SECTION 8.1.	 	Discharge of Liability on Securities	 	 	43	 
	 
	 	SECTION 8.2.	 	Reinstatement	 	 	44	 
	 
	 	SECTION 8.3.	 	Officers’ Certificate; Opinion of Counsel	 	 	45	 
	 
	 
	 	ARTICLE IX	 	 	 	 
	 
	 	AMENDMENTS	 	 	 	 
	 
	 	SECTION 9.1.	 	Without Consent of Holders	 	 	45	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 9.2.	 	With Consent of Holders	 	 	46	 
	 
	 	SECTION 9.3.	 	Compliance with Trust Indenture Act	 	 	47	 
	 
	 	SECTION 9.4.	 	Revocation and Effect of Consents and Waivers	 	 	47	 
	 
	 	SECTION 9.5.	 	Notation on or Exchange of Securities	 	 	47	 
	 
	 	SECTION 9.6.	 	Trustee To Sign Amendments	 	 	48	 
	 
	 
	 	ARTICLE X	 	 	 	 
	 
	 	SUBORDINATION	 	 	 	 
	 
	 	SECTION 10.1.	 	Agreement of Subordination	 	 	48	 
	 
	 	SECTION 10.2.	 	Payments to Holders	 	 	48	 
	 
	 	SECTION 10.3.	 	Subrogation of Securities	 	 	51	 
	 
	 	SECTION 10.4.	 	Authorization to Effect Subordination	 	 	52	 
	 
	 	SECTION 10.5.	 	Notice to Trustee	 	 	52	 
	 
	 	SECTION 10.6.	 	Trustee’s Relation to Senior Debt	 	 	53	 
	 
	 	SECTION 10.7.	 	No Impairment of Subordination	 	 	53	 
	 
	 	SECTION 10.8.	 	Certain Conversions Not Deemed Payment	 	 	53	 
	 
	 	SECTION 10.9.	 	Article Applicable to Payment Agents	 	 	54	 
	 
	 	SECTION 10.10.	 	Senior Debt Entitled to Rely	 	 	54	 
	 
	 
	 	ARTICLE XI	 	 	 	 
	 
	 	PURCHASE AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE; REPURCHASE AT THE OPTION OF HOLDERS	 
	 
	 	SECTION 11.1.	 	Purchase at the Option of the Holder Upon a Fundamental Change	 	 	54	 
	 
	 	SECTION 11.2.	 	Purchase of Securities at the Option of the Holder	 	 	56	 
	 
	 	SECTION 11.3.	 	Further Conditions and Procedures for Purchase at the Option of the Holder Upon a Fundamental Change and Purchase of Securities at the Option of the Holder	 	 	58	 
	 
	 
	 	ARTICLE XII	 	 	 	 
	 
	 	CONVERSION	 	 	 	 
	 
	 	SECTION 12.1.	 	Conversion of Securities	 	 	61	 
	 
	 	SECTION 12.2.	 	Adjustments to Conversion Rate	 	 	65	 
	 
	 	SECTION 12.3.	 	Effect of Reclassification, Consolidation, Merger or Sale	 	 	72	 
	 
	 	SECTION 12.4.	 	Responsibility of Trustee	 	 	73	 
	 
	 	SECTION 12.5.	 	Notice to Holders Prior to Certain Actions	 	 	74	 
	 
	 	SECTION 12.6.	 	Stockholder Rights Plan	 	 	75	 
	 
	 
	 	ARTICLE XIII	 	 	 	 
	 
	 	MISCELLANEOUS	 	 	 	 
	 
	 	SECTION 13.1.	 	Trust Indenture Act Controls	 	 	75	 
	 
	 	SECTION 13.2.	 	Notices	 	 	75	 
	 
	 	SECTION 13.3.	 	Communication by Holders with other Holders	 	 	77	 
	 
	 	SECTION 13.4.	 	Certificate and Opinion as to Conditions Precedent	 	 	77	 
	 
	 	SECTION 13.5.	 	Statements Required in Certificate or Opinion	 	 	77	 
	 
	 	SECTION 13.6.	 	When Securities Disregarded	 	 	77	 
	 
	 	SECTION 13.7.	 	Rules by Trustee, Paying Agent and Registrar	 	 	78	 
	 
	 	SECTION 13.8.	 	Legal Holidays	 	 	78	 
	 
	 	SECTION 13.9.	 	GOVERNING LAW; WAIVER OF JURY TRIAL	 	 	78	 
	 
	 	SECTION 13.10.	 	No Recourse Against Others	 	 	78	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 13.11.	 	Successors	 	 	79	 
	 
	 	SECTION 13.12.	 	Multiple Originals	 	 	79	 
	 
	 	SECTION 13.13.	 	Table of Contents; Headings	 	 	79	 
	 
	 	SECTION 13.14.	 	Force Majeure	 	 	79	 
	 
	 	SECTION 13.15.	 	Severability Clause	 	 	79	 

	 	 	 
	EXHIBIT A
	 	Form of the Security
	EXHIBIT B

	 	Form of Indenture Supplements

iv

 

CROSS-REFERENCE TABLE

	 	 	 	 	 	 	 
	TIA	 	 	Indenture	 
	Section	 	Section	 
	310
	(a)(1)	 	 	 	7.10	 
	 	(a)(2)
	 	 	 	7.10	 
	 	(a)(3)
	 	 	 	N.A.	 
	 	(a)(4)
	 	 	 	N.A.	 
	 	(a)(5)
	 	 	 	7.10	 
	 	(b)
	 	 	 	7.8; 7.10	 
	 	(c)
	 	 	 	N.A.	 
	311
	(a)	 	 	 	7.11	 
	 	(b)
	 	 	 	7.11	 
	 	(c)
	 	 	 	N.A.	 
	312
	(a)	 	 	 	2.7	 
	 	(b)
	 	 	 	13.3	 
	 	(c)
	 	 	 	13.3	 
	313
	(a)	 	 	 	7.6	 
	 	(b)(1)
	 	 	 	N.A.	 
	 	(b)(2)
	 	 	 	7.6	 
	 	(c)
	 	 	 	7.6	 
	 	(d)
	 	 	 	7.6	 
	314
	(a)	 	 	 	3.6; 3.8, 3.10, 13.5	 
	 	(b)
	 	 	 	N.A.	 
	 	(c)(1)
	 	 	 	13.4	 
	 	(c)(2)
	 	 	 	13.4	 
	 	(c)(3)
	 	 	 	N.A.	 
	 	(d)
	 	 	 	N.A.	 
	 	(e)
	 	 	 	13.5	 
	 	(f)
	 	 	 	N.A.	 
	315
	(a)	 	 	 	7.1	 
	 	(b)
	 	 	 	7.5; 13.2	 
	 	(c)
	 	 	 	7.1	 
	 	(d)
	 	 	 	7.1	 
	 	(e)
	 	 	 	6.11	 
	316
	(a)(last sentence)	 	 	 	13.6	 
	 	(a)(1)(A)
	 	 	 	6.5(a)	 
	 	(a)(1)(B)
	 	 	 	6.4	 
	 	(a)(2)
	 	 	 	N.A.	 
	 	(b)
	 	 	 	6.7	 
	 	(c)
	 	 	 	6.5(b)	 
	317
	(a)(1)	 	 	 	6.8	 
	 	(a)(2)
	 	 	 	6.9	 
	 	(b)
	 	 	 	2.6	 
	318
	(a)	 	 	 	13.1	 
	 	(b)
	 	 	 	N.A.	 
	 	(c)
	 	 	 	13.1	 
	 	N.A. means Not Applicable.
	 	 	 	 

v

 

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be part of this
Indenture.

vi

 

          INDENTURE dated as of June 7, 2006, among TRINITY INDUSTRIES, INC., a Delaware corporation
(the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Trustee”), as Trustee.

          Each party agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Company’s 
37/8 % Convertible Subordinated Notes due 2036 (the
“Securities”) on the date hereof and the guarantees thereof by certain of the Company’s
subsidiaries.

ARTICLE I

Definitions and Incorporation by Reference

          SECTION 1.1.   Definitions.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms “controlling” and
“controlled” have meanings correlative to the foregoing; provided, however, that the existence of a
management contract by the Company or an Affiliate of the Company to manage another entity shall
not be deemed to be control.

          “Applicable Five Day Trading Period” means, with respect to any interest period in which
Contingent Interest may be payable, the five Trading Days ending on the second Trading Day
immediately preceding the first day of such interest period.

          “Attributable Debt” in respect of a Sale and Lease-Back Transaction means, as at the time of
determination, the present value (discounted at the interest rate borne by the Securities,
compounded semi-annually) of the total obligations of the lessee for rental payments during the
remaining term of the lease included in such Sale and Lease-Back Transaction (including any period
for which such lease has been extended).

          “Average Securities Price” means, as of any date of determination, the average of the
secondary market bid quotations per $1,000 principal amount of Securities obtained by the Bid Agent
for $10,000,000 principal amount of Securities at approximately 4:00 p.m. (New York City time) on
such determination date from three unaffiliated recognized securities dealers in The City of New
York (none of which shall be an Affiliate of the Company) selected by the Company; provided,
however, if (a) at least three such bids are not obtained by the Bid Agent or (b) in the Company’s
reasonable judgment, the bid quotations are not indicative of the secondary market value of the
Securities as of such determination date, then the Average Securities Price for such determination
date shall equal (i) the Conversion Rate in effect as of such determination date multiplied by (ii)
the average Last Reported Sale Price for the five Trading Days ending on such determination date,
appropriately adjusted to take into account the occurrence, during the period commencing on the
first of such trading days during such five Trading Day period and ending on such determination
date, of any event described in Section 12.2.

1

 

          “Bankruptcy Law” means Title 11 of the United States Code, as amended from time to time, or
any similar federal or state law for the relief of debtors.

          “Beneficial Owner” shall mean any person who is considered a beneficial owner of a security in
accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act.

          “Bid Agent” means a bid agent appointed by the Company to act in such capacity for the
purposes of determining the Securities Price; provided that such agent shall not be the Company or
an Affiliate of the Company. The Bid Agent appointed by the Company shall initially be the
Trustee.

          “Board of Directors” means, as to any Person, the board of directors of such Person or any
duly authorized committee thereof.

          “Board Resolution” means a copy of a resolution certified by the Secretary or Assistant
Secretary of a Person to have been duly adopted by the Board of Directors of such Person and to be
in full force and effect on the date of such certification, and delivered to the Trustee.

          “Business Day” means each day that is not a Saturday, Sunday or other day on which banking
institutions in New York, New York are authorized or required by law to close.

          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into such equity.

          “Capitalized Lease Obligations” means an obligation that is required to be classified and
accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and
the amount of Debt represented by such obligation will be the capitalized amount of such obligation
at the time any determination thereof is to be made as determined in accordance with GAAP, and the
Stated Maturity thereof will be the date of the last payment of rent or any other amount due under
such lease prior to the first date such lease may be terminated without penalty.

          “Cash Settlement Averaging Period” means, with respect to any Securities, the 20 consecutive
Trading-Day period beginning on and including the second Trading Day after a Holder delivers a
conversion notice to the Conversion Agent.

          “Clearstream” means Clearstream Banking, société anonyme, or any successor securities clearing
agency.

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

          “Common Equity” of any Person means capital stock of such Person that is generally entitled to
(1) vote in the election of directors of such Person or (2) if such Person is not a corporation,
vote or otherwise participate in the selection of the governing body, partners, managers or others
that will control the management or policies of such Person.

2

 

          “Common Stock” means the Company’s Common Stock, par value $1.00 per share.

          “Company” means Trinity Industries, Inc. or its successors and assigns.

          “Continuing Director” means a director who either was a member of the Board of Directors of
the Company on June 1, 2006 or who becomes a member of the Board of Directors of the Company
subsequent to that date and whose election, appointment or nomination for election by stockholders
of the Company, is duly approved by a majority of the Continuing Directors on the Board of
Directors of the Company at the time of such approval, either by a specific vote or by approval of
the proxy statement issued by the Company on behalf of the entire Board of Directors of the Company
in which such individual is named as nominee for director.

          “Conversion Agent” means the office or agency appointed by the Company where Securities may be
presented for conversion. The Conversion Agent appointed by the Company shall initially be the
Trustee.

          “Conversion Price” means the principal amount of Securities that can be exchanged for one
share of Common Stock (initially $78.34 and thereafter computed by dividing $1,000 by the then
applicable Conversion Rate).

          “Conversion Rate” means the number of shares of Common Stock issuable in respect of $1,000
principal amount of Securities, initially 12.7648 shares, subject to adjustments as set forth
herein.

          “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official
under any Bankruptcy Law.

          “Debt” means, with respect to any Person on any date of determination (without duplication):

          (i) any indebtedness or obligation, (1) evidenced by a credit or loan agreement, note, bond,
debenture or similar written obligation or instrument (whether or not the recourse of the lender is
to the whole of the assets of such Person or to only a portion thereof) or (2) for money borrowed,

          (ii) all Capitalized Lease Obligations and Attributable Debt of such Person,

          (iii) all obligations under Interest Rate Agreements, Exchange Rate Contracts, treasury
management agreements or similar agreements or arrangements,

          (iv) the principal component of all obligations and liabilities (contingent or otherwise) of
such Person with respect to letters of credit, bankers’ acceptances and similar facilities
(including reimbursement obligations with respect to the foregoing),

          (v) the principal component of all obligations and liabilities (contingent or otherwise) of
such Person issued or assumed as the deferred purchase price of any property or

3

 

services (but excluding trade accounts payable and accrued liabilities arising in the ordinary
course of business),

          (vi) obligations of the type described in clauses (i) through (v) above of any third party and
all dividends of any third party payment of which, in either case, such Person has assumed or
guaranteed, or for which the Person first referenced above is responsible or liable, jointly or
severally, as obligor, guarantor or otherwise, or that are secured by a lien on such Person’s
property and

          (vii) any and all renewals, extensions, modifications, replacements, restatements and
refundings of, or any indebtedness or obligation issued in exchange for, any indebtedness,
obligation or liability of the kinds described in clauses (i) through (vi).

          The amount of any Debt of any Person at any date will be the outstanding balance at such date
of all unconditional obligations as described above and the maximum liability, upon the occurrence
of the contingency giving rise to the obligation, of any contingent obligations at such date. The
amount of any Debt outstanding as of any date shall be the accreted value thereof, in the case of
any Debt issued with original issue discount. The amount of any Indebtedness outstanding as of any
date with respect to any Exchange Rate Contract or Interest Rate Agreement shall be the termination
value thereof. Debt shall not include liabilities for taxes of any kind.

          “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

          “Definitive Securities” mean certificated Securities.

          “Designated Senior Debt” means, with respect to the Company, obligations under any Senior Debt
in which the instrument creating or evidencing such Senior Debt or the assumption or guarantee
thereof (or related agreements or documents to which the Company is a party) expressly provides
that such Senior Debt shall be “Designated Senior Debt” for purposes of this Indenture. The
instrument, agreement or other document evidencing any Designated Senior Debt may place limitations
and conditions on the right of such Senior Debt to exercise the rights of Designated Senior Debt.

          “DTC” means The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depository institution hereinafter appointed by the Company.

          “Euroclear” means Euroclear Bank S.A./N.V. or any successor securities clearing agency.

          “Exchange” means initially the New York Stock Exchange and from time to time thereafter the
national securities exchange on which the Common Stock is primarily traded.

          “Exchange Rate Contract” means, with respect to any Person, any currency swap agreement,
forward exchange rate agreement, foreign currency future or option, exchange rate collar agreement,
exchange rate insurance or other agreement or arrangement, or

4

 

combination thereof, the principal purpose of which is to provide protection against
fluctuations in currency exchange rates. An Exchange Rate Contract may also include an Interest
Rate Agreement.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

          “Fair Market Value” means the amount that a willing buyer would pay a willing seller in an
arm’s length transaction.

          “Fiscal Year” means the fiscal year of the Company ending on December 31 of each year, or as
otherwise determined by the Board of Directors.

          A “Fundamental Change” shall be deemed to have occurred at such time after the original
issuance of the Securities as any of the following occurs:

	 	(1)	 	any “person” or “group” within the meaning of Section
13(d) of the Exchange Act, other than the Company, any Subsidiary of the
Company or any employee benefit plan of the Company or any such Subsidiary,
files a Schedule TO or any other schedule, form or report under the Exchange
Act disclosing that such person or group has become the direct or indirect
ultimate Beneficial Owner of Common Equity of the Company representing more
than 50% of the voting power of the Company’s Common Equity;
	 
	 	(2)	 	consummation of any share exchange, consolidation or merger of
the Company pursuant to which the Common Stock will be converted into cash,
securities or other property or any sale, lease or other transfer (in one
transaction or a series of transactions) of all or substantially all of the
consolidated assets of the Company and its Subsidiaries, taken as a whole, to
any Person other than one of the Company’s Subsidiaries; provided, however,
that a transaction where the holders of more than 50% of all classes of the
Company’s Common Equity immediately prior to such transaction own, directly or
indirectly, more than 50% of all classes of Common Equity of the continuing or
surviving corporation or transferee immediately after such event shall not be a
Fundamental Change;
	 
	 	(3)	 	Continuing Directors cease to constitute at least a majority of
the Company’s Board of Directors;
	 
	 	(4)	 	the stockholders of the Company approve any plan or proposal
for the liquidation or dissolution of the Company; or
	 
	 	(5)	 	the Common Stock ceases to be listed on a national securities
exchange or quoted on the Nasdaq National Market or another established
automated over-the-counter trading market in the United States;

5

 

provided, however, that a Fundamental Change shall not be deemed to have occurred if at least 90%
of the consideration, in the transaction or transactions constituting the Fundamental Change
consists of shares of common stock with full voting rights traded on a national securities exchange
or quoted on the Nasdaq National Market or which shall be so traded or quoted when issued or
exchanged in connection with such Fundamental Change (such securities being referred to as
“Publicly Traded Securities”) and as a result of such transaction or transactions the Securities
become convertible into such Publicly Traded Securities (excluding cash payments for fractional
shares).

          “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession as in effect from time to time.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Debt of any other Person and any obligation, direct or indirect,
contingent or otherwise, of such Person:

	 	(1)	 	to purchase or pay (or advance or supply funds for the purchase
or payment of) such Debt of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise); or
	 
	 	(2)	 	entered into for purposes of assuring in any other manner the
obligee of such Debt of the payment thereof or to protect such obligee against
loss in respect thereof (in whole or in part);

provided, however, that the term “Guarantee” will not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding
meaning.

          “Holder” or “Securityholder” means the Person in whose name a Security is registered in the
Securities Register.

          “Incur” means issue, create, assume, Guarantee, incur or otherwise become liable for; and the
terms “Incurred” and “Incurrence” have meanings correlative to the foregoing.

          “Indenture” means this Indenture, as amended or supplemented from time to time.

          “Interest Rate Agreement” means, with respect to any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement the
principal purpose of which is to protect the party indicated therein against fluctuations in
interest rates.

          “Issue Date” means June 7, 2006.

6

 

          “Last Reported Sale Price” of the Common Stock on any date means the closing sale price per
share (or, if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and average ask prices) on that date as
reported in the composite transactions for the principal U.S. securities exchange on which the
Common Stock is traded or, if the Common Stock is not listed on a U.S. national or regional
securities exchange, as reported by the Nasdaq National Market.

          If the Common Stock is not listed for trading on a U.S. national or regional securities
exchange and not reported by the Nasdaq National Market on the relevant date, the Last Reported
Sale Price shall be the last quoted bid price for the Common Stock in the over-the-counter market
on the relevant date as reported by the National Quotation Bureau or similar organization.

          If the Common Stock is not so quoted, the Last Reported Sale Price shall be the average of the
mid-point of the last bid and ask prices for the Common Stock on the relevant date from each of at
least three nationally recognized independent investment banking firms selected by the Company for
this purpose.

          “Market Disruption Event” means (i) a failure by the Exchange to open for trading during its
regular trading session or (ii) the occurrence or existence during the one-half hour period ending
on the scheduled close of trading on any trading day for the Common Stock of any material
suspension or limitation imposed on trading (by reason of movements in price exceeding limits
permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or
future contracts relating to the Common Stock.

          “Moody’s” means Moody’s Investors Service, Inc., or, if Moody’s Investors Service, Inc. shall
cease rating debt securities having a maturity at original issuance of at least one year and such
ratings business shall have been transferred to a successor Person, such successor Person;
provided, however, that if there is no successor Person, then “Moody’s” shall mean any other
nationally recognized rating agency, other than S&P, that rates debt securities having a maturity
at original issuance of at least one year and that shall have been designated by the Company.

          “Non-Recourse Debt” means Debt or that portion of Debt (i) as to which neither the Company nor
its Subsidiaries (A) provides credit support (including any undertaking, agreement or instrument
which would constitute Debt), (B) is directly or indirectly liable or (C) constitute the lender and
(ii) in respect of which a default would not permit (upon notice, lapse of time or both) any holder
of any other Debt of the Company or its Subsidiaries to declare a default on such other Debt or
cause a payment thereof to be accelerated or payable prior to its Stated Maturity.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Financial Officer, any Vice President, the Treasurer, Controller or the Secretary of the
Company.

          “Officers’ Certificate” means a certificate signed by any Officers or attorneys-in-fact or by
an Assistant Treasurer or an Assistant Secretary of the Company, as applicable.

7

 

          “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

          “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company, government or
any agency or political subdivision hereof or any other entity.

          “Preferred Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of
any class or classes (however designated) which is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation.

          “Prospectus” means the prospectus, dated June 1, 2006, relating to the offering by the Company
of $550 million of the 37/8 % Convertible Subordinated Notes due 2036.

          “Publicly Traded Securities” has the meaning provided in the definition of Fundamental Change
in this Section 1.1.

          “Purchase Price” has the meaning provided in paragraph 7 of the Securities.

          “Redemption Date” means, with respect to any redemption of Securities, the date of redemption
with respect thereto.

          “Regular Record Date” for the interest on the Securities (including Contingent Interest, if
any), means May 15 (whether or not a Business Day) next preceding an interest payment date on June
1 and November 15 (whether or not a Business Day) next preceding an interest payment date on
December 1.

          “Representative” means the (i) indenture trustee or other trustee, agent or representative for
any Senior Debt or (ii) with respect to any Senior Debt that does not have any such trustee, agent
or other representative, (1) in the case of such Senior Debt issued pursuant to an agreement
providing for voting arrangements as among the holders or owners of such Senior Debt, any holder or
owner of such Senior Debt acting with the consent of the required Persons necessary to bind such
holders or owners of such Senior Debt and (2) in the case of all other such Senior Debt, the holder
or owner of such Senior Debt.

          “S&P” means Standard & Poor’s Ratings Service, a division of The McGraw-Hill Companies, Inc.,
or, if Standard & Poor’s Ratings Service shall cease rating debt securities having a maturity at
original issuance of at least one year and such ratings business shall have been transferred to a
successor Person, such successor Person; provided, however, that if there is no successor Person,
then “S&P” shall mean any other nationally recognized rating agency, other than Moody’s, that rates
debt securities having a maturity at original issuance of at least one year and that shall have
been designated by the Company.

          “Sale and Lease-Back Transaction” means any arrangement with any Person providing for the
leasing by the Company or its Subsidiaries of any property or assets (other than

8

 

any such arrangement involving (i) a lease for a term, including renewal rights, of not more
than 36 months, (ii) a lease of property within 18 months from the acquisition or, in the case of
the construction, alteration or improvement of property, the later of the completion of the
construction, alteration or improvement of such property or the commencement of commercial
operation of the property, or (iii) leases between or among the Company and a Subsidiary or
Subsidiaries), which property or asset has been or is to be sold or transferred by the Company or a
Subsidiary to such Person.

          “SEC” means the United States Securities and Exchange Commission.

          “Securities” has the meaning ascribed to it in the second introductory paragraph of this
Indenture.

          “Securities Custodian” means the custodian with respect to the Global Security (as appointed
by DTC), or any successor Person thereto and shall initially be the Trustee.

          “Securities Register” means the register of Securities, maintained by the Registrar, pursuant
to Section 2.5.

          “Senior Debt” means, with respect to the Company, the principal of (and premium, if any) and
interest (including all interest accruing subsequent to the commencement of any bankruptcy or
similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in
any such proceeding) on, and all fees and other amounts payable in connection with, any Debt of the
Company, whether absolute or contingent, secured or unsecured, due or to become due, outstanding on
the date of this Indenture or thereafter created, incurred, assumed or guaranteed by the Company.
Notwithstanding the foregoing, the term Senior Debt shall not include (i) the Securities, (ii) any
Indebtedness, created, evidenced, assumed or guaranteed by an instrument that expressly provides
that such Indebtedness shall not be senior in right of payment to the Securities or expressly
provides that such Indebtedness is “pari passu” or “junior” to the Securities, (iii) any
Indebtedness of the Company to any Subsidiary of the Company or (iv) any Indebtedness of or amounts
owed by the Company for trade payables or otherwise for goods or materials purchased or services
obtained in the ordinary course of business.

          “Significant Subsidiary” means any Subsidiary that would be a “Significant Subsidiary” of the
Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC.

          “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision, but shall not include any contingent obligations to
repay, redeem or repurchase any such principal prior to the date originally scheduled for the
payment thereof.

          “Stock Price” means the price per share of Common Stock paid in connection with a Fundamental
Change, which shall be equal to (i) if holders of Common Stock receive only cash in such corporate
transaction, the cash amount paid per share of Common Stock and (ii) in

9

 

all other cases, the average of the Last Reported Sale Prices of Common Stock over the five
Trading Day period ending on the Trading Day preceding the Effective Date.

          “Subsidiary” of the Company means (i) a corporation a majority of whose Capital Stock with
voting power, under ordinary circumstances, to elect directors is at the time, directly or
indirectly, owned by the Company, by the Company and one or more Subsidiaries of the Company or by
one or more Subsidiaries of the Company or (ii) any other Person (other than a corporation) in
which the Company, one or more Subsidiaries of the Company or the Company and one or more
Subsidiaries of the Company, directly or indirectly, at the date of determination thereof, has
greater than a 50% ownership interest.

          “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as in effect on the date of this Indenture, except as provided in Section
9.3.

          “Trading Day” means a day during which (i) trading in the Common Stock generally occurs, (ii)
there is no Market Disruption Event and (iii) a closing sale price for the Common Stock is provided
on the New York Stock Exchange or, if the Common Stock is not listed on the New York Stock
Exchange, on the principal other U.S. national or regional securities exchange on which the Common
Stock is then listed or, if the Common Stock is not listed on a U.S. national or regional
securities exchange, on the principal other market on which the Common Stock is then traded.

          “Trustee” means the party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor.

          “Trust Officer” shall mean, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
trust officer or any other officer of the Trustee who customarily performs functions similar to
those performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.

          SECTION 1.2.   Other Definitions.

	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Additional Shares”
	 	12.2	(f)
	“Adjustment Event”
	 	12.2	(k)
	“Agent”
	 	3.4	
	“Agent Member”
	 	2.9	
	“Authenticating Agent”
	 	2.4	
	“Cash Percentage”
	 	12.1	(e)
	“Cash Percentage Notice”
	 	12.1	(e)
	“Certificate of Destruction”
	 	2.13	
	“Company Notice”
	 	11.3	(a)

10

 

	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Company Notice Date”
	 	11.3	(a)
	“Company Order”
	 	2.4	
	“Contingent Interest”
	 	2.1	(d)
	“Conversion Date”
	 	12.1	(b)
	“cross acceleration provision”
	 	6.1	
	“Daily Excess Amount”
	 	12.1	(c)
	“Daily Settlement Amount”
	 	12.1	(c)
	“Daily Conversion Value”
	 	12.1	(c)
	“Defaulted Interest”
	 	2.14	
	“Determination Date”
	 	12.2	(k)
	“Effective Date”
	 	12.2	(f)
	“Event of Default”
	 	6.1	
	“ex dividend date”
	 	12.2	(a)
	“Expiration Time”
	 	12.2	(e)
	“Fundamental Change Purchase Date”
	 	11.1	
	“Fundamental Change Purchase Notice”
	 	11.1	(b)
	“Fundamental Change Purchase Price”
	 	11.1	
	“Global Securities”
	 	2.2	(b)
	“Global Security Legend”
	 	2.3	
	“Initial Dividend Rate”
	 	12.2	(d)
	“judgment default provision”
	 	6.1	
	“Legal Holiday”
	 	13.8	
	“Paying Agent”
	 	2.5	
	“Payment Default”
	 	6.1	
	“Purchase Date”
	 	11.2	(a)
	“Purchase Notice”
	 	11.2	(a)(1)
	“Reference Properties”
	 	12.3	(a)
	“Redemption Price”
	 	5.1	
	“Registrar”
	 	2.5	
	“Settlement Amount”
	 	12.1	(c)
	“Special Interest Payment Date”
	 	2.14	(a)
	“Special Record Date”
	 	2.14	(a)
	“Spin-Off”
	 	12.2	(c)
	“Successor Company”
	 	4.1	

          SECTION 1.3.   Incorporation by Reference of Trust Indenture Act.

          This Indenture is subject to the mandatory provisions of the TIA which are incorporated by
reference in and made a part of this Indenture. The following TIA terms have the following
meanings:

          “Commission” means the SEC.

          “indenture securities” mean the Securities.

          “indenture security holder” means a Securityholder.

11

 

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

          “obligor” on the indenture securities means the Company and any other obligor on the indenture
securities.

          All other TIA terms used in this Indenture that are defined by the TIA, defined in the TIA by
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.

          SECTION 1.4.   Rules of Construction.

          Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) “including” means including without limitation;

     (5) words in the singular include the plural and words in the plural include the
singular;

     (6) the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP; and

     (7) the principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater.

ARTICLE II

The Securities

          SECTION 2.1.   Title and Terms.

          (a) The Securities shall be known and designated as the “37/8 % Convertible Subordinated Notes
due 2036” of the Company. The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is limited to $500.0 million, except for Securities
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of
other Securities pursuant to Section 2.8, 2.9, 2.10, 2.12,
2.13, 5.8, 9.5, 11.3 or 12.1. The Securities shall be
issuable in denominations of $1,000 or integral multiples thereof.

12

 

          (b) The Securities shall mature on June 1, 2036.

          (c) Interest shall accrue at the rate specified in paragraph 1 of the Securities from, and
including, June 7, 2006 until the principal thereof is paid or made available for payment.
Interest shall be payable semi-annually in arrears on June 1 and December 1 of each year,
commencing December 1, 2006.

          (d) In addition, interest, if any (“Contingent Interest”), will accrue on each Security during
any six-month period from June 1 to and including November 30 and from December 1 to and including
May 31, as appropriate, commencing with the six-month period beginning June 1, 2018, if the Average
Securities Price for the Applicable Five Trading Day Period with respect to such interest period
equals 120% or more of $1,000 principal amount of Securities. The amount of Contingent Interest
payable per $1,000 principal amount of Securities in respect of any interest period shall equal
0.375% of the average Securities Price for the Applicable Five Day Trading Period with respect to
such interest period. Contingent Interest, if any, will accrue from, and including, June 1 or
December 1, as applicable, through November 30 or May 31, as applicable, and will be payable on the
next succeeding December 1 or June 1 interest payment date, as the case may be. Contingent
Interest will be paid to the person in whose name a Security is registered at the close of business
on May 15 or November 15, as the case may be, immediately preceding the relevant interest payment
date on which Contingent Interest is payable. All payments of Contingent Interest shall be made in
cash.

          Upon determination that Holders will be entitled to receive Contingent Interest during an
interest period, on or prior to the first day of such interest period, the Company shall notify the
Trustee and issue a press release through Dow Jones & Company, Inc. or Bloomberg Business News
containing such information with respect to the payment of Contingent Interest or publish such
information on its web site or through such other public medium as the Company may use at that
time.

          (e) A Holder of any Security at the close of business on a Regular Record Date shall, except
as otherwise provided in this Section 2.1(e), be entitled to receive interest (including
Contingent Interest, if any), on such Security on the corresponding interest payment date.
Holders of Securities at the close of business on a Regular Record Date will receive payment of
interest (including any Contingent Interest) payable on the corresponding interest payment date
notwithstanding the conversion of such Securities at any time after 5:00 p.m., New York City time,
on such Regular Record Date. Securities surrendered for conversion during the period from 5:00
p.m., New York City time, on any Regular Record Date to 9:00 a.m., New York City time, on the
immediately following interest payment date (except for (i) Securities in respect of which a
Redemption Date has been declared that falls within this period or on such interest payment date,
(ii) Securities in respect of which a Fundamental Change Purchase Date has been established that
falls within this period or on such interest payment date, (iii) Securities in respect of which a
Conversion Notice was received after 5:00 p.m., New York City time, on the Record Date immediately
preceding the final interest payment date, or (iv) to the extent of any overdue interest, if any
overdue interest exists at the time of conversion with respect to a Security) must be accompanied
by payment of an amount equal to the interest (including any Contingent Interest) that the Holder
is to receive on the Securities. Except where Securities surrendered for conversion must be
accompanied by payment as described above, no interest or

13

 

Contingent Interest on converted Securities will be payable by the Company on any interest
payment date subsequent to the date of conversion. Notwithstanding the foregoing, a Holder shall
be entitled to receive accrued and unpaid interest, including any Contingent Interest in respect of
a Security (w) if the Company calls such Security for redemption and such Holder converts its
Security prior to the Redemption Date, (x) if the Company establishes a Fundamental Change Purchase
Date during the period from the close of business on any Regular Record Date to the opening of
business on the corresponding interest payment date that falls within this period or on such
interest payment day and such Holder converts its Security prior to the Fundamental Change Purchase
Date, (y) in respect of which a Conversion Notice was received after 5:00 p.m., New York City time,
on the Record Date immediately preceding the final interest payment date or (z) to the extent of
any overdue interest, if any overdue interest exists at the time of conversion with respect to a
Security.

          (f) Principal of and interest (including Contingent Interest, if any), on, any Global Security
registered in the name of the Depository Trust Company, its nominee or its or their successor and
assign, or such other depository institution appointed by the Company, shall be payable to such
registered Holder in immediately available funds.

          (g) Principal on Definitive Securities shall be payable in immediately available funds or, at
the option of the Company, at the office or agency of the Company maintained for such purpose in
the Borough of Manhattan in the City of New York, initially the corporate trust office of the
Trustee and its agency in New York, New York. Interest (including Contingent Interest, if any), on
Definitive Securities will be payable (i) to Holders having an aggregate principal amount of
$5,000,000 or less, by check mailed to the Holders of these Securities and (ii) to Holders having
an aggregate principal amount of more than $5,000,000, either by check mailed to each Holder or,
upon application by a Holder to the Registrar not later than the relevant Record Date, by wire
transfer in immediately available funds to that Holder’s account within the United States, which
application shall remain in effect until the Holder notifies, in writing, the Registrar to the
contrary.

          (h) The Securities shall be redeemable at the option of the Company as provided in Article
V.

          (i) The Securities shall be repurchaseable by the Company at the option of Holders as provided
in Article XI.

          (j) The Securities shall be convertible at the option of the Holders as provided in
Article XII.

          (k) The Securities are subordinated in right of payment to the Senior Debt, as provided in
Article X.

          SECTION 2.2.   Form of Securities.

          (a) Except as otherwise provided pursuant to this Section 2.2, the Securities are
issuable in fully registered form without coupons in substantially the form of Exhibit A
hereto, with such applicable legends as are provided for in Section 2.3. The Securities
are not issuable in bearer form. The terms and provisions contained in the form of Security shall

14

 

constitute, and are hereby expressly made, a part of this Indenture and to the extent
applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. Any of the Securities may
have such letters, numbers or other marks of identification and such notations, legends and
endorsements as the officers executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as
may be required to comply with any law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any securities exchange or automated quotation system on which the
Securities may be listed or designated for issuance, or to conform to usage.

          (b) The Securities are being offered and sold by the Company pursuant to an underwriting
agreement. The Securities offered and sold, as provided in such underwriting agreement, shall be
issued initially in the form of one or more global Securities in fully registered form without
interest coupons, substantially in the form of Exhibit A hereto (each a “Global Security”
and collectively the “Global Securities”). Each Global Security shall be duly executed by the
Company and authenticated and delivered by the Trustee, and shall be registered in the name of DTC
or its nominee and retained by the Trustee, as Custodian, at its corporate trust office, for credit
to the accounts of the Agent Members holding the Securities evidenced thereby. The aggregate
principal amount of the Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as Custodian, and of DTC or its nominee, as
hereinafter provided.

          (c) Definitive Securities may be exchanged for interests in Global Securities pursuant to
Section 2.9.

          SECTION 2.3.   Legends.

          (a) Global Security Legend

          Each Global Security shall also bear the following legend (the “Global Security Legend”) on
the face thereof:

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF

15

 

OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.”

          (b) Legend for Definitive Securities

          Definitive Securities, in addition to the legend set forth in Section 2.3(a)(1), will
also bear a legend substantially in the following form:

“THIS SECURITY WILL NOT BE ACCEPTED IN EXCHANGE FOR A BENEFICIAL INTEREST IN A GLOBAL SECURITY
UNLESS THE HOLDER OF THIS SECURITY, SUBSEQUENT TO SUCH EXCHANGE, WILL HOLD NO SECURITIES.”

          SECTION 2.4.   Execution and Authentication.

          One Officer shall sign the Securities for the Company by manual or facsimile signature. If an
Officer whose signature is on a Security no longer holds that office at the time the Trustee
authenticates the Security, the Security shall be valid nevertheless.

          A Security shall not be valid until an authorized signatory of the Trustee manually
authenticates the Security. The signature of the Trustee on a Security shall be conclusive
evidence that such Security has been duly and validly authenticated and issued under this
Indenture. A Security shall be dated the date of its authentication.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a written order of the Company signed by an Officer or by an Assistant Treasurer or an
Assistant Secretary of the Company (the “Company Order”) for the authentication and delivery of
such Securities, and the Trustee in accordance with such Company Order shall authenticate and
deliver such Securities as in this Indenture provided and not otherwise. The aggregate
principal amount of Securities which may be authenticated and delivered under this Indenture is
limited to $500.0 million outstanding, except for Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities of the same class
pursuant to Section 2.8, 2.9, 2.10, 2.12, 2.13,
5.8, 9.5, 11.3 or 12.1. All Securities issued on the Issue Date
shall be identical in all respects other than issue dates, the date from which interest accrues and
any changes relating thereto. Notwithstanding anything to the contrary contained in this
Indenture, subject to Section 2.12, all Securities issued under this Indenture shall vote
and consent together on all matters as one class and no series of Securities will have the right to
vote or consent as a separate class on any matter.

          The Trustee may appoint an agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate the Securities. Initially, the Trustee will act as Authenticating Agent.
Any such instrument shall be evidenced by an instrument signed by a Trust Officer of the Trustee, a
copy of which shall be furnished to the Company. Unless limited by the terms of such appointment,
any such Authenticating Agent may authenticate Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the

16

 

Trustee includes authentication by the Authenticating Agent. An Authenticating Agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and demands.

          In case the Company, pursuant to Article IV or Section 10.2, shall be
consolidated or merged with or into any other Person or shall convey, transfer, lease or otherwise
dispose of its properties and assets substantially as an entirety to any Person, and the successor
Person resulting from such consolidation, or surviving such merger, or into which the Company shall
have been merged, or the Person which shall have received a conveyance, transfer, lease or other
disposition as aforesaid, shall have executed an indenture supplemental hereto with the Trustee
pursuant to Article IV, any of the Securities authenticated or delivered prior to such
consolidation, merger, conveyance, transfer, lease or other disposition may, from time to time, at
the request of the successor Person, be exchanged for other Securities executed in the name of the
successor Person with such changes in phraseology and form as may be appropriate, but otherwise in
substance of like tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall authenticate and deliver
Securities as specified in such order for the purpose of such exchange. If Securities shall at any
time be authenticated and delivered in any new name of a successor Person pursuant to this
Section 2.4 in exchange or substitution for or upon registration of transfer of any
Securities, such successor Person, at the option of the Holders but without expense to them, shall
provide for the exchange of all Securities at the time outstanding for Securities authenticated and
delivered in such new name.

          SECTION 2.5.   Registrar and Paying Agent.

          The Company shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities
may be presented for payment (the “Paying Agent”). The Company shall cause each of the Registrar
and the Paying Agent to maintain an office or agency in the Borough of Manhattan, The City of New
York. The Registrar shall keep a register of the Securities and of their transfer and exchange
(the “Securities Register”). The Company may have one or more co-registrars and one or more
additional paying agents. The term “Paying Agent” includes any additional paying agent and the
term “Registrar” includes any co-registrar.

          The Company shall enter into an appropriate agency agreement with any Registrar, Paying Agent
or co-registrar not a party to this Indenture, which shall incorporate the terms of the TIA. The
agreement shall implement the provisions of this Indenture that relate to such agent. The Company
shall notify the Trustee of the name and address of each such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.7. The Company or any of its
domestically organized, wholly owned Subsidiaries may act as Paying Agent, Registrar, co-registrar
or transfer agent.

          The Company initially appoints the Trustee as Registrar and Paying Agent for the Securities.
The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or
Paying Agent and to the Trustee; provided, however, that no such removal shall become effective
until (i) acceptance of any appointment by a successor as evidenced by an appropriate agreement
entered into by the Company and such successor Registrar or Paying

17

 

Agent, as the case may be, and delivered to the Trustee or (ii) notification to the Trustee
that the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in
accordance with clause (i) above. The Registrar or Paying Agent may resign at any time upon
written notice to the Company and the Trustee.

          SECTION 2.6.   Paying Agent To Hold Money in Trust.

          By no later than 10:00 a.m., New York City time, on the date on which any principal of or
interest (including Contingent Interest, if any), on any Security is due and payable, the Company
shall deposit with the Paying Agent a sum sufficient in immediately available funds to pay such
principal or interest (including Contingent Interest, if any), when due. The Company shall require
each Paying Agent (other than the Trustee) to agree in writing that such Paying Agent shall hold in
trust for the benefit of Securityholders or the Trustee all money held by such Paying Agent for the
payment of principal of or interest (including Contingent Interest, if any), on the Securities and
shall notify the Trustee in writing of any default by the Company in making any such payment. If
the Company or a Subsidiary acts as Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent
(other than the Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section 2.6, the Paying Agent (if
other than the Company or a Subsidiary) shall have no further liability for the money delivered to
the Trustee. Upon any bankruptcy, reorganization or similar proceeding with respect to the
Company, the Trustee shall serve as Paying Agent for the Securities.

          SECTION 2.7.   Securityholder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders and shall otherwise comply with
TIA § 312(a). If the Trustee is not the Registrar, or to the extent otherwise required under the
TIA, and the Company, on its own behalf, shall furnish or cause the Registrar to furnish to the
Trustee, in writing at least seven Business Days before each interest payment date and at such
other times as the Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Securityholders and the Company shall
otherwise comply with TIA § 312(a).

          SECTION 2.8.   General Provisions Relating to Transfer and Exchange.

          The Securities are issuable only in registered form. A Holder may transfer a Security only by
written application to the Registrar stating the name of the proposed transferee and otherwise
complying with the terms of this Indenture. No such transfer shall be effected until, and such
transferee shall succeed to the rights of a Holder only upon, final acceptance and registration of
the transfer by the Registrar in the Securities Register. Furthermore, any Holder of a Global
Security shall, by acceptance of such Global Security, agree that transfers of beneficial interests
in such Global Security may be effected only through a book-entry system maintained by the Holder
of such Global Security (or its agent) and that ownership of a beneficial interest in the Global
Security shall be required to be reflected in a book-entry.

18

 

          When Securities are presented to the Registrar with a request to register the transfer or to
exchange them for an equal aggregate principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested if its
requirements for such transactions are met (including that such Securities are duly endorsed or
accompanied by a written instrument of transfer duly executed by the Holder thereof or by an
attorney who is authorized in writing to act on behalf of the Holder). Subject to Section
2.4, to permit registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made
for any registration of transfer or exchange or redemption of the Securities, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or other similar governmental
charge payable upon exchanges in connection with which a Security is issued to a Person other than
the Holder submitting the Security for exchange).

          Neither the Company nor the Registrar shall be required to exchange or register a transfer of
any Securities:

          (a) for a period of 15 days prior to the mailing of a notice of redemption of Securities
selected for redemption under Article V;

          (b) so selected for redemption or, if a portion of any Security is selected for redemption,
the portion thereof selected for redemption; or

          (c) surrendered for conversion or, if a portion of any Security is surrendered for conversion,
the portion thereof surrendered for conversion.

          Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

          The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Security (including any transfers between beneficial owners
of any Global Security) other than to require delivery of such certificates and other documentation
or evidence as are expressly required by, and to do so if and when expressly required by the terms
of, this Indenture, and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

          SECTION 2.9.   Book-Entry Provisions for the Global Securities.

          (a) The Global Securities initially shall:

	 	(i)	 	be registered in the name of DTC (or a nominee thereof);
	 
	 	(ii)	 	be delivered to the Trustee as custodian for DTC; and
	 
	 	(iii)	 	bear the Global Security Legend set forth in  Section 2.3(a).

19

 

          Members of, or participants in, DTC (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Security held on their behalf by DTC, or the Trustee as its
custodian, or under such Global Security, and DTC may be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the
Company, the Trustee or any agent of the Company or Trustee from giving effect to any written
certification, proxy or other authorization furnished by DTC or impair, as between DTC and the
Agent Members, the operation of customary practices governing the exercise of the rights of a
Holder of any Security. With respect to any Global Security deposited on behalf of the subscribers
for the Securities represented thereby with the Trustee as custodian for DTC for credit to their
respective accounts (or to such other accounts as they may direct) at Euroclear or Clearstream, the
provisions of the “Operating Procedures of the Euroclear System” and the “Terms and Conditions
Governing Use of Euroclear” and the “Management Regulations” and “Instructions to Participants” of
Clearstream, respectively, shall be applicable to the Global Securities.

          (b) The Holder of a Global Security may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the Securities.

          (c) A Global Security may not be transferred, in whole or in part, to any Person other than
DTC (or a nominee thereof), and no such transfer to any such other Person may be registered.
Beneficial interests in a Global Security may be transferred in accordance with the rules and
procedures of DTC and the provisions of Section 2.10.

          (d) If at any time:

               (i) DTC notifies the Company in writing that it is unwilling or unable to continue to act as
depositary for the Global Securities and a successor depositary for the Global Securities is not
appointed by the Company within 90 days of such notice;

               (ii) DTC ceases to be registered as a “clearing agency” under the Exchange Act and a successor
depositary for the Global Securities is not appointed by the Company within 90 days of such
cessation;

               (iii) the Company, at its option, notifies the Trustee in writing that it elects to cause the
issuance of the Definitive Securities under this Indenture in exchange for all or any part of the
Securities represented by a Global Security or Global Securities, subject to the procedures of DTC;
or

               (iv) an Event of Default has occurred and is continuing and the Registrar has received a
request from DTC for the issuance of Definitive Securities in exchange for such Global Security or
Global Securities;

DTC shall surrender such Global Security or Global Securities to the Trustee for cancellation and
the Company shall execute, and the Trustee, upon receipt of an Officers’ Certificate and Company
Order for the authentication and delivery of Securities, shall authenticate and deliver in

20

 

exchange for such Global Security or Global Securities, Definitive Securities in an aggregate
principal amount equal to the aggregate principal amount of such Global Security or Global
Securities. Such Definitive Securities shall be registered in such names as DTC shall identify in
writing as the beneficial owners of the Securities represented by such Global Security or Global
Securities (or any nominee thereof).

          (e) Notwithstanding the foregoing, in connection with any transfer of beneficial interests in
a Global Security to the beneficial owners thereof pursuant to Section 2.9(d), the
Registrar shall reflect on its books and records the date and a decrease in the principal amount of
such Global Security in an amount equal to the principal amount of the beneficial interests in such
Global Security to be transferred.

          SECTION 2.10.   Mutilated, Destroyed, Lost or Stolen Securities.

          If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of Section 8-405 of the
Uniform Commercial Code are met, such that the Securityholder (a) satisfies the Company or the
Trustee within a reasonable time after such Securityholder has notice of such loss, destruction or
wrongful taking and the Registrar has not registered a transfer prior to receiving such
notification, (b) makes such request to the Company or Trustee prior to the Security being acquired
by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code and (c)
satisfies any other reasonable requirements of the Trustee. Such Holder shall furnish an indemnity
bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee,
the Paying Agent and the Registrar from any loss which any of them may suffer if a Security is
replaced, and, in the absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and upon Company Order the Trustee
shall authenticate and make available for delivery, in exchange for any such mutilated Security or
in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal
amount, bearing a number not contemporaneously outstanding.

          In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

          Upon the issuance of any new Security under this Section 2.10, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of the Trustee) in
connection therewith.

          Every new Security issued pursuant to this Section 2.10 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company and any other obligor upon the Securities, whether or not the mutilated, destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all
benefits of this Indenture equally and proportionately with any and all other Securities duly
issued hereunder.

21

 

          The provisions of this Section 2.10 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities.

          SECTION 2.11.   Outstanding Securities.

          Securities outstanding at any time are all Securities authenticated by the Trustee except for
those cancelled by it, those delivered to it for cancellation and those described in this
Section 2.11 as not outstanding. A Security does not cease to be outstanding in the event
the Company or a Subsidiary of the Company holds the Security, provided, however, that (i) for
purposes of determining which are outstanding for consent or voting purposes hereunder, the
provisions of Section 13.6 shall apply and (ii) in determining whether the Trustee shall be
protected in making a determination whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or
have consented to or voted in favor of any request, demand, authorization, direction, notice,
consent, waiver, amendment or modification hereunder, or relying upon any such quorum, consent or
vote, only Securities which a Trust Officer of the Trustee actually knows to be held by the Company
or an Affiliate of the Company shall not be considered outstanding.

          If a Security is replaced or paid pursuant to Section 2.10, it ceases to be
outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced
Security is held by a bona fide purchaser.

          If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Redemption Date or maturity date money sufficient to pay all principal and interest payable on that
date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, and the Paying Agent is not prohibited from paying such money to the Securityholders on
that date pursuant to the terms of this Indenture, then on and after that date such Securities (or
portions thereof) cease to be outstanding and interest on them ceases to accrue.

          SECTION 2.12.   Temporary Securities.

          In the event that Definitive Securities are to be issued under the terms of this Indenture,
until such Definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form
of Definitive Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate Definitive Securities. After the preparation of Definitive Securities, the temporary
Securities shall be exchangeable for Definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company for that purpose and such exchange
shall be without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute, and the Trustee shall authenticate and make
available for delivery in exchange therefor, one or more Definitive Securities representing an
equal principal amount of Securities. Until so exchanged, the Holder of temporary Securities shall
in all respects be entitled to the same benefits under this Indenture as a Holder of Definitive
Securities.

22

 

          SECTION 2.13.   Cancellation.

          The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment or cancellation and dispose
of such Securities in accordance with its internal policies and customary procedures including
delivery of a certificate (a “Certificate of Destruction”) describing such Securities disposed
(subject to the record retention requirements of the Exchange Act) or deliver canceled Securities
to the Company pursuant to written direction by an Officer. The Company may not issue new
Securities to replace Securities it has paid or delivered to the Trustee for cancellation for any
reason other than in connection with a transfer or exchange.

          At such time as all beneficial interests in a Global Security have either been exchanged for
Definitive Securities, transferred, redeemed, repurchased or canceled, such Global Security shall
be returned by DTC to the Trustee for cancellation or retained and canceled by the Trustee. At any
time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for
Definitive Securities, transferred in exchange for an interest in another Global Security,
redeemed, repurchased or canceled, the principal amount of Securities represented by such Global
Security shall be reduced and an adjustment shall be made on the books and records of the Trustee
(if it is then the Custodian for such Global Security) with respect to such Global Security, by the
Trustee or the Securities Custodian, to reflect such reduction.

          SECTION 2.14.   Payment of Interest; Defaulted Interest.

          Interest (including any Contingent Interest) on any Security which is payable, and is
punctually paid or duly provided for, on any interest payment date shall be paid to the Person in
whose name such Security (or one or more predecessor Securities) is registered at the close of
business on the Regular Record Date for such payment at the office or agency of the Company
maintained for such purpose pursuant to Section 2.5.

          Any interest (including any Contingent Interest) on any Security which is payable, but is not
paid when the same becomes due and payable and such nonpayment continues for a period of 30 days
shall forthwith cease to be payable to the Holder on the Regular Record Date, and such defaulted
interest and (to the extent lawful) interest on such defaulted interest (including any Contingent
Interest) at the rate borne by the Securities (such defaulted interest (including any Contingent
Interest) and interest thereon herein collectively called “Defaulted Interest”) shall be paid by
the Company, at its election in each case, as provided in clause (a) or (b) below:

          (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities (or their respective predecessor Securities) are registered at the close of
business on a Special Record Date (as defined below) for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the Trustee in writing of
the amount of Defaulted Interest proposed to be paid on each Security and the date (not less than
30 days after such notice) of the proposed payment (the “Special Interest Payment Date”), and at
the same time the Company shall deposit with the Trustee an amount of

23

 

money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
record date (the “Special Record Date”) for the payment of such Defaulted Interest which shall be
not more than 15 days and not less than 10 days prior to the Special Interest Payment Date and not
less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date, and in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and
the Special Record Date and Special Interest Payment Date therefor to be given in the manner
provided for in Section 13.2, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special
Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid on the
Special Interest Payment Date to the Persons in whose names the Securities (or their respective
predecessor Securities) are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following clause (b).

          (b) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities may be
listed, and upon such notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment
shall be deemed practicable by the Trustee.

          Subject to the foregoing provisions of this Section 2.14, each Security delivered
under this Indenture upon registration of, transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest (including any Contingent Interest) accrued and unpaid,
and to accrue, which were carried by such other Security.

          SECTION 2.15.   Computation of Interest.

          Interest (including any Contingent Interest) on the Securities shall be computed on the basis
of a 360-day year of twelve 30-day months.

          SECTION 2.16.   CUSIP and ISIN Numbers.

          The Company in issuing the Securities may use “CUSIP” and “ISIN” numbers (if then generally in
use) and, if so, the Trustee shall use “CUSIP” and “ISIN” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities or as contained in
any notice of a redemption and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such CUSIP or ISIN numbers. The Company shall promptly notify the Trustee in writing
of any change in the CUSIP and ISIN numbers.

24

 

ARTICLE III

Covenants

          SECTION 3.1.   Payment of Securities.

          The Company shall promptly pay the principal of and interest (including Contingent Interest,
if any), on the Securities on the dates and in the manner provided in the Securities and in this
Indenture. Principal and interest (including any Contingent Interest), shall be considered paid on
the date due if on such date the Trustee or the Paying Agent holds in accordance with this
Indenture immediately available funds sufficient to pay all principal and interest (including any
Contingent Interest), then due and the Trustee or the Paying Agent, as the case may be, is not
prohibited from paying such money to the Securityholders on that date pursuant to the terms of this
Indenture.

          The Company shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

          Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by
the United States of America from principal or interest (including any Contingent Interest),
payments hereunder. If the Company pays withholding taxes on behalf of a Holder as a result of an
adjustment to the Conversion Rate, the Company may, at its option, set off such payment against
payments of cash and shares of Common Stock on the Securities.

          SECTION 3.2.   Maintenance of Office or Agency.

          The Company will maintain in The City of New York, an office or agency where the Securities
may be presented or surrendered for payment, where, if applicable, the Securities may be
surrendered for registration of transfer or exchange and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The agency of the Trustee
(the “Agent”) currently located in The City of New York shall be such office or agency of the
Company, unless the Company shall designate and maintain some other office or agency for one or
more of such purposes. The Company will give prompt written notice to the Trustee of any change in
the location of any such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Agent of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

          The Company may also from time to time designate one or more other offices or agencies (in or
outside of The City of New York) where the Securities may be presented or surrendered for any or
all such purposes and may from time to time rescind any such designation; provided, however, that
no such designation or rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in The City of New York

25

 

for such purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and any change in the location of any such other office or agency.

          SECTION 3.3.   Corporate Existence.

          Except as otherwise provided in Article IV and Section 11.2(b), the Company
will do or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence and the corporate, partnership, limited liability company or other existence of
each Significant Subsidiary or the respective corporate, partnership, limited liability company or
other existences of each member of any group of Subsidiaries that taken together would constitute a
Significant Subsidiary of the Company and the rights (charter and statutory), licenses and
franchises of the Company and each Significant Subsidiary or each member of any group of
Subsidiaries that taken together would constitute a Significant Subsidiary of the Company;
provided, however, that the Company shall not be required to preserve any such right, license or
franchise or the corporate, partnership, limited liability company or other existence of any
Significant Subsidiary or the respective corporate, partnership, limited liability company or other
existences of each member of any group of Subsidiaries that taken together would constitute a
Significant Subsidiary of the Company, if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the business of the Company
and each of its Subsidiaries, taken as a whole, and that the loss thereof is not, and will not be,
disadvantageous in any material respect to the Holders; provided, further, that the Company shall
not be required to preserve any such right, license or franchise or the corporate, partnership,
limited liability company or other existence of a Subsidiary that is neither a Significant
Subsidiary nor a member of any group of Subsidiaries that taken together would constitute a
Significant Subsidiary of the Company.

          SECTION 3.4.   Payment of Taxes and Other Claims.

          The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (i) all material taxes, assessments and governmental charges levied or imposed
upon the Company or any Subsidiary or upon the income, profits or property of the Company or any
Subsidiary and (ii) all lawful claims for labor, materials and supplies, which, if unpaid, might by
law become a material liability or lien upon the property of the Company or any Subsidiary;
provided, however, that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which appropriate reserves, if
necessary (in the good faith judgment of management of the Company), are being maintained in
accordance with GAAP or where the failure to effect such payment will not be disadvantageous to the
Holders.

          SECTION 3.5.   Payments for Consent.

          Neither the Company nor any of its Subsidiaries will, directly or indirectly, pay or cause to
be paid any consideration, whether by way of interest, fees or otherwise, to any Holder of any
Securities for or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Securities unless such consideration is offered to be

26

 

paid or is paid to all Holders of the Securities that consent, waive or agree to amend in the
time frame set forth in the solicitation documents relating to such consent, waiver or amendment.

          SECTION 3.6.   Compliance Certificate.

          The Company shall deliver to the Trustee within 120 days after the end of each Fiscal Year of
the Company, beginning with the Fiscal Year ending December 31, 2006 an Officers’ Certificate, one
of the signers of which shall be the principal executive officer, principal financial officer or
principal accounting officer of the Company, stating that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have knowledge of any
Default or Event of Default and whether or not the signers know of any Default or Event of Default
that occurred during such period. If they do, the certificate shall describe the Default or Event
of Default, its status and the action the Company is taking or proposes to take with respect
thereto. The Company also shall comply with TIA § 314(a)(4).

          SECTION 3.7.   Further Instruments and Acts.

          Upon request of the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

          SECTION 3.8.   Statement by Officers as to Default.

          The Company shall deliver to the Trustee, as soon as possible and in any event within 30 days
after the Company becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate
setting forth the details of such Event of Default or default, its status and the action which the
Company proposes to take with respect thereto.

          SECTION 3.9.   Tax Treatment.

          The Company agrees, and by acceptance of beneficial ownership interest in the Securities each
beneficial holder of Securities will be deemed to have agreed, for United States federal income tax
purposes (1) to treat the Securities as indebtedness that is subject to Treas. Reg. Sec. 1.1275-4
(the “Contingent Payment Regulations”) and, for purposes of the Contingent Payment Regulations, to
treat any cash and the fair market value of stock beneficially received by a beneficial holder upon
any conversion of the Securities as a contingent payment and (2) to be bound by the Company’s
determination of the “comparable yield” and “projected payment schedule,” within the meaning of the
Contingent Payment Regulations, with respect to the Securities. A Holder of Securities may obtain
the amount of original issue discount, issue date, yield to maturity, comparable yield and
projected payment schedule by submitting a written request for it to the Company at the following
address: 2525 Stemmons Freeway, Dallas, Texas 75207-2401, Attn: S. Theis Rice; provided, that
neither the Company nor any beneficial holder shall be required to treat the Securities, or to
report income from the Securities, for United States federal income tax purposes in a manner that
is contrary to applicable legal requirements or applicable published positions of the Internal
Revenue Service.

27

 

          SECTION 3.10.   Delivery of Certain Information.

          The Company will deliver to the Trustee within fifteen (15) days after the filing of the same
with the SEC, copies of the quarterly and annual reports and of the information, documents and
other reports, if any, which the Company is required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act, and shall otherwise comply with the requirements of TIA § 314(a);
provided that (i) any failure by the Company to comply with this provision shall not constitute a
Default or Event of Default and (ii) only the Trustee may institute a legal proceeding against the
Company to enforce such delivery obligation.

ARTICLE IV

Successor Company 

          SECTION 4.1.   Consolidation, Merger and Sale of Assets.

          The Company shall not consolidate with or merge with or into, or convey, transfer or lease all
or substantially all its assets to, another Person, unless:

     (i) the resulting, surviving or transferee Person (the “Successor Company”) if not the
Company shall be a corporation, partnership, trust or limited liability company organized
and existing under the laws of the United States of America, any State thereof or the
District of Columbia and the Successor Company (if not the Company) shall expressly assume,
by supplemental indenture, executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, all the obligations of the Company under the Securities and
this Indenture;

     (ii) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing; and

     (iii) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer and such
supplemental indenture, if any, comply with this Indenture.

          For purposes of this Section 4.1, the sale, lease, conveyance, assignment, transfer,
or other disposition of all or substantially all of the properties and assets of one or more
Subsidiaries of the Company, which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and assets of the Company
on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company; provided, that in no event shall any Sale and Leaseback
Transaction entered into in the ordinary course of business be deemed to constitute the transfer of
all or substantially all of the properties and assets of the Company.

          The Successor Company will succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture, but, in the case of a lease of all or substantially
all its assets, the Company will not be released from the obligation to pay the principal of and
interest (including Contingent Interest, if any), on the Securities.

28

 

ARTICLE V

Redemption of Securities

          SECTION 5.1.   Optional Redemption.

          The Securities may be redeemed, as a whole or from time to time in part, subject to the
conditions and at the redemption price (the “Redemption Price”), which shall be payable in cash,
specified in paragraph 6 of the form of Securities set forth in Exhibit A hereto, which are hereby
incorporated by reference and made a part of this Indenture, together with accrued and unpaid
interest (including Contingent Interest, if any), to the Redemption Date.

          SECTION 5.2.   Applicability of Article.

          Redemption of Securities at the election of the Company or otherwise, as permitted or required
by any provision of this Indenture, shall be made in accordance with such provision and this
Article V.

          SECTION 5.3.   Election to Redeem; Notice to Trustee.

          The election of the Company to redeem any Securities pursuant to Section 5.1 shall be
evidenced by a Board Resolution. In case of any redemption at the election of the Company, the
Company shall, upon not later than the earlier of the date that is 45 days prior to the Redemption
Date fixed by the Company or the date on which notice is given to the Holders (except as provided
in Section 5.5 or unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities to be redeemed and shall
deliver to the Trustee such documentation and records as shall enable the Trustee to select the
Securities to be redeemed pursuant to Section 5.4. Any such notice may be cancelled at any
time prior to notice of such redemption being mailed to any Holder and shall thereby be void and of
no effect.

          SECTION 5.4.   Selection by Trustee of Securities to Be Redeemed.

          If less than all the Securities are to be redeemed at any time pursuant to an optional
redemption, the particular Securities to be redeemed shall be selected not more than 60 days prior
to the Redemption Date by the Trustee, from the outstanding Securities not previously called for
redemption, by lot, or on a pro rata basis or by such other method as the Trustee shall deem fair
and appropriate (and in such manner as complies with applicable legal requirements) and which may
provide for the selection for redemption of portions of the principal of the Securities; provided,
however, that no such partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000.

          The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

          For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to redemption of Securities shall relate, in the case of any Security redeemed

29

 

or to be redeemed only in part, to the portion of the principal amount of such Security which
has been or is to be redeemed.

          If any Securities selected for partial redemption are thereafter surrendered for conversion in
part before termination of the conversion right with respect to the portion of the Securities so
selected, the converted portion of such Securities shall be deemed (so far as may be), solely for
purposes of determining the aggregate principal amount of Securities to be redeemed by the Company,
to be the portion selected for redemption. Securities which have been converted during a selection
of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such
selection. Nothing in this Section 5.4 shall affect the right of any Holder to convert any
Securities pursuant to Article XII before the termination of the conversion right with
respect thereto.

          SECTION 5.5.   Notice of Redemption.

          Notice of redemption shall be given in the manner provided for in Section 13.2 and at
the Company’s expense not less than 30 nor more than 60 days prior to the Redemption Date, to each
Holder of Securities to be redeemed. At the Company’s expense, the Trustee shall give notice of
redemption in the Company’s name; provided, however, that the Company shall deliver to the Trustee,
at least 45 days prior to the Redemption Date, an Officers’ Certificate requesting that the Trustee
give such notice at the Company’s expense and setting forth the information to be stated in such
notice as provided in the following items.

          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the redemption price and the amount of accrued interest (including Contingent
Interest, if any), to the Redemption Date payable as provided in Section 5.7, if
any,

          (3) the then current Conversion Rate, a statement that the Securities called for
redemption may be converted at any time before the close of business on the second Trading
Day prior to the Redemption Date, and that Holders who wish to convert Securities must
comply with the procedures in paragraph 8 of the Securities,

          (4) if less than all outstanding Securities are to be redeemed, the identification of
the particular Securities (or portion thereof) to be redeemed, as well as the aggregate
principal amount of Securities to be redeemed and the aggregate principal amount of
Securities to be outstanding after such partial redemption,

          (5) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder will receive, without charge, a new Security or Securities of
authorized denominations for the principal amount thereof remaining unredeemed,

30

 

          (6) that on the Redemption Date the redemption price (and accrued interest, if any,
(including Contingent Interest, if any), to the Redemption Date payable as provided in
Section 5.7) will become due and payable upon each such Security, or the portion
thereof, to be redeemed, and, unless the Company defaults in making the redemption payment,
that interest (including Contingent Interest, if any), on Securities called for redemption
(or the portion thereof) will cease to accrue on and after said date,

          (7) the place or places where such Securities are to be surrendered for payment of the
redemption price and accrued interest, if any, and any Contingent Interest,

          (8) the name and address of the Paying Agent and the Conversion Agent,

          (9) that Securities called for redemption must be surrendered to the Paying Agent to
collect the redemption price,

          (10) the CUSIP number, and that no representation is made as to the accuracy or
correctness of the CUSIP number, if any, listed in such notice or printed on the Securities,
and

          (11) the paragraph of the Securities pursuant to which the Securities are to be
redeemed.

          SECTION 5.6.   Deposit of Redemption Price.

          Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 2.6) an amount of money sufficient to pay the redemption price of, and
accrued interest (including any Contingent Interest), on, all the Securities which are to be
redeemed on that date other than Securities or portions of Securities called for redemption that
are beneficially owned by the Company and have been delivered by the Company to the Trustee for
cancellation.

          SECTION 5.7.   Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the redemption price therein specified (together
with accrued and unpaid interest, if any, and any Contingent Interest, to but excluding the
Redemption Date), and from and after such date (unless the Company shall default in the payment of
the redemption price and accrued and unpaid interest (including Contingent Interest, if any)) such
Securities shall cease to bear interest or Contingent Interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the redemption price, together with accrued interest, if any, any Contingent Interest, to the
Redemption Date (subject to the rights of Holders of record on the relevant Record Date to receive
interest due on the relevant interest payment date).

31

 

          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid, bear interest (including Contingent Interest, if any),
from the Redemption Date at the rate borne by the Securities.

          SECTION 5.8.   Securities Redeemed in Part.

          Any Security which is to be redeemed only in part (pursuant to the provisions of this
Article V) shall be surrendered at the office or agency of the Company maintained for such
purpose pursuant to Section 3.2 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing),
and the Company shall execute, and the Trustee shall authenticate and make available for delivery
to the Holder of such Security at the expense of the Company, a new Security or Securities, of any
authorized denomination as requested by such Holder, in an aggregate principal amount equal to and
in exchange for the unredeemed portion of the principal of the Security so surrendered, provided
that each such new Security will be in a principal amount of $1,000 or integral multiple thereof.

ARTICLE VI

Defaults and Remedies

          SECTION 6.1.   Events of Default.

          Each of the following is an “Event of Default”:

          (1) default in any payment of interest, including any Contingent Interest on any
Security, when the same becomes due and payable, and such default continues for a period of
30 days;

          (2) default in the payment of the principal of any Security when the same becomes due
and payable at its Stated Maturity, upon optional redemption, upon required repurchase, upon
declaration or otherwise;

          (3) failure by the Company to comply with its obligation to convert the Securities into
cash or a combination of cash and Common Stock, as applicable, upon exercise of a Holder’s
conversion right and such failure continues for a period of ten calendar days;

          (4) failure by the Company to comply with any of its obligations under Article
IV;

          (5) the Company defaults in the performance of or a breach by the Company of any other
covenant or agreement in this Indenture or under the Securities (other than those referred
to in (1), (2), (3) or (4) above or any other covenant or agreement of this Indenture that
expressly provides that a violation of such covenant or

32

 

agreement shall not constitute an Event of Default) and such default continues for 60
days after the notice specified below;

          (6) there is a default under any mortgage, agreement or other instrument under which
there may be issued or by which there may be outstanding, or by which there may be secured
or evidenced any Debt for money borrowed by the Company or any of its Subsidiaries (other
than Non-Recourse Debt of the Company or any Subsidiary), whether such Debt now exists, or
is created after the date of this Indenture, which default

               (A) is caused by a failure to pay principal of, or interest or premium, if any, on such
Debt prior to the expiration of the grace period provided in such Debt (“Payment Default”)
or

               (B) results in the acceleration of such Debt prior to its maturity (the “cross
acceleration provision”)

and, in each case, the principal amount of any such Debt, together with the principal amount
of any other such Debt under which there has been a Payment Default or the maturity of which
has been so accelerated, aggregates $50.0 million or more or its foreign currency equivalent
at the time and such acceleration shall not have been rescinded or annulled within 10 days
after written notice of such acceleration has been received by the Company or such
Subsidiary;

          (7) failure by the Company to issue a Company Notice of a Fundamental Change in
accordance with the terms of Section 11.1 and Section 11.3.

          (8) the Company pursuant to or within the meaning of any Bankruptcy Law:

               (A) commences a voluntary case or proceeding;

               (B) consents to the entry of judgment, decree or order for relief against it in an
involuntary case or proceeding;

               (C) consents to the appointment of a Custodian of it or for any substantial part of its
property; or

               (D) makes a general assignment for the benefit of its creditors;

               (E) consents to or acquiesces in the institution of a bankruptcy or an insolvency
proceeding against it;

               (F) takes any corporate action to authorize or effect any of the foregoing; or

               (G) takes any comparable action under any foreign laws relating to insolvency; or

33

 

          (9) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

               (A) is for relief against the Company in an involuntary case;

               (B) appoints a Custodian of the Company for all or substantially all of the Company’s
property;

               (C) orders the winding up or liquidation of the Company; and in each case the order or
decree or relief remains unstayed and in effect for 90 days; or

          (10) there has been entered in a court of competent jurisdiction a final judgment for
the payment of $50.0 million or more rendered against the Company or any Subsidiary, which
judgment is not covered by insurance (other than with respect to customary deductibles) or
not discharged, bonded or stayed within 90 days after (A) the date on which the right to
appeal thereof has expired if no such appeal has commenced, or (B) the date on which all
rights to appeal have been extinguished (“judgment default provision”).

     The foregoing will constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body.

     Notwithstanding the foregoing, a Default under clause (5) of this Section 6.1 will not
constitute an Event of Default until the Trustee or the Holders of 25% or more in principal amount
of the outstanding Securities notify the Company of the Default in writing and the Company does not
cure such Default within the time specified in clause (5) of this Section 6.1 after receipt
of such notice. A violation of Section 3.10 or any other covenant or agreement in this Indenture
that expressly provides that a violation of such covenant or agreement shall not constitute an
Event of Default may only be enforced by the Trustee or such other Person specified in such
covenant or agreement by instituting a legal proceeding against the Company for enforcement of such
covenant or agreement.

     The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any Default or Event of Default under clauses
(3), (4), (5), (6), (7), (8), (9) or (10) of this Section 6.1, which such notice shall
contain the status thereof and a description of the action being taken or proposed to be taken by
the Company in respect thereof.

     SECTION 6.2.   Acceleration.

     If an Event of Default occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in outstanding principal amount of the outstanding Securities by notice to
the Company and the Trustee, may, and the Trustee at the request of such Holders shall, declare the
principal of and accrued and unpaid interest, if any, (including Contingent Interest, if any), on
all the Securities to be due and payable; provided that upon an Event of Default of a type set
forth in Clause 8 or Clause 9 of Section 6.1, the Trustee shall be

34

 

deemed to have made such declaration. Upon such an actual or deemed declaration, such
principal, premium, if any, and accrued and unpaid interest (including Contingent Interest, if
any), shall be due and payable immediately.

     SECTION 6.3.   Other Remedies.

     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
to collect the payment of principal of or interest (including Contingent Interest, if any), on the
Securities or to enforce the performance of any provision of the Securities or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair
the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy
is exclusive of any other remedy. All available remedies are cumulative.

     SECTION 6.4.   Waiver of Past Defaults.

     The Holders of a majority in principal amount of the outstanding Securities by notice to the
Trustee may (a) waive, by their consent (including, without limitation consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Securities), an existing
Default or Event of Default and its consequences except (i) a Default or Event of Default in the
payment of the principal of or interest (including Contingent Interest, if any), on a Security or
(ii) a Default or Event of Default in respect of a provision that under Section 9.2 cannot
be amended without the consent of each Securityholder affected and (b) rescind any such
acceleration with respect to the Securities and its consequences if (1) rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing
Events of Default, other than the nonpayment of the principal of and interest (including Contingent
Interest, if any), on the Securities that have become due solely by such declaration of
acceleration, have been cured or waived. When a Default or Event of Default is waived, it is
deemed cured, but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

     SECTION 6.5.   Control by Majority.

     The Holders of a majority in principal amount of the outstanding Securities may direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture or, subject to Sections 7.1 and
7.2, that the Trustee determines is unduly prejudicial to the rights of other
Securityholders or would involve the Trustee in personal liability; provided, however, that the
Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against all losses and expenses caused by taking or not
taking such action.

     SECTION 6.6.   Limitation on Suits.

35

 

     Subject to Section 6.7, a Securityholder may not pursue any remedy with respect to
this Indenture or the Securities unless:

          (1) such Holder has previously given to the Trustee written notice stating that an
Event of Default is continuing;

          (2) Holders of at least 25% in principal amount of the outstanding Securities have
requested that the Trustee pursue the remedy;

          (3) such Holders have offered to the Trustee security or indemnity reasonably
satisfactory to it against any loss, liability or expense;

          (4) the Trustee has not complied with such request within 60 days after receipt of the
request and the offer of security or indemnity; and

          (5) the Holders of a majority in principal amount of the outstanding Securities have
not given the Trustee a direction that, in the opinion of the Trustee, is inconsistent with
such request during such 60-day period.

          A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over another Securityholder.

          SECTION 6.7.   Rights of Holders to Receive Payment.

          Notwithstanding any other provision of this Indenture (including, without limitation,
Section 6.6), the right of any Holder to receive payment of principal of or interest
(including Contingent Interest, if any), on the Securities held by such Holder, on or after the
respective due dates expressed in the Securities, or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected without the consent of
such Holder.

          SECTION 6.8.   Collection Suit by Trustee.

          If an Event of Default specified in clauses (1) or (2) of Section 6.1 occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with interest on any unpaid
interest (including any Contingent Interest) to the extent lawful) and the amounts provided for in
Section 7.7.

          SECTION 6.9.   Trustee May File Proofs of Claim.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Securityholders allowed in any judicial proceedings relative to the Company, its Subsidiaries or
its or their respective creditors or properties and, unless prohibited by law or applicable
regulations, may be entitled and empowered to participate as a member of any official committee of
creditors appointed in such matter, and may vote on behalf of the Holders in any

36

 

election of a trustee in bankruptcy or other Person performing similar functions, and any
Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to
the Trustee and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other
amounts due the Trustee under Section 7.7.

          SECTION 6.10.   Priorities.

          If the Trustee collects any money or property pursuant to this Article VI, it shall pay out
the money or property in the following order:

    FIRST: to the Trustee for amounts due under Section 7.7;

    SECOND: to Securityholders for amounts due and unpaid on the Securities for principal
and interest (including Contingent Interest, if any), ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities for
principal and interest, respectively; and

    THIRD: to the Company.

          The Trustee may fix a record date and payment date for any payment to Securityholders pursuant
to this Section 6.10. At least 15 days before such record date, the Company shall mail to
each Securityholder and the Trustee a notice that states the record date, the payment date and
amount to be paid.

          SECTION 6.11.   Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7 or a suit by
Holders of more than 10% in outstanding principal amount of the Securities.

ARTICLE VII

Trustee

          SECTION 7.1.   Duties of Trustee.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in its
exercise as a prudent Person would exercise or use under the circumstances in the conduct of such
Person’s own affairs; provided that if an Event of Default occurs and is continuing, the Trustee
will be under no obligation to exercise any of the rights or powers under

37

 

this Indenture at the request or direction of any of the Holders unless such Holders have
offered to the Trustee indemnity or security satisfactory to the Trustee against loss, liability or
expense.

          (b) Except during the continuance of an Event of Default:

          (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

          (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates, opinions or orders furnished to the Trustee and conforming to the requirements
of this Indenture. However, in the case of any such certificates, opinions or orders which
by any provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such certificates and opinions to determine whether or not they
conform to the requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

          (1) this paragraph does not limit the effect of paragraph (b) of this Section
7.1;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer of the Trustee unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

          (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5.

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section 7.1.

          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.

          (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

          (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

38

 

          (h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 7.1
and to the provisions of the TIA.

          (i) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

          (j) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders shall
have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs,
expenses (including reasonable attorneys’ fees and expenses) and liabilities that might be incurred
by it in compliance with such request or direction.

          SECTION 7.2.   Rights of Trustee.

          Subject to Section 7.1:

          (a) The Trustee may conclusively rely on any document (whether in its original or facsimile
form) reasonably believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document. The Trustee
shall receive and retain financial reports and statements of the Company as provided herein, but
shall have no duty to review or analyze such reports or statements to determine compliance under
covenants or other obligations of the Company.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on an Officers’ Certificate or Opinion of Counsel.

          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers, unless the Trustee’s conduct
constitutes willful misconduct or negligence.

          (e) The Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the Securities shall be full
and complete authorization and protection from liability in respect to any action taken, omitted or
suffered by it hereunder in good faith and in accordance with the advice or opinion of such
counsel.

          (f) The Trustee shall not be responsible or liable for special, indirect, or consequential
loss or damage of any kind whatsoever (including, but not limited to, loss of profit) resulting
from actions taken in good faith and which the Trustee believes to be authorized or within its
rights or powers, unless the Trustee’s conduct constitutes willful misconduct or negligence.

39

 

          (g) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a default is received by the Trustee at its designated corporate trust
office, and such notice references the Securities and this Indenture.

          (h) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

          (i) The Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

          SECTION 7.3.   Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do
the same with like rights. However, the Trustee must comply with Sections 7.10 and
7.11. In addition, the Trustee shall be permitted to engage in transactions with the
Company; provided, however, that if the Trustee acquires any conflicting interest the Trustee must
(i) eliminate such conflict within 90 days of acquiring such conflicting interest, (ii) apply to
the SEC for permission to continue acting as Trustee or (iii) resign.

          SECTION 7.4.   Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Securities, shall not be accountable for the Company’s use of the
proceeds from the Securities, shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and shall not be responsible for any statement
of the Company in this Indenture or in any document issued in connection with the sale of the
Securities or in the Securities other than the Trustee’s certificate of authentication.

          SECTION 7.5.   Notice of Defaults.

          If a Default or
Event of Default occurs and is continuing and if a Trust Officer of the
Trustee has actual knowledge thereof, the Trustee shall, within 90
days after such Default occurs, mail by first class mail (a) to each
Securityholder at the address set forth in the Securities Register, (b) to such Holders as have,
within the two years preceding the date of such mailing, filed their names and addresses with the
Trustee for that purpose, and (c) as otherwise required by TIA § 313(c). Except in the case of a
Default or Event of Default in payment of principal of or interest (including Contingent Interest,
if any), on any Security (including payments pursuant to the optional redemption or required
repurchase provisions of such Security, if any), the Trustee may withhold the notice if and so long
as its board of directors, a committee of its board of directors or a committee of its Trust
Officers in good faith determines that withholding the notice is in the interests of Securityholders.

40

 

          SECTION 7.6.   Reports by Trustee to Holders.

          As promptly as practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to November 15 in each year, the Trustee shall mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA § 313(a), if required
by such TIA § 313(a). The Trustee also shall comply with TIA § 313(b). The Trustee shall transmit
by mail all reports required by TIA § 313(c) in accordance with the requirements set forth in TIA §
313(c).

          A copy of each report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to
notify promptly the Trustee in writing whenever the Securities become listed on any stock exchange
and of any delisting thereof.

          SECTION 7.7.   Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time such compensation for its acceptance of
this Indenture and services hereunder as the Company and the Trustee shall from time to time agree
in writing. The Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred or made by it, including costs of collection, costs of
preparing and reviewing reports, certificates and other documents, costs of preparation and mailing
of notices to Securityholders and reasonable costs of counsel retained by the Trustee in connection
with the delivery of an Opinion of Counsel or otherwise, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee’s agents, counsel, accountants and experts related to this Indenture. The
Company shall indemnify the Trustee against any and all loss, liability, damages, claims or expense
(including reasonable attorneys’ fees and expenses) incurred by it without negligence or bad faith
on its part in connection with the administration of this trust and the performance of its duties
hereunder, including the costs and expenses of enforcing this Indenture (including this Section
7.7) and of defending itself against any claims (whether asserted by any Securityholder or
otherwise). The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder. The Company shall defend the claim and the Trustee shall provide reasonable
cooperation at the Company’s expense in the defense. The Trustee may have separate counsel
(subject to the approval of the Company not to be unreasonably withheld or delayed) and the Company
shall pay the reasonable fees and expenses of such counsel, provided that the Company shall not be
required to pay such fees and expenses if it assumes the Trustee’s defense, and, in the reasonable
judgment of outside counsel to the Trustee, there is no conflict of interest between the Company
and the Trustee in connection with such defense. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own
willful misconduct, negligence or bad faith.

          The Company’s payment obligations pursuant to this Section 7.7 shall survive the
discharge of this Indenture. When the Trustee incurs expenses after the occurrence of a Default

41

 

specified in clauses (8) and (9) of Section 6.1 with respect to the Company, the
expenses are intended to constitute expenses of administration under any Bankruptcy Law.

          SECTION 7.8.   Replacement of Trustee.

          The Trustee may resign at any time upon 60 days’ prior written notice to the Company. The
Holders of a majority in principal amount of the Securities may remove the Trustee by so notifying
the Trustee and may appoint a successor Trustee. The Company shall remove the Trustee if:

          (1) the Trustee fails to comply with Section 7.10;

          (2) the Trustee is adjudged bankrupt or insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or its property; or

          (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns or is removed by the Company or by the Holders of a majority in
principal amount of the Securities and such Holders do not reasonably promptly appoint a successor
Trustee, or if a vacancy exists in the office of the Trustee for any reason (the Trustee in such
event being referred to herein as the retiring Trustee), the Company shall promptly appoint a
successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.7.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of at least 10% in principal amount of the
Securities may petition, at the Company’s expense, any court of competent jurisdiction for the
appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign
is stayed as provided in TIA § 310(b), any Securityholder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding the replacement of the Trustee pursuant to this Section 7.8, the
Company’s obligations under Section 7.7 shall continue for the benefit of the retiring
Trustee.

          SECTION 7.9.   Successor Trustee by Merger.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking

42

 

association, the resulting, surviving or transferee corporation without any further act shall
be the successor Trustee.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture, any of the Securities shall have
been authenticated but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in
case at that time any of the Securities shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the
name of the successor to the Trustee; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or authenticate Securities in the name of any predecessor
Trustee shall only apply to its successor or successors by merger, consolidation or conversion.

          SECTION 7.10.   Eligibility; Disqualification.

          The Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall
have a combined capital and surplus of at least $100 million as set forth in its most recent
published annual report of condition. The Trustee shall comply with TIA § 310(b); provided,
however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities or certificates of interest or participation in other
securities of the Company are outstanding if the requirements for such exclusion set forth in TIA §
310(b)(1) are met.

          SECTION 7.11.   Preferential Collection of Claims Against Company.

          The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

          SECTION 7.12.   Trustee’s Application for Instruction from the Company.

          Any application by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
this Indenture and the date on and/or after which such action shall be taken or such omission shall
be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the date any officer of
the Company actually receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE VIII

Discharge of Indenture

          SECTION 8.1.   Discharge of Liability on Securities.

43

 

          When (1) the Company shall deliver to the Registrar for cancellation all Securities
theretofore authenticated (other than any Securities which have been destroyed, lost or stolen and
in lieu of or in substitution for which other Securities shall have been authenticated and
delivered) and not theretofore canceled, or (2) all the Securities not theretofore canceled or
delivered to the Registrar for cancellation shall have (a) been deposited for conversion and the
Company shall deliver to the Holders cash or cash and shares of Common Stock, in each case,
sufficient to pay all amounts owing in respect of all Securities (other than any Securities which
shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution for which
other Securities shall have been authenticated and delivered) not theretofore canceled or delivered
to the Registrar for cancellation or (b) become due and payable on the Stated Maturity, Purchase
Date, Fundamental Change Purchase Date or Redemption Date, as applicable, and the Company shall
deposit with the Trustee cash or cash and shares of Common Stock (solely to satisfy outstanding
conversions, if applicable), as applicable, sufficient to pay all amounts owing in respect of all
Securities (other than any Securities which shall have been mutilated, destroyed, lost or stolen
and in lieu of or in substitution for which other Securities shall have been authenticated and
delivered) not theretofore canceled or delivered to the Registrar for cancellation, including the
principal amount and interest (including Contingent Interest, if any), accrued and unpaid to such
Stated Maturity, Purchase Date, Fundamental Change Purchase Date or Redemption Date, as the case
may be, and if in either case (1) or (2) the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company, then the Indenture with respect to the Securities shall
cease to be of further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Securities; (ii) rights hereunder of Holders to receive
payments of the amounts then due, including interest (including Contingent Interest, if any), with
respect to the Securities and the other rights, duties and obligations of Holders, as beneficiaries
hereof with respect to the amounts, if any, so deposited with the Trustee; and (iii) the rights,
obligations and immunities of the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and
Registrar under the Indenture with respect to the Securities). On, or after, such time, the
Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel
as required by Section 8.3 and at the cost and expense of the Company, shall execute proper
instruments acknowledging satisfaction of and discharging the Indenture with respect to the
Securities; the Company, however, hereby agrees to reimburse the Trustee, Authenticating Agent,
Paying Agent, Conversion Agent and Registrar for any costs or expenses thereafter reasonably and
properly incurred by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and
Registrar and to compensate the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and
Registrar for any services thereafter reasonably and properly rendered by the Trustee,
Authenticating Agent, Paying Agent, Conversion Agent and Registrar in connection with the Indenture
with respect to the Securities or the Securities.

          SECTION 8.2.   Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money to the Holders entitled
thereto by reason of any order or judgment of any court of governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under the
Indenture with respect to the Securities and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or
the Paying Agent is permitted to apply all such money in accordance with the

44

 

           Indenture and the Securities to the Holders entitled thereto; provided, however, that if the
Company makes any payment of principal amount of or interest (including Contingent Interest, if
any), on any Securities following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Securities to receive such payment from the money
held by the Trustee or Paying Agent.

          SECTION 8.3.   Officers’ Certificate; Opinion of Counsel.

          Upon any application or demand by the Company to the Trustee to take any action under
Section 8.1, the Company shall furnish to the Trustee an Officers’ Certificate stating that
all conditions precedent, if any, provided for in the Indenture relating to the proposed action
have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel,
all such conditions precedent have been complied with.

          Each certificate or Opinion of Counsel provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant pursuant to the previous paragraph
shall include: (1) a statement that the Person making such certificate or opinion has read such
covenant or condition; (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statement or opinion contained in such certificate or opinion is
based; (3) a statement that, in the opinion of such Person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to compliance with
such covenant or condition; and (4) a statement as to whether or not, in the opinion of such
Person, there is compliance with such condition or covenant.

ARTICLE IX

Amendments

          SECTION 9.1.   Without Consent of Holders.

          The Company and the Trustee may amend this Indenture or the Securities without notice to or
consent of any Securityholder:

          (1) to cure any ambiguity, omission, defect or inconsistency;

          (2) to comply with Article IV in respect of the assumption by a Successor
Company of an obligation of the Company under this Indenture;

          (3) to provide for uncertificated Securities in addition to or in place of certificated
Securities; provided, however, that the uncertificated Securities are issued in registered
form for purposes of Section 163(f) of the Code or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of the Code;

          (4) to add Guarantees with respect to the Securities;

          (5) to secure the Securities;

45

 

          (6) to add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company; or

          (7) to make any change that does not materially adversely affect the rights of any
Holder, provided that any amendment to conform the terms of the Securities to the
description contained in the prospectus filed with the registration statement pursuant to
which this Indenture has been qualified and any supplemental prospectus thereto relating to
the Securities shall be deemed not to be adverse to any Security holder.

          After an amendment under this Section 9.1 becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section 9.1.

          SECTION 9.2.   With Consent of Holders.

          The Company and the Trustee may amend this Indenture or the Securities without notice to any
Securityholder but with the written consent of the Holders of at least a majority in principal
amount of the Securities then outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Securities) and compliance
with the provisions of this Indenture may be waived with the written consent of the Holders of at
least a majority in principal amount of the Securities then outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities). However, without the consent of each Securityholder affected, an amendment or
waiver may not:

          (1) reduce the amount of Securities whose Holders must consent to an amendment of the
Indenture or to waive any past Default or Event of Default;

          (2) reduce the rate of or extend the stated time for payment of interest, including
Contingent Interest, on any Security;

          (3) reduce the principal of or extend the Stated Maturity of any Security;

          (4) make any change that impairs or adversely affects the conversion rights of any
Securities;

          (5) reduce the redemption price, the Fundamental Change Purchase Price, the Purchase
Price payable upon the redemption or repurchase of any Security or amend or modify in any
manner adverse to holders of the Securities the Company’s obligation to make such payments,
whether through an amendment to or waiver of Article V, Article IX , a
definition or otherwise;

          (6) make any Security payable in money other than that stated in the Security (it being
understood that all references to cash in this Indenture and the Securities are to U.S.
legal tender);

46

 

          (7) impair the right of any Holder to receive payment of principal of and interest
(including Contingent Interest, if any), on such Holder’s Securities on or after the due
dates therefor or to institute suit for the enforcement of any payment on or with respect to
such Holder’s Securities; or

          (8) make any change to the amendment provisions which require each Holder’s consent or
to the waiver provisions.

          It shall not be necessary for the consent of the Holders under this Section 9.2 to
approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such
consent approves the substance thereof. A consent to any amendment or waiver under this Indenture
by any Holder of the Securities given in connection with a tender or exchange of such Holder’s
Securities will not be rendered invalid by such tender or exchange.

          After an amendment under this Section 9.2 becomes effective, the Company shall mail to
Securityholders a notice briefly describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity of an amendment
under this Section 9.2.

          SECTION 9.3.   Compliance with Trust Indenture Act.

          Every amendment to this Indenture or the Securities shall comply with the TIA as then in
effect.

          SECTION 9.4.   Revocation and Effect of Consents and Waivers.

          A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that evidences the same debt as
the consenting Holder’s Security, even if notation of the consent or waiver is not made on the
Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to
such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation
before the date the amendment or waiver becomes effective or otherwise in accordance with any
related solicitation documents. After an amendment or waiver becomes effective, it shall bind
every Securityholder. An amendment or waiver shall become effective upon receipt by the Trustee of
the requisite number of written consents under Section 9.1 or 9.2, as applicable.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Securityholders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed,
then notwithstanding the immediately preceding paragraph, those Persons who were Securityholders at
such record date (or their duly designated proxies), and only those Persons, shall be entitled to
give such consent or to revoke any consent previously given or to take any such action, whether or
not such Persons continue to be Holders after such record date. No such consent shall become valid
or effective more than 120 days after such record date.

          SECTION 9.5.   Notation on or Exchange of Securities.

47

 

          If an amendment changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the
Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate
notation or to issue a new Security shall not affect the validity of such amendment.

          SECTION 9.6.   Trustee To Sign Amendments.

          The Trustee shall sign any amendment authorized pursuant to this Article IX if the
amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall be
entitled to receive indemnity reasonably satisfactory to it and to receive, and (subject to
Sections 7.1 and 7.2) shall be fully protected in relying upon, an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by
this Indenture and that such amendment is the legal, valid and binding obligation of the Company,
enforceable against it in accordance with its terms, subject to customary exceptions and complies
with the provisions hereof (including Section 9.3).

ARTICLE X

Subordination

          SECTION 10.1.   Agreement of Subordination.

          The Company covenants and agrees, and each Holder by its acceptance thereof likewise covenants
and agrees, that all Securities shall be issued subject to the provisions of this Article
X; and each Person holding any Security, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees to be bound by such provisions.

          The payment of the principal of and Interest (including Contingent Interest, if any) on all
Securities (including, but not limited to, the Redemption Price and the Fundamental Change Purchase
Date with respect to the Securities subject to redemption or repurchase in accordance with
Articles V and XI, respectively, and the payment of any cash upon conversion in accordance
with Article XII) issued hereunder shall, to the extent and in the manner hereinafter set
forth, be subordinated and subject in right of payment to the prior payment in full in cash or
other payment satisfactory to the holders of Senior Debt of all Senior Debt, whether outstanding at
the date of this Indenture or thereafter incurred.

          No provision of this Article X shall prevent the occurrence of any Default or Event of
Default hereunder.

          SECTION 10.2.   Payments to Holders.

          No payment shall be made with respect to the principal of or interest (including Contingent
Interest, if any) on the Securities (including, but not limited to, the Redemption Price and the
Fundamental Change Purchase Date with respect to the Securities subject to redemption or purchase
in accordance with Articles V and XI, respectively, and any payment of cash upon

48

 

conversion in accordance with Article XII), except payments and distributions made by
the Trustee as permitted by the first or second paragraph of Section 10.5, if:

          (a) a default in the payment of principal, premium, interest or other amounts due on any
Senior Debt, or in respect of any redemption or repurchase obligation under any Senior Debt, occurs
and is continuing (or, in the case of Senior Debt for which there is a period of grace, in the
event of such a default that continues beyond the period of grace, if any, specified in the
instrument or lease evidencing such Senior Debt); or

          (b) a default, other than a Payment Default, on any Designated Senior Debt occurs and is
continuing that then permits holders of such Designated Senior Debt (or any Representative) to
accelerate its maturity (a “Non-Payment Default”) and a Trust Officer of the Trustee receives at
the corporate trust office a written notice of the default (a “Payment Blockage Notice”) from the
Company or a Representative of Designated Senior Debt.

          Notwithstanding the foregoing, following the delivery of a Payment Blockage Notice, no new
Payment Blockage Notice may be delivered and no new period of payment blockage with respect to the
Securities may begin until both (i) 365 consecutive days have elapsed since the effectiveness of
the first Payment Blockage Notice and (ii) all scheduled payments of principal and interest with
respect to the Securities that are due have been paid in full in cash. No default that existed or
was continuing on the date of delivery of any Payment Blockage Notice with respect to the
Designated Senior Debt whose holders delivered the Payment Blockage Notice may be made the basis of
a subsequent Payment Blockage Notice by the holders of such Designated Senior Debt, unless the
Non-Payment Default shall have been cured or waived for a period of not less than 90 consecutive
days.

          The Company may and shall resume payments on and distributions in respect of the Securities
upon:

          (1) in the case of a Payment Default, the date upon which the default is cured or
waived or ceases to exist or the Senior Debt shall have been discharged or paid in full, or

          (2) in the case of a Non-Payment Default, the earlier of the date on which such default
is cured or waived or ceases to exist, in each case as and to the extent permitted under the
documentation for the Designated Senior Debt or the Designated Senior Debt shall have been
discharged or paid in full, or the 179th day after the date on which the
applicable Payment Blockage Notice is received, in each case, unless the maturity of the
Designated Senior Debt has been accelerated or this Article X otherwise prohibits
the payment or distribution at the time of such payment or distribution.

          Upon any payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution or winding-up
or liquidation or reorganization of the Company (whether voluntary or involuntary) or in
bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to become due upon
all Senior Debt shall first be paid in full in cash, or other payments satisfactory to the holders
of Senior Debt before any payment of cash, property or securities is made on account of

49

 

the principal of or Interest (including Contingent Interest, if any) on, or with respect to
the conversion of, the Securities (except, to the extent required by applicable law, payments made
pursuant to Article VIII from monies deposited with the Trustee pursuant thereto prior to
commencement of proceedings for such dissolution, winding-up, liquidation or reorganization); and
upon any such dissolution or winding-up or liquidation or reorganization of the Company or
bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders of the Securities or the Trustee would be entitled, except for the
provision of this Article X, shall (except as aforesaid) be paid by the Company or by any
receiver, trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders of the Securities or by the Trustee under this Indenture if
received by them or it, directly to the holders of Senior Debt (pro rata to such holders on the
basis of the respective amounts of Senior Debt held by such holders, or as otherwise required by
law or a court order) or their representative or representatives, or to the trustee or trustees
under any indenture pursuant to which any instruments evidencing any Senior Debt may have been
issued, as their respective interests may appear, to the extent necessary to pay all Senior Debt in
full in cash, or other payment satisfactory to the holders of Senior Debt, after giving effect to
any concurrent payment or distribution to or for the holders of Senior Debt, before any payment or
distribution is made to the Holders of the Securities or to the Trustee.

          For purposes of this Article X, the words, “cash, property or securities” shall not be
deemed to include shares of Capital Stock of the Company as reorganized or readjusted, or
securities of the Company or any other corporation provided for by a plan of reorganization or
readjustment, the payment of which is subordinated at least to the extent provided in this
Article X with respect to the Securities to the payment of all Senior Debt which may at the
time be outstanding; provided that (i) the Senior Debt is assumed by the new corporation, if any,
resulting from any reorganization or readjustment, and (ii) the rights of the holders of Senior
Debt (other than leases which are not assumed by the Company or the new corporation, as the case
may be) are not, without the consent of such holders, altered by such reorganization or
readjustment. The consolidation of the Company with, or the merger of the Company into, another
corporation or the liquidation or dissolution of the Company following the conveyance, transfer or
lease of all or substantially all its property to another corporation upon the terms and conditions
provided for in Article IV shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 10.2 if such other corporation shall, as a
part of such consolidation, merger, conveyance, transfer or lease, comply with the conditions
stated in Article IV.

          If payment of the Securities is accelerated because of an Event of Default, the Company shall
promptly notify holders of Senior Debt or their Representatives of such acceleration. The Company
shall not pay the Securities until five days after the holders or Representatives for the holders
of Senior Debt receive notice of the acceleration and after which the Company shall pay the
Securities only if this Article X otherwise permits payment at that time.

          In the event that, notwithstanding the foregoing provisions, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities (including,
without limitation, by way of setoff or otherwise), prohibited by the

50

 

foregoing, shall be received by the Trustee or the Holders of the Securities before all Senior
Debt is paid in full, in cash or other payment satisfactory to the holders of Senior Debt, or
provision is made for such payment thereof in accordance with its terms in cash or other payment
satisfactory to the holders of Senior Debt, such payment or distribution shall be held in trust for
the benefit of and shall be paid over or delivered to the holders of Senior Debt or their
Representative or Representatives, as their respective interests may appear, as calculated by the
Company, for application to the payment of all Senior Debt remaining unpaid to the extent necessary
to pay all Senior Debt in full, in cash or other payment satisfactory to the holders of Senior Debt
or their Representative, after giving effect to any concurrent payment or distribution to or for
the holders of such Senior Debt.

     Nothing in this Section 10.2 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 6.10 and Section 7.7. This Section 10.2 shall
be subject to the further provisions of Section 10.5.

             SECTION 10.3.   Subrogation of Securities.

     Subject to the payment in full, in cash or other payment satisfactory to the holders of Senior
Debt, of all Senior Debt, the rights of the Holders of the Securities shall be subrogated to the
extent of the payments or distributions made to the holders of such Senior Debt pursuant to the
provisions of this Article X (equally and ratably with the holders of all indebtedness of
the Company which by its express terms is subordinated to other indebtedness of the Company to
substantially the same extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of Senior Debt to receive payments or distributions of
cash, property or securities of the Company applicable to the Senior Debt until the principal of
and Interest on the Securities shall be paid in full in cash or other payment satisfactory to the
Holders of Securities; and, for the purposes of such subrogation, no payments or distributions to
the holders of the Senior Debt of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this Article X,
and no payment over pursuant to the provisions of this Article X, to or for the benefit of
the holders of Senior Debt by Holders of the Securities or the Trustee, shall, as between the
Company, its creditors other than holders of Senior Debt, and the Holders of the Securities, be
deemed to be a payment by the Company to or on account of the Senior Debt; and no payment or
distribution of cash, property or securities to or for the benefit of the Holders of the Securities
pursuant to the subrogation provisions of this Article X, which would otherwise have been
paid to the holders of Senior Debt shall be deemed to be a payment by the Company to or for the
account of the Securities. It is understood that the provisions of this Article X are and
are intended solely for the purposes of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Debt, on the other hand.

        Nothing contained in this Article X or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as among the Company, its creditors other than the
holders of Senior Debt, and the Holders of the Securities, the obligation of the Company, which is
absolute and unconditional, to pay to the Holders of the Securities the principal of and Interest
(including Contingent Interest, if any) on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the relative rights of
the Holders of the Securities and creditors of the Company other than the holders of the Senior
Debt.

51

 

     Upon any payment or distribution of assets of the Company referred to in this Article
X, the Trustee, subject to the provisions of Section 7.1, and the Holders of the
Securities shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization
proceedings are pending, or a certificate of the receiver, trustee in bankruptcy, liquidating
trustee, agent or other person making such payment or distribution, delivered to the Trustee or to
the Holders of the Securities, for the purpose of ascertaining the persons entitled to participate
in such distribution, the holders of the Senior Debt and other indebtedness of the Company, the
amount thereof or payable thereon and all other facts pertinent thereto or to this Article
X.

          SECTION 10.4.   Authorization to Effect Subordination.

     Each Holder of a Security by the Holder’s acceptance thereof authorizes and directs the
Trustee on the Holder’s behalf to take such action as may be necessary or appropriate to effectuate
the subordination as provided in this Article X and appoints the Trustee to act as the
Holder’s attorney-in-fact for any and all such purposes. If the Trustee does not file a proper
proof of claim or proof of debt in the form required in any proceeding referred to in Section
10.3 hereof at least 30 days before the expiration of the time to file such claim, the holders
of any Senior Debt or their representatives are hereby authorized to file an appropriate claim for
and on behalf of the Holders of the Securities.

          SECTION 10.5.   Notice to Trustee.

     The Company shall give prompt written notice in the form of an Officers’ Certificate to a
Trust Officer of the Trustee and to any Paying Agent of any fact known to the Company that would
prohibit the making of any payment of monies to or by the Trustee or any Paying Agent in respect of
the Securities pursuant to the provisions of this Article X. Notwithstanding the
provisions of this Article X or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts which would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to the provisions of
this Article X, unless and until a Trust Officer of the Trustee shall have received written
notice thereof at the applicable corporate trust office from the Company (in the form of an
Officers’ Certificate) or a Representative or a Holder or Holders of Senior Debt or from any
trustee thereof; and before the receipt of any such written notice, the Trustee, subject to the
provisions of Section 7.1, shall be entitled in all respects to assume that no such facts
exist; provided that, if on a date not less than two Business Days prior to the date upon which by
the terms hereof any such monies may become payable for any purpose (including, without limitation,
the payment of the principal of or Interest on any Security) the Trustee shall not have received,
with respect to such monies, the notice provided for in this Section 10.5, then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such monies and to apply the same to the purpose for which they were received, and shall
not be affected by any notice to the contrary which may be received by it on or after such prior
date. Notwithstanding anything in this Article X to the contrary, nothing shall prevent any
payment by the Trustee to the Holders of monies deposited with it pursuant to Article VIII,
and any such payment shall not be subject to the provisions of this Article X.

52

 

     The Trustee, subject to the provisions of Section 7.1, shall be entitled to rely on
the delivery to it of a written notice by a Representative or a person representing himself to be a
holder of Senior Debt (or a trustee on behalf of such holder) to establish that such notice has
been given by a Representative or a holder of Senior Debt. In the event that the Trustee determines
in good faith that further evidence is required with respect to the right of any person as a holder
of Senior Debt to participate in any payment or distribution pursuant to this Article X,
the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts pertinent to the rights
of such Person under this Article X, and if such evidence is not furnished the Trustee may
defer any payment to such Person pending judicial determination as to the right of such Person to
receive such payment.

          SECTION 10.6.   Trustee’s Relation to Senior Debt.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article X in respect of any Senior Debt at any time held by it, to the same extent as any
other holder of Senior Debt, and nothing in Section 7.11 or elsewhere in this Indenture
shall deprive the Trustee of any of its rights as such holder.

     With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in this Article X,
and no implied covenants or obligations with respect to the holders of Senior Debt shall be read
into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty
to the holders of Senior Debt and, subject to the provisions of Section 7.1, the Trustee
shall not be liable to any holder of Senior Debt if it shall pay over or deliver to Holders of
Securities, the Company or any other Person money or assets to which any holder of Senior Debt
shall be entitled by virtue of this Article X or otherwise.

          SECTION 10.7.   No Impairment of Subordination.

     No right of any present or future holder of any Senior Debt to enforce subordination as herein
provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the
part of the Company or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless
of any knowledge thereof with which any such holder may have or otherwise be charged.

          SECTION 10.8.   Certain Conversions Not Deemed Payment.

     For the purposes of this Article X only, the issuance and delivery of Common Stock and
the payment of cash in lieu of fractional shares of such Common Stock upon conversion of a Security
in accordance with Article XII shall not be deemed to constitute a payment or distribution
on account of the principal of or Interest on such Security. Nothing contained in this Article
X or elsewhere in this Indenture or in the Securities is intended to or shall impair, as among
the Company, its creditors other than holders of Senior Debt and the Holders, the right,

53

 

which is absolute and unconditional, of the Holder of any Security to convert such Security in
accordance with Article XII.

          SECTION 10.9.   Article Applicable to Payment Agents.

     If at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall (unless the
context otherwise requires) be construed as extending to and including such Paying Agent within its
meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee; provided, however, that the first paragraph of Section
10.10 shall not apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

          SECTION 10.10.   Senior Debt Entitled to Rely.

     The holders of Senior Debt (including, without limitation, Designated Senior Debt) shall have
the right to rely upon this Article X, and no amendment or modification of the provisions
contained herein shall diminish the rights of such holders unless such holders shall have agreed in
writing thereto.

ARTICLE XI

Purchase at Option of Holder Upon a Fundamental Change; Repurchase at the Option of Holders

          SECTION 11.1.   Purchase at the Option of the Holder Upon a Fundamental Change.

          If a Fundamental Change shall occur at any time, each Holder shall have the right, at such
Holder’s option, to require the Company to purchase any or all of such Holder’s Securities on a
date, of the Company’s choosing that is not less than 20 nor more than 35 Business Days after the
date of the Company Notice of the occurrence of such Fundamental Change (subject to extension to
comply with applicable law, as provided in Section 11.3(d)) (the “Fundamental Change
Purchase Date”). The Securities shall be repurchased in integral multiples of $1,000 of the
principal amount. The Company shall purchase such Securities at a price (the “Fundamental Change
Purchase Price”), which shall be paid in cash, equal to 100% of the principal amount of the
Securities to be repurchased plus accrued and unpaid interest, including Contingent Interest, if
any, to but excluding the Fundamental Change Purchase Date (unless the Fundamental Change Purchase
Date is between a Regular Record Date and the interest payment date to which it relates, in which
case such accrued and unpaid interest will be paid to the Holder as of such Regular Record Date).

          (a) Notice of Fundamental Change. The Company, or at its request (which must be
received by the Paying Agent at least three Business Days (or such lesser period as agreed to by
the Paying Agent) prior to the date the Paying Agent is requested to give such notice as described
below), the Paying Agent in the name of and at the expense of the Company, shall mail to all
Holders and the Trustee a Company Notice of the occurrence of a Fundamental

54

 

Change and of the purchase right arising as a result thereof, including the information
required by Section 11.3(a) hereof, on or before the 20th day after the occurrence of such
Fundamental Change. The Company shall promptly furnish to the Paying Agent a copy of such Company
Notice.

          (b) Exercise of Option. For a Security to be so purchased at the option of the
Holder, the Paying Agent must receive such Security duly endorsed for transfer, together with a
written notice of purchase (a “Fundamental Change Purchase Notice”) and the form entitled “Form of
Fundamental Change Purchase Notice” on the reverse thereof duly completed, on or before the
Fundamental Change Purchase Date. The Fundamental Change Purchase Notice shall state:

          (1) if certificated, the certificate numbers of the Securities which the Holder shall
deliver to be purchased;

          (2) the portion of the principal amount of the Securities which the Holder shall
deliver to be purchased, which portion must be $1,000 in principal amount or an integral
multiple thereof; and

          (3) that such Securities shall be purchased as of the Fundamental Change Purchase Date
pursuant to the terms and conditions specified in paragraph 7 of the Securities and in this
Indenture.

          (c) Procedures. The Company shall purchase from a Holder, pursuant to this Section
11.1, Securities if the principal amount of such Securities is $1,000 or a multiple of $1,000
if so requested by such Holder.

          Any purchase by the Company contemplated pursuant to the provisions of this Section
11.1 shall be consummated by the delivery of the Fundamental Change Purchase Price to be
received by the Holder promptly following the later of the Fundamental Change Purchase Date or the
time of book-entry transfer or delivery of the Securities.

          Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Purchase Notice contemplated by this Section 11.1 shall have the right
at any time prior to the close of business on the Business Day prior to the Fundamental Change
Purchase Date to withdraw such Fundamental Change Purchase Notice (in whole or in part) by delivery
of a written notice of withdrawal to the Paying Agent in accordance with Section 11.3(b).

          The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Purchase Notice or written notice of withdrawal thereof.

          On or before 10:00 a.m. (New York City time) on the Fundamental Change Purchase Date, the
Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is
acting as the Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate
Fundamental Change Purchase Price of the Securities to be purchased pursuant to this Section
11.1. Payment by the Paying Agent of the Fundamental Change Purchase Price for such Securities
shall be made promptly following the later of the

55

 

Fundamental Change Purchase Date or the time of book-entry transfer or delivery of such
Securities. Subject to Section 12.2 herein and paragraph 8 of the Securities, no payment or
adjustment shall be made for dividends on the Common Stock the record date for which occurred on or
prior to the Fundamental Change Purchase Date. If the Paying Agent holds, in accordance with the
terms of this Indenture, cash sufficient to pay the Fundamental Change Purchase Price of such
Securities on the Business Day immediately following the Fundamental Change Purchase Date, then, on
and after such date, such Securities shall cease to be outstanding and interest (including
Contingent Interest, if any), on such Securities shall cease to accrue, whether or not book-entry
transfer of such Securities is made or such Securities are delivered to the Paying Agent, and all
other rights of the Holder shall terminate (other than the right to receive the Fundamental Change
Purchase Price and previously accrued and unpaid interest (including Contingent Interest, if any),
upon delivery or transfer of the Securities). Nothing herein shall preclude any withholding tax
required by law.

          The Company shall require each Paying Agent (other than the Trustee) to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all cash held by the
Paying Agent for the payment of the Fundamental Change Purchase Price and shall notify the Trustee
of any default by the Company in making any such payment. If the Company or an Affiliate of the
Company acts as Paying Agent, it shall segregate the cash held by it as Paying Agent and hold it as
a separate trust fund. The Company at any time may require a Paying Agent to deliver all cash held
by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the
Paying Agent shall have no further liability for the cash delivered to the Trustee.

          SECTION 11.2.   Purchase of Securities at the Option of the Holder.

          (a) On June 1, 2018 (the “Purchase Date”), at a Purchase Price, which shall be paid in cash,
equal to 100% of the principal amount of the Securities to be repurchased plus accrued and unpaid
interest, including any Contingent Interest, to but excluding the Purchase Date (unless the
Purchase Date is between a Regular Record Date and the interest payment date to which it relates,
in which case such accrued and unpaid interest will be paid to the Holder as of such Regular Record
Date), a Holder shall have the option to require the Company to purchase all or a portion of the
outstanding Securities held by such Holder, upon:

          (1) delivery to the Paying Agent by the Holder of a written notice of purchase (a
“Purchase Notice”) at any time from the opening of business on the date that is 20 Business
Days prior to a Purchase Date until the close of business on the fifth Business Day prior to
such Purchase Date, stating:

     (i) if certificated, the certificate numbers of the Securities which the Holder
will deliver to be purchased, or, if not certificated, the Purchase Notice must
comply with appropriate DTC procedures;

     (ii) the portion of the principal amount of the Securities which the Holder
will deliver to be purchased, which portion must be $1,000 in principal amount or an
integral multiple thereof;

56

 

     (iii) that such Securities shall be purchased as of the Purchase Date pursuant
to the terms and conditions specified in paragraph 7 of the Securities and in this
Indenture; and

          (2) delivery or book-entry transfer of such Securities to the Paying Agent prior to, on
or after the Purchase Date (together with all necessary endorsements) at the offices of the
Paying Agent, such delivery or transfer being a condition to receipt by the Holder of the
Purchase Price therefor; provided, however, that such Purchase Price shall be so paid
pursuant to this Section 11.2 only if the Securities so delivered or transferred to
the Paying Agent shall conform in all respects to the description thereof in the related
Purchase Notice.

          (b) The Company shall purchase from a Holder, pursuant to this Section 11.2,
Securities if the principal amount of such Securities is $1,000 or a multiple of $1,000 if so
requested by such Holder.

          (c) Any purchase by the Company contemplated pursuant to the provisions of this Section
11.2 shall be consummated by the delivery of the Purchase Price to be received by the Holder
promptly following the later of the Purchase Date or the time of book-entry transfer or delivery of
the Securities.

          (d) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent
the Purchase Notice contemplated by this Section 11.2 shall have the right at any time
prior to the close of business on the Business Day prior to the Purchase Date to withdraw such
Purchase Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 11.3(b).

          (e) The Paying Agent shall promptly notify the Company of the receipt by it of any Purchase
Notice or written notice of withdrawal thereof.

          (f) On or before 10:00 a.m. (New York City time) on the Purchase Date, the Company shall
deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the
Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate Purchase
Price of the Securities to be purchased pursuant to this Section 11.2. Payment by the
Paying Agent of the Purchase Price for such Securities shall be made promptly following the later
of the Purchase Date or the time of book-entry transfer or delivery of such Securities. Subject to
Section 12.2 herein and paragraph 8 of the Securities, no payment or adjustment shall be
made for dividends on the Common Stock the record date for which occurred on or prior to the
Purchase Date. If the Paying Agent holds, in accordance with the terms of the Indenture, cash
sufficient to pay the Purchase Price of such Securities on the Purchase Date, then, on and after
such date, such Securities shall cease to be outstanding and interest (including any Contingent
Interest), on such Securities shall cease to accrue, whether or not book-entry transfer of such
Securities is made or such Securities are delivered to the Paying Agent, and all other rights of
the Holder shall terminate (other than the right to receive the Purchase Price and previously
accrued interest (including any Contingent Interest), upon delivery or transfer of the Securities).
Nothing herein shall preclude any withholding tax required by law.

57

 

          (g) The Company shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all cash held
by the Paying Agent for the payment of the Purchase Price and shall notify the Trustee of any
default by the Company in making any such payment. If the Company or an Affiliate of the Company
acts as Paying Agent, it shall segregate the cash held by it as Paying Agent and hold it as a
separate trust fund. The Company at any time may require a Paying Agent to deliver all cash held by
it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the
Paying Agent shall have no further liability for the cash delivered to the Trustee.

          SECTION 11.3.   Further Conditions and Procedures for Purchase at the Option of the Holder
Upon a Fundamental Change and Purchase of Securities at the Option of the Holder.

          (a) Notice of Purchase Date or Fundamental Change. The Company shall send notices
(each, a “Company Notice”) to the Holders (and to beneficial owners as required by applicable law)
at their addresses shown in the Securities Register maintained by the Registrar, and delivered to
the Trustee and Paying Agent, not less than 25 Business Days prior to the Purchase Date, or on or
before the 20th day after the occurrence of the Fundamental Change, as the case may be (each such
date of delivery, a “Company Notice Date”). Each Company Notice shall include a form of Purchase
Notice or Fundamental Change Purchase Notice to be completed by a Holder and shall state:

          (1) the applicable Purchase Price or Fundamental Change Purchase Price, excluding
accrued and unpaid interest, and any Contingent Interest, Conversion Rate at the time of
such notice and any expected adjustments to the Conversion Rate and, to the extent known at
the time of such notice, the amount of interest (including any Contingent Interest), if any,
that will be payable with respect to the Securities on the applicable Purchase Date or
Fundamental Change Purchase Date;

          (2) the applicable Purchase Date or Fundamental Change Purchase Date and the last date
on which a Holder may exercise its repurchase rights under Section 11.1 or
11.2, as applicable;

          (3) the name and address of the Paying Agent and the Conversion Agent;

          (4) that Securities must be surrendered to the Paying Agent to collect payment of the
Purchase Price or Fundamental Change Purchase Price;

          (5) that Securities as to which a Purchase Notice or Fundamental Change Purchase Notice
has been given may be converted only if the applicable Purchase Notice or Fundamental Change
Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

          (6) that the Purchase Price or Fundamental Change Purchase Price for any Securities as
to which a Purchase Notice or a Fundamental Change Purchase Notice, as applicable, has been
given and not withdrawn shall be paid by the Paying Agent

58

 

promptly following the later of the Purchase Date or Fundamental Change Purchase Date,
as applicable, or the time of book-entry transfer or delivery of such Securities;

          (7) the procedures the Holder must follow under Sections 11.1 or 11.2,
as applicable, and Section 11.3;

          (8) briefly, the conversion rights of the Securities including, if applicable, the
applicable Conversion Rate and any adjustments to the applicable Conversion Rate;

          (9) that, unless the Company defaults in making payment of such Purchase Price or
Fundamental Change Purchase Price on Securities covered by any Purchase Notice or
Fundamental Change Purchase Notice, as applicable, interest (including any Contingent
Interest), will cease to accrue on and after the Purchase Date or Fundamental Change
Purchase Date, as applicable;

          (10) the CUSIP or ISIN number of the Securities;

          (11) the procedures for withdrawing a Purchase Notice or Fundamental Change Purchase
Notice; and

          (12) in the case of a Company Notice pursuant to Section 11.1, the events
causing a Fundamental Change and the date of the Fundamental Change.

          Simultaneously with providing such Company Notice, the Company will publish a notice
containing the information in such Company Notice in a newspaper of general circulation in The City
of New York or publish such information on its then existing website or through such other public
medium as it may use at the time.

          (b) Effect of Purchase Notice or Fundamental Change Purchase Notice; Effect of Event of
Default. Upon receipt by the Company of the Purchase Notice or Fundamental Change Purchase
Notice specified in Section 11.2(a) or Section 11.1(b), as applicable, the Holder
of the Securities in respect of which such Purchase Notice or Fundamental Change Purchase Notice,
as the case may be, was given shall (unless such Purchase Notice or Fundamental Change Purchase
Notice is withdrawn as specified in the following two paragraphs) thereafter be entitled to receive
solely the Purchase Price or Fundamental Change Purchase Price with respect to such Securities.
Such Purchase Price or Fundamental Change Purchase Price shall be paid by the Paying Agent to such
Holder promptly following the later of (x) the Purchase Date or the Fundamental Change Purchase
Date, as the case may be, with respect to such Securities (provided the conditions in Section
11.2(a) or Section 11.1(b), as applicable, have been satisfied) and (y) the time of
delivery or book-entry transfer of such Securities to the Paying Agent by the Holder thereof in the
manner required by Section 11.2(a) or Section 11.1(b), as applicable. Securities in
respect of which a Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has
been given by the Holder thereof may not be converted on or after the date of the delivery of such
Purchase Notice or Fundamental Change Purchase Notice, as the case may be, unless such Purchase
Notice or Fundamental Change Purchase Notice, as the case may be, has first been validly withdrawn
as specified in the following two paragraphs.

59

 

          A Purchase Notice or Fundamental Change Purchase Notice, as the case may be, may be withdrawn
by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time
prior to 5:00 p.m., New York City time, on the Business Day prior to the Purchase Date or the
Fundamental Change Purchase Date, as the case may be, to which it relates specifying:

          (1) the principal amount of the Securities with respect to which such notice of
withdrawal is being submitted;

          (2) if certificated, the certificate number of the Securities in respect of which such
notice of withdrawal is being submitted, or, if not certificated, the written notice of
withdrawal must comply with appropriate DTC procedures; and

          (3) the principal amount, if any, of such Securities which remains subject to the
original Purchase Notice or Fundamental Change Purchase Notice, as the case may be, and
which has been or shall be delivered for purchase by the Company.

          There shall be no purchase of any Securities pursuant to Section 11.2 or Section
11.1, if an Event of Default has occurred and is continuing (other than a default that is cured
by the payment of the Purchase Price or Fundamental Change Purchase Price, as the case may be). The
Paying Agent shall promptly return to the respective Holders thereof any Securities (x) with
respect to which a Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has
been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an
Event of Default (other than a default that is cured by the payment of the Purchase Price or
Fundamental Change Purchase Price, as the case may be) in which case, upon such return, the
Purchase Notice or Fundamental Change Purchase Notice with respect thereto shall be deemed to have
been withdrawn.

          (c) Securities Purchased in Part. Any Securities that are to be purchased only in part
shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing) and the Company shall execute and the Trustee or the Authenticating Agent
shall authenticate and deliver to the Holder of such Securities, without service charge, a new
Security or Securities, of any authorized denomination as requested by such Holder in aggregate
principal amount equal to, and in exchange for, the portion of the principal amount of the
Securities so surrendered which is not purchased or redeemed.

          (d) Covenant to Comply with Securities Laws Upon Purchase of Securities. In
connection with any offer to purchase Securities under Section 11.2 or Section
11.1, the Company shall, to the extent applicable, (a) comply with Rules 13e-4 and 14e-1 (and
any successor provisions thereto) and any other tender offer rule, in each case under the Exchange
Act, if applicable; (b) file the related Schedule TO (or any successor schedule, form or report)
under the Exchange Act, if applicable; and (c) otherwise comply with all applicable federal and
state securities laws so as to permit the rights and obligations under Section 11.2 or
Section 11.1 to be exercised in the time and in the manner specified in Section
11.2 or Section 11.1.

60

 

          (e) Repayment to the Company. The Trustee and the Paying Agent shall return to the
Company any cash or property that remains unclaimed as provided in paragraph 10 of the Securities,
together with interest that the Trustee or Paying Agent, as the case may be, has agreed to pay, if
any, held by them for the payment of a Purchase Price or Fundamental Change Purchase Price, as the
case may be; provided, however, that to the extent that the aggregate amount of cash or property
deposited by the Company pursuant to Section 11.2(f) or Section 11.1(c), as
applicable, exceeds the aggregate Purchase Price or Fundamental Change Purchase Price, as the case
may be, of the Securities or portions thereof which the Company is obligated to purchase as of the
Purchase Date or Fundamental Change Purchase Date, as the case may be, then promptly on and after
the Business Day following the Purchase Date or Fundamental Change Purchase Date, as the case may
be, the Trustee and the Paying Agent shall return any such excess to the Company together with
interest that the Trustee or Paying Agent, as the case may be, has agreed to pay, if any.

          (f) Officers’ Certificate. At least five Business Days before the Company Notice
Date, the Company shall deliver an Officers’ Certificate to the Trustee specifying whether the
Company desires the Trustee to give the Company Notice required by Section 11.3(a) herein;
provided, however, that, in all cases, the text of the Company Notice shall be prepared by the
Company.

          (g) Company’s Determination Final and Binding. All questions as to the validity,
eligibility (including time of receipt) and acceptance of any Securities for repurchase shall be
determined by the Company in good faith, whose determination shall be final and binding absent
manifest error.

ARTICLE XII

Conversion

          SECTION 12.1.   Conversion of Securities.

          (a) Right to Convert. A Holder may convert its Securities at any time during which the
conditions stated in paragraph 8 of the Securities are met. The Company will determine at the
beginning of each fiscal quarter commencing at any time after September 30, 2006 (through the
fiscal year ending March 31, 2036), whether the Securities are convertible pursuant to paragraph
8(a) of the Securities and notify the Trustee thereof. Whenever the Securities shall become
convertible upon one or more of the conditions stated in paragraph 8 of the Securities being met,
the Company or, at the Company’s request, the Trustee in the name and at the expense of the
Company, shall notify the Holders of the event triggering such convertibility in the manner
provided in Section 13.2, and the Company shall also publicly announce such information by
publication on the Company’s website or through such other public medium as it may use at such
time. Any notice so given shall be conclusively presumed to have been duly given, whether or not
the Holder receives such notice.

          A Holder converting its Securities must follow the procedures set forth in paragraph 8 of the
Securities. A Holder may convert a portion of the principal amount of Securities if the portion is
$1,000 or a multiple of $1,000.

61

 

          The cash payable, and the number of shares of Common Stock issuable, if any, upon conversion
of a Security shall be determined as set forth in Section 12.1(c).

          (b) Conversion Procedures. To convert Securities, a Holder must satisfy the
requirements in paragraph 8 of the Securities. The date on which the Holder satisfies all those
requirements is the “Conversion Date”.

          On conversion of Securities, any accrued and unpaid interest with respect to the converted
Securities shall not be canceled, extinguished or forfeited, but rather shall be deemed to be paid
in full to the Holder thereof through delivery of cash, or a combination of cash and the Common
Stock (together with the cash payment, if any, in lieu of fractional shares), in exchange for the
Securities being converted pursuant to the provisions hereof, and the cash and the Fair Market
Value (as determined by the Board of Directors, whose determination shall be conclusive evidence of
such Fair Market Value and which shall be evidenced by an Officers’ Certificate delivered to the
Trustee) of any shares of Common Stock (together with any such cash payment in lieu of fractional
shares) shall be treated as issued, to the extent thereof, first in exchange for interest accrued
and unpaid through the Conversion Date, and the balance, if any, of such cash and such Fair Market
Value (determined as aforesaid) of any such Common Stock (and any such cash payment) shall be
treated as issued in exchange for the principal amount of the Securities being converted pursuant
to the provisions hereof. Notwithstanding the foregoing, a Holder shall be entitled to receive
accrued and unpaid interest, including any Contingent Interest, in respect of a Security (w) if the
Company calls such Security for redemption and such Holder converts its Security prior to the
Redemption Date, (x) if the Company establishes a Fundamental Change Purchase Date during the
period from the close of business on any Regular Record Date to the opening of business on the
corresponding interest payment date that falls within this period or on such interest payment day
and such Holder converts its Security prior to close of business on the second Trading Day prior to
the Fundamental Change Purchase Date, (y) in respect of which a Conversion Notice was received
after 5:00 p.m., New York City time, on the Record Date immediately preceding the final interest
payment date or (z) to the extent of any overdue interest, if any overdue interest exists at the
time of conversion with respect to a Security

          If a Holder converts more than one Security at the same time, the cash and number of shares of
Common Stock issuable upon the conversion, if any, shall be based on the total principal amount of
the Securities converted.

          Upon surrender of a Security that is converted in part, the Company shall execute, and the
Trustee or the Authenticating Agent shall authenticate and deliver to the Holder, a new Security in
an authorized denomination equal in principal amount to the unconverted portion of the Security
surrendered.

          If the last day on which Securities may be converted is a legal holiday in a place where a
Conversion Agent is located, the Securities may be surrendered to that Conversion Agent on the next
succeeding day that it is not a legal holiday.

          (c) Payment Upon Conversion. Upon any conversion of Securities, the Company will
deliver to converting Holders in respect of each $1,000 principal amount of Securities being
converted a “Settlement Amount” equal to the sum of the Daily Settlement

62

 

Amount for each of the 20 consecutive Trading Days during the Cash Settlement Averaging
Period.

          “Daily Settlement Amount”, for each of the 20 consecutive Trading Days during the Cash
Settlement Averaging Period, shall consist of:

     (i) cash equal to the lesser of $50 and the Daily Conversion Value; and

     (ii) to the extent the Daily Conversion Value exceeds $50, a number of shares equal to,
(A) the difference between the Daily Conversion Value and $50 (the “Daily Excess Amount”),
divided by (B) the Last Reported Sale Price of the Common Stock for such day (or the
consideration into which the Common Stock has been converted in connection with transactions
to which Section 12.3 is applicable); provided that the Company may, pay all or
portion of such Daily Excess Amount in cash pursuant to clause (d) and (e) below.

          “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the Cash
Settlement Averaging Period, one-twentieth (1/20) of the product of (1) the applicable Conversion
Rate and (2) the Last Reported Sale Price of the Common Stock (or the consideration into which the
Common Stock has been converted in connection with transactions to which Section 12.3 is
applicable) on such day. For the purposes of determining the Daily Conversion Value the following
provisions shall apply: (i) if the Applicable Consideration includes securities for which the
price can be determined in a manner contemplated by the definition of “Last Reported Sale Price,”
then the value of such securities shall be determined in accordance with the principles set forth
in such definition; (ii) if the Applicable Consideration includes other property (other than
securities as to which clause (i) applies or cash), then the value of such property shall be the
fair market value of such property as determined by the Company’s Board of Directors in good faith;
and (iii) if the Applicable Consideration includes cash, then the value of such cash shall be the
amount thereof.

          The Settlement Amount will be delivered to converting Holders on the third Business Day
immediately following the last day of the Cash Settlement Averaging Period.

          (d) Cash Payments in Lieu of Fractional Shares. The Company shall not issue a
fractional share of Common Stock upon conversion of Securities. Instead the Company shall deliver
cash for the current market value of the fractional share. The current market value of a
fractional share shall be determined to the nearest 1/10,000th of a share by multiplying the Last
Reported Sale Price of a full share of Common Stock on the Trading Day immediately preceding the
Conversion Date by the fractional amount and rounding the product to the nearest whole cent.

          (e) Optional Cash Payments in Lieu of Shares. The Company may elect to reduce the
number of shares of Common Stock that it shall issue upon conversion of the Securities by
specifying a percentage of the Daily Excess Amount that will be settled in cash (the “Cash
Percentage”), no later than by the close of business on the day prior to the first Trading Day of
the applicable Cash Settlement Averaging Period, and the Company will notify the Holder of such
Cash Percentage by notifying the Trustee (such notice, the “Cash Percentage

63

 

Notice”). If the Company elects to specify a Cash Percentage, the amount of cash that it
shall deliver in lieu of shares in respect of each Trading Day in the applicable Cash Settlement
Averaging Period shall equal the product of (i) the Cash Percentage and (ii) the Daily Excess
Amount for such Trading Day. The number of shares of Common Stock deliverable in respect of each
Trading Day in the applicable Cash Settlement Averaging Period shall equal (i) the product of (1)
100% minus the Cash Percentage and (2) the Daily Excess Amount for such Trading Day, divided by
(ii) the Last Reported Sale Price of the Common Stock (or the consideration into which such Common
Stock has been converted in connection with transactions to which Section 12.3 is
applicable) for such day. If the Company does not specify a Cash Percentage by the close of
business on the Trading Day immediately preceding the start of the applicable Cash Settlement
Averaging Period (including by timely revoking a Cash Percentage Notice as set forth below), the
Cash Percentage shall be deemed to be zero. To the extent the Cash Percentage is less than 100%,
the Company shall, in addition to any amounts payable pursuant to this Clause (e), deliver cash in
lieu of any fractional shares of Common Stock in accordance with Cause (d) above. The Company may,
at its option, revoke any Cash Percentage Notice by notifying the Trustee no later than by the
close of business on the Trading Day immediately preceding the start of the applicable Cash
Settlement Averaging Period.

          (f) Taxes on Conversion. If a Holder converts Securities, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issue of shares of Common Stock upon
the conversion. However, the Holder shall pay any such tax which is due because the Holder requests
the shares to be issued in a name other than the Holder’s name. The Conversion Agent may refuse to
deliver the certificates representing the Common Stock being issued in a name other than the
Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which shall be
due because the shares are to be issued in a name other than the Holder’s name. Nothing herein
shall preclude any withholding of tax required by law.

          (g) Certain Covenants of the Company. The Company shall, prior to issuance of any
Securities hereunder, and from time to time as may be necessary, reserve out of its authorized but
unissued Common Stock or shares of Common Stock held in treasury, sufficient number of shares of
Common Stock, free of preemptive rights, to permit the conversion of the Securities.

          All shares of Common Stock delivered upon conversion of the Securities shall be newly issued
shares or treasury shares, shall be duly and validly issued and fully paid and nonassessable and
shall be free from preemptive rights and free of any lien or adverse claim.

          The Company shall endeavor promptly to comply with all federal and state securities laws
regulating the order and delivery of shares of Common Stock upon the conversion of Securities, if
any, and shall cause to have listed or quoted all such shares of Common Stock on each U.S. national
securities exchange or over-the-counter or other domestic market on which the Common Stock is then
listed or quoted.

          Before taking any action which would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable upon conversion of the Securities, the Company will take all
corporate action which may, in the opinion of its counsel, be necessary

64

 

in order that the Company may validly and legally issue shares of such Common Stock at such
adjusted Conversion Rate.

          SECTION 12.2.   Adjustments to Conversion Rate.

          The Conversion Rate shall be adjusted from time to time by the Company as follows (provided
that in no event will adjustments to the Conversion Rate solely by reason of clauses (d) or (f)
below result in a Conversion Rate that exceeds 17.2325 shares per $1,000 principal amount of
Securities, subject to adjustment in the same manner as the Conversion Rate is adjusted pursuant to
clauses (a), (b), (c) and (e) below):

          (a) If the Company issues shares of Common Stock as a dividend or distribution on shares of
the Common Stock, or effects a share split or share combination, the Conversion Rate will be
adjusted based on the following formula:

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the ex-dividend date for
such dividend or distribution, or the effective date of such share split or share
combination, as the case may be
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the ex-dividend date for such
dividend or distribution, or the effective date of such share split or share
combination, as the case may be
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to such
dividend or distribution, or the effective date of such share split or share
combination, as the case may be, and
	 
	 	 	 	 	 	 
	 

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after the such
dividend or distribution, or the effective date of such share split or share
combination, as the case may be.

Such adjustment shall become effective immediately after 9:00 a.m., New York City time, on the
Business Day following the date fixed for such determination. The Company will not pay any
dividend or make any distribution on shares of Common Stock held in treasury by the Company. If
any dividend or distribution of the type described in this Section 12.2(a) is declared but
not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared.

As used in this Section 12.2, ‘‘ex-dividend date’’ means the first date on which the shares
of Common Stock trade on the applicable exchange or in the applicable market, regular way, without
the right to receive the issuance or distribution in question.

65

 

          (b) If the Company issues to all or substantially all holders of its Common Stock any rights
or warrants entitling them for a period of not more than 60 calendar days from the record date of
such distribution to subscribe for or purchase shares of Common Stock, at a price per share less
than the Last Reported Sale Price of Common Stock on the Business Day immediately preceding the
date of announcement of such issuance, the Conversion Rate will be adjusted based on the following
formula (provided that the Conversion Rate will be readjusted to the extent that such rights or
warrants are not exercised prior to their expiration):

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to announcement of such
issuance
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after announcement of such issuance
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to
announcement of such issuance
	 
	 	 	 	 	 	 
	 

	 	X
	 	=
	 	the total number of shares of Common Stock issuable pursuant to such rights
or warrants, and
	 
	 	 	 	 	 	 
	 

	 	Y
	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable to
exercise such rights divided by the average of the Last Reported Sale Prices of Common
Stock over the 10 consecutive Trading Day period ending on the Business Day immediately
preceding the ex-dividend for the issuance of such rights or warrants.

Such adjustment shall be successively made whenever any such rights or warrants are issued and
shall become effective immediately after 9:00 a.m., New York City time, on the Business Day
following the date fixed for such determination. The Company shall not issue any such rights,
options or warrants in respect of shares of Common Stock held in treasury by the Company. To the
extent that shares of Common Stock are not delivered after the expiration of such rights or
warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in
effect had the adjustments made upon the issuance of such rights or warrants been made on the basis
of delivery of only the number of shares of Common Stock actually delivered. If such rights or
warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such date fixed for the determination of stockholders entitled to
receive such rights or warrants had not been fixed.

In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on

66

 

exercise or conversion thereof, the value of such consideration, if other than cash, to be
determined by the Board of Directors.

          (c) If the Company distributes shares of Capital Stock, evidences of its indebtedness or other
assets or property of the Company to all or substantially all holders of the Common Stock,
excluding:

          (i) dividends or distributions and rights or warrants referred to in clause (a) or (b)
above;

          (ii) dividends or distributions paid exclusively in cash; and

          (iii) any Spin-Off to which the provisions set forth below in this clause (c) shall
apply;

then the Conversion Rate will be adjusted based on the following formula:

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the ex-dividend date for
such distribution
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the ex-dividend date for such

distribution
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
10 consecutive Trading Day period ending on the Business Day immediately preceding the
ex-dividend date for such distribution; and
	 
	 	 	 	 	 	 
	 

	 	FMV
	 	=
	 	the fair market value (as determined by the Board of Directors) of the shares
of Capital Stock, evidences of indebtedness, assets or property distributed with
respect to each outstanding share of Common Stock on the ex-dividend Date for such
distribution.

Such adjustment shall become effective immediately prior to 9:00 a.m., New York City time, on the
Business Day following the date fixed for the determination of stockholders entitled to receive
such distribution.

With respect to an adjustment pursuant to this clause (c) where there has been a payment of a
dividend or other distribution on the Common Stock or shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”) the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
tenth Trading Day immediately following, and including, the effective date of the spin-off will be
increased based on the following formula:

67

 

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the tenth Trading Day
immediately following, and including, the effective date of the spin-off
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the tenth Trading Day
immediately following, and including, the effective date of the spin-off
	 

	 	FMV0
	 	=
	 	the average of the Last Reported Sale Prices of the Capital Stock or
similar equity interest distributed to holders of Common Stock applicable to one share
of Common Stock over the first 10 consecutive Trading Day period after the effective
date of the Spin-Off, and
	 

	 	MP0
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the first
10 consecutive Trading Day period after the effective date of the Spin-Off.

Such adjustment shall occur on the tenth Trading Day from, and including, the effective date of the
Spin-Off. As a result, any conversion within the ten Trading Days following the effective date of
any Spin-Off will be deemed not to have occurred until the end of the ten-Trading Day period.

          (d) If any cash dividend or distribution is made to all or substantially all holders of Common
Stock during any quarterly fiscal period other than regular quarterly cash dividends that do not
exceed $0.09 per share (appropriately adjusted from time to time in a manner inversely proportional
to the adjustments of the Conversion Rate) (the “Initial Dividend Rate”), the Conversion Rate will
be adjusted based on the following formula:

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the ex-dividend date for
such distribution
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the ex-dividend date for such

distribution
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the Last Reported Sale Prices of the Common Stock on the Trading Day
immediately preceding the ex-dividend date for such distribution, and
	 
	 	 	 	 	 	 
	 

	 	C
	 	=
	 	the amount in cash per share the Company distributes to holders of Common
Stock in excess of the Initial Dividend Threshold, in the case of

68

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	a regular quarterly dividend, or, in the case of any other dividend or
distribution, the full amount of such dividend or distribution.

Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
record date for such dividend or distribution; provided that if such dividend or distribution is
not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

          (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for Common Stock, if the cash and value of any other consideration included in the
payment per share of Common Stock exceeds the Last Reported Sale Price of the Common Stock on the
Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer (such last date, the “Expiration Time”), the Conversion Rate will be
increased based on the following formula:

     where,

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect on
the day immediately following the date such tender or exchange offer expires
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect on
the second day immediately following the date such tender or exchange offer expires
	 
	 	 	 	 	 	 
	 

	 	AC
	 	=
	 	the aggregate value of all cash and any other consideration (as determined by
the Board of Directors) paid or payable for shares purchased in such tender or exchange
offer
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires
	 
	 	 	 	 	 	 
	 

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after the date
such tender or exchange offer expires
	 
	 	 	 	 	 	 
	 

	 	SP’
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the 10
consecutive Trading Day period commencing on the Trading Day next succeeding the date
such tender or exchange offer expires.

If the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but
the Company is permanently prevented by applicable law from effecting any such purchases or all
such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made.

If, however, the application of the foregoing formulas (other than the formula set forth in clause
(a) would result in a decrease in the Conversion Rate, no adjustment to the Conversion Rate will be
made.

69

 

Except as stated herein, the Company will not adjust the Conversion Rate for the issuance of shares
of Common Stock or any securities convertible into or exchangeable for shares of Common Stock or
the right to purchase shares of Common Stock or such convertible or exchangeable securities.

          (f) If a Securityholder elects to exchange its notes in connection with a specified corporate
transaction pursuant to paragraph 8 of the Securities that occurs prior to June 1, 2018, and the
corporate transaction also constitutes a Fundamental Change, the Conversion Rate shall be increased
by an additional number of shares of Common Stock (the “Additional Shares”) as described below
during the period from and including the effective date of the Fundamental Change to and including
the Trading Day prior to the related Fundamental Change Purchase Date, provided that if the Stock
Price is greater than $180.00 or less than $58.03 (subject in each case to adjustment as described
below), the number of Additional Shares shall be zero. Any conversion occurring at a time when the
Securities would be convertible in light of the expected or actual occurrence of a Fundamental
Change will be deemed to have occurred in connection with such Fundamental Change notwithstanding
the fact that a Security may then be convertible because another condition to conversion has been
satisfied.

          The Company shall provide notice of the occurrence of a Fundamental Change having such effect
no later than 25 calendar days prior to the anticipated Effective Date (or if only determinable
subsequent to such date, then as promptly as can be determined subsequent to such 25th
calendar day)

          The number of Additional Shares will be determined by reference to the table attached as
Schedule A hereto, based on the date on which such Fundamental Change occurs or becomes effective
(the “Effective Date”) and the Stock Price with respect to such Fundamental Change; provided that
if the Stock Price is between two Stock Price amounts in the table or the Effective Date is between
two Effective Dates in the table, the number of Additional Shares will be determined by a
straight-line interpolation between the number of Additional Shares set forth for the higher and
lower Stock Price amounts and the two dates, as applicable, based on a 365-day year.

          The Stock Prices set forth in the first row of the table in Schedule A hereto and set forth in
the first paragraph of this Section 12.2(f) will be adjusted as of any date on which the
Conversion Rate of the Securities is adjusted pursuant to this Section 12.2. The adjusted
Stock Prices will equal the Stock Prices applicable immediately prior to such adjustment,
multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to such
adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of
Additional Shares will be adjusted in the same manner as the Conversion Rate as set forth in this
Section 12.2.

          (g) Notwithstanding the foregoing provisions of this Section 12.2, no adjustment shall
be made thereunder, nor shall an adjustment be made to the ability of Holders of a Security to
convert, for any distribution described therein if the Holders will otherwise participate in the
distribution without conversion of the Securities.

70

 

          (h) The Company may (but is not required to) make such increases in the Conversion Rate, in
addition to those required by clauses (a) through (f) of this Section 12.2 as the Board of
Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock
or rights to purchase Common Stock in connection with a dividend or distribution of shares (or
rights to acquire shares) or any similar event treated as such for income tax purposes.

          To the extent permitted by applicable law, the Company from time to time may increase the
Conversion Rate by any amount for any period of at least 20 days if the Board of Directors shall
have made a determination that such increase would be in the best interests of the Company, which
determination shall be conclusive.

          (i) No adjustment to the Conversion Rate need be made:

          (1) upon the issuance of any shares of Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on securities of the
Company and the investment of additional optional amounts in shares of Common Stock under
any plan;

          (2) upon the issuance of any shares of Common Stock or options or rights to purchase shares of Common Stock pursuant to any present or future employee, director or consultant
benefit plan or program of or assumed by the Company or any of its Subsidiaries;

          (3) upon the issuance of any shares of Common Stock pursuant to any option, warrant,
right, or exercisable, exchangeable or convertible security not described in (ii) above and
outstanding as of the date the Securities were first issued;

          (4) for a change in the par value of the Common Stock; or

          (5) for accrued and unpaid interest (including any Contingent Interest).

To the extent the Securities become convertible into cash, assets or property, no adjustment shall
be made thereafter as to the cash, assets or property. Interest shall not accrue on such cash,
assets or property.

          (j) All calculations under this Article XII shall be made by the Company and shall be
made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a share, as the case
may be. The Company will not be required to make an adjustment in the Conversion Rate unless the
adjustment would require a change of at least 1% in the Conversion Rate. However, the Company will
carry forward any adjustments that are less than 1% of the Conversion Rate and make such carried
forward adjustments, regardless of whether aggregate adjustment is less than 1% within one year of
the first such adjustment carried forward, upon redemption, upon a Fundamental Change or upon the
Stated Maturity.

          (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting
forth

71

 

a brief statement of the facts requiring such adjustment. Unless and until a Trust Officer of
the Trustee shall have received such Officers’ Certificate, the Trustee shall not be deemed to have
knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of
which it has knowledge is still in effect. Promptly after delivery of such certificate, the
Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted
Conversion Rate and the date on which each adjustment becomes effective and shall mail such notice
of such adjustment of the Conversion Rate to the Holder of each Security at his last address
appearing on the Securities Register provided for in Section 2.5 of this Indenture, within
20 days after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of any such adjustment.

          (l) Any case in which this Section 12.2 provides that an adjustment shall become
effective immediately after (1) a record date or Stock Record Date for an event, (2) the date fixed
for the determination of stockholders entitled to receive a dividend or distribution pursuant to
Section 12.2(a), (3) a date fixed for the determination of stockholders entitled to receive
rights or warrants pursuant to Section 12.2(b) or (4) the Expiration Time for any tender or
exchange offer pursuant to Section 12.2(e), (each a “Determination Date”), the Company may
elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined) (x)
issuing to the holder of any Security converted after such Determination Date and before the
occurrence of such Adjustment Event, the additional shares of Common Stock or other securities
issuable upon such conversion by reason of the adjustment required by such Adjustment Event over
and above the Common Stock issuable upon such conversion before giving effect to such adjustment
and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section
12.1. For purposes of this Section 12.2(l), the term “Adjustment Event” shall mean:

     (i) in any case referred to in clause (a) hereof, the occurrence of such event,

     (ii) in any case referred to in clause (b) hereof, the date any such dividend or
distribution is paid or made,

     (iii) in any case referred to in clause (c) hereof, the date of expiration of such
rights or warrants, and

     (iv) in any case referred to in clause (d) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable.

          (m) For purposes of this Section 12.2, the number of shares of Common Stock at any
time outstanding shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common
Stock. The Company will not pay any dividend or make any distribution on shares of Common Stock
held in the treasury of the Company.

          SECTION 12.3.   Effect of Reclassification, Consolidation, Merger or Sale.

          (a) If any of the following events occur: (i) any reclassification or change of the
outstanding shares of Common Stock (other than a subdivision or combination to which

72

 

Section 12.2(c) applies), (ii) any consolidation, merger, binding share exchange or
combination of the Company with another Person, or (iii) any sale or conveyance of all or
substantially all of the properties and assets of the Company to any other Person in each case as a
result of which holders of Common Stock shall be entitled to receive cash, securities or other
property with respect to or in exchange for such Common Stock, then the Company or the successor or
purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture
(which shall comply with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture) providing that each Security shall be convertible into : (i) cash up to the
aggregate principal amount thereof; and (ii) in lieu of Common Stock otherwise deliverable, the
same type (in the same proportions) of consideration received by holders of Common Stock in the
relevant event (the “Reference Property”), subject to our right to deliver cash in lieu of all or a
portion of the Reference Property in accordance with applicable procedures set forth in Section
12.1. For purposes of the foregoing, the type and amount of consideration that a holder of
Common Stock would have been entitled to in the case of reclassifications, consolidations, mergers,
sales or transfers of assets or other transactions that cause Common Stock to be converted into the
right to receive more than a single type of consideration (determined based in part upon any form
of shareholder election) will be deemed to be the weighted average of the types and amounts of
consideration received by the holders of Common Stock that affirmatively make such an election.
Such supplemental indenture shall provide for provisions and adjustments which shall be as nearly
equivalent as may be practicable to the provisions and adjustments provided for in this Article
XII and Article XI and the definition of Fundamental Change, as appropriate, as
determined in good faith by the Company (which determination shall be conclusive and binding), to
make such provisions apply to such other Person if different from the original issuer of the
Securities.

          (b) The Company shall cause notice of the execution of any supplemental indenture required by
this Section 12.3 to be mailed to each holder of Securities, at its address appearing on
the Securities Register provided for in Section 2.5 of this Indenture, within 20 calendar
days after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of such supplemental indenture.

          (c) The above provisions of this Section 12.3 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, binding share exchanges, combinations, sales
and conveyances.

          (d) If this Section 12.3 applies to any event or occurrence, Section 12.2
shall not apply in respect of such event or occurrence.

          SECTION 12.4.   Responsibility of Trustee.

          The Trustee and any other Conversion Agent shall not at any time be under any duty or
responsibility to the Company or any holder of Securities to determine the Conversion Rate or
whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to
the nature or extent or calculation of any such adjustment when made, or with respect to the method
employed, or herein or in any supplemental indenture provided to be employed, in making the same.
The Trustee and any other Conversion Agent shall not be accountable with respect to the validity or
value (or the kind or amount) of any shares of

73

 

Common Stock, or of any securities or property, which may at any time be issued or delivered
upon the conversion of any Security; and the Trustee and any other Conversion Agent make no
representations with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to issue, transfer or deliver any cash or shares of
Common Stock or stock certificates or other securities or property upon the surrender of any
Security for the purpose of conversion or to comply with any of the duties, responsibilities or
covenants of the Company contained in this Article XII. Without limiting the generality of
the foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to
determine the correctness of any provisions contained in any supplemental indenture entered into
pursuant to Section 12.3 relating either to the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders upon the conversion of their
Securities after any event referred to in such Section 12.3(a) or to any adjustment to be
made with respect thereto, but, subject to the provisions of Section 7.1, may accept as
conclusive evidence of the correctness of any such provisions, and shall be protected in relying
upon, the Officers’ Certificate (which the Company shall be obligated to file with the Trustee
prior to the execution of any such supplemental indenture) with respect thereto.

          SECTION 12.5.   Notice to Holders Prior to Certain Actions.

          In case after the date hereof:

          (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 12.2; or

          (b) the Company shall authorize the granting to the holders of all or substantially all of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other
rights or warrants; or

          (c) of any reclassification or reorganization of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders of the Company is required,
or of the sale or transfer of all or substantially all of the assets of the Company; or

          (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company;

the Company shall cause to be filed with the Trustee and to be mailed to each Holder of Securities
at his address appearing on the Securities Register provided for in Section 2.5 of this
Indenture, as promptly as possible but in any event at least three (3) calendar days prior to the
applicable date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not
to be taken, the date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up is

74

 

expected to become effective or occur, and the date as of which it is expected that holders of
Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. Failure to give such notice, or any defect therein, shall
not affect the legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

          Notwithstanding and in addition to the foregoing, the Company shall be required to give the
notices specified in paragraph 7 of the Securities.

          SECTION 12.6.   Stockholder Rights Plan.

          To the extent that the Company has a rights plan in effect upon conversion of the Securities
into Common Stock, the Holder will receive, in addition to the Common Stock, the rights under the
rights plan, unless prior to any conversion, the rights have separated from the Common Stock, in
which case the Conversion Rate will be adjusted at the time of separation as if the Company
distributed to all holders of Common Stock, shares of the Company’s capital stock, evidences of
indebtedness or assets as described in Section 12.2(c) above, subject to readjustment in
the event of the expiration, termination or redemption of such rights. In lieu of any such
adjustment, the Company may amend such applicable stockholder rights agreement to provide that upon
conversion of the Securities the Holders will receive, in addition to the Common Stock issuable
upon such conversion, the rights which would have attached to such Common Stock if the rights had
not become separated from the Common Stock under such applicable stockholder rights agreement.

ARTICLE XIII

Miscellaneous

          SECTION 13.1.   Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA, the provision required by the TIA shall
control.

          SECTION 13.2.   Notices.

     Any notice or communication shall be in writing, by telecopy, facsimile transmission,
overnight courier guaranteeing next day delivery, delivered in person or mailed by first-class mail
addressed as follows:

if to the Company:

Trinity Industries, Inc.

2525 Stemmons Freeway

Dallas, Texas 75207-2401

Attn: S. Theis Rice

75

 

Telephone No.: (214) 589-8170

Telecopier No.: (214) 589-8824

With a copy to:

Haynes and Boone, LLP

901 Main Street

Suite 3100

Dallas, Texas 75202

Attn: W. Scott Wallace

Telephone No.: (214) 651-5587

Telecopier No.: (214) 200-0674

if to the Trustee:

Wells Fargo Bank N.A.

Corporate Trust Services

MAC T5303-022

1445 Ross Ave., 2nd Floor

Dallas, TX 75202

Attn: Nancye Patterson

Telephone No.: (214) 777-4078

Telecopier No.: (214) 777-4086

E-Mail: nancye.patterson@wellsfargo.com

          For purposes of Section 2.5 (with respect to presentation of Securities for payment or
for registrations of transfer or exchange) if to the Trustee:

Wells Fargo Bank, N.A.

MAC N9303-121

Corporate Trust Operation

608 2nd Ave.

Minneapolis, MN 55479

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied or sent
by facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight
and courier guaranteeing next day delivery.

          Any notice or communication mailed to a registered Securityholder shall be mailed to the
Securityholder at the Securityholder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time prescribed.

76

 

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it,
except that notices to the Trustee shall be effective only upon receipt.

          SECTION 13.3.   Communication by Holders with other Holders.

     Securityholders may communicate pursuant to TIA § 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

          SECTION 13.4.   Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company to the Trustee to take or refrain from taking
any action under this Indenture, the Company shall furnish to the Trustee:

          (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, the Company has complied with all
conditions precedent, if any, provided for in this Indenture relating to the proposed
action; and

          (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, the Company has complied with all such
conditions precedent.

          SECTION 13.5.   Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a covenant or condition provided
for in this Indenture shall include:

          (1) a statement that the individual making such certificate or opinion has read such
covenant or condition;

          (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

          (3) a statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to whether
or not there is compliance with such covenant or condition; and

          (4) a statement as to whether or not, in the opinion of such individual, there is
compliance with such covenant or condition.

          In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

          SECTION 13.6.   When Securities Disregarded.

77

 

     In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or indirect common control with
the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such direction, waiver or
consent, only Securities which a Trust Officer of the Trustee actually knows are so owned shall be
so disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall be
considered in any such determination.

          SECTION 13.7.   Rules by Trustee, Paying Agent and Registrar.

     The Trustee may make reasonable rules for action by, or a meeting of, Securityholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

          SECTION 13.8.   Legal Holidays.

     A “Legal Holiday” is a Saturday, a Sunday or other day on which commercial banking
institutions are authorized or required to be closed in New York City. If a payment date is a
Legal Holiday, payment shall be made on the next succeeding day that is not a Legal Holiday, and no
interest, Contingent Interest, if any, shall accrue for the intervening period. If a Regular
Record Date is a Legal Holiday, the record date shall not be affected.

          SECTION 13.9.   GOVERNING LAW; WAIVER OF JURY TRIAL.

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

          EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY; PROVIDED,
HOWEVER, THAT SUCH WAIVER OF TRIAL BY JURY BY THE COMPANY AND THE TRUSTEE SHALL IN NO WAY LIMIT ANY
AND ALL RIGHT TO TRIAL BY JURY OF ANY HOLDER OF THE SECURITIES IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

          SECTION 13.10.   No Recourse Against Others.

     An incorporator, director, officer, employee, Affiliate or stockholder of the Company, solely
by reason of this status, shall not have any liability for any obligations of the Company under the
Securities, this Indenture or the Subsidiary Guarantees or for any claim based on, in respect of or
by reason of such obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part of the
consideration for the issue of the Securities.

78

 

          SECTION 13.11.   Successors.

     All agreements of the Company in this Indenture and the Securities shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its successors.

          SECTION 13.12.   Multiple Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

          SECTION 13.13.   Table of Contents; Headings.

     The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended to be considered a
part hereof and shall not modify or restrict any of the terms or provisions hereof.

          SECTION 13.14.   Force Majeure.

          In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

          SECTION 13.15.   Severability Clause.

          In case any provision in this Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent of such invalidity,
illegality or unenforceability.

79

 

     IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	TRINITY INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as

Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

80

 

SCHEDULE A

     * The following table sets forth the stock price and the number of additional shares to be
received per $1,000 principal amount of notes:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective date	 	$ 58.03	 	 	$ 60.00	 	 	$ 70.00	 	 	$ 80.00	 	 	$ 90.00	 	 	$100.00	 	 	$110.00	 	 	$120.00	 	 	$130.00	 	 	$140.00	 	 	$150.00	 	 	$160.00	 	 	$170.00	 	 	$180.00	 
	6/7/2006
	 	 	4.4677	 	 	 	4.6307	 	 	 	3.5911	 	 	 	2.8558	 	 	 	2.3141	 	 	 	1.9022	 	 	 	1.5809	 	 	 	1.3253	 	 	 	1.1184	 	 	 	0.9487	 	 	 	0.8077	 	 	 	0.6896	 	 	 	0.5897	 	 	 	0.5047	 
	6/1/2007
	 	 	4.4677	 	 	 	4.6031	 	 	 	3.5529	 	 	 	2.8143	 	 	 	2.2728	 	 	 	1.8630	 	 	 	1.5446	 	 	 	1.2921	 	 	 	1.0884	 	 	 	0.9216	 	 	 	0.7834	 	 	 	0.6679	 	 	 	0.5703	 	 	 	0.4874	 
	6/1/2008
	 	 	4.4677	 	 	 	4.5734	 	 	 	3.5102	 	 	 	2.7673	 	 	 	2.2260	 	 	 	1.8185	 	 	 	1.5035	 	 	 	1.2547	 	 	 	1.0546	 	 	 	0.8914	 	 	 	0.7565	 	 	 	0.6439	 	 	 	0.5491	 	 	 	0.4687	 
	6/1/2009
	 	 	4.4677	 	 	 	4.5639	 	 	 	3.4768	 	 	 	2.7235	 	 	 	2.1788	 	 	 	1.7716	 	 	 	1.4587	 	 	 	1.2131	 	 	 	1.0165	 	 	 	0.8568	 	 	 	0.7253	 	 	 	0.6159	 	 	 	0.5241	 	 	 	0.4464	 
	6/1/2010
	 	 	4.4677	 	 	 	4.5425	 	 	 	3.4284	 	 	 	2.6637	 	 	 	2.1160	 	 	 	1.7101	 	 	 	1.4008	 	 	 	1.1597	 	 	 	0.9679	 	 	 	0.8130	 	 	 	0.6861	 	 	 	0.5809	 	 	 	0.4929	 	 	 	0.4187	 
	6/1/2011
	 	 	4.4677	 	 	 	4.5035	 	 	 	3.3588	 	 	 	2.5820	 	 	 	2.0322	 	 	 	1.6292	 	 	 	1.3254	 	 	 	1.0906	 	 	 	0.9055	 	 	 	0.7571	 	 	 	0.6362	 	 	 	0.5366	 	 	 	0.4536	 	 	 	0.3839	 
	6/1/2012
	 	 	4.4677	 	 	 	4.4502	 	 	 	3.2687	 	 	 	2.4783	 	 	 	1.9270	 	 	 	1.5288	 	 	 	1.2326	 	 	 	1.0067	 	 	 	0.8305	 	 	 	0.6906	 	 	 	0.5776	 	 	 	0.4851	 	 	 	0.4086	 	 	 	0.3446	 
	6/1/2013
	 	 	4.4677	 	 	 	4.3747	 	 	 	3.1482	 	 	 	2.3419	 	 	 	1.7902	 	 	 	1.3994	 	 	 	1.1141	 	 	 	0.9003	 	 	 	0.7362	 	 	 	0.6075	 	 	 	0.5049	 	 	 	0.4218	 	 	 	0.3535	 	 	 	0.2967	 
	6/1/2014
	 	 	4.4677	 	 	 	4.2824	 	 	 	2.9957	 	 	 	2.1681	 	 	 	1.6161	 	 	 	1.2357	 	 	 	0.9655	 	 	 	0.7681	 	 	 	0.6202	 	 	 	0.5066	 	 	 	0.4176	 	 	 	0.3464	 	 	 	0.2886	 	 	 	0.2410	 
	6/1/2015
	 	 	4.4677	 	 	 	4.1633	 	 	 	2.7930	 	 	 	1.9361	 	 	 	1.3851	 	 	 	1.0208	 	 	 	0.7732	 	 	 	0.5998	 	 	 	0.4749	 	 	 	0.3823	 	 	 	0.3117	 	 	 	0.2565	 	 	 	0.2124	 	 	 	0.1764	 
	6/1/2016
	 	 	4.4677	 	 	 	4.0128	 	 	 	2.5151	 	 	 	1.6145	 	 	 	1.0683	 	 	 	0.7327	 	 	 	0.5222	 	 	 	0.3865	 	 	 	0.2961	 	 	 	0.2335	 	 	 	0.1882	 	 	 	0.1541	 	 	 	0.1275	 	 	 	0.1059	 
	6/1/2017
	 	 	4.4677	 	 	 	3.8633	 	 	 	2.1239	 	 	 	1.1363	 	 	 	0.6051	 	 	 	0.3317	 	 	 	0.1945	 	 	 	0.1258	 	 	 	0.0899	 	 	 	0.0696	 	 	 	0.0567	 	 	 	0.0474	 	 	 	0.0401	 	 	 	0.0338	 
	6/1/2018
	 	 	4.4677	 	 	 	3.9079	 	 	 	1.5260	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

1

 

A-2

EXHIBIT A

[FORM OF FACE OF SECURITY]

[Global Security Legend, if applicable]

No. [___]     Principal Amount $450,000,000, as
revised by the Schedule of Increases and Decreases in Global Security attached hereto

CUSIP NO.: 896522 AF 6

ISIN: [___________]

37/8   % Convertible Subordinated Notes due 2036

          Trinity Industries, Inc., a Delaware corporation, promises to pay to [___], or
registered assigns, the principal sum of $450,000,000 Dollars, as revised by the Schedule of
Increases and Decreases in Global Security attached hereto, on June 1, 2036.

          Interest
Payment Dates: June 1 and December 1

          Regular Record Dates: May 15 and November 15

          Additional provisions of this Security are set forth on the other side of this Security.

2

 

A-3

     IN WITNESS WHEREOF, Trinity Industries, Inc. has caused this Security to be signed manually or
by facsimile by its duly authorized officer.

     Dated: June 7, 2006

	 	 	 	 	 	 	 
	 	 	TRINITY INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

TRUSTEE’S CERTIFICATE OF

     AUTHENTICATION

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Authorized Signatory	 	 

3

 

A-4

[FORM OF REVERSE SIDE OF SECURITY]

37/8   % Convertible Subordinated Notes due 2036

1. Interest

     Trinity Industries, Inc., a Delaware corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at the rate of 37/8% per annum.

     The Company will pay interest semiannually on June 1 and December 1 of each year commencing
December 1, 2006. Interest on the Securities will accrue from the most recent date to which
interest has been paid on the Securities or, if no interest has been paid, from June 7, 2006.
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     Interest on Securities converted after the close of business on a Regular Record Date, but
prior to the opening of business on the corresponding interest payment date, will be paid to the
Holder on the Regular Record Date but, upon conversion, the Holder must pay the Company the
interest which has accrued and will be paid to the Holder on such interest payment date. No such
payment need be made with respect to Securities in respect of which a Redemption Date has been
declared that falls within such period or on such interest payment date. A Holder shall be
entitled to receive accrued and unpaid interest, including any Contingent Interest, in respect of a
Security (A) if the Company calls such Security for redemption and such Holder converts such
Security on or prior to the Redemption Date, (B) if the Company establishes a Fundamental Change
Purchase Date during the period from the close of business on any Regular Record Date to the
opening of business on the corresponding interest payment date has been established that falls
within this period or on such interest payment day and such Holder converts its Security prior to
the Fundamental Change Purchase Date, (C) if a Holder converts the Securities following the Record
Date immediately preceding the Stated Maturity, or (D) to the extent of any overdue interest, if
any overdue interest exists at the time of conversion with respect to a Security.

     If the principal hereof or any portion of such principal is not paid when due (whether upon
acceleration, upon the date set for payment of the redemption price pursuant to paragraph 6 hereof,
upon the date set for payment of a Purchase Price or Fundamental Change Purchase Price pursuant to
paragraph 7 hereof or upon the Stated Maturity of this Security) or if interest (including
Contingent Interest, if any) due hereon or any portion of such interest is not paid when due in
accordance with this paragraph, then in each such case the overdue amount shall bear interest at
the rate of 37/8 % per annum, compounded semiannually (to the extent that the payment of such
interest shall be legally enforceable), which interest shall accrue from the date such overdue
amount was due to the date payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable on demand.

2. Method of Payment

     By no later than 10:00 a.m. (New York City time) on the date on which any principal of or
interest (including Contingent Interest, if any), on any Security is due and

4

 

A-5

payable, the Company shall deposit with the Paying Agent money sufficient to pay such amount.
The Company will pay interest (including Contingent Interest, if any) (except Defaulted Interest)
to the Persons who are registered Holders of Securities at the close of business on the May 15 or
November 15 next preceding the interest payment date even if Securities are cancelled, repurchased
or redeemed after the record date and on or before the interest payment date. Holders must
surrender Securities to a Paying Agent to collect principal payments. The Company will pay
principal and interest in money of the United States that at the time of payment is legal tender
for payment of public and private debts. Payments in respect of Securities represented by a Global
Security (including principal and interest (including any Contingent Interest), if any, will be
made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company. The Company will pay principal of Definitive Securities at the office or agency
designated by the Company in the Borough of Manhattan, The City of New York. Interest (including
Contingent Interest, if any), on Definitive Securities will be payable (i) to Holders having an
aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of these
Securities and (ii) to Holders having an aggregate principal amount of more than $5,000,000, either
by check mailed to each Holder or, upon application by a Holder to the Registrar not later than the
relevant record date, by wire transfer in immediately available funds to that Holder’s account
within the United States, which application shall remain in effect until the Holder notifies, in
writing, the Registrar to the contrary.

3. Paying Agent, Registrar, Conversion Agent, Authenticating Agent and Bid Agent 

     Initially, Wells Fargo Bank, National Association (the “Trustee”), will act as Trustee, Paying
Agent, Registrar, Conversion Agent, Authenticating Agent and Bid Agent. The Company may appoint
and change any Paying Agent, Registrar or co-registrar, Conversion Agent, Authenticating Agent or
Bid Agent without notice to any Securityholder. The Company or any of its Subsidiaries may act as
Paying Agent, Registrar or co-registrar, Conversion Agent or Authenticating Agent, subject to the
terms of the Indenture. Neither the Company nor any of its Affiliates may act as Bid Agent.

4. Indenture

     The Company issued the Securities under an Indenture dated as of June 7, 2006 (as it may be
amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”),
among the Company and the Trustee. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15
U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The
Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.

     The Securities are general unsecured subordinated obligations of the Company limited to $500.0
million aggregate principal amount, except for Securities authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of other Securities pursuant to
Section 2.8, 2.9, 2.10, 2.12, 2.13, 5.8,
9.5, 11.3 or 12.1 of the Indenture. The Securities will be treated as a
single class of securities under the Indenture. The Indenture

5

 

A-6

imposes certain limitations on, among other things, consolidation, mergers and sale of assets
of the Company.

5. Contingent Interest

     The Company shall pay Contingent Interest in cash to the Holders in respect of any six-month
period from and including June 1 to and including November 30 and from and including December 1 to
and including May 31, commencing with the six-month period beginning June 1, 2018, if the average
Securities Price for the Applicable Five Trading Day Period with respect to such interest period
equals 120% or more of $1,000 principal amount of Securities. The amount of Contingent Interest
payable per $1,000 principal amount of Securities in respect of any interest period shall equal
0.375% of the average Securities Price for the Applicable Five Day Trading Period with respect to
such interest period. Contingent interest, if any, will accrue from June 1 or December 1, as
applicable, and will be payable on the next succeeding December 1 or June 1 interest payment date,
as the case may be. Contingent interest will be paid to the person in whose name a Security is
registered at the close of business on May 15 or November 15, as the case may be, immediately
preceding the relevant interest payment date on which Contingent Interest is payable. All payments
of Contingent Interest shall be made in cash.

     Upon determination that Holders will be entitled to receive Contingent Interest during an
interest period, on or prior to the first day of such interest period, the Company shall notify the
Trustee and issue a press release through Dow Jones & Company, Inc. or Bloomberg Business News
containing such information with respect to the payment of Contingent Interest or publish such
information on its web site or through such other public medium as the Company may use at that
time.

6. Redemption

     No sinking fund is provided for the Securities. The Securities will be redeemable, at the
option of the Company, in whole at any time or in part from time to time, at any time on or after
June 1, 2018, on at least 30 days but not more than 60 days’ prior notice mailed to the registered
address of each Holder of Securities to be so redeemed, at a Redemption Price in cash equal to 100%
of their principal amount plus accrued but unpaid interest (including any Contingent Interest), if
any, to but excluding the Redemption Date.

     In the case of any partial redemption, selection of the Securities for redemption will be made
by the Trustee by lot, or on a pro rata basis, or by another method as the Trustee shall deem to be
fair and appropriate, although no Securities of $1,000 in original principal amount or less will be
redeemed in part. If any Security is to be redeemed in part only, the notice of redemption
relating to such Security shall state the portion of the principal amount thereof to be redeemed.
A new Security in principal amount equal to the unredeemed portion thereof will be issued in the
name of the Holder thereof upon cancellation of the original Security. On and after the Redemption
Date, interest (including any Contingent Interest), if any, will cease to accrue on Securities or
portions thereof called for redemption as long as the Company has deposited with the Paying Agent
funds in satisfaction of the applicable redemption price pursuant to the Indenture.

6

 

A-7

			
	7.	 	Purchase By the Company at the Option of the Holder; Purchase at the Option of the Holder
Upon a Fundamental Change

     (a) Subject to the terms and conditions of the Indenture, a Holder shall have the option to
require the Company to purchase on June 1, 2018 (the “Purchase Date”)all or a portion of the
Securities held by such Holder at a purchase price (the “Purchase Price”) equal to 100% of the
principal amount of the Securities to be purchased plus any accrued and unpaid interest (including
any Contingent Interest), to but excluding such Purchase Date (unless the Purchase Date is between
the Regular Record Date and the interest payment date to which it relates, in which case such
accrued and unpaid interest will be paid to the Holder as of such Regular Record Date), upon
delivery of a Purchase Notice containing the information set forth in the Indenture, from the
opening of business on the date that is 20 Business Days prior to such Purchase Date until the
close of business on the fifth Business Day prior to such Purchase Date and upon delivery of the
Securities to the Paying Agent by the Holder as set forth in the Indenture. The Company will pay
the Purchase Price in cash for any Securities to be purchased.

     Securities in denominations larger than $1,000 principal amount may be purchased in part, but
only in integral multiples of $1,000 principal amount.

     (b) If a Fundamental Change shall occur at any time, each Holder shall have the right, at such
Holder’s option and subject to the terms and conditions of the Indenture, to require the Company to
purchase any or all of such Holder’s Securities or any portion of the principal amount thereof that
is equal to $1,000 or an integral multiple of $1,000 on the day the Company selects that is not
less than 20 or more than 35 Business Days after the date of the Company Notice of the occurrence
of the Fundamental Change (subject to extension to comply with applicable law) for a Fundamental
Change Purchase Price equal to the principal amount of Securities purchased plus, unless the
Fundamental Change Purchase Date is between a Regular Record Date and the interest payment date to
which it relates, accrued and unpaid interest, including any Contingent Interest, if any, to but
excluding the Fundamental Change Purchase Date, which Fundamental Change Purchase Price shall be
paid by the Company in cash.

     (c) Holders have the right to withdraw any Purchase Notice or Fundamental Change Purchase
Notice, as the case may be, by delivery to the Paying Agent of a written notice of withdrawal in
accordance with the provisions of the Indenture.

     (d) If cash sufficient to pay a Fundamental Change Purchase Price or Purchase Price, as the
case may be, of all Securities or portions thereof to be purchased as of the Purchase Date or the
Fundamental Change Purchase Date, as the case may be, is deposited with the Paying Agent on the
Business Day following the Purchase Date or the Fundamental Change Purchase Date, as the case may
be, interest (including any Contingent Interest), if any, shall cease to accrue on such Securities
(or portions thereof) on and after such date, and the Holder thereof shall have no other rights as
such (other than the right to receive the Purchase Price or Fundamental Change Purchase Price, as
the case may be, upon surrender of such Security).

	8.	 	Conversion

7

 

A-8

     Subject to the procedures set forth in the Indenture, a Holder may convert Securities into
Common Stock of the Company at any time on or before 5:00 p.m., New York City time, on the Trading
Day immediately preceding the maturity date if at least one of the following conditions (including
the applicable conversion time constraints) is satisfied on the Conversion Date:

     (a) the Last Reported Sale Prices of the Common Stock for at least 20 Trading Days in the
period of 30 consecutive Trading Days ending on the last Trading Day of the calendar quarter
immediately preceding the calendar quarter in which the potential Conversion Date occurs is greater
than or equal to 130% of the applicable Conversion Price per share of Common Stock on the last
Trading Day of such preceding calendar quarter; provided that in no event may a Conversion Date
occur prior to the calendar quarter beginning after September 30, 2006 pursuant to this clause (a);

     (b) the conversion occurs at any time on or after May 1, 2036 until 5:00 p.m., New York City
time, on the Trading Day immediately preceding the Stated Maturity;

     (c) any or all of the Securities have been called for redemption by the Company, in which case
a Holder may convert Securities called for redemption into Common Stock at any time prior to the
close of business on the second Trading Day prior to the Redemption Date;

     (d) the Company elects to (i) distribute to all or substantially all holders of Common Stock
rights entitling them to purchase, for a period expiring within 60 days after the date of such
distribution, Common Stock at less than the Last Reported Sale Price at the time of such
distribution or (ii) distribute to all or substantially all holders of Common Stock assets, debt
securities or rights to purchase securities of the Company, which distribution has a per share
value as determined by the Company’s Board of Directors exceeding 10% of the Last Reported Sale
Price of the Common Stock on the day preceding the declaration date for such distribution. In the
case of the foregoing clauses (i) and (ii), the Company must notify the Holders at least 20
Business Days prior to the ex-dividend date for such distribution. Once the Company has given such
notice, Holders may surrender their Securities for conversion at any time thereafter until the
earlier of 5:00 p.m., New York City time, on the Business Day immediately prior to the ex-dividend
date or the Company’s announcement that such distribution will not take place. The ex-dividend date
is the first date upon which a sale of the Common Stock does not automatically transfer the right
to receive the relevant dividend or other distribution from the seller of the Common Stock to its
buyer; or

     (e) the Company becomes party to a consolidation, merger or binding share exchange pursuant to
which Common Stock would be converted into cash or property (other than securities), in which case
a Holder may surrender Securities for conversion at any time from and after the 25th calendar day
prior (or, if only determinable subsequent to such date, then as promptly as can be determined
subsequent to such 25th calendar day) to the anticipated effective date of the transaction until 30
calendar days after the actual effective date of such transaction or in the case of a
consolidation, merger or share exchange also constituting a Fundamental Change, until the Trading
Day prior to the repurchase date corresponding to such Fundamental Change. The Company shall
notify Holders of the anticipated effective date of a transaction giving rise to

8

 

A-9

a conversion right under this provision as soon as practicable after it first determines the
effective date of such transaction;

     Securities in respect of which a Holder has delivered a notice of exercise of the option to
require the Company to purchase such Securities pursuant to paragraph 7 hereof and Section
11.1 or Section 11.2 of the Indenture may be converted only if the notice of exercise
is withdrawn in accordance with the terms of the Indenture.

     The initial Conversion Rate is 12.7648 shares of our Common Stock per $1,000 principal amount
of Securities, subject to adjustment in certain events described in the Indenture. Upon
conversion, the Company will pay            cash and shares of Common Stock (or, at the Company’s
election, cash in lieu of some or all of such Common Stock as permitted by the Indenture), if any,
based on a Daily Conversion Value calculated on a proportionate basis for each day of the 20-day
Cash Settlement Averaging Period, as set forth in the Indenture. The Company shall deliver cash or
a check in lieu of any fractional share of Common Stock based on the Last Reported Sale Price and
may, pursuant to a timely Cash Percentage Notice, elect to deliver additional cash in lieu of all
or some of the shares of Common Stock.

     Holders of Securities at 5:00 p.m., New York City time, on a Regular Record Date will receive
payment of interest (including any Contingent Interest) payable on the corresponding interest
payment date notwithstanding the conversion of such Securities at any time after 5:00 p.m., New
York City time on such Regular Record Date. Securities surrendered for conversion during the
period from 5:00 p.m., New York City time on any Regular Record Date to 9:00 a.m., New York City
time on the corresponding interest payment date (except for (i) Securities in respect of which a
Redemption Date has been declared that falls within this period or on such interest payment date,
(ii) Securities in respect of which a Fundamental Change Purchase Date has been established that
falls within this period or on such interest payment day, (iii) Securities which have been
converted after the Record Date immediately preceding the Stated Maturity, or (iv) to the extent of
any overdue interest, if any overdue interest exists at the time of conversion with respect to a
Security) must be accompanied by payment of an amount equal to the interest (including any
Contingent Interest) that the Holder is to receive on the Securities. Except where Securities
surrendered for conversion must be accompanied by payment as described above, no separate payment
for interest or Contingent Interest on converted Securities will be payable by the Company on any
interest payment date subsequent to the date of conversion. Notwithstanding the foregoing, a
Holder shall be entitled to receive accrued and unpaid interest, including any Contingent Interest
in respect of a Security (w) if the Company calls such Security for redemption and such Holder
converts its Security prior to the Redemption Date, (x) if the Company establishes a Fundamental
Change Purchase Date during the period from the close of business on any Regular Record Date to the
opening of business on the corresponding interest payment date has been established that falls
within this period or on such interest payment day and such Holder converts its Security prior to
the Fundamental Change Purchase Date, (y) a Holder converts the Securities after the Record Date
immediately preceding the Stated Maturity, or (z) to the extent of any overdue interest, if any
overdue interest exists at the time of conversion with respect to a Security.

     To convert Securities that are Global Securities, a beneficial owner or participant must
comply with DTC’s procedures for converting a beneficial interest in the Global Security

9

 

A-10

and, if required, pay funds equal to interest payable on the next interest payment date to
which the converting beneficial owner or participant is not entitled and, if required, pay all
taxes or duties, if any.

     To convert Definitive Securities, a Holder must (1) complete and manually sign the irrevocable
conversion notice on the back of the Securities (or complete and manually sign a facsimile of such
notice), (2) deliver such notice, which is irrevocable, to the Conversion Agent at the office
maintained by the Conversion Agent for such purpose, and surrender the Securities to the Conversion
Agent, (3) furnish appropriate endorsements and transfer documents if required by the Conversion
Agent, the Company or the Trustee, (4) pay any transfer or similar tax, if required and (5) if
required, pay funds equal to interest payable on the next interest payment date to which the Holder
is not entitled.

     A Holder may convert a portion of the Securities only if the principal amount of such portion
is $1,000 or a multiple of $1,000. No payment or adjustment shall be made for dividends on the
Common Stock except as provided in the Indenture. On conversion of the Securities, that portion of
accrued and unpaid interest attributable to the period from the Issue Date to the Conversion Date
and accrued and unpaid Contingent Interest with respect to the converted portion of the Securities
shall not be canceled, extinguished or forfeited, but rather shall be deemed to be paid in full to
the Holder thereof through the delivery of cash and any Common Stock (together with any cash
payment in lieu of fractional shares) delivered in exchange for the portion of the Securities being
converted pursuant to the terms hereof; provided that the Company may, pursuant to a timely Cash
Percentage Notice, elect to deliver additional cash in lieu of all or some of the shares of Common
Stock; and the cash and Fair Market Value of any such shares of Common Stock (together with any
such cash payment in lieu of fractional shares or cash payment in lieu of shares pursuant to a Cash
Percentage Notice) shall be treated issued, to the extent thereof, first in exchange for interest
accrued and unpaid through the Conversion Date and accrued and unpaid Contingent Interest, and the
balance, if any, of such Fair Market Value (as determined by the Board of Directors, whose
determination shall be conclusive evidence of such Fair Market Value and which shall be evidenced
by an Officers’ Certificate delivered to the Trustee) of any such Common Stock (and any such cash
payment) shall be treated as issued in exchange for the principal amount of the Securities being
converted pursuant to the provisions hereof. Notwithstanding the foregoing, a Holder shall be
entitled to receive accrued and unpaid interest, including any Contingent Interest in respect of a
Security if the Company calls such Security for redemption and such Holder converts its Security
prior to the Redemption Date.

9. Denominations; Transfer; Exchange

     The Securities are in registered form without coupons in denominations of principal amount of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not register the transfer of or exchange of Securities (i) for a
period of 15 days prior to the mailing of a notice of redemption of Securities selected for
redemption under Article V of the Indenture; (ii) so selected for redemption or, if a
portion of any Security is selected for redemption, the portion thereof selected

10

 

A-11

for redemption; or (iii) surrendered for conversion or, if a portion of any Security is
surrendered for conversion, the portion thereof surrendered for conversion.

10. Persons Deemed Owners

     The registered Holder of this Security may be treated as the owner of it for all purposes.

11. Unclaimed Money

     If money for the payment of principal or interest (including any Contingent Interest), if any,
remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its request unless an abandoned property law designates another Person. After any such
payment, Holders entitled to the money must look only to the Company and not to the Trustee for
payment.

12. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities
may be amended with the written consent of the Holders of at least a majority in principal amount
of the then outstanding Securities and (ii) any default (other than with respect to nonpayment or
in respect of a provision that cannot be amended without the written consent of each Securityholder
affected) or noncompliance with any provision may be waived with the written consent of the Holders
of a majority in principal amount of the then outstanding Securities. Subject to certain
exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and
the Trustee may amend the Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article IV of the Indenture, or to provide for
uncertificated Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities, or to secure the Securities, or to add additional
covenants of the Company or its Subsidiaries, or to make any change that does not materially
adversely affect the rights of any Securityholder; provided, that any amendment to conform the
terms of the Securities to the description contained in the prospectus filed with the Registration
Statement pursuant to which the Indenture has been qualified and any supplemental prospectus
thereto relating to the Securities shall be deemed not to be adverse to any Securityholder.

13. Defaults and Remedies

     Under the Indenture, Events of Default include, but are not limited to, (i) default in any
payment of interest, including any Contingent Interest on any Security when the same becomes due
and payable, and such default continues for a period of 30 days; (ii) default in payment of
principal on the Securities at Stated Maturity, upon required repurchase pursuant to paragraph 7 or
upon optional redemption pursuant to paragraph 6 of the Securities, upon declaration or otherwise;
(iii) the failure by the Company to comply with its obligations to convert the Securities into cash
or a combination of cash and Common Stock, as applicable, upon the exercise of a holder’s
conversion right and such failure continues for a period of ten calendar days; (iv) the failure by
the Company to comply with its obligations under Article IV of the Indenture; (v) the
failure by the Company to comply for 60 days after written notice with its other agreements
contained in the Indenture or under the Securities (other than those referred to

11

 

A-12

in (i), (ii), (iii) or (iv) above); (vi) default under any mortgage, indenture or instrument
under which there may be issued or by which there may be outstanding, or by which there may be
secured or evidenced any Debt for money borrowed by the Company or any of its Subsidiaries (other
than Non-Recourse Debt to the Company), whether such Debt now exists, or is created after the date
of the Indenture, which default (a) is caused by a failure to pay principal of, or interest
(including any Contingent Interest), if any, or on such Debt prior to the expiration of the grace
period provided in such Debt (“Payment Default”) or (b) results in the acceleration of such Debt
prior to its maturity (the “cross acceleration provision”) and, in each case, the principal amount
of any such Debt, together with the principal amount of any other such Debt under which there has
been a Payment Default or the maturity of which has been so accelerated, aggregates $50.0 million
or more or its foreign currency equivalent at the time and such acceleration shall not have been
rescinded or annulled within 10 days after written notice of such acceleration has been received by
the Company or such Subsidiary; (vii) failure by the Company to issue a Company Notice of a
Fundamental Change in accordance with the terms of the Indenture; (viii) certain events of
bankruptcy, insolvency or reorganization of the Company (the “bankruptcy provisions”); or (ix)
entry in a court of competent jurisdiction of a final judgment for the payment of $50.0 million or
more rendered against the Company or any Subsidiary, which judgment is not covered by insurance
(other than with respect to customary deductibles) or not discharged, bonded or stayed within 90
days after (A) the date on which the right to appeal thereof has expired if no such appeal has
commenced, or (B) the date on which all rights to appeal have been extinguished (the “judgment
default provision”). However, a default under clause (v) will not constitute an Event of Default
until the Trustee or the Holders of at least 25% in principal amount of the outstanding Securities
notify the Company of the default and the Company does not cure such default within the time
specified in clause (v) hereof after receipt of such notice.

     If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Securities may declare all the Securities by notice to the Company to be
due and payable immediately. A violation of any convent or agreement in the Indenture that
expressly provides that a violation of such covenant or agreement shall not constitute an Event of
Default may be enforced only by the Trustee or such other Person specified in such covenant or
agreement by instituting a legal proceeding against the Company for enforcement of such covenant or
agreement.

     Securityholders may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives
reasonable indemnity or security. Subject to certain limitations, Holders of a majority in
principal amount of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Securityholders notice of any continuing Default or Event of Default
(except a Default or Event of Default in payment of principal or interest (including any Contingent
Interest), if any, if it determines that withholding notice is in their interest.

14. Trustee Dealings with the Company

     Subject to certain limitations set forth in the Indenture, the Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Securities

12

 

A-13

and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would
have if it were not Trustee.

15. No Recourse Against Others

     An incorporator, director, officer, employee, Affiliate or stockholder, of each of the Company
solely by reason of this status, shall not have any liability for any obligations of the Company
under the Securities, the Indenture or any Subsidiary Guarantees or for any claim based on, in
respect of or by reason of such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

16. Subordination

     This Security is subordinated in right of payment to all existing and future Senior Debt as
provided in Article X of the Indenture.

17. Authentication

     This Security shall not be valid until an authorized signatory of the Trustee manually
authenticates this Security.

18. Abbreviations

     Customary abbreviations may be used in the name of a Securityholder or an assignee, such as
TEN COM (=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint tenants with
rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift
to Minors Act).

19. CUSIP Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

20. Governing Law

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

     The Company will furnish to any Securityholder upon written request and without charge to the
Securityholder a copy of the Indenture which has in it the text of this Security in larger type.
Requests may be made to:

13

 

A-14

Trinity Industries, Inc.

2525 Stemmons Freeway

Dallas, Texas 75207-2401

Attn: S. Theis Rice

Telephone No.: (214) 589-8170

14

 

A-15

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of this Global	 	 	Signature of authorized	 
	 	 	Amount of decreasein Principal	 	 	Amount of increase in Principal	 	 	Security following such	 	 	signatory of Trustee or	 
	Date	 	Amount of this Global Security	 	 	Amount of this Global Security	 	 	decrease or increase	 	 	Securities Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

15

 

A-16

FORM OF CONVERSION NOTICE

To:      Trinity Industries, Inc.

     The undersigned registered holder of this Security hereby exercises the option to convert this
Security, or portion hereof (which is $1,000 principal amount or an integral multiple thereof)
designated below, for cash and shares of Common Stock of Trinity Industries, Inc., if any, in
accordance with the terms of the Indenture referred to in this Security, and directs that cash and
the shares, if any, issuable and deliverable upon such conversion, and any Securities representing
any unconverted principal amount hereof, be issued and delivered to the registered holder hereof
unless a different name has been indicated below. If cash, shares or any portion of this Security
not converted are to be issued in the name of a Person other than the undersigned, the undersigned
shall pay all transfer taxes payable with respect thereto.

     This notice shall be deemed to be an irrevocable exercise of the option to convert this
Security.

	 	 	 	 	 
	Dated:

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature(s)	 	 
	 
	 	 	 	 
	 

	 	The signature(s) should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C.
Rule 17Ad-15.	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature Guarantee	 	 

	 	 	 	 	 
	Fill in for registration of shares if to be
delivered, and Securities if to be issued
other than to and in the name of registered
holder:

	 	    	 	 
	 
	 	 	 	 
	 

(Name)

	 	Principal amount to be converted

(if less than all): $___,000
	 	  
	 
	 	 	 	 
	 

(Street Address)

	 	 	 	 
	 
	 

(City state and zip code)

	 	 

Social Security or Other Taxpayer Number
	 	 
	Please print name and address
	 	 	 	 

16

 

A-17

FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE

To:      Trinity Industries, Inc.

     The undersigned registered holder of this Security hereby acknowledges receipt of a notice
from Trinity Industries, Inc. (the “Company”) as to the occurrence of a Fundamental Change with
respect to the Company and requests and instructs the Company to repurchase this Security, or the
portion hereof (which is $1,000 principal amount or a integral multiple thereof) designated below,
in accordance with the terms of the Indenture referred to in this Security and this Security and
directs that the check or Common Stock of the Company, as applicable, in payment for this Security
or the portion thereof and any Securities representing any unrepurchased principal amount hereof,
be issued and delivered to the registered holder hereof unless a different name has been indicated
below. If any portion of this Security not repurchased is to be issued in the name of a Person
other than the undersigned, the undersigned shall pay all transfer taxes payable with respect
thereto.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

Signature(s)
	 	 
	 
	 	 	 	 
	 

	 	The signature(s) should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C.
Rule 17Ad-15.	 	 
	 
	 	 	 	 
	 

	 	 

Signature Guarantee
	 	 

Fill in if a check is to be issued, or Securities are to be issued, other than to and in the name
of registered holder:

	 	 	 	 	 
	 

(Name)

	 	 Principal
amount to be purchased

(if less than all): $                    ,000	 	 
	 
	 	 	 	 
	 

(Street Address)

	 	 	 	 
	 
	 	 	 	 
	 

(City state and zip code)

	 	 

Social Security or Other Taxpayer Number
	 	 
	Please print name and address
	 	 	 	 

17

 

FORM OF PURCHASE NOTICE

To:      Trinity Industries, Inc.

     The undersigned registered holder of this Security hereby acknowledges receipt of a notice
from Trinity Industries, Inc. (the “Company”) as to the holder’s option to require the Company to
repurchase this Security and requests and instructs the Company to repurchase this Security, or the
portion hereof (which is $1,000 principal amount or a integral multiple thereof) designated below,
in accordance with the terms of the Indenture referred to in this Security and directs that the
check or Common Stock of the Company, as applicable, in payment for this Security or the portion
thereof and any Securities representing any unrepurchased principal amount hereof, be issued and
delivered to the registered holder hereof unless a different name has been indicated below. If any
portion of this Security not repurchased is to be issued in the name of a Person other than the
undersigned, the undersigned shall pay all transfer taxes payable with respect thereto.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

Signature(s)
	 	 
	 
	 	 	 	 
	 

	 	The signature(s) should be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C.
Rule 17Ad-15.	 	 
	 
	 	 	 	 
	 

	 	 

Signature Guarantee
	 	 

Fill in if a check is to be issued, or Securities are to be issued, other than to and in the name
of registered holder:

	 	 	 	 	 
	 

(Name)

	 	Principal amount to be purchased

(if less than all): $                    ,000
	 	 
	 
	 	 	 	 
	 

(Street Address)

	 	 	 	 
	 
	 

(City state and zip code)

	 	 

Social Security or Other Taxpayer Number
	 	 
	Please print name and address
	 	 	 	 

1exv10w1

 

Exhibit 10.1

CREDIT AGREEMENT

Dated as of

June 6, 2006

among

SOUTHWEST CONVENIENCE STORES, LLC

as Borrower

The Lenders Party Hereto,

WACHOVIA BANK, NATIONAL ASSOCIATION

as Administrative Agent

and Issuing Bank

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I Definitions
	 	 	 1	 
	SECTION 1.01 Defined Terms
	 	 	1	 
	SECTION 1.02 Terms Generally
	 	 	17	 
	SECTION 1.03 Accounting Terms; GAAP
	 	 	17	 
	SECTION 1.04 UCC Changes
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	18	 
	SECTION 2.01 Commitments
	 	 	18	 
	SECTION 2.02 Loans and Borrowings
	 	 	18	 
	SECTION 2.03 Requests for Borrowings
	 	 	19	 
	SECTION 2.04 Letters of Credit
	 	 	20	 
	SECTION 2.05 Funding of Borrowings
	 	 	24	 
	SECTION 2.06 Interest Elections
	 	 	25	 
	SECTION 2.07 Termination and Reduction of Commitments
	 	 	27	 
	SECTION 2.08 Repayment of Loans; Evidence of Debt
	 	 	27	 
	SECTION 2.09 Prepayment of Loans
	 	 	29	 
	SECTION 2.10 Fees
	 	 	29	 
	SECTION 2.11 Interest
	 	 	31	 
	SECTION 2.12 Taxes
	 	 	31	 
	SECTION 2.13 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	32	 
	SECTION 2.14 Mitigation Obligations; Replacement of Lenders
	 	 	34	 
	SECTION 2.15 Increase of Commitments; Additional Lenders
	 	 	35	 
	 
	 	 	 	 
	ARTICLE III Yield Protection and Illegality
	 	 	36	 
	SECTION 3.01 Increased Costs
	 	 	37	 
	SECTION 3.02 Alternate Rate of Interest
	 	 	38	 
	SECTION 3.03 Illegality
	 	 	38	 
	SECTION 3.04 Treatment of Affected Borrowings
	 	 	39	 
	SECTION 3.05 Break Funding Payments
	 	 	39	 
	 
	 	 	 	 
	ARTICLE IV Security
	 	 	40	 
	SECTION 4.01 Collateral
	 	 	40	 
	 
	 	 	 	 
	ARTICLE V Representations and Warranties
	 	 	41	 
	SECTION 5.01 Organization; Powers
	 	 	41	 
	SECTION 5.02 Authorization; Enforceability
	 	 	41	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 5.03 Governmental Approvals; No Conflicts
	 	 	41	 
	SECTION 5.04 Financial Condition; No Material Adverse Change
	 	 	41	 
	SECTION 5.05 Properties
	 	 	42	 
	SECTION 5.06 Litigation and Environmental Matters
	 	 	42	 
	SECTION 5.07 Compliance with Laws and Agreements
	 	 	43	 
	SECTION 5.08 Investment and Holding Company Status
	 	 	43	 
	SECTION 5.09 Taxes
	 	 	43	 
	SECTION 5.10 ERISA
	 	 	43	 
	SECTION 5.11 Disclosure
	 	 	43	 
	SECTION 5.12 Indebtedness
	 	 	44	 
	SECTION 5.13 Subsidiaries
	 	 	44	 
	SECTION 5.14 Inventory
	 	 	44	 
	SECTION 5.15 Patents, Trademarks and Copyrights
	 	 	44	 
	SECTION 5.16 Margin Securities
	 	 	45	 
	SECTION 5.17 Labor Matters
	 	 	45	 
	SECTION 5.18 Solvency
	 	 	45	 
	SECTION 5.19 Reserved
	 	 	45	 
	SECTION 5.20 Permits, Licenses, Etc.
	 	 	45	 
	 
	 	 	 	 
	ARTICLE VI Conditions
	 	 	45	 
	SECTION 6.01 Effective Date
	 	 	45	 
	SECTION 6.02 Each Credit Event
	 	 	48	 
	 
	 	 	 	 
	ARTICLE VII Affirmative Covenants
	 	 	49	 
	SECTION 7.01 Financial Statements and Other Information
	 	 	49	 
	SECTION 7.02 Notices of Material Events
	 	 	50	 
	SECTION 7.03 Existence; Conduct of Business
	 	 	50	 
	SECTION 7.04 Payment of Obligations
	 	 	51	 
	SECTION 7.05 Maintenance of Properties
	 	 	51	 
	SECTION 7.06 Books and Records; Inspection Rights
	 	 	51	 
	SECTION 7.07 Insurance
	 	 	51	 
	SECTION 7.08 Compliance with Laws
	 	 	52	 
	SECTION 7.09 Use of Proceeds and Letters of Credit
	 	 	52	 
	SECTION 7.10 Compliance with Agreements
	 	 	52	 
	SECTION 7.11 Additional Subsidiaries
	 	 	52	 
	SECTION 7.12 Good Time Acquisition
	 	 	52	 
	SECTION 7.13 Environmental Matters
	 	 	53	 
	SECTION 7.14 Further Assurances
	 	 	53	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VIII Negative Covenants
	 	 	53	 
	SECTION 8.01 Indebtedness
	 	 	53	 
	SECTION 8.02 Liens
	 	 	54	 
	SECTION 8.03 Fundamental Changes
	 	 	55	 
	SECTION 8.04 Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	55	 
	SECTION 8.05 Hedging Agreements
	 	 	56	 
	SECTION 8.06 Restricted Payments; Certain Payments of Indebtedness
	 	 	56	 
	SECTION 8.07 Transactions with Affiliates
	 	 	57	 
	SECTION 8.08 Restrictive Agreements
	 	 	57	 
	SECTION 8.09 Disposition of Assets
	 	 	57	 
	SECTION 8.10 Sale and Leaseback
	 	 	58	 
	SECTION 8.11 Accounting
	 	 	58	 
	SECTION 8.12 Amendment of Material Documents
	 	 	59	 
	SECTION 8.13 Preferred Equity Interests
	 	 	59	 
	SECTION 8.14 Synthetic Repurchases
	 	 	59	 
	 
	 	 	 	 
	ARTICLE IX Financial Covenants
	 	 	59	 
	SECTION 9.01 Fixed Charge Coverage Ratio
	 	 	59	 
	 
	 	 	 	 
	ARTICLE X Events of Default
	 	 	59	 
	SECTION 10.01 Default
	 	 	59	 
	SECTION 10.02 Performance by the Administrative Agent
	 	 	62	 
	 
	 	 	 	 
	ARTICLE XI The Administrative Agent
	 	 	63	 
	 
	 	 	 	 
	ARTICLE XII Miscellaneous
	 	 	65	 
	SECTION 12.01 Notices
	 	 	65	 
	SECTION 12.02 Waivers; Amendments
	 	 	66	 
	SECTION 12.03 Expenses; Indemnity; Damage Waiver
	 	 	67	 
	SECTION 12.04 Successors and Assigns
	 	 	69	 
	SECTION 12.05 Survival
	 	 	73	 
	SECTION 12.06 Counterparts; Effectiveness
	 	 	73	 
	SECTION 12.07 Severability
	 	 	73	 
	SECTION 12.08 Right of Setoff
	 	 	73	 
	SECTION 12.09 GOVERNING LAW; VENUE; SERVICE OF PROCESS
	 	 	74	 
	SECTION 12.10 WAIVER OF JURY TRIAL
	 	 	74	 
	SECTION 12.11 Headings
	 	 	74	 
	SECTION 12.12 Confidentiality
	 	 	74	 
	SECTION 12.13 Maximum Interest Rate
	 	 	75	 

-iii-

 

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 12.14 Non-Application of Chapter 346 of Texas Finance Code
	 	 	75	 
	SECTION 12.15 NO ORAL AGREEMENTS
	 	 	76	 
	SECTION 12.16 No Fiduciary Relationship
	 	 	76	 
	SECTION 12.17 Construction
	 	 	76	 

EXHIBITS

	“A-1” 	 	Form of Revolving Credit Note
	 
	“A-2” 	 	Form of Term Note
	 
	“B-1” 	 	Borrowing Request Form
	 
	“B-2” 	 	Letter of Credit Request Form
	 
	“C” 	 	Security Agreement
	 
	“D” 	 	Guaranty
	 
	“E” 	 	Contribution and Indemnification Agreement
	 
	“F” 	 	Compliance Certificate
	 
	“G” 	 	Reserved
	 
	“H” 	 	Assignment and Assumption

SCHEDULES

	1.01	 	Lenders and Commitments
	 
	1.01(a)	 	Assets of the Good Time Acquisition subject to a Lien
	 
	5.06	 	Disclosed Matters
	 
	5.13	 	Subsidiaries
	 
	5.15	 	Patents, Trademarks and Copyrights
	 
	8.01	 	Existing Indebtedness
	 
	8.02	 	Existing Liens
	 
	8.08	 	Existing Restrictive Agreements

-iv-

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”) dated as of June 6, 2006, among SOUTHWEST
CONVENIENCE STORES, LLC, a Texas limited liability company, as Borrower, the LENDERS party hereto,
and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent
and Issuing Bank.

     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.

     “Acquisition” means any transaction or series of related transactions for the direct
or indirect (a) acquisition of all or substantially all of the property of a Person, or of any
business or division of a Person, (b) acquisition of in excess of 50% of the Equity Interests of
any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person.

     “Acquisition Documents” means all documents executed or provided in connection with
any Acquisition.

     “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 Wachovia Bank, National Association in its capacity as
administrative agent for the Lenders and the Issuing Bank hereunder.

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

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

     “Alon Interests” means Alon USA Interests, LLC, a Texas limited liability company.

Page 1

 

     “Alon USA” means Alon USA Energy, Inc., a Delaware corporation

     “Alternate Base Rate” means, for any day, a rate per annum equal to the Prime Rate in
effect on such day. Any change in the Alternate Base Rate due to a change in the Prime Rate shall
be effective from and including the effective date of such change in the Prime Rate.

     “Applicable Margin” means, for any day, (a) with respect to the Loans comprising each
Eurodollar Borrowing, 1.50% over the Adjusted LIBO Rate that is applicable when any interest rate
based on the Adjusted LIBO Rate is determined under this Agreement, (b) with respect to the Loans
comprising each ABR Borrowing, 0.0% over the Alternate Base Rate that is applicable when any
interest rate based on the Alternate Base Rate is determined under this Agreement, and (c) with
respect to Commitment Fees, 0.25% per annum.

     “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Revolving Credit Commitments represented by such Lender’s Revolving Credit Commitment. If the
Revolving Credit Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Revolving Credit Commitments most recently in effect, giving effect to
any assignments.

     “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 12.04),
and accepted by the Administrative Agent, in the form of Exhibit “H” or any other form approved by
the Administrative Agent.

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

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

     “Borrower” means Southwest Convenience Stores, LLC, a Texas limited liability company.

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

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

     “Borrowing Request Form” means a certificate in substantially the form of Exhibit
“B-1”, properly completed and signed by the Borrower requesting a Borrowing or a conversion or
continuation of a Borrowing.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Dallas, Texas are authorized or required by law to remain closed;
provided

Page 2

 

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 Expenditures” means, for any period, the additions or replacement to
property, plant and equipment and other capital expenditures of the Borrower and its Subsidiaries
(and Good Time Enterprise and its subsidiaries upon consummation of the Good Time Acquisition) that
are (or would be) set forth in a consolidated statement of cash flows of the Borrower for such
period prepared in accordance with GAAP.

     “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 any event, transaction or occurrence as a result of which
Alon USA at any time own and control (directly or indirectly through various subsidiaries) less
than 51% of the economic and voting rights associated with all of the outstanding Equity Interests
of all classes of Borrower.

     “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 3.01(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

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

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

     “Collateral” has the meaning specified in Section 4.01.

     “Commitment” means, a Revolving Credit Commitment, a Term Loan Commitment, or any
combination thereof (as the context requires).

     “Commitment Fee” means the commitment fee payable pursuant to Section 2.10.

     “Compliance Certificate” means a certificate of a Financial Officer of the Borrower,
in the form of Exhibit “F” hereto.

Page 3

 

     “Consolidated EBITDA” means, for each period of determination, EBITDA of the Borrower
and its Subsidiaries (and Good Time Enterprise and its subsidiaries upon consummation of the Good
Time Acquisition) on a consolidated basis for such period.

     “Conversion Date” means the date which is ten (10) Business Days after the date
Administrative Agent receives Request to Convert Revolving Loan.

     “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.

     “Contribution and Indemnification Agreement” means a contribution and indemnification
agreement of the Borrower and each Guarantor, in substantially the form of Exhibit “E”, as the same
may be amended, supplemented, or 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.

     “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 5.06.

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

     “EBITDA” means, for each period of determination for any Person and its subsidiaries
on a consolidated basis, the sum of (a) consolidated net income from ordinary operations of such
Person and its subsidiaries for such period (whether positive or negative), plus, (b) each of the
following of such Person and its subsidiaries for such period to the extent actually deducted in
arriving at consolidated net income of such Person and its subsidiaries for such period and without
duplication: depreciation, amortization, taxes and interest expense, plus (c) minority Equity
Interests holders’ interest in income of subsidiaries of such Person. Without in any way limiting
the generality of the foregoing, consolidated net income from ordinary operations for any period
shall not include the effect of (i) gains for such period from any sale, exchange or other
disposition of any property or assets (other than sales of inventory in the ordinary course of
business), (ii) gains in excess of expenses for such period from any legal settlements or
collection of life insurance proceeds, (iii) any write-up of any asset, or (iv) non-cash charges,
non-recurring charges and extraordinary charges.

     “Effective Date” means the date on which the conditions specified in Section 6.01 are
satisfied (or waived in accordance with Section 12.02).

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

Page 4

 

     “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 or
ownership interests in a Person.

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

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

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

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are 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 X.

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

Page 5

 

by) its net income by the United States of America, or by the jurisdiction under the laws of
which such recipient is organized or in which its principal office is located or, in the case of
any Lender, in which its applicable lending office is located, (b) any branch profits taxes imposed
by the United States of America or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant to a
request by the Borrower under Section 2.14(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 2.12(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 2.12(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, The Bank of New York, or, if
such rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

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

     “Fixed Charge Coverage Ratio” means as of each date of determination, the ratio of (a)
(i) Consolidated EBITDA for the 12-month period ended on such date of determination, less (ii) cash
taxes during such period, to (b) the sum of the following for the Borrower and its Subsidiaries on
a consolidated basis for the 12-month period ended on such date of determination: (i) regularly
scheduled principal payments of Indebtedness scheduled to be paid during such period, whether or
not actually paid, plus (ii) interest expense during such period (but excluding principal payments
and interest expense on any Indebtedness of the Borrower to any Guarantor and of any Guarantor to
the Borrower or any other Guarantor).

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

     “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a
jurisdiction other than the United States of America or any state thereof or the District of
Columbia.

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

Page 6

 

     “Good Time Acquisition” means (i) the acquisition by Alon Interests of 100% of the
Equity Interests in Good Time Enterprise pursuant to that certain Purchase Agreement dated March
27, 2006 by and among Alon Interests, Good Time Enterprise, Good Time Holding and Good Time Stores
and (ii) in connection with such acquisition, the assumption by Good Time Enterprise of certain
existing Indebtedness provided that such existing Indebtedness is secured by a Lien on the assets
set forth in Schedule 1.01(a).

     “Good Time Enterprise” means Good Time Enterprise, LLC, a Delaware limited liability
company, which entity shall change its name to Southwest Convenience Stores El Paso, LLC
immediately after the consummation of the Good Time Acquisition.

     “Good Time Holding” means Good Time Inter-Holding, LLC, a Delaware limited liability
company, a subsidiary of Good Time Stores.

     “Good Time Stores” means Good Time Stores, Inc., a Delaware corporation, the parent of
Good Time Enterprise.

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

     “Guarantors” means Alon USA, Alon Interests, Good Time Enterprise (if the Good Time
Acquisition is consummated on or prior to the Effective Date) and all of the Subsidiaries of
Borrower and Good Time Enterprise (if the Good Time Acquisition is consummated on or prior to the
Effective Date) as of the Effective Date (except any Foreign Subsidiary) and each other Subsidiary
that at any time executes a Guaranty in favor of the Administrative Agent and the Lenders.

     “Guaranty” means the guaranty agreement of each Guarantor in favor of the
Administrative Agent, the Issuing Bank and the Lenders, in substantially the form of Exhibit “D”
hereto, as the same may be amended, supplemented, or modified from time to time.

Page 7

 

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

     “Hedging Agreement” means any swap agreement as defined in 11 U.S.C. §101.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
obligations secured by (or for which the holder of such obligations 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 obligations secured thereby have 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 in respect of letters of credit, letters of guaranty,
bankers’ acceptances, surety or other bonds and similar instruments, (j) all liabilities of such
Person in respect of unfunded vested benefits under any Plan and (k) payment obligations with
respect to Hedging Agreements, provided that for purposes of this definition, the amount of the
obligation of any Person under any Hedging Agreement shall be the amount determined, in respect
thereof as of the end of the most recently ended month, based on the assumption that such Hedging
Agreement has terminated at the end of such month, and in making such determination, if such
Hedging Agreement provides for the netting of amounts payable by and to each party thereto or if
any Hedging Agreement provides for the simultaneous payment of amounts by and to each party, then
in each such case, the amount of such obligation shall be the net amount so determined. 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 Excluded Taxes.

     “Initial Advance” means the initial advance of Loan proceeds under the first Loan to
be made to Borrower pursuant to this Agreement upon satisfaction (or waiver, as the case may be) of
the conditions set forth in Section 6.01.

     “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.06.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the 1st day
of each month 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.

Page 8

 

     “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, three or six months thereafter, as the Borrower may elect, and
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 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.

     “Issuing Bank” means Wachovia Bank, National Association, in its capacity as the
issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section
2.04(i). The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be
issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate.

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

     “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of
any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

     “Lender Affiliate” means, (a) with respect to any Lender, (i) an Affiliate of such
Lender or (ii) any entity (whether a corporation, partnership, trust or otherwise) that is engaged
in making, purchasing, holding or otherwise investing in bank loans and similar extensions of
credit in the ordinary course of its business and is administered or managed by a Lender or an
Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in bank
loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

     “Lenders” means the Persons listed on Schedule 1.01 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.

     “Letter of Credit” means any letter of credit issued pursuant to this Agreement and
the Existing Letter of Credit.

     “Letter of Credit Request Form” means a certificate, in substantially the form of
Exhibit “B-2” hereto, properly completed and signed by the Borrower requesting the issuance of a
Letter of Credit (or the amendment, renewal, or extension of an outstanding Letter of Credit).

Page 9

 

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Moneyline Telerate Markets (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.

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

     “Loan Documents” means this Agreement and all promissory notes, security agreements,
pledge agreements, deeds of trust, assignments, guaranties, subordination agreements, and other
instruments, documents, and agreements executed and delivered pursuant to or in connection with
this Agreement, as such instruments, documents, and agreements may be amended, modified, renewed,
extended, or supplemented from time to time, but the term “Loan Documents” shall not include
Hedging Agreements.

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

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
property, operations, condition (financial or otherwise) or prospects, of the Borrower and the
Subsidiaries taken as a whole, (b) the ability of the Borrower to pay and perform any of the
material Obligations, (c) the ability of the Guarantors, collectively, to pay and perform any of
the material Obligations, (d) any of the material rights of or benefits available to the
Administrative Agent and the Lenders under this Agreement or any of the other Loan Documents, or
(e) the validity or enforceability of this Agreement or any of the other Loan Documents.

     “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), including obligations in respect of one or more Hedging Agreements, and contractual
obligations of any one or more of the Borrower and its Subsidiaries in an aggregate principal
amount exceeding $500,000. For purposes of determining Material Indebtedness, the “principal
amount” of the obligations of the Borrower or any Subsidiary in respect of any Hedging Agreement at
any time shall be the amount of its payment obligations thereunder determined as provided in clause
(k) of the definition of “Indebtedness” set forth in this Section 1.01.

Page 10

 

     “Maximum Rate” means, at any time and with respect to any Lender, the maximum rate of
interest under applicable law that such Lender may charge the Borrower. The Maximum Rate shall be
calculated in a manner that takes into account any and all fees, payments, and other charges in
respect of the Loan Documents that constitute interest under applicable law. Each change in any
interest rate provided for herein based upon the Maximum Rate resulting from a change in the
Maximum Rate shall take effect without notice to the Borrower at the time of such change in the
Maximum Rate. For purposes of determining the Maximum Rate under Texas law, the applicable rate
ceiling shall be the weekly ceiling described in, and computed in accordance with, Chapter 303 of
the Texas Finance Code.

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

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

     “Notes” means the Revolving Credit Notes and the Term Notes.

     “Obligations” means (i) all obligations (including, but not limited to the Treasury
Obligations), indebtedness, and liabilities of Alon USA and Alon Interests to the Administrative
Agent, the Issuing Bank and the Lenders, or any of them, arising pursuant to the Guaranty, and (ii)
all obligations (including, but not limited to the Treasury Obligations), indebtedness, and
liabilities of Borrower and the Subsidiaries, or any of them, to the Administrative Agent, the
Issuing Bank and the Lenders, or any of them, arising pursuant to any of the Loan Documents or
Hedging Agreements, now existing or hereafter arising, whether direct, indirect, related,
unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, and
all interest accruing thereon and all attorneys’ fees and other expenses incurred in the
enforcement or collection thereof.

     “Obligors” means the Borrower and the Guarantors.

     “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.

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

     “Permitted Acquisitions” means acquisition (by construction, purchase, through a
merger or otherwise) (i) assets or a line of business which constitute or comprise Growth Assets or
Additional Assets or (ii) Equity Interests of a Person, provided that such person shall be a going
concern and shall be in a similar line of business as that of the Borrower and the Subsidiaries as
conducted during such time and (B) no Default is existing or would result therefrom; provided that
at the time of any transaction described in (i) or (ii) above (x) no Default is existing or would
result therefrom; (y) the aggregate consideration paid in connection with such acquisition and any
related acquisitions pursuant to this paragraph shall not exceed $25,000,000 in the aggregate

Page 11

 

and (z) the acquisition shall not result in a Lien on any of the Collateral except in favor of
Administrative Agent.

     “Permitted Encumbrances” means:

	 	(a)	 	Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 7.04;
	 
	 	(b)	 	carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’
and other like Liens imposed by law, arising in the ordinary course of business and
securing obligations that are not overdue by more than 30 days or are being contested
in compliance with Section 7.04;
	 
	 	(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 X; and
	 
	 	(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 with the ordinary conduct of business of the Borrower or
any Subsidiary;

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

     “Permitted Investments” means:

	 	(g)	 	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;
	 
	 	(h)	 	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 and other 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 which has a tier 1 capital ratio of not less than 6%, and,
with respect to such certificates of

Page 12

 

	 	 	 	deposit, banker’s acceptances and time deposits issued by any particular commercial
bank, in an amount not exceeding 10% of such commercial bank’s unimpaired capital;
	 
	 	(i)	 	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 (b) above;
	 
	 	(j)	 	Acquisition of convenience stores consistent with existing operations; and
	 
	 	(k)	 	Investments other than those listed in (a) through (j) above in the aggregate
amount of $2,000,000 during the term of this Agreement.

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

     “Plan” means any employee pension benefit plan 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.

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

     “Register” has the meaning set forth in Section 12.04.

     “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.

     “Request to Convert Revolving Loan” means a written notice from Borrower to
Administrative Agent that Borrower has elected to convert a Revolving Loan into a Term Loan. Such
notice shall be irrevocable.

     “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures, Term
Loans and unused Commitments representing more than 66-2/3% of the sum of the total Revolving
Credit Exposures, outstanding Term Loans and unused Commitments at such time; provided,
however, that so long as no Event of Default has occurred, Administrative Agent shall have at
least 66-2/3% of the sum of the total Revolving Credit Exposures, outstanding Term Loans and unused
Commitments (provided that participation interests granted, sold or conveyed by Administrative
Agent shall not be excluded from Administrative Agent’s total Revolving Credit Exposures,
outstanding Term Loans and unused Commitments).

Page 13

 

     “Restricted Indebtedness” means Indebtedness of the Borrower or any Subsidiary, the
payment, prepayment, redemption, repurchase or defeasance of which is restricted under Section
8.06.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests of 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 Equity Interests of the Borrower or any Subsidiary or any
option, warrant or other right to acquire any Equity Interests of the Borrower or any Subsidiary.

     “Revolving Credit Commitment” means, with respect to each Lender, the commitment of
such Lender to make Revolving Loans and to acquire participations in Letters of Credit hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section
2.07, and (b) reduced or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 12.04. The initial amount of each Lender’s Revolving Credit Commitment is set
forth on Schedule 1.01, or in the Assignment and Assumption pursuant to which such Lender shall
have assumed its Revolving Credit Commitment, as applicable. The initial aggregate amount of the
Lenders’ Revolving Credit Commitments is $20,000,000.

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

     “Revolving Credit Maturity Date” means June 30, 2009.

     “Revolving Credit Note” means a promissory note of the Borrower payable to the order
of a Lender, in substantially the form of Exhibit “A-1” hereto, and all extensions, renewals, and
modifications thereof and all substitutions therefor.

     “Revolving Loan” means a Loan made pursuant to clause (b) of Section 2.01 hereof.

     “S&P” means Standard & Poor’s.

     “Security Agreement” means the Security Agreement(s), whether one ore more, of the
Borrower and the Subsidiaries in favor of the Administrative Agent for the benefit of the
Administrative Agent, the Issuing Bank and the Lenders, in substantially the form of Exhibit “C”
hereto, as the same may be amended, supplemented or modified from time to time.

     “Solvent” means, as to any Person, that (a) the aggregate fair market value of its
assets exceeds its liabilities, (b) it has sufficient cash flow to enable it to pay its
Indebtedness as such Indebtedness matures, and (c) it does not have unreasonably small capital to
conduct its business.

     “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

Page 14

 

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 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 Debt” means all Indebtedness of the Borrower, any of its Subsidiaries or
any Guarantor (in case of Guarantor, to or from any of the Borrower or any of its subsidiaries)
subordinated in right of payment to the Obligations pursuant to documents containing maturities,
amortization schedules, covenants, defaults, remedies, subordination provisions and other material
terms in form and substance satisfactory to the Administrative Agent and the Required Lenders.

     “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 and, upon consummation of the Good
Time Acquisition, any subsidiary of Good Time Enterprise.

     “Synthetic Purchase Agreement” means any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower or a Subsidiary is or may become obligated
to make (i) any payment in connection with a purchase by any third party from a Person other than
the Borrower or a Subsidiary of any Equity Interest in the Borrower or any Subsidiary, any
warrants, options or other rights to acquire any Equity Interests of the Borrower or any
Subsidiary, or any Restricted Indebtedness or (ii) any payment (other than on account of a
permitted purchase by it of any Equity Interests in the Borrower or any Subsidiary, any warrants,
options or other rights to acquire any Equity Interests of the Borrower or any Subsidiary, or any
Restricted Indebtedness) the amount of which is determined by reference to the price or value at
any time of any Equity Interest in the Borrower or any Subsidiary, any warrants, options or other
rights to acquire any Equity Interests of the Borrower or any Subsidiary, or any Restricted
Indebtedness; provided that no phantom stock or similar plan providing for payments only to
current or former directors, officers or employees of the Borrower or the Subsidiaries (or their
heirs or estates) shall be deemed to be a Synthetic Purchase Agreement.

Page 15

 

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

     “Term Loan” means a Loan made pursuant to clause (a) of Section 2.01 hereof.

     “Term Loan Commitment” means, with respect to each Lender as of the Effective Date,
the commitment of such Lender to make a Term Loan hereunder on the Effective Date, expressed as an
amount representing the maximum aggregate amount of the Term Loan to be made by such Lender
hereunder. The initial amount of each Lender’s Term Loan Commitment is set forth on Schedule 1.01.
The initial aggregate amount of the Lenders’ Term Loan Commitments is $30,000,000.

     “Term Loan Maturity Date” means: (i) with respect to Term Loans made on the Effective
Date, June 30, 2016, and (ii) with respect to each Revolving Loan which is converted to a Term Loan
pursuant to Section 2.02(e) hereof, the date which is the 10th anniversary of the
Conversion Date with respect to such converted Loan.

     “Term Note” means a promissory note of the Borrower payable to the order of a Lender,
in substantially the form of Exhibit “A-2” hereto, and all extensions, renewals, and modifications
thereof and all substitutions therefor.

     “Transactions” means the execution, delivery and performance by the Borrower and each
Guarantor of this Agreement and the other Loan Documents to which it is a party, the borrowing of
Loans and the use of the proceeds thereof.

     “Treasury Obligations” means any and all obligations and liabilities of the Borrower
or any of its affiliates to the Administrative Agent, Issuing Bank and the Lenders, or any of them
or any of their respective affiliates, now existing or hereafter arising, whether direct, indirect,
joint, several, or joint and several, arising under or in any way relating to or incurred in
connection with (a) any deposit accounts maintained by the Borrower or any of its affiliates with
the Administrative Agent, Issuing Bank and the Lenders, or any of them or any of their respective
affiliates, (b) any cash management services or treasury administration services provided by the
Administrative Agent, Issuing Bank and the Lenders, or any of them or any of their respective
affiliates, (c) any documentation relating thereto, or (d) any services or transactions relating
thereto, including without limitation daylight overdraft exposure.

     “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.

     “UCC” means the Uniform Commercial Code as in effect in the State of Texas.

     “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.

Page 16

 

     SECTION 1.02 Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

     SECTION 1.03 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.

     SECTION 1.04 UCC Changes. All terms used herein which are defined in the UCC shall,
unless otherwise provided, have the meanings ascribed to them in the UCC both as in effect on the
date of this Agreement and as hereafter amended. The parties intend that the terms used herein
which are defined in the UCC have, at all times, the broadest and most inclusive meanings possible.
Accordingly, if the UCC shall in the future be amended or held by a court to define any term used
herein more broadly or inclusively than the UCC in effect on the date of this Agreement, then such
term as used herein shall be given such broadened meaning. If the UCC shall in the future be
amended or held by a court to define any term used herein more narrowly, or less inclusively, than
the UCC in effect on the date of this Agreement, such amendment or holding shall be disregarded in
defining terms used in this Agreement.

Page 17

 

ARTICLE II

The Credits

     SECTION 2.01 Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees (a) to make a Term Loan to the Borrower on the Effective Date in a principal amount
not exceeding its Term Loan Commitment, and (b) to make Revolving Loans to the Borrower from time
to time during the Availability Period in an aggregate principal amount that will not result in (i)
such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Credit Commitment, or
(ii) the sum of the total Revolving Credit Exposures exceeding the total Revolving Credit
Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein,
the Borrower may borrow, prepay and reborrow Revolving Loans. Amounts repaid in respect of the
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 of the same
Class and Type made by the Lenders ratably in accordance with their respective
Commitments of the applicable Class. The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder; provided that the Commitments of the Lenders are several and no
Lender shall be responsible for any other Lender’s failure to make Loans as required.
	 
	 	(b)	 	Subject to Sections 3.02, 3.03 and 3.04, 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 $100,000 and
not less than $500,000. At the time that each ABR Revolving Loan Borrowing is made,
such Borrowing shall be not less than $500,000 provided that an ABR Revolving
Loan Borrowing may be in an aggregate amount that is equal to the entire unused balance
of the total Revolving Credit Commitments or that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.04(e). Borrowings of
more than one Type or Class may be outstanding at the same time; provided that
there shall not at any time be more than a total of five Eurodollar Borrowings
outstanding.
	 
	 	(d)	 	Notwithstanding any other provision of this Agreement, the Borrower shall not
be entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Revolving Credit
Maturity Date or Term Loan Maturity Date, as applicable.

Page 18

 

	 	(e)	 	If no Event of Default has occurred and is then continuing, Borrower, from time
to time prior to the Revolving Credit Termination Date, may convert any outstanding
Revolving Loan into a Term Loan by delivering a Request to Convert Revolving Loan. The
Request to Convert shall be irrevocable and the Loan will be converted on the
Conversion Date. Borrower shall be responsible for any costs or liabilities incurred as
a result of such conversion, including, without limitation any Break Funding Costs
under Section 3.05. Upon conversion, the aggregate amount of Lenders’ Revolving Credit
Commitments shall be ratably and permanently reduced by the then outstanding balance of
the Revolving Loan so converted and the aggregate Term Loan Commitments shall be
ratably increased to account for the conversion; provided, however that in no event
shall the aggregate Commitments be more than $50,000,000 (except as increased pursuant
to Section 2.15). At the request of Administrative Agent, Borrower shall execute one or
more Term Notes and/or Revolving Notes to reflect the conversion of any balance from a
Revolving Loan into a Term Loan.

     SECTION 2.03 Requests for Borrowings. To request a Revolving Loan Borrowing or Term
Loan Borrowing, the Borrower shall notify the Administrative Agent of such request in writing (a)
in the case of a Eurodollar Borrowing, not later than 11:00 a.m., Dallas, Texas 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., Dallas, Texas time, on the same Business Day as the date of the proposed
Borrowing. Each such Borrowing Request shall be irrevocable and shall be made by hand delivery or
telecopy to the Administrative Agent of a written Borrowing Request by means of a Borrowing Request
Form signed by the Borrower. Each such Borrowing Request shall specify the following information
in compliance with Section 2.02:

	 	(i)	 	the aggregate amount of the requested Borrowing;
	 
	 	(ii)	 	the date of such Borrowing, which shall be a Business Day;
	 
	 	(iii)	 	whether such Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing;
	 
	 	(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)	 	the location and number of the Borrower’s account to which
funds are to be disbursed, which shall comply with the requirements of Section
2.05.

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.

Page 19

 

     SECTION 2.04 Letters of Credit.

	 	(a)	 	General. Subject to the terms and conditions set forth herein, the
Borrower may request the issuance of Letters of Credit denominated and payable in
dollars for its own account, in a form acceptable to the Administrative Agent and the
Issuing Bank, at any time and from time to time during the Availability Period. In the
event of any inconsistency between the terms and conditions of this Agreement and the
terms and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall
control.
	 
	 	(b)	 	Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.
To request the issuance of a Letter of Credit (or the amendment, renewal or extension
of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been approved
by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in
advance of, but less than 10 days in advance of, the requested date of issuance,
amendment, renewal or extension) a notice by means of a Letter of Credit Request Form
requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to
be amended, renewed or extended, and specifying the date of issuance, amendment,
renewal or extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the amount
of such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such Letter
of Credit. If requested by the Issuing Bank, the Borrower also shall submit a letter
of credit application on the Issuing Bank’s standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed
or extended only if (and upon issuance, amendment, renewal or extension of each Letter
of Credit the Borrower shall be deemed to represent and warrant that), after giving
effect to such issuance, amendment, renewal or extension, the total Revolving Loan
Borrowings and LC Exposure shall not exceed the total Revolving Credit Commitments.
	 
	 	(c)	 	Expiration Date. Each Letter of Credit shall expire at or prior to the
close of business on the earlier of (i) the date one year after the date of the
issuance of such Letter of Credit (or, in the case of any renewal or extension thereof,
one year after such renewal or extension) and (ii) the date that is five Business Days
prior to the Revolving Credit Maturity Date.
	 
	 	(d)	 	Participations. By the issuance of a Letter of Credit (or an amendment
to a Letter of Credit increasing the amount thereof) and without any further action on
the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each
Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such
Letter of Credit equal to such Lender’s Applicable Percentage of the

Page 20

 

	 	 	 	aggregate amount available to be drawn under such Letter of Credit. In
consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the
Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by
the Issuing Bank and not reimbursed by the Borrower on the date due as provided in
paragraph (e) of this Section, or of any reimbursement payment required to be
refunded to the Borrower for any reason. Each Lender acknowledges and agrees that
its obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter
of Credit or the occurrence and continuance of a Default or reduction or termination
of the Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.
	 
	 	(e)	 	Reimbursement. If the Issuing Bank shall make any LC Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by
paying to the Administrative Agent an amount equal to such LC Disbursement not later
than 12:00 noon, Dallas, Texas time, on the date that such LC Disbursement is made, if
the Borrower shall have received notice of such LC Disbursement prior to 10:00 a.m.,
Dallas, Texas time, on such date, or, if such notice has not been received by the
Borrower prior to such time on such date, then not later than 12:00 noon, Dallas, Texas
time, on (i) the Business Day that the Borrower receives such notice, if such notice is
received prior to 10:00 a.m., Dallas, Texas time, on the day of receipt, or (ii) the
Business Day immediately following the day that the Borrower receives such notice, if
such notice is not received prior to such time on the day of receipt; provided
that the Borrower may, subject to the conditions to borrowing set forth herein, request
in accordance with Section 2.03 that such payment be financed with an ABR Revolving
Borrowing in an equivalent amount and, to the extent so financed, the Borrower’s
obligation to make such payment shall be discharged and replaced by the resulting ABR
Revolving Borrowing. If the Borrower fails to make such payment when due, the
Administrative Agent shall notify each Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Lender’s Applicable
Percentage thereof. Promptly following receipt of such notice, each Lender shall pay
to the Administrative Agent its Applicable Percentage of the payment then due from the
Borrower, in the same manner as provided in Section 2.05 with respect to Loans made by
such Lender (and Section 2.05 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly pay to
the Issuing Bank the amounts so received by it from the Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank
or, to the extent that Lenders have made payments pursuant to this paragraph to
reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their
interests may appear. Any payment made by a Lender pursuant to

Page 21

 

	 	 	 	this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the
funding of ABR Revolving Loans as contemplated above) shall not constitute a Loan
and shall not relieve the Borrower of its obligation to reimburse such LC
Disbursement.
	 	(f)	 	Obligations Absolute. The Borrower’s obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance with the
terms of this Agreement under any and all circumstances whatsoever and irrespective of
(i) any lack of validity or enforceability of any Letter of Credit or this Agreement,
or any term or provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit, or (iv) any other event
or circumstance whatsoever, whether or not similar to any of the foregoing, that might,
but for the provisions of this Section, constitute a legal or equitable discharge of,
or provide a right of setoff against, the Borrower’s obligations hereunder. Neither
the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related
Parties, shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to make any
payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating
to any Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from causes
beyond the control of the Issuing Bank; provided that the foregoing shall not
be construed to excuse the Issuing Bank from liability to the Borrower to the extent of
any direct damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by the Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of Credit
comply with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or willful misconduct on the part of the Issuing Bank (as finally
determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to
have exercised care in each such determination. In furtherance of the foregoing and
without limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance with the
terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either
accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to
accept and make payment upon such documents if such documents are not in strict
compliance with the terms of such Letter of Credit.

Page 22

 

	 	(g)	 	Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for payment
under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative
Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment
and whether the Issuing Bank has made or will make an LC Disbursement thereunder;
provided that any failure to give or delay in giving such notice shall not
relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders
with respect to any such LC Disbursement.
	 
	 	(h)	 	Interim Interest. If the Issuing Bank shall make any LC Disbursement,
then, unless the Borrower shall reimburse such LC Disbursement in full on the date such
LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day
from and including the date such LC Disbursement is made to but excluding the date that
the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to
ABR Revolving Loans; provided that, if the Borrower fails to reimburse such LC
Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.11(c)
shall apply. Interest accrued pursuant to this paragraph shall be for the account of
the Issuing Bank, except that interest accrued on and after the date of payment by any
Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be
for the account of such Lender to the extent of such payment.
	 
	 	(i)	 	Replacement of the Issuing Bank. The Issuing Bank may be replaced at
any time by written agreement among the Administrative Agent, the replaced Issuing Bank
and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of
any such replacement of the Issuing Bank. At the time any such replacement shall
become effective, the Borrower shall pay all unpaid fees accrued for the account of the
replaced Issuing Bank pursuant to Section 2.10(b). From and after the effective date
of any such replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of Credit
to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the replacement of
an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such replacement, but
shall not be required to issue additional Letters of Credit.
	 
	 	(j)	 	Cash Collateralization. If any Event of Default shall occur and be
continuing, on the Business Day that the Borrower receives notice from the
Administrative Agent or the Required Lenders demanding the deposit of cash collateral
pursuant to this paragraph, the Borrower shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the benefit of
the Lenders, an amount in cash equal to the LC Exposure as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit

Page 23

 

	 	 	 	such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to the Borrower described in
clause (h) or (i) of Article X. The Borrower also shall deposit cash collateral
pursuant to this paragraph as and to the extent required by Section 2.09(d). Each
such deposit shall be held by the Administrative Agent as collateral for the payment
and performance of the obligations of the Borrower under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on
the investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Borrower’s risk and expense,
such deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of the
Borrower for the LC Exposure at such time or, if the maturity of the Loans has been
accelerated (but subject to the consent of the Required Lenders), be applied to
satisfy other Obligations. If the Borrower is required to provide an amount of cash
collateral hereunder as a result of the occurrence of an Event of Default, such
amount (to the extent not applied as aforesaid) shall be returned to the Borrower
within three Business Days after all Events of Default have been cured or waived.
If the Borrower is required to provide an amount of cash collateral hereunder
pursuant to Section 2.09(d), such amount (to the extent not applied as aforesaid)
shall be returned to the Borrower as and to the extent that, after giving effect to
such return, the Borrower would remain in compliance with Section 2.09(d) and no
Default shall have occurred and be continuing.

     SECTION 2.05 Funding of Borrowings.

	 	(a)	 	Each Lender shall make each Loan to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by 2:00 p.m., Dallas,
Texas 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
Dallas, Texas and designated by the Borrower in the applicable Borrowing Request;
provided that ABR Revolving Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.04(e) shall be remitted by the Administrative
Agent to the Issuing Bank.
	 
	 	(b)	 	Unless the Administrative Agent shall have received notice from a Lender prior
to the proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent
may assume that such Lender has made such share 

Page 24

 

	 	 	 	available on such date in accordance
with paragraph (a) of this Section and may,
in reliance upon such assumption, make available to the Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date
such amount is made available to the Borrower to but excluding the date of payment
to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry 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 2.06 Interest Elections.

	 	(a)	 	Each Revolving Loan Borrowing and Term Loan 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, 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 by means of a Borrowing Request Form signed by the
Borrower.
	 
	 	(c)	 	Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02 and 2.03:

	 	(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);

Page 25

 

	 	(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.
	 
	 	(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 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 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.
	 
	 	(f)	 	A Borrowing of any Class may not be converted to or continued as a Eurodollar
Borrowing if after giving effect thereto (i) the Interest Period therefor would
commence before and end after a date on which any principal of the Loans of such Class
is scheduled to be repaid and (ii) the sum of the aggregate principal amount of the
outstanding Eurodollar Borrowings of such Class with Interest Periods ending on or
prior to such scheduled repayment date plus the aggregate principal amount of
outstanding ABR Borrowings of such Class would be less than the aggregate principal
amount of the Loans of such Class required to be repaid on such scheduled repayment
date.

Page 26

 

     SECTION 2.07 Termination and Reduction of Commitments.

	(a)	 	Unless previously terminated, (i) the Term Loan Commitments shall terminate at
5:00 p.m., Dallas, Texas time, on the date which is thirty (30) days after the
Effective Date and (ii) the Revolving Credit Commitments shall terminate on the
Revolving Credit Maturity Date.
	 
	(b)	 	The Borrower may at any time terminate, or from time to time reduce, the
Commitments of any Class; provided that (i) each reduction of the Commitments
of any Class shall be in an amount that is an integral multiple of $500,000 and not
less than $1,000,000, or if less, the amount of such Commitment, and (ii) the Borrower
shall not terminate or reduce the Revolving Credit Commitments if, after giving effect
to any concurrent prepayment of the Revolving Loans in accordance with Section 2.09,
the Revolving Credit Exposures would exceed the total Revolving Credit Commitments.
	 
	(c)	 	The Borrower shall notify the Administrative Agent of any election to terminate
or reduce the Commitments under paragraph (b) of this Section at least two Business
Days prior to the effective date of such termination or reduction, specifying such
election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each notice
delivered by the Borrower pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Revolving Credit Commitments
delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by
the Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied. Any termination or reduction of
the Commitments of any Class shall be permanent. Each reduction of the Commitments of
any Class shall be made ratably among the Lenders in accordance with their respective
Commitments of such Class.

     SECTION 2.08 Repayment of Loans; Evidence of Debt.

	 	(a)	 	The Borrower hereby unconditionally promises to pay (i) to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each Revolving
Loan on the Revolving Credit Maturity Date and (ii) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Term Loan as provided
in paragraph (b) of this Section.
	 
	 	(b)	 	The Borrower shall repay Term Loan Borrowings in monthly installments of
principal based on a fifteen (15) year amortization term, the first such installment to
be due and payable (i) on the first day of the first month to commence not less than
twenty (20) days after the applicable Term Loan Borrowing was advanced by Lenders, or,
(ii) with respect any Revolving Loan converted to a Term Loan on the first day of the
first month to commence not less than twenty (20) days after the applicable Conversion
Date, with like successive

Page 27

 

	 	 	 	installments of principal and interest to be due and payable
on the
1st day of each month thereafter, and a final installment of all remaining outstanding principal to be due and payable on the
applicable Term Loan Maturity Date. To the extent not previously paid, all Term
Loans shall be due and payable on the applicable Term Loan Maturity Date. Any
prepayment of a Term Loan Borrowing shall be applied to scheduled repayments of the
Term Loan Borrowings to be made pursuant to this paragraph (b) in inverse order of
maturity; provided, however, that in the event Borrower makes a single prepayment of
$2,500,000 or more, Administrative Agent shall adjust the amount of successive
installments in order to amortize the remaining outstanding balance of the Term Loan
Borrowing over the existing amortization term applicable to such Term Loan
Borrowing. Prior to any repayment of any Term Loan Borrowings, the Borrower shall
select the Borrowing or Borrowings to be repaid and shall notify the Administrative
Agent by telephone (confirmed by telecopy) of such selection not later than 11:00
a.m., Dallas, Texas time, two Business Days before the scheduled date of such
repayment. Each repayment of a Borrowing shall be applied ratably to the Loans
included in the repaid Borrowing. Repayments of Term Loan Borrowings shall be
accompanied by accrued unpaid interest on the Term Loan Borrowings.
	 
	 	(c)	 	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.
	 
	 	(d)	 	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.
	 
	 	(e)	 	The entries made in the accounts maintained pursuant to paragraph (c) or (d) of
this Section shall be prima facie evidence of the existence and amounts
of the obligations recorded therein; provided that the failure of any Lender or
the Administrative Agent to maintain such accounts or any error therein shall not in
any manner affect the obligation of the Borrower to repay the Loans in accordance with
the terms of this Agreement.
	 
	 	(f)	 	The obligation of the Borrower to repay each Lender for Revolving Loans made by
such Lender and interest thereon shall be evidenced by a Revolving Credit Note executed
by the Borrower, payable to the order of such Lender, in the principal amount of such
Lender’s Revolving Credit Commitment as in effect on the date hereof, and initially
dated the date hereof.
	 
	 	(g)	 	The obligation of the Borrower to repay each Lender for Term Loans made by such
Lender and interest thereon shall be evidenced by a Term Note executed by the Borrower,
payable to the order of such Lender, in the principal amount of such

Page 28

 

	 	 	 	Lender’s Term Commitment as in effect on the date hereof, and initially dated the
date hereof.

     SECTION 2.09 Prepayment of Loans.

	 	(a)	 	The Borrower shall have the right at any time and from time to time to prepay
any Borrowing in whole or in part, subject to the requirements of this Section.
	 
	 	(b)	 	Prior to any optional or mandatory prepayment of Borrowings hereunder, the
Borrower shall select the Borrowing or Borrowings to be prepaid and shall specify such
selection in the notice of such prepayment pursuant to paragraph (c) of this Section.
	 
	 	(c)	 	The Borrower shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar
Borrowing that will be made before the last day of the applicable Interest Period and
shall pay all amounts required to be paid by Section 3.05 concurrently with such
prepayment. Such notice shall be given not later than 11:00 a.m., Dallas, Texas time,
two Business Days 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; provided that, if a notice of prepayment is
given in connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.07, then such notice of prepayment may be revoked if such
notice of termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to
the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by
accrued interest to the extent required by Section 2.11.
	 
	 	(d)	 	If at any time the total Revolving Credit Exposures exceeds the total Revolving
Credit Commitments, the Borrower shall promptly prepay the outstanding Borrowings by
the amount of the excess (or, if no such Borrowings are outstanding, deposit cash
collateral in an account with the Administrative Agent pursuant to Section 2.04(j) in
an aggregate amount equal to such excess).

     SECTION 2.10 Fees.

	 	(a)	 	From and after the date of the Initial Advance hereunder, the Borrower agrees
to pay to the Administrative Agent for the account of each Lender (pro rata in
accordance with the Revolving Credit Commitment of each Lender) a Commitment Fee in the
amount of the product of the daily average unused amount of the Revolving Credit
Commitments times the applicable rate per annum set forth in the definition of
Applicable Margin. For purposes of calculating the Commitment Fee hereunder, the
Revolving Credit Commitments

Page 29

 

	 	 	 	shall be deemed utilized by the amount of all Revolving Loan Borrowings and LC
Exposure. Accrued Commitment Fees payable under this Section shall be payable in
arrears on the last day of March, June, September and December of each year and on
the date on which the Revolving Credit Commitments terminate, commencing on the
first such date to occur after the date hereof. All Commitment Fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).
	 
	 	(b)	 	The Borrower agrees to pay (i) to the Administrative Agent for the account of
each Lender a participation fee with respect its participations in all outstanding
Letters of Credit, which shall accrue at the rate per annum equal to the Applicable
Margin then in effect for Eurodollar Borrowings as set forth in the definition of
Applicable Margin on the average daily amount of such Lender’s LC Exposure (excluding
any portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the Effective Date to but excluding the later of the date on which
such Lender’s Revolving Credit Commitment terminates and the date on which such Lender
ceases to have any LC Exposure and (ii) to the Issuing Bank a fronting fee, which shall
accrue at the rate of 1/8% per annum on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during
the period from and including the Effective Date to but excluding the later of the date
of termination of the Revolving Credit Commitments and the date on which there ceases
to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing of
drawings thereunder. Participation fees and fronting fees accrued through and
including the last day of March, June, September and December of each year shall be
payable on the third Business Day following such last day, commencing on the first such
date to occur after the Effective Date; provided that all such fees shall be
payable on the date on which the Revolving Credit Commitments terminate and any such
fees accruing after the date on which the Revolving Credit Commitments terminate shall
be payable on demand. Any other fees payable to the Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees and
fronting fees shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding the last
day).
	 
	 	(c)	 	The Borrower agrees to pay to the Administrative Agent, for its own account,
fees payable in the amounts and at the times separately agreed upon between the
Borrower and the Administrative Agent.
	 
	 	(d)	 	All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent (or to the Issuing Bank, in the case of
fees payable to it) for distribution, in the case of Commitment Fees, to the Lenders.
Fees paid shall not be refundable under any circumstances.

Page 30

 

     SECTION 2.11 Interest.

	 	(a)	 	The Loans comprising each ABR Borrowing shall bear interest at the Alternate
Base Rate plus the Applicable Margin.
	 
	 	(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 Margin.
	 
	 	(c)	 	Notwithstanding the foregoing, if an Event of Default shall occur, the Loans
and other amounts payable by the Borrower hereunder shall bear interest, after as well
as before judgment, at a rate per annum equal to (i) in the case of principal of any
Loan, 3% 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, including interest
and fees, 3% plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section.
	 
	 	(d)	 	Accrued interest on each Loan shall be payable in arrears (1) on each Interest
Payment Date for such Loan, (2) in the case of Revolving Loans, upon the earlier of the
Revolving Credit Maturity Date and the date of termination of the Revolving Credit
Commitments, and (3) in the case of Term Loans, upon the Term Loan Maturity Date;
provided that (i) interest accrued pursuant to paragraph (c) of this Section
shall be payable on demand, (ii) in the event of any repayment or prepayment of any
Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or prepaid shall
be payable on the date of such repayment or prepayment 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.
	 
	 	(e)	 	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 2.12 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

Page 31

 

	 	 	 	Section) the Administrative Agent, Lender or Issuing Bank (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
pay the full amount deducted to the relevant Governmental Authority in accordance
with applicable law.
	 
	 	(b)	 	In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.
	 
	 	(c)	 	The Borrower shall indemnify the Administrative Agent, each Lender and the
Issuing Bank, within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the
Issuing Bank, as the case may be, on or with respect to any payment by or on account of
any obligation of the Borrower hereunder (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section) and any
penalties, interest and expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to the Borrower by a Lender or Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or Issuing Bank, 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 satisfactory to the Administrative Agent.
	 
	 	(e)	 	Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is located, or
any treaty to which such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at
the time or times prescribed by applicable law, 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.

     SECTION 2.13 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

	 	(a)	 	The Borrower shall make each payment required to be made by it hereunder
(whether of principal, interest, fees, or reimbursement of LC Disbursements or of
amounts payable under Section 2.12, 3.01 or 3.05, or otherwise) prior to 12:00 noon,
Dallas, Texas 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

Page 32

 

	 	 	 	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 712 Main Street, Houston, Texas 77002, except payments to be made directly to the
Issuing Bank and except that payments pursuant to Sections 2.12, 3.01, 3.05 and
12.03 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)	 	If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be applied (i)
first, towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees then due
to such parties, and (ii) second, towards payment of principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and unreimbursed LC Disbursements then due to
such parties.
	 
	 	(c)	 	If any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of its
Loans or participations in LC Disbursements resulting in such Lender receiving payment
of a greater proportion of the aggregate amount of its Loans and participations in LC
Disbursements and accrued interest thereon than the proportion received by any other
Lender, then the Lender receiving such greater proportion shall purchase (for cash at
face value) participations in the Loans and participations in LC Disbursements 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 and participations in LC Disbursements;
provided that (i) if any such participations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery, without
interest, and (ii) the provisions of this paragraph shall not be construed to apply to
any payment made by the Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations in LC
Disbursements 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

Page 33

 

	 	 	 	counterclaim with respect to such participation as fully as if such Lender were a
direct creditor of the Borrower in the amount of such participation.
	 
	 	(d)	 	Unless the Administrative Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank hereunder that the Borrower will not make
such payment, the Administrative Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the Lenders
or the Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such Lender or
the Issuing Bank with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.
	 
	 	(e)	 	If any Lender shall fail to make any payment required to be made by it pursuant
to Section 2.04(d) or (e), 2.05(b), or 2.13(d), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

     SECTION 2.14 Mitigation Obligations; Replacement of Lenders.

	 	(a)	 	If any Lender requests compensation under Section 3.01, 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 2.12, 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 2.12 or
3.01, as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.
The Borrower hereby agrees to pay all costs and expenses incurred by any Lender in
connection with any such designation or assignment.
	 
	 	(b)	 	If any Lender requests compensation under Section 3.01, 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 2.12, 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 12.04), all its interests, rights

Page 34

 

	 	 	 	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 (and, if a Revolving Credit Commitment
is being assigned, the Issuing Bank), (ii) such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and participations in
LC Disbursements, 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 3.01 or payments required to be made pursuant to Section
2.12, 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 2.15 Increase of Commitments; Additional Lenders.

	 	(a)	 	Additional Revolving Loans. So long as no Default has occurred and is
continuing, from time to time after the Effective Date, Borrower may, upon at least 30
days’ prior written notice to the Administrative Agent (who shall promptly provide a
copy of such notice to each Lender), propose to increase the aggregate amount of the
Revolving Credit Commitments by an amount not to exceed $10,000,000 (the amount of any
such increase, the “Additional Revolving Commitment Amount”) such that after
giving effect to such increase, the aggregate amount of the Lenders’ Revolving Credit
Commitments does not exceed $30,000,000; provided that at no time shall the
aggregate amount of the Lenders’ Revolving Credit Commitments plus the aggregate
principal amount of all outstanding Term Loans exceed $60,000,000. Each Lender shall
have the right for a period of 15 days following receipt of such notice, to elect by
written notice to the Borrower and the Administrative Agent to increase its Revolving
Credit Commitment by a principal amount equal to its Applicable Percentage of the
Additional Revolving Commitment Amount. No Lender (or any successor thereto) shall
have any obligation to increase its Revolving Credit Commitment or its other
obligations under this Agreement and the other Loan Documents, and any decision by a
Lender to increase its Revolving Credit Commitment shall be made in its sole discretion
independently from any other Lender.
	 
	 	(b)	 	If any Lender shall not elect to increase its Revolving Credit Commitment
pursuant to subsection (a) of this Section, the Borrower may designate another bank or
other financial institution (which may be, but need not be, one or more of the existing
Lenders) which at the time agrees to, in the case of any such Person that is an
existing Lender, increase its Revolving Credit Commitment and in the case of any other
such Person (an “Additional Revolving Lender”), become a party to this
Agreement; provided, however, that any new bank or financial

Page 35

 

	 	 	 	institution must be reasonably acceptable to the Administrative Agent. The sum of
the increases in the Revolving Credit Commitments of the existing Lenders pursuant
to this subsection (b) plus the Revolving Credit Commitments of the Additional
Revolving Lenders shall not in the aggregate exceed the Additional Revolving
Commitment Amount.
	 
	 	(c)	 	An increase in the aggregate amount of the Revolving Credit Commitments
pursuant to this Section 2.15 shall become effective upon the receipt by the
Administrative Agent of an agreement in form and substance reasonably satisfactory to
the Administrative Agent signed by the Borrower, by each Additional Revolving Lender
and by each other Lender whose Revolving Credit Commitment is to be increased, setting
forth the new Revolving Credit Commitments of such Lenders and setting forth the
agreement of each Additional Revolving Lender to become a party to this Agreement and
to be bound by all the terms and provisions hereof, together with a replacement or
additional Revolving Credit Note, as applicable, evidencing the new Revolving Credit
Commitment of each affected Lender, duly executed and delivered by the Borrower and
such evidence of appropriate corporate authorization on the part of the Borrower with
respect to the increase in the Revolving Credit Commitments.
	 
	 	(d)	 	Upon the acceptance of any such agreement by the Administrative Agent, the
aggregate amount of the Revolving Credit Commitments shall automatically be increased
by the amount of the Revolving Credit Commitments added through such agreement and
Schedule 1.1 shall automatically be deemed amended to reflect the Revolving Credit
Commitments of all Lenders after giving effect to the addition of such Revolving Credit
Commitments.
	 
	 	(e)	 	Upon any increase in the aggregate amount of the Revolving Credit Commitments
pursuant to this Section 2.15 that is not pro rata among all Lenders, (i) within five
Business Days, in the case of any ABR Loans then outstanding, and at the end of the
then current Interest Period with respect thereto, in the case of any Eurodollar Loans
then outstanding, the Borrower shall prepay such Loans and, to the extent the Borrower
elects to do so and subject to the conditions specified in Article VI, the Borrower
shall reborrow Loans from the Lenders in proportion to their respective Revolving
Credit Commitments after giving effect to such increase, until such time as all
outstanding Loans are held by the Lenders in such proportion and (y) effective upon
such increase, the amount of the participations held by each Lender in each Letter of
Credit then outstanding shall be adjusted such that, after giving effect to such
adjustments, the Lenders shall hold participations in each such Letter of Credit in the
proportion its respective Revolving Credit Commitment bears to the aggregate Revolving
Credit Commitments after giving effect to such increase.

ARTICLE III

Yield Protection and Illegality

Page 36

 

     SECTION 3.01 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 the Issuing Bank; or
	 
	 	(ii)	 	impose on any Lender or the Issuing Bank or the London
interbank market any other condition affecting this Agreement or Eurodollar
Loans made by such Lender or any Letter of Credit or participation therein;

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 the Issuing Bank of participating in,
issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or
receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or
otherwise), then the Borrower will pay to such Lender or the Issuing Bank, as the case may
be, such additional amount or amounts as will compensate such Lender or the Issuing Bank, as
the case may be, for such additional costs incurred or reduction suffered.

	 	(b)	 	If any Lender or the Issuing Bank 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 or the Issuing Bank’s capital or on the capital of such Lender’s or the
Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans
made by, or participations in Letters of Credit held by, such Lender or the Letters of
Credit issued by the Issuing Bank, to a level below that which such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved
but for such Change in Law (taking into consideration such Lender’s or the Issuing
Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrower will pay to such
Lender or the Issuing Bank such additional amount or amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for
any such reduction suffered.
	 
	 	(c)	 	A certificate of a Lender or the Issuing Bank setting forth the amount or
amounts necessary to compensate such Lender or the Issuing Bank or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be in reasonable detail and be conclusive absent
manifest error. The Borrower shall pay such Lender or the Issuing Bank the amount
shown as due on any such certificate within 10 days after receipt thereof.

Page 37

 

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

     SECTION 3.02 Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

	 	(a)	 	the Administrative Agent determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining
the 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 and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

     SECTION 3.03 Illegality. Notwithstanding any other provision of this Agreement, in
the event that it becomes unlawful for any Lender or its applicable lending office to (a) honor its
obligation to make Eurodollar Borrowings hereunder or (b) maintain Eurodollar Borrowings hereunder,
then such Lender shall promptly notify the Borrower (with a copy to the Administrative Agent)
thereof and such Lender’s obligation to make or maintain Eurodollar Borrowings and to convert other
Types of Borrowings into Eurodollar Borrowings hereunder shall be suspended until such time as such
Lender may again make and maintain Eurodollar Borrowings, in which case (i) all Borrowings which
would be otherwise made by such Lender as Eurodollar Borrowings shall be made instead as ABR
Borrowings and all Borrowings which would otherwise be converted into (or continued as) Eurodollar
Borrowings shall be converted instead into (or shall remain as) ABR Borrowings and (ii) if such
Lender so requests by notice to the Borrower (with a copy to the Administrative Agent), all
Eurodollar Borrowings of such

Page 38

 

 

Lender shall be automatically converted into ABR Borrowings on the date specified by such
Lender in such notice.

     SECTION 3.04 Treatment of Affected Borrowings. If the Eurodollar Borrowings of any
Lender are to be converted pursuant to Section 3.03 hereof, such Lender’s Eurodollar Borrowings
shall be automatically converted into ABR Borrowings on the last day(s) of the then current
Interest Period(s) for such Eurodollar Borrowings (or on such earlier date as such Lender may
specify to the Borrower with a copy to the Administrative Agent) and, unless and until such Lender
gives notice as provided below that the circumstances specified in Section 3.03 hereof which gave
rise to such conversion no longer exist:

	 	(a)	 	To the extent that such Lender’s Eurodollar Borrowings have been so converted,
all payments and prepayments of principal which would otherwise be applied to such
Lender’s Eurodollar Borrowings shall be applied instead to its ABR Borrowings;
	 
	 	(b)	 	All Borrowings which would otherwise be made or continued by such Lender as
Eurodollar Borrowings shall be made as or converted into ABR Borrowings and all
Borrowings of such Lender which would otherwise be converted into Eurodollar Borrowings
shall be converted instead into (or shall remain as) ABR Borrowings; and

If such Lender gives notice to the Borrower (with a copy to the Administrative Agent) that the
circumstances specified in Section 3.03 hereof which gave rise to the conversion of such Lender’s
Eurodollar Borrowings pursuant to this Section 3.04 no longer exist (which such Lender agrees to do
promptly upon such circumstances ceasing to exist) at a time when Eurodollar Borrowings are
outstanding, such Lender’s ABR Borrowings shall be automatically converted, on the first day(s) of
the next succeeding Interest Period(s) for such outstanding Eurodollar Borrowings to the extent
necessary so that, after giving effect thereto, all Borrowings held by the Lenders holding
Eurodollar Borrowings and by such Lender are held pro rata (as to principal amounts, Types, and
Interest Periods) in accordance with their respective Commitments.

     SECTION 3.05 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 borrow, convert,
continue or prepay any Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.09(c) 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
2.14, 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,

Page 39

 

 

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

ARTICLE IV

Security

     SECTION 4.01 Collateral. To secure full and complete payment and performance of the
Obligations, the Borrower (and Good Time Enterprise contemporaneously with the consummation of the
Good Time Acquisition) shall execute and deliver or cause to be executed and delivered the
documents described below covering the property and collateral described in this Section 4.01
(which, together with any other property and collateral which may now or hereafter secure the
Obligations or any part thereof, is sometimes herein called the “Collateral”):

	 	(a)	 	The Borrower (and Good Time Enterprise contemporaneously with the consummation
of the Good Time Acquisition) will, and will cause each of the Guarantors (other than
Alon USA and Alon Interests) to, grant to the Administrative Agent, for the benefit of
the Administrative Agent, the Issuing Bank and the Lenders, a first priority security
interest, subject only to those Liens permitted under Section 8.02 of this Agreement,
in all of its accounts, accounts receivable, contract rights, equipment, machinery,
furniture, fixtures, inventory, chattel paper, documents, instruments, general
intangibles, investment property, deposit accounts, letter-of-credit rights, commercial
tort claims, supporting obligations, intellectual property, and Equity Interests in its
Subsidiaries, whether now owned or hereafter acquired, and all products and cash and
noncash proceeds thereof, pursuant to the Security Agreement; provided that not more
than 65% of the Equity Interests of any Foreign Subsidiary shall be required to be
subject to such security interest.
	 
	 	(b)	 	The Borrower (and Good Time Enterprise contemporaneously with the consummation
of the Good Time Acquisition) will, and will cause each of the Subsidiaries to, execute
and deliver and cause to be executed and delivered such further documents and
instruments as the Administrative Agent, in its sole discretion, deems necessary or
desirable to evidence and perfect its Liens in the Collateral.

Page 40

 

 

ARTICLE V

Representations and Warranties

     The Borrower represents and warrants to the Administrative Agent, the Issuing Bank and the
Lenders that on and as of the date of this Agreement, the Effective Date, the date of each
Borrowing, the date of each issuance of a Letter of Credit, and after giving effect to the
Transactions:

     SECTION 5.01 Organization; Powers. Each of the Borrower and its Subsidiaries is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, 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 because of the nature of its activities or properties such
qualification is required.

     SECTION 5.02 Authorization; Enforceability. The Transactions are within the powers of
the Borrower and the Subsidiaries, respectively, and have been duly authorized by all necessary
action. This Agreement and the other Loan Documents to which Borrower or any Guarantor is a party
have been duly executed and delivered by such Person and constitutes a legal, valid and binding
obligation of such Person, enforceable in accordance with their respective 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 5.03 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
and except filings necessary to perfect Liens created under the Loan Documents, (b) will not
violate any applicable law or regulation or the charter, by-laws or other organizational documents
of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the
Borrower or any of its Subsidiaries, or their respective assets, or give rise to a right thereunder
to require any payment to be made by the Borrower or any of its Subsidiaries, except where such
violation or default could not reasonably be expected to result in a Material Adverse Effect, 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 or imposed by the Loan Documents.

     SECTION 5.04 Financial Condition; No Material Adverse Change.

	 	(a)	 	The Borrower has heretofore furnished to the Administrative Agent its and Alon
USA’s internally prepared consolidated balance sheets and statements of income,
stockholders’ equity and cash flows as of and for the fiscal year ended December 31,
2005, subject to the absence of footnotes. Such financial statements present fairly,
in all material respects, the financial position and results of operations and

Page 41

 

 

	 	 	 	cash flows of the Alon USA, Borrower and Borrower’s consolidated Subsidiaries as of
such dates and for such periods in accordance with GAAP.

	 	(b)	 	Since December 31, 2005, there has been no material adverse change in the
business, assets, operations or condition, financial or otherwise, of Alon USA,
Borrower and Borrower’s Subsidiaries, taken as a whole.
	 
	 	(c)	 	Except as disclosed in the financial statements referred to above or the notes
thereto and except for Disclosed Matters, after giving effect to the Transactions, none
of the Borrower or its Subsidiaries has, as of the Effective Date, any material
contingent liabilities, unusual long term commitments or unrealized losses.

     SECTION 5.05 Properties.

	 	(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, and
none of the properties, assets or leasehold interests of the Borrower or any Subsidiary
is subject to any Lien, except as permitted by Section 8.02 or those Liens in favor of
General Electric Capital Corporation; provided, however, that such Liens in favor of
General Electric Capital Corporation must be paid in full and released using the
proceeds of the initial Borrowing hereunder.
	 
	 	(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 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 5.06 Litigation and Environmental Matters.

	 	(a)	 	There are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting 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,
any of the other Loan Documents or the Transactions.
	 
	 	(b)	 	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, neither the Borrower nor any of its Subsidiaries (i) has
failed to comply with any Environmental Law or to obtain, maintain or comply with any
permit, license or other approval required under any Environmental

Page 42

 

 

	 	 	 	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.

	 	(c)	 	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 increased
the likelihood of, a Material Adverse Effect.

     SECTION 5.07 Compliance with Laws and Agreements. 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 where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

     SECTION 5.08 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 5.09 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 5.10 ERISA. No ERISA Event has occurred or is expected to occur that, when
taken together with all other such ERISA Events for which liability is expected to occur, could
reasonably be expected to result in a Material Adverse Effect. The present value of all
accumulated benefit obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $500,000 the fair market value of
the assets of such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial statements reflecting such
amounts, exceed by more than $500,000 the fair market value of the assets of all such underfunded
Plans.

     SECTION 5.11 Disclosure. The Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it or any of its Subsidiaries 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 reports, financial statements,
certificates or other information furnished by or on behalf of the Borrower to the Administrative
Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) contains any material misstatement of
fact or omits to state any material fact necessary to make the

Page 43

 

 

statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

     SECTION 5.12 Indebtedness. The Borrower and its Subsidiaries have no Indebtedness,
except as disclosed on Schedule 8.01 or otherwise permitted by Section 8.01.

     SECTION 5.13 Subsidiaries. The Borrower has no Subsidiaries other than those listed
on Schedule 5.13 hereto, and Schedule 5.13 sets forth the jurisdiction of organization of each
Subsidiary and the percentage of the Borrower’s or any Subsidiary’s ownership of the outstanding
voting stock or other ownership or Equity Interests of each Subsidiary. All of the outstanding
Equity Interests of each Subsidiary have been validly issued, is fully paid, and is nonassessable.
The Borrower shall, from time to time as necessary, deliver to the Administrative Agent an updated
Schedule 5.13 to this Agreement, together with a certificate of an authorized officer of the
Borrower certifying that the information set forth in such schedule is true, correct and complete
as of such date. Any new Subsidiary (other than Foreign Subsidiaries) must immediately execute a
Guaranty.

     SECTION 5.14 Inventory. All inventory of the Borrower and its Subsidiaries has been
and will hereafter be produced in compliance with all applicable laws, rules, regulations, and
governmental standards, including, without limitation, the minimum wage and overtime provisions of
the Fair Labor Standards Act, as amended (29 U.S.C. §§ 201-219), and the regulations promulgated
thereunder, except any noncompliance that does not have a Material Adverse Effect.

     SECTION 5.15 Patents, Trademarks and Copyrights. Schedule 5.15 sets forth a true,
accurate and complete listing, as of the date hereof, of all registered patents, trademarks and
copyrights, and applications therefor, of the Borrower and its Subsidiaries. Except as created or
permitted under the Loan Documents, no Lien exists with respect to the interests of the Borrower or
any Subsidiary in any such patents, trademarks, copyrights or applications, and neither the
Borrower nor any Subsidiary has transferred or subordinated any interest it may have in such
patents, trademarks, copyrights and applications, except for licenses permitted by Section 8.09(b).
The Borrower shall, from time to time as necessary, deliver to the Administrative Agent an updated
Schedule 5.15 to this Agreement, together with a certificate of an authorized officer of the
Borrower certifying that the information set forth on such schedule is true, correct and complete
as of such date. Upon the request of the Administrative Agent at any time, the Borrower shall
execute and deliver and cause to be executed and delivered assignments of all registered patents,
trademarks, copyrights and applications therefor included in the Collateral, in favor of the
Administrative Agent for the benefit of the Administrative Agent and the Lenders, which assignments
shall be in form and substance satisfactory to the Administrative Agent and in proper form (i) for
recording in the U.S. Patent and Trademark Office to properly reflect the Administrative Agent’s
security interest in all U.S. patents, trademarks and applications therefor included in the
Collateral and (ii) for recording with the U.S. Library of Congress to properly reflect the
Administrative Agent’s security interest in all U.S. copyrights and applications therefor included
in the Collateral.

Page 44

 

 

     SECTION 5.16 Margin Securities. Neither the Borrower nor any of its Subsidiaries is
engaged principally, or as one of its important activities, in the business of extending credit for
the purpose of purchasing or carrying any “margin stock” within the meaning of Regulation T, U or X
of the Board, as amended. No part of the proceeds of any Borrowing will be used, directly or
indirectly, to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying margin stock.

     SECTION 5.17 Labor Matters. Except for any of the following that would not have a
Material Adverse Effect, (a) there are no actual or threatened strikes, labor disputes, slow downs,
walkouts, work stoppages, or other concerted interruptions of operations that involve any employees
employed at any time in connection with the business activities or operations at any of the
Borrower’s or its Subsidiaries’ locations, (b) hours worked by and payment made to the employees of
the Borrower or its Subsidiaries have not been in violation of the Fair Labor Standards Act or any
other applicable laws, rules and regulations pertaining to labor matters, (c) all payments due from
the Borrower or its Subsidiaries for employee health and welfare insurance, including, without
limitation, workers’ compensation insurance, have been paid or accrued as a liability on its books,
(d) the business activities and operations of the Borrower and its Subsidiaries are in compliance
with the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651 et seq. and other applicable
health and safety laws, rules and regulations.

     SECTION 5.18 Solvency. On the Effective Date and on the date of each Borrowing, the
Borrower and each of its Subsidiaries are, and after giving effect to the Transactions and the
requested Borrowing and application of proceeds of the requested Borrowing, will be, Solvent.

     SECTION 5.19 Reserved.

     SECTION 5.20 Permits, Licenses, Etc. The Borrower and each of its Subsidiaries
possess all permits, licenses, patents, patent rights, trademarks, trademark rights, trade names,
trade name rights and copyrights which are required to conduct their respective businesses.

ARTICLE VI

Conditions

     SECTION 6.01 Effective Date. The obligations of the Lenders to make Loans and of the
Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which the Administrative Agent (or its counsel) has received (or waived in writing in accordance
with Section 12.02) each of the following, in form and substance satisfactory to the Administrative
Agent:

	 	(a)	 	Credit Agreement. Either (i) a counterpart of this Agreement signed on
behalf of each party hereto or (ii) 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.

Page 45

 

 

	 	(b)	 	Organizational and Authorization Matters. Such documents and
certificates as the Administrative Agent or its counsel may request relating to the
organization, existence and good standing of the Borrower and its Subsidiaries, the
authorization of the Transactions, incumbency of officers, specimen signatures and any
other legal matters relating to the Borrower, its Subsidiaries, the Loan Documents or
the Transactions, all in form and substance satisfactory to the Administrative Agent
and its counsel.
	 
	 	(c)	 	Corporate Structure; Capitalization; Subordinated Debt. (i) Evidence
of the Borrower’s corporate and subsidiary structure, which evidence and structure
shall be satisfactory to the Administrative Agent; and (ii) copies of all documents
evidencing or relating to the Equity Interests, certified by a Financial Officer as
complete and correct, which documents shall be satisfactory to the Administrative Agent
in all respects.
	 
	 	(d)	 	Governmental and Third Party Approvals. All governmental and
third-party approvals necessary or advisable, in the judgment of the Administrative
Agent, in connection with the Loans and in connection with the continuing operations of
each of the Borrower and its Subsidiaries.
	 
	 	(e)	 	Financial Statements. The financial statements specified in Section
5.04.
	 
	 	(f)	 	Notes. The Notes executed by the Borrower.
	 
	 	(g)	 	Security Agreement. The Security Agreement executed by the Borrower
and the Guarantors.
	 
	 	(h)	 	Financing Statements. Properly completed Uniform Commercial Code
financing statements naming the Borrower and the Guarantors as debtors and covering the
Collateral.
	 
	 	(i)	 	Equity Interests. The original certificates representing the Equity
Interests included in the Collateral, together with transfer powers duly executed in
blank by the Borrower and the applicable Guarantors.
	 
	 	(j)	 	Instruments and Chattel Paper. The originals of any and all
instruments and chattel paper included in the Collateral, including without limitation,
all promissory notes evidencing all intercompany Indebtedness owed to Borrower or any
Guarantor by Borrower or any Subsidiary, each endorsed to the order of the
Administrative Agent.
	 
	 	(k)	 	Intellectual Property Documentation. Documentation satisfactory to the
Administrative Agent, executed by the appropriate parties, (i) for recording in the
U.S. Patent and Trademark Office to properly reflect the Administrative Agent’s
security interest in all U.S. patents, trademarks and applications therefor of the
Borrower and the Guarantors, and (ii) for recording with the United States Library

Page 46

 

 

	 	 	 	of Congress to properly reflect the Administrative Agent’s security interest in all
U.S. copyrights and applications therefor of the Borrower and the Guarantors.

	 	(l)	 	Field Audit; Due Diligence. Completion and satisfactory results of all
due diligence conducted by the Administrative Agent.
	 
	 	(m)	 	Insurance Policies. Certificate(s) of insurance evidencing all
insurance policies required by Section 7.07, together with loss payable endorsements
(where applicable) in favor of the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, with respect to all insurance policies covering
Collateral.
	 
	 	(n)	 	Lien Searches. The results of UCC, tax and judgment lien searches
showing all financing statements, other documents or instruments and tax and judgment
liens on file against each of the Borrower and the Guarantors in such jurisdictions as
the Administrative Agent may require, such searches to be as of a date satisfactory to
the Administrative Agent.
	 
	 	(o)	 	Opinion of Counsel. Favorable written opinions (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of Bracewell &
Giuliani L.L.P., counsel for the Borrower and Subsidiaries. Such opinions shall be in
form and substance satisfactory to the Administrative Agent. The Borrower hereby
requests such counsel to deliver such opinions.
	 
	 	(p)	 	Indebtedness. All terms of the Material Indebtedness of the Borrower
and its Subsidiaries which shall be satisfactory to the Lenders, and all requisite
consents, approvals and amendments relating to such Material Indebtedness, which shall
be in form and substance satisfactory to the Administrative Agent.
	 
	 	(q)	 	Compliance Certificate. An initial Compliance Certificate, dated the
Effective Date and signed by a Financial Officer of the Borrower, confirming compliance
with the conditions set forth in paragraphs (a), (b) and (c) of Section 6.02 and
showing compliance as of March 31, 2006 with the financial covenants set forth in
Article IX.
	 
	 	(r)	 	Solvency Certificates. Certificates, dated the Effective Date and
signed by a Financial Officer of the Borrower and each of the Subsidiaries certifying
as to the Solvency of the Borrower and each of the Subsidiaries as of the Effective
Date and after giving effect to the Transactions.
	 
	 	(s)	 	Fees and Expenses. All fees and other amounts due and payable on or
prior to the Effective Date, including (1) all fees payable to the Administrative Agent
and each Lender under this Agreement or any separate agreement or fee letter, and (2)
to the extent invoiced, reimbursement or payment of all attorneys’ fees and
out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

Page 47

 

 

	 	(t)	 	Liens. Evidence that all existing Liens on any assets of the Borrower
and its Subsidiaries have been or simultaneously with the initial Loan hereunder are
being terminated and/or released.
	 
	 	(u)	 	Leases. Copies of all real estate leases and subleases entered into by
the Borrower, certified by a Financial Officer as complete and correct, which leases
and subleases shall be satisfactory to the Administrative Agent in all respects.
	 
	 	(v)	 	Landlord’s Agreements. Landlord’s waivers or subordination agreements
for each location of Collateral as the Administrative Agent may require, each in the
form and substance satisfactory to the Administrative Agent and executed by the
respective landlords of such locations.
	 
	 	(w)	 	Additional Documentation. Such additional documents and certificates
as the Administrative Agent or its counsel may request relating to the organization,
existence and good standing of each of the Borrower and the Subsidiaries, the
authorization of the Transactions, and any other legal matters relating to the
Borrower, the Subsidiaries, this Agreement or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding any provision of the Loan Documents to the
contrary, in the event Borrower fails to satisfy all of the requirements of this Section
6.01 on or before August 15, 2006, Administrative Agent and Lenders shall have no further
obligation to make any Loan, and Administrative Agent shall have the option to terminate the
Commitments.

     SECTION 6.02 Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

	 	(a)	 	Representations and Warranties. The representations and warranties of
the Borrower set forth in this Agreement and the other Loan Documents shall be true and
correct in all material respects on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as applicable.
	 
	 	(b)	 	No Default. At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.
	 
	 	(c)	 	Borrowing Request Form. With respect to any Borrowing, the
Administrative Agent shall have received, in accordance with Section 2.03, a Borrowing
Request Form, dated the date of such Borrowing, executed by an authorized officer of
the Borrower.

Page 48

 

 

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section.

ARTICLE VII

Affirmative Covenants

     Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Administrative Agent, the Issuing Bank and the Lenders that:

     SECTION 7.01 Financial Statements and Other Information. The Borrower will furnish to
the Administrative Agent:

	 	(a)	 	(i) within 120 days after the end of each fiscal year of the Borrower, its
unaudited, internally prepared consolidated and consolidating balance sheet and related
statements of operations, income statements, stockholders’ equity and cash flows 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 and certified by a Financial
Officer of Borrower (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 Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied
subject to the absence of footnotes; and (ii) within 120 days after the end of each
fiscal year of the Alon USA, its audited consolidated and consolidating balance sheet
and related statements of operations, income statements, stockholders’ equity and cash
flows 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 independent public
accountants of recognized national 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 Alon
USA and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;
	 
	 	(b)	 	within 30 days after the end of each of the first three fiscal quarters of each
fiscal year of the Borrower, its internally prepared consolidated and consolidating
balance sheet and related statements of operations, stockholders’ equity and cash flows
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 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 its Financial Officers as

Page 49

 

 

	 	 	 	presenting 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;

	 	(c)	 	concurrently with any delivery of financial statements under clause (a), a
Compliance Certificate of a Financial Officer of the Borrower (i) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the details
thereof and any action taken or proposed to be taken with respect thereto, (ii) setting
forth detailed calculations demonstrating compliance with the financial covenants set
forth herein and (iii) in the case of clause (b) only, stating whether any change in
GAAP or in the application thereof has occurred since the date of the audited financial
statements and, if any such change has occurred, specifying the effect of such change
on the financial statements accompanying such certificate;
	 
	 	(d)	 	promptly following any request therefor, such projections, budgets and other
information regarding the operations, business affairs and financial condition of any
Guarantor, the Borrower or any Subsidiary, or compliance with the terms of this
Agreement and the other Loan Documents, as the Administrative Agent may reasonably
request.

     SECTION 7.02 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 or affecting the Borrower or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result in a
Material Adverse Effect;
	 
	 	(c)	 	the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability of the
Borrower and its Subsidiaries in an aggregate amount exceeding $500,000; and
	 
	 	(d)	 	any other development that results in, or could reasonably be expected to
result 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 7.03 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

Page 50

 

 

and keep in full force and effect its legal existence and the rights, licenses, permits,
privileges, agreements and franchises material to the conduct of its business; provided
that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution
permitted under Section 8.03.

     SECTION 7.04 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 result in
a Material Adverse Effect or become a Lien on any of its property, 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 7.05 Maintenance of Properties. The Borrower will, and will cause each of its
Subsidiaries to keep, maintain and preserve all property (tangible and intangible) material to the
conduct of its business in good working order and condition, ordinary wear and tear excepted.

     SECTION 7.06 Books and Records; Inspection Rights

	 	(a)	 	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 of all
dealings and transactions in relation to its business and activities. The Borrower
will, and will cause each of its Subsidiaries to, permit any representatives designated
by the Administrative Agent 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 times and as often as
requested; provided, however, that such visits will be conducted no more than three (3)
times in any fiscal year unless a Default or Event of Default occurs.
	 
	 	(b)	 	The Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent (including any consultants,
accountants, lawyers and appraisers retained by the Administrative Agent) to conduct
evaluations and appraisals of the Borrower’s assets, all at such times and as often as
requested; provided, however, that such evaluations and appraisals shall not be
requested more than three (3) times per fiscal year unless a Default or Event of
Default occurs. The Borrower shall pay the fees and expenses of any representatives
retained by the Administrative Agent to conduct any such evaluation or appraisal.

     SECTION 7.07 Insurance. The Borrower will maintain, and will cause each of the
Subsidiaries to maintain, insurance with financially sound and reputable insurance companies in
such amounts and covering such risks as is usually carried by corporations engaged in similar
businesses and owning similar properties in the same general areas in which the Borrower and the
Subsidiaries operate, provided that in any event the Borrower will maintain and cause each

Page 51

 

 

Subsidiary to maintain workers’ compensation insurance or voluntary benefits and excess
employers liability plans, property insurance, comprehensive general liability insurance, and
products liability insurance satisfactory to the Lenders. Each property insurance policy covering
Collateral shall name the Administrative Agent as loss payee for the benefit of the Lenders and
shall provide that such policy will not be canceled or reduced without thirty (30) days’ prior
written notice to the Administrative Agent.

     SECTION 7.08 Compliance with Laws. The Borrower will, and will cause each of its
Subsidiaries to, and with respect to ERISA will cause each of its ERISA Affiliates to, comply with
all laws, rules, regulations and orders of any Governmental Authority 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 7.09 Use of Proceeds and Letters of Credit. The proceeds of the Loans will be
used only for refinancing existing indebtedness, general working capital of and future acquisitions
by the Borrower and its Subsidiaries. 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. Each Letter of Credit will be issued only to support a
transaction that is entered into in the ordinary course of the Borrower’s or any of its
Subsidiaries’ business.

     SECTION 7.10 Compliance with Agreements. The Borrower will comply, and will cause
each Subsidiary to comply, in all material respects with all agreements, contracts, and instruments
binding on it or affecting its properties or business.

     SECTION 7.11 Additional Subsidiaries. If any additional Subsidiary is formed or
acquired after the Effective Date, the Borrower will notify the Administrative Agent and the
Lenders thereof and (a) the Borrower will cause such Subsidiary (except any Foreign Subsidiary) to
become a Guarantor within three Business Days after such Subsidiary is formed or acquired and
promptly take such actions to create and perfect Liens on such Subsidiary’s assets to secure the
Obligations as the Administrative Agent or the Required Lenders shall request, (b) if any Equity
Interest in or Indebtedness of such Subsidiary are owned by or on behalf of the Borrower or any
Guarantor, the Borrower will cause such Equity Interests and promissory notes evidencing such
Indebtedness to be pledged to the Administrative Agent and the Lenders within three Business Days
after such Subsidiary is formed or acquired (except that, if such Subsidiary is a Foreign
Subsidiary, shares of common stock of such Subsidiary to be pledged may be limited to 65% of the
outstanding shares of common stock of such Subsidiary), and (c) Borrower and each Guarantor will
execute and deliver a Contribution and Indemnification Agreement.

     SECTION 7.12 Good Time Acquisition. If and when the Good Time Acquisition is
consummated, the Borrower will notify the Administrative Agent and the Lenders thereof and (a) the
Borrower will cause Good Time Enterprise and its subsidiaries to become a Guarantor simultaneously
with the Good Time Acquisition, and promptly take such actions to create and perfect Liens on the
assets of Good Time Enterprise and its subsidiaries to secure the Obligations as the Administrative
Agent or the Required Lenders shall request, (b) if any Equity Interest in or Indebtedness of such
subsidiary are owned by or on behalf of the Borrower or any Guarantor, the Borrower will cause such
Equity Interests and promissory notes evidencing such

Page 52

 

 

Indebtedness to be pledged to the Administrative Agent and the Lenders simultaneously with the
acquisition of such subsidiary (except that, if such subsidiary is a Foreign subsidiary, shares of
common stock of such subsidiary to be pledged may be limited to 65% of the outstanding shares of
common stock of such subsidiary), and (c) Borrower and each Guarantor will execute and deliver a
Contribution and Indemnification Agreement.

     SECTION 7.13 Environmental Matters. The Borrower shall cause each Subsidiary to
comply in all material respects with all limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules, and timetables contained in any Environmental
Laws.

     SECTION 7.14 Further Assurances. The Borrower will, and will cause each Subsidiary
to, execute and deliver such further agreements and instruments and take such further action as may
be requested by the Administrative Agent to carry out the provisions and purposes of this Agreement
and the other Loan Documents and to create, preserve, and perfect the Liens of the Administrative
Agent, for the benefit of the Administrative Agent and the Lenders, in the Collateral.

ARTICLE VIII

Negative Covenants

     Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit shall have
expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants
and agrees with the Administrative Agent, the Issuing Bank and the Lenders that:

     SECTION 8.01 Indebtedness. The Borrower will not, and will not permit any Subsidiary
to, create, incur, assume or permit to exist any Indebtedness, including without limitation
Subordinated Debt, except:

	 	(a)	 	Indebtedness created hereunder;
	 
	 	(b)	 	Indebtedness existing on the date hereof and set forth in Schedule 8.01, and
extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof or result in an earlier maturity date;
	 
	 	(c)	 	Indebtedness of the Borrower to any Guarantor and of any Guarantor to the
Borrower or any other Guarantor;
	 
	 	(d)	 	Guarantees by the Borrower of Indebtedness (other than Guarantees in favor of
Administrative Agent) of any Guarantor which when combined do not exceed $250,000 in
the aggregate;
	 
	 	(e)	 	Guarantees in favor of Administrative Agent;

Page 53

 

 

	 	(f)	 	Capital Lease Obligations (including those set forth in Schedule 8.01),
provided that no Default exists or results therefrom;
	 
	 	(g)	 	purchase money Indebtedness of the Borrower, Good Time Enterprise or any
Subsidiary (including Indebtedness set forth in Schedule 8.01) representing the
purchase price of Capital Expenditures, that is secured by the asset purchased,
provided that no Default exists or results therefrom;
	 
	 	(h)	 	Indebtedness referred to in the definition of Good Time Acquisition.
	 
	 	(i)	 	Indebtedness of the Borrower, Good Time Enterprise or any Subsidiary incurred
to finance the acquisitions permitted under Section 8.04(g) which is not secured by a
Lien on the Collateral, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof or result in
an earlier maturity date;
	 
	 	(j)	 	Hedging Agreements permitted by Section 8.05;
	 
	 	(k)	 	Indebtedness from judgments that otherwise do not constitute a Default or Event
of Default; and
	 
	 	(l)	 	Indebtedness other than those listed in (a) through (k) above in the aggregate
amount of $2,000,000 during the term of this Agreement.

Without in any way limiting the foregoing, no Subordinated Debt shall be permitted unless and until
Required Lenders shall have consented to such Subordinated Debt and approved all documents and
terms related thereto, which consent and approval may be granted or withheld in the sole and
absolute discretion of Required Lenders.

     SECTION 8.02 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 (including without
limitation stock or other Equity Interests in any of the Subsidiaries) now 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 that is set forth on Schedule 8.02 and exists as of the date hereof on
any property or asset of the Borrower or any Subsidiary; 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)	 	Liens securing Indebtedness permitted by clauses (f) and (g) of Section 8.01;
	 
	 	(d)	 	Liens securing Indebtedness permitted by clauses (h) and (i) of Section 8.01 to
the extent such Liens do not cover the Collateral; and

Page 54

 

 

	 	(e)	 	Liens created under the Loan Documents.

     SECTION 8.03 Fundamental Changes.

	 	(a)	 	The Borrower will not, and will not permit any Subsidiary to, merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, 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) any Subsidiary (and Good Time Enterprise and its subsidiaries upon
consummation of the Good Time Acquisition) may merge into the Borrower in a transaction
in which the Borrower is the surviving corporation, (ii) any Subsidiary that is not a
Guarantor may merge into any wholly-owned Subsidiary in a transaction in which the
surviving entity is a wholly-owned Subsidiary, (iii) any Guarantor may be dissolved,
liquidated or merged into another Subsidiary, so long as such dissolution, liquidation
or merger results in all assets of such Guarantor being owned by the Borrower or
another Guarantor, and (iv) any Subsidiary that is not a Guarantor 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 disadvantageous to the Lenders and
so long as such liquidation or dissolution results in all assets of such Subsidiary
being owned by the Borrower or a wholly-owned Subsidiary.
	 
	 	(b)	 	The Borrower will not, and will not permit any of its Subsidiaries to, engage
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
their respective fiscal years.

     SECTION 8.04 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 Equity Interests, 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) all or substantially all of the assets of any other Person or any assets of any other
Person constituting a business unit or division, except:

	 	(a)	 	Permitted Investments;
	 
	 	(b)	 	Equity Interests existing on the date hereof in the Subsidiaries;
	 
	 	(c)	 	Equity Interests in Subsidiaries formed after the Effective Date provided that
each such Subsidiary becomes a Guarantor and otherwise complies with the requirements
of Section 7.11;

Page 55

 

 

	 	(d)	 	loans or advances made by the Borrower to any Guarantor and made by any
Guarantor to the Borrower or any other Guarantor;
	 
	 	(e)	 	accounts receivable for sales of inventory and other products and services
provided by the Borrower and its Subsidiaries to their respective customers in the
ordinary course of business of the Borrower and its Subsidiaries;
	 
	 	(f)	 	the Good Time Acquisition provided that Good Time Enterprise, Good Time Holding
and Good Time Stores each becomes a Guarantor and executes the Security Agreement; and
	 
	 	(g)	 	Permitted Acquisitions
	 
	 	(h)	 	Capital Expenditures.
	 
	 	(i)	 	Guarantees constituting Indebtedness permitted by Section 8.01.

     SECTION 8.05 Hedging Agreements. The Borrower will not, and will not permit any of
its Subsidiaries to, enter into any Hedging Agreement; provided, however, that Borrower and its
Subsidiaries shall be permitted to enter into Hedging Agreements in the ordinary course of business
with Administrative Agent or a third party acceptable to Administrative Agent to (i) hedge
interest rate risk on the Loans, or (ii) hedge up to $500,000 in the aggregate of any other type of
risk.

     SECTION 8.06 Restricted Payments; Certain Payments of Indebtedness.

	 	(a)	 	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 or
incur any obligation, (contingent or otherwise) to do so, except (i) the Borrower may
declare and pay dividends with respect to its Equity Interests payable solely in
additional Equity Interests in Borrower, (ii) Borrower may declare and pay dividends to
any Guarantor (including, without limitation, Alon Interests), and (iii) Subsidiaries
may declare and pay dividends to the Borrower or any Guarantor.
	 
	 	(b)	 	The Borrower will not, and will not permit any Subsidiary to, make or agree to
pay or make, directly or indirectly, any payment or other distribution (whether in cash
securities or other property) of or in respect of principal of or interest on any
Indebtedness, or any payment or other distribution (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
Indebtedness, except:

	 	(i)	 	payment of Indebtedness created under the Loan Documents;
	 
	 	(ii)	 	refinancings of Indebtedness to the extent permitted by Section
8.01;

Page 56

 

 

	 	(iii)	 	payment of secured Indebtedness that becomes due as a result
of the voluntary sale or transfer of the property or assets securing such
Indebtedness, provided that such sale or transfer is otherwise permitted by
this Agreement;
	 
	 	(iv)	 	payment or prepayment of Capital Lease Obligations, so long as
no Default is existing or would result therefrom; and
	 
	 	(v)	 	payment when due of obligations under Hedging Agreements.

     SECTION 8.07 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 as permitted in this Agreement and 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 the Guarantors not involving any other
Affiliate, and (c) any Restricted Payment permitted by Section 8.06.

     SECTION 8.08 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 Equity Interests in such Subsidiary 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 any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions
existing on the date hereof identified on Schedule 8.08 (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 a Subsidiary pending such sale, provided such restrictions
and conditions apply only to the Subsidiary that is 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 and other contracts restricting the
assignment thereof.

     SECTION 8.09 Disposition of Assets. Except as otherwise permitted in Section 8.03,
the Borrower will not and will not permit any Subsidiary to sell, lease, assign, transfer, or
otherwise dispose of any of their respective assets (including without limitation stock or other
Equity Interests in any of the Subsidiaries or any of the voting rights of any such stock or other
Equity Interests); provided, however, that the following dispositions shall be permitted so long as
the Borrower and the Subsidiaries, as applicable, receive full, fair and reasonable consideration
at the time of such disposition at least equal to the fair market value of such asset

Page 57

 

 

being disposed and the proceeds of such disposition are deposited in accounts of Borrower maintained at the
offices of Administrative Agent:

	 	(a)	 	dispositions of inventory in the ordinary course of business of the Borrower
and its Subsidiaries;
	 
	 	(b)	 	non-exclusive licenses of intellectual property and leases and licenses of
other property by the Borrower and its Subsidiaries to their respective customers in
connection with providing products and services to such customers in the ordinary
course of business of the Borrower and the Subsidiaries.
	 
	 	(c)	 	sales, transfers and other dispositions to the Borrower or any wholly-owned
Subsidiary that is a Guarantor;
	 
	 	(d)	 	disposition of assets that are worn out, obsolete or no longer used or useful
in the conduct of the business of the Borrower and the Subsidiaries in Borrower’s
reasonable business judgment;
	 
	 	(e)	 	disposition of up to 6 convenience stores during any fiscal year, the proceeds
of which are applied to the Obligations;
	 
	 	(f)	 	disposition of up to 10 convenience stores during any fiscal year, which are
replaced by convenience stores of similar value within six (6) months after the
disposition of such stores;
	 
	 	(g)	 	disposition of any convenience stores during any fiscal year which are not
owned by any entity which is a party to the Security Agreement, which are not subject
to a Lien created under the Loan Documents or which are subject to a Lien permitted
under Section 8.02 (b) and (c);
	 
	 	(h)	 	other asset dispositions which do not exceed $1,000,000 in the aggregate during
the term of this Agreement.

     SECTION 8.10 Sale and Leaseback. The Borrower will not enter into, and will not
permit any Subsidiary to enter into, any arrangement with any Person pursuant to which it leases
from such Person real or personal property that has been or is to be sold or transferred, directly
or indirectly, by it to such Person; provided that the Borrower and the Subsidiaries will be
permitted to enter into such arrangements involving sales of personal property not to exceed
$500,000 in the aggregate during the term of this Agreement in connection with Capital Lease
Obligations permitted by Section 8.01(e).

     SECTION 8.11 Accounting. The Borrower will not, and will not permit any of its
Subsidiaries to, change its fiscal year or make any change (a) in accounting treatment or reporting
practices, except as required by GAAP and disclosed to the Administrative Agent, or (b) in tax
reporting treatment, except as required by law and disclosed to the Administrative Agent.

Page 58

 

 

     SECTION 8.12 Amendment of Material Documents. The Borrower will not, and will not
permit any Subsidiary to, amend, modify or waive any of its rights or obligations under its
certificate of incorporation, by-laws, other organizational documents or any documents evidencing
or relating to any Indebtedness of the Borrower or any Subsidiary, unless such amendment,
modification or waiver would not create a Material Adverse Effect. At any time any Subordinated
Debt exists, the Borrower will not, and will not permit any Subsidiary to, amend, modify, or waive
any of its rights or obligations under or any terms or provisions of any Subordinated Debt or any
document evidencing, governing or otherwise relating to any Subordinated Debt.

     SECTION 8.13 Preferred Equity Interests. The Borrower will not, and will not permit
any Subsidiary to, issue any preferred stock or other preferred Equity Interests.

     SECTION 8.14 Synthetic Repurchases. The Borrower will not, and will not permit any
Subsidiary to, enter into, or be a party to, or make any payment under, any Synthetic Purchase
Agreement.

ARTICLE IX

Financial Covenants

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

     SECTION 9.01 Fixed Charge Coverage Ratio. The Borrower will as of the end of each of
Borrower’s fiscal years maintain or cause to be maintained a Fixed Charge Coverage Ratio of not
less than 1.25 to 1.00; provided, however, that if Borrower fails to satisfy this requirement as of
the end of any fiscal year, such failure shall not be an Event of Default if Alon USA shall have
maintained a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00 as of the end of same fiscal
year.

ARTICLE X

Events of Default

     SECTION 10.01 Default. If any of the following Events of Default shall occur:

	 	(a)	 	the Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or
otherwise, and such failure shall continue for three (3) days;
	 
	 	(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 Section) payable under
this Agreement, when and as the same shall become due and payable, and such failure
shall continue for three (3) days;

Page 59

 

 

	 	(c)	 	any representation or warranty made or deemed made by or on behalf of the
Borrower or any Subsidiary in or in connection with this Agreement or any other Loan
Document or any amendment or modification hereof or thereof or waiver hereunder or
thereunder, or in any 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 hereof or thereof or waiver hereunder or thereunder,
shall prove to have been materially incorrect when made or deemed made;
	 
	 	(d)	 	the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement or any other Loan Document and, only in respect
of the covenants in Sections 7.03 through 7.14 of this Agreement, such failure shall
continue unremedied for ten days;
	 
	 	(e)	 	the Borrower or any Subsidiary shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable, and such failure is
not waiver and continues beyond any applicable cure period;
	 
	 	(f)	 	any event or condition occurs that results in any 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 any
Material Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; and such occurrence
is not waived and continues beyond any applicable grace period; provided that
this clause (f) 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
provided that such sale or transfer is otherwise permitted by this Agreement;
	 
	 	(g)	 	the Borrower, any of its Subsidiaries or any Guarantor (other than Alon USA and
Alon Interests) shall fail to observe or perform any covenant, condition or agreement
in respect of any Subordinated Debt, or any default or event of default shall occur
under any document or agreement evidencing or relating to any such Subordinated Debt;
	 
	 	(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
Borrower or any 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 Borrower or any 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;

Page 60

 

 

	 	(i)	 	the Borrower or any 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 (g) of this
Section, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or any
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 Borrower or any 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 $1,000,000 (net of judgment amounts to the extent covered by insurance) shall be
rendered against the Borrower, any Subsidiary or any combination thereof and the same
shall remain undischarged for a period of time in excess of the period provided by
applicable law for the filing of an appeal of such judgment or judgments or 30
consecutive days, whichever is shorter, during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor 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 opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Borrower and its Subsidiaries in
an aggregate amount exceeding $1,000,000;
	 
	 	(m)	 	a Change in Control shall occur;
	 
	 	(n)	 	a Material Adverse Effect shall occur;
	 
	 	(o)	 	this Agreement or any other Loan Document shall cease to be in full force and
effect or shall be declared null and void or the validity or enforceability thereof
shall be contested or challenged by the Borrower or any Subsidiary or any of their
respective shareholders, or the Borrower or any Guarantor shall deny that it has any
further liability or obligation under any of the Loan Documents, or any Lien created by
the Loan Documents shall for any reason cease to be a valid, first priority perfected
security interest in and Lien upon any of the Collateral purported to be covered
thereby, subject to any Liens permitted under Section 8.02 of this Agreement and except
to the extent that any such loss of perfection or priority results from the failure of
the Agent to maintain possession of certificates representing securities pledged under
the Security Agreement;

Page 61

 

 

	 	(p)	 	$5,000,000 or more of any properties, revenues and/or assets of Borrower or any
Subsidiary shall become subject to an order of forfeiture, seizure or divestiture and
the same shall not have been discharged within 30 days from the date of entry thereof;
or
	 
	 	(q)	 	the Borrower, any of its Subsidiaries or any Guarantor shall make any payment
on account of any Subordinated Debt, except (i) to the extent such payment is permitted
by the terms of the subordination provisions applicable to such Subordinated Debt, or
(ii) no Event of Default exists and such payment is made on an intercompany loan
between any Guarantor and Borrower.

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Section), 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 either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower
described in clause (h) or (i) of this Section, the Commitments shall automatically terminate and
the principal of the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued hereunder, shall automatically become due and
payable, without notice, demand, presentment, notice of dishonor, notice of acceleration, notice of
intent to accelerate, notice of intent to demand, protest, or other formalities of any kind, all of
which are hereby waived by the Borrower. In addition to the rights and remedies as set forth
above, Administrative Agent may also require that Borrower and all Guarantors (other than Alon
Interest and Alon USA) grant for the benefit of Administrative Agent and all Lenders (pursuant to a
deed of trust in form and content satisfactory to Administrative Agent in its sole judgment), a Lien
on all of the real estate interests of Borrower and all Guarantors (other than Alon Interest and
Alon USA) to secure payment and performance of the Obligations. If any Event of Default shall occur
and be continuing, the Administrative Agent may exercise all rights and remedies available to it in
law or in equity, under the Loan Documents, or otherwise, including, without limitation, the right
to foreclose or otherwise enforce any Lien granted to the Administrative Agent for the benefit of
itself and the Lenders to secure payment and performance of the Obligations.

     SECTION 10.02 Performance by the Administrative Agent. If the Borrower shall fail to
perform any covenant or agreement contained in any of the Loan Documents, the Administrative Agent
may perform or attempt to perform such covenant or agreement on behalf of the Borrower. In such
event, the Borrower shall, at the request of the Administrative Agent, promptly pay any amount
expended by the Administrative Agent in connection with such performance or attempted performance
to the Administrative Agent, together with interest thereon at the Maximum Rate from and including
the date of such expenditure to but excluding

Page 62

 

 

the date such expenditure is paid in full. Notwithstanding the foregoing, it is expressly
agreed that neither the Administrative Agent nor any Lender shall not have any liability or
responsibility for the performance of any obligation of the Borrower under this Agreement or any
other Loan Document.

ARTICLE XI

The Administrative Agent

     Each of the Lenders and the Issuing Bank 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 of the Loan
Documents, together with such actions and powers as are incidental thereto.

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

     The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing by
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 12.02), and (c) except as expressly set forth herein, the
Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number or percentage of
the Lenders as shall be necessary under the circumstances as provided in Section 12.02) 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 herewith, (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, or (v) the satisfaction of any
condition set forth in Article VI or elsewhere in any Loan Document, other than to confirm receipt
of items expressly required to be delivered to the Administrative Agent.

Page 63

 

 

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

     The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more subagents appointed by the Administrative Agent. The Administrative
Agent and any such subagent 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 subagent and to the Related Parties of the Administrative Agent and any
such subagent, 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, the
Issuing Bank and the Borrower. Upon any such resignation, the Required Lenders shall have the
right, with the consent of Borrower (which consent shall not be unreasonably withheld, and shall
not be required if any Default exists), 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, after consulting with the Lenders and the Issuing Bank appoint a successor
Administrative Agent which shall be a bank with an office in Dallas, Texas, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to
a successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 12.03 shall continue in effect
for the benefit of such retiring Administrative Agent, its subagents 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

Page 64

 

 

taking action under or based upon this Agreement, any related agreement or any document
furnished hereunder or thereunder.

ARTICLE XII

Miscellaneous

     SECTION 12.01 Notices. Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopy, as follows:

	 	(a)	 	if to the Borrower, to it at:

413 A North Grant

Odessa, Texas 79761

Attention of David Erlich

Telecopy No. (432) 333-4535

With a copy to:

7616 LBJ Frwy

Suite 300

Dallas, Texas 75251

Attn: Michael Oster

Telecopy No. (972) 367-3724

	 	(b)	 	if to the Administrative Agent and for any Borrowing Requests, to:

Wachovia Bank, National Association

5080 Spectrum Drive

Suite 500 East

Addison, Texas 75001

Attention of Clint Bryant

(Telecopy No. (972) 419-3136

	 	(c)	 	if to the Issuing Bank, to it at the same address as set forth above in
12.01(b); and
	 
	 	(d)	 	if to any other Lender, to it at its address (or telecopy number) set forth in
its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed to have been given
on the date of receipt.

Page 65

 

 

     SECTION 12.02 Waivers; Amendments.

	 	(a)	 	No failure or delay by the Administrative Agent, the Issuing Bank or any Lender
in exercising any right or power hereunder or under any other Loan Document 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, the Issuing Bank
and the Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of any Loan Document or consent to any departure by the Borrower or any
Subsidiary 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 or issuance of a Letter of Credit
shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge
of such Default at the time.
	 
	 	(b)	 	Neither this Agreement nor any other Loan Document nor any provision hereof may
be waived, amended or modified except, in the case of this Agreement, 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 or, in the case of any other Loan Document, pursuant to an agreement
or agreements in writing entered into by the Administrative Agent and the other parties
thereto; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal amount
of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any
fees payable hereunder, without the written consent of each Lender, (iii) postpone the
scheduled date of payment of the principal amount of any Loan or LC Disbursement, 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, (iv) change Section 2.13(b) or
(c) in a manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (v) reduce the Commitment of any Lender
without the written consent of each Lender, (vi) release any Guarantor without the
written consent of each Lender, except in connection with dispositions, mergers or
dissolutions expressly permitted by this Agreement, (vii) release all or any
substantial part of the Collateral from the Liens of the Loan Documents, without the
written consent of each Lender, except in connection with dispositions, mergers or
dissolutions permitted by this Agreement, or (viii) 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

Page 66

 

 

	 	 	 	modify any rights hereunder or make any determination or grant any consent hereunder, without
the written consent of each Lender; provided further that no such agreement
shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent or the Issuing Bank hereunder without the prior written consent of the
Administrative Agent or the Issuing Bank, as the case may be.

     SECTION 12.03 Expenses; Indemnity; Damage Waiver.

	 	(a)	 	The Borrower shall pay (i) all out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the fees, charges and disbursements
of counsel for the Administrative Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of this
Agreement, the other Loan Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all out-of-pocket expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any Letter of
Credit or any demand for payment thereunder, (iii) all out-of-pocket expenses incurred
by the Administrative Agent, the Issuing Bank, and, after an Event of Default, any
Lender, including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Issuing Bank or any Lender in connection with the enforcement
or protection of its rights in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or in connection with the Loans
made or Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or
Letters of Credit, (iv) all transfer, stamp, documentary, or other similar taxes,
assessments or charges levied by any Governmental Authority in respect of this
Agreement or any of the other Loan Documents, (v) all costs, out-of-pocket expenses,
assessments and other charges incurred in connection with any filing, registration,
recording, or perfection of any security interest or Lien contemplated by this
Agreement or any other Loan Document, and (vi) all other reasonable costs and
out-of-pocket expenses incurred by the Administrative Agent in connection with this
Agreement, any other Loan Document or the Collateral, including without limitation
costs, fees, expenses and other charges incurred in connection with performing or
obtaining any audit or appraisal in respect of the Collateral or for any surveys,
environmental assessments, title insurance, filing fees, recording costs and lien
searches provided for herein; provided, however, that, unless there is an Event
of Default, Administrative Agent agrees that it will only require reimbursement under
this clause (vi) for one (1) such audit or appraisal of the Collateral per calendar
year.
	 
	 	(b)	 	THE BORROWER SHALL INDEMNIFY THE ADMINISTRATIVE AGENT, THE ISSUING BANK 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,

Page 67

 

 

	 	 	 	LIABILITIES AND RELATED EXPENSES (OTHER THAN EXPENSES ADDRESSED UNDER SECTION
12.03(a) OF THIS AGREEMENT), INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY
COUNSEL FOR ANY INDEMNITEE, INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE ARISING
OUT OF, IN CONNECTION WITH, OR AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS
AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE PERFORMANCE BY THE
PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR THE CONSUMMATION OF THE
TRANSACTIONS OR ANY OTHER TRANSACTIONS CONTEMPLATED HEREBY, (II) ANY LOAN OR LETTER
OF CREDIT OR THE USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY THE ISSUING
BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE DOCUMENTS
PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH THE TERMS OF
SUCH LETTER OF CREDIT), (III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS
MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY THE BORROWER OR ANY OF ITS
SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO THE BORROWER OR
ANY OF ITS SUBSIDIARIES, OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A
PARTY THERETO; PROVIDED THAT ALTHOUGH EACH INDEMNITEE SHALL BE INDEMNIFIED
FOR SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES AND EXPENSES ARISING FROM ITS OWN
ORDINARY NEGLIGENCE, 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.
	 
	 	 	 	EXPRESS INDEMNITY FOR NEGLIGENCE: 
	 
	 	 	 	PURSUANT TO THIS SECTION 12.03(b), THE BORROWER INDEMNIFIES EACH INDEMNITEE FOR
LOSSES, CLAIMS, LIABILITIES AND EXPENSES ARISING FROM ANY INDEMNITEE’S OWN ORDINARY
NEGLIGENCE.

	 	(c)	 	To the extent that the Borrower fails to pay any amount required to be paid by
it to the Administrative Agent or the Issuing Bank under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent or the Issuing
Bank such Lender’s Applicable Percentage (determined as of the time that

Page 68

 

 

	 	 	 	the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent or the Issuing Bank 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, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of
Credit or the use of the proceeds thereof.
	 
	 	(e)	 	All amounts due under this Section shall be payable upon written demand
therefor.

     SECTION 12.04 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
(including any Affiliate of the Issuing Bank that issues any Letter of Credit), except
that the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and void) and
(ii) no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section. Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), 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, the Issuing Bank and
the Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.
	 
	 	(b)	 	(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
may assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be unreasonably
withheld) of:

	 	(A)	 	the Borrower, provided that no consent
of the Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if a Default has occurred
and is continuing, any other assignee; and
	 
	 	(B)	 	the Administrative Agent, provided that
no consent of the Administrative Agent shall be required for an
assignment of (x)

Page 69

 

 

	 	 	 	any Revolving Credit Commitment to an assignee that is a Lender with
a Revolving Credit Commitment immediately prior to giving effect to
such assignment or (y) all or any portion of a Term Loan to a Lender,
an Affiliate of a Lender or an Approved Fund.

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

	 	(A)	 	except in the case of an assignment to a Lender
or an Affiliate of a Lender or an assignment of the entire remaining
amount of the assigning Lender’s Commitment or Loans of any Class, the
amount of the Commitment or Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of
the Borrower and the Administrative Agent otherwise consent,
provided that no such consent of the Borrower shall be required
if a Default has occurred and is continuing;
	 
	 	(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 Commitments or 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.

	 	 	 	For the purposes of this Section 12.04(b), the term “Approved Fund” has the
following means:
	 
	 	 	 	“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.

	 	(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 

Page 70

 

 

	 	 	 	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 2.12, 3.01, 3.05 and
12.03). Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this paragraph shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph
(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 and LC Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register
shall be conclusive, and the Borrower, the Administrative Agent, the Issuing
Bank 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, the Issuing Bank and any Lender, at
any time and from time to time upon 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. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph. Each assigning Lender
shall surrender any Revolving Credit Note and Term Note subject to such
assignment, and the Borrower shall execute and deliver to the Administrative
Agent in exchange for the surrendered Notes a new Revolving Credit Note payable
to the order of the assignee in an amount equal to the Revolving Credit
Commitment assumed by such assignee pursuant to such Assignment and Assumption
and a new Term Note payable to the order of the assignee in an amount equal to
the outstanding Term Loans assigned to such assignee pursuant to such
Assignment and Assumption and, if the assigning Lender has retained a Revolving
Credit Commitment and any Term Loans, a new Revolving Credit Note payable to
the order of the assigning Lender in an amount equal to the Revolving Credit
Commitment retained by it

Page 71

 

 

	 	 	 	hereunder and a new Term Note in an amount equal to the Term Loans retained
by it hereunder. Such new Notes shall be in an aggregate face amount of the
surrendered Note, shall be dated the effective date of such Assignment and
Assumption, and shall otherwise be in substantially the form of Exhibit “A”
hereto and shall each constitute a “Note” for purposes of the Loan
Documents.

	 	(c)	 	(i) Any Lender may, without the consent of the Borrower, the Administrative
Agent or the Issuing Bank, 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, the Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce the
Loan Documents and to approve any amendment, modification or waiver of any provision of
the Loan Documents; 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 12.02(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 2.12, 3.01 and 3.05
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 12.08 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.13(c) as though it
were a Lender.
	 
	 	 	 	(ii) A Participant shall not be entitled to receive any greater payment under Section
2.12 or 3.01 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written consent.
A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.12 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 2.12(e) 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 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

Page 72

 

 

	 	 	 	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 12.05 Survival. All covenants, agreements, representations and warranties
made by the Borrower and the Subsidiaries in the Loan Documents and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement or any other Loan Document
shall be considered to have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at the time any credit
is extended hereunder, and shall continue in full force and effect as long as the principal of or
any accrued interest on any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have
not expired or terminated. The provisions of Sections 2.12, 3.01, 3.05 and 12.03 and Article XI
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the
Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof.

     SECTION 12.06 Counterparts; 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.
Except as provided in Section 6.01, 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 12.07 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 12.08 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 and all of the Obligations, irrespective of whether or not any demand shall have been made
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.

Page 73

 

 

     SECTION 12.09 GOVERNING LAW; VENUE; SERVICE OF PROCESS. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS
OF THE UNITED STATES OF AMERICA. THIS AGREEMENT HAS BEEN ENTERED INTO IN DALLAS COUNTY, TEXAS, AND
IT SHALL BE PERFORMABLE FOR ALL PURPOSES IN DALLAS COUNTY, TEXAS. ANY ACTION OR PROCEEDING AGAINST
THE BORROWER UNDER OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT IN DALLAS COUNTY, TEXAS. THE BORROWER HEREBY IRREVOCABLY (A) SUBMITS TO THE
NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE
AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT
IS AN INCONVENIENT FORUM. THE BORROWER AGREES THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY
CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED OR DETERMINED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 12.01. NOTHING HEREIN OR IN ANY OF THE OTHER LOAN
DOCUMENTS SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE ISSUING BANK OR ANY LENDER TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE
AGENT, THE ISSUING BANK OR ANY LENDER TO BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR
WITH RESPECT TO ANY OF ITS RESPECTIVE PROPERTY IN COURTS IN OTHER JURISDICTIONS. ANY ACTION OR
PROCEEDING BY THE BORROWER AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER SHALL BE BROUGHT ONLY IN
A COURT LOCATED IN DALLAS COUNTY, TEXAS.

     SECTION 12.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     SECTION 12.11 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 12.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’

Page 74

 

 

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 any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same
as those of this Section, to (i) any actual or 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 its 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 (ii) becomes available to the
Administrative Agent, the Issuing Bank 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 or its business, other than any such
information that is available to the Administrative Agent, the Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by the Borrower. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

     SECTION 12.13 Maximum Interest Rate. No provision of this Agreement or of any other
Loan Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable law. If any excess of interest in such respect is hereby provided
for, or shall be adjudicated to be so provided, in any Loan Document or otherwise in connection
with this loan transaction, the provisions of this Section shall govern and prevail and neither the
Borrower nor the sureties, guarantors, successors, or assigns of the Borrower shall be obligated to
pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or
detention of sums loaned pursuant hereto. In the event any Lender ever receives, collects, or
applies as interest any such sum, such amount which would be in excess of the maximum amount
permitted by applicable law shall be applied as a payment and reduction of the principal of the
indebtedness evidenced by the Notes; and, if the principal of the Notes has been paid in full, any
remaining excess shall forthwith be paid to the Borrower. In determining whether or not the
interest paid or payable exceeds the Maximum Rate, the Borrower and each Lender shall, to the
extent permitted by applicable law, (a) characterize any non-principal payment as an expense, fee,
or premium rather than as interest, (b) exclude voluntary prepayments and the effects thereof, and
(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the entire contemplated term of the indebtedness evidenced by the Notes so that interest
for the entire term does not exceed the Maximum Rate.

     SECTION 12.14 Non-Application of Chapter 346 of Texas Finance Code. The provisions of
Chapter 346 of the Texas Finance Code are specifically declared by the parties

Page 75

 

 

hereto not to be applicable to this Agreement or any of the other Loan Documents or to the
transactions contemplated hereby.

     SECTION 12.15 NO ORAL AGREEMENTS. THIS AGREEMENT, THE NOTES, ANY SEPARATE LETTER
AGREEMENTS WITH RESPECT TO FEES PAYABLE TO THE ADMINISTRATIVE AGENT, AND THE OTHER LOAN DOCUMENTS
REFERRED TO HEREIN REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

     SECTION 12.16 No Fiduciary Relationship. The relationship between the Borrower and
each Lender with respect to the Loan Documents and the Transactions is solely that of debtor and
creditor, and neither the Administrative Agent nor any Lender has any fiduciary or other special
relationship with the Borrower with respect to the Loan Documents and the Transactions, and no term
or condition of any of the Loan Documents shall be construed so as to deem the relationship between
the Borrower and any Lender with respect to the Loan Documents and the Transactions to be other
than that of debtor and creditor.

     SECTION 12.17 Construction. The Borrower, the Administrative Agent and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents with its legal
counsel and that this Agreement and the other Loan Documents shall be construed as if jointly
drafted by the parties hereto.

[Remainder of this page intentionally blank. Signature pages follow.]

Page 76

 

 

     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.

	 	 	 	 	 
	SOUTHWEST CONVENIENCE STORES, LLC
	 
	 	 	 	 
	By:	 	/s/ Jeff D. Morris
	 	 	 
	 

	 	Name:
	 	Jeff D. Morris
	 

	 	 	 	 
	 

	 	Title:
	 	Chairman
	 

	 	 	 	 
	 
	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender, as Issuing Bank and as Administrative Agent
	 
	 	 	 	 
	By:	 	/s/ Clint Bryant
	 	 	 
	 

	 	Name:
	 	Clint Bryant
	 

	 	 	 	 
	 

	 	Title:
	 	Vice President
	 

	 	 	 	 

Page 77

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]