Document:

exv4w21

Exhibit 4.21

 

OLYMPIC STEEL, INC.,

OLYMPIC STEEL LAFAYETTE, INC.,

OLYMPIC STEEL MINNEAPOLIS, INC.,

OLYMPIC STEEL IOWA, INC.,

OLY STEEL WELDING, INC.,

OLY STEEL NC, INC.,

TINSLEY GROUP-PS&W, INC., and

IS ACQUISITION, INC.,

as Borrowers

 

 

LOAN AND SECURITY AGREEMENT

Dated as of June 30, 2010

$125,000,000

 

 

CERTAIN FINANCIAL INSTITUTIONS,

as Lenders

and

BANK OF AMERICA, N.A.,

as Agent

********

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arranger and Joint Book Manager

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arranger and Joint Book Manager

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent

COMERICA BANK

as Co-Managing Agent

KEYBANK NATIONAL ASSOCIATION

as Co-Managing Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION
	 	 	2	 
	1.1 Definitions
	 	 	2	 
	1.2 Accounting Terms
	 	 	27	 
	1.3 Uniform Commercial Code
	 	 	27	 
	1.4 Certain Matters of Construction
	 	 	27	 
	 
	 	 	 	 
	SECTION 2. CREDIT FACILITIES
	 	 	28	 
	2.1 Revolver Commitment
	 	 	28	 
	2.2 Incremental Facilities
	 	 	29	 
	2.3 Letter of Credit Facility
	 	 	30	 
	 
	 	 	 	 
	SECTION 3. INTEREST, FEES AND CHARGES
	 	 	32	 
	3.1 Interest
	 	 	32	 
	3.2 Fees
	 	 	34	 
	3.3 Computation of Interest, Fees, Yield Protection
	 	 	34	 
	3.4 Reimbursement Obligations
	 	 	34	 
	3.5 Illegality
	 	 	35	 
	3.6 Inability to Determine Rates
	 	 	35	 
	3.7 Increased Costs; Capital Adequacy
	 	 	35	 
	3.8 Mitigation
	 	 	36	 
	3.9 Funding Losses
	 	 	37	 
	3.10 Maximum Interest
	 	 	37	 
	 
	 	 	 	 
	SECTION 4. LOAN ADMINISTRATION
	 	 	37	 
	4.1 Manner of Borrowing and Funding Revolver Loans
	 	 	37	 
	4.2 Defaulting Lender
	 	 	39	 
	4.3 Number and Amount of LIBOR Loans; Determination of Rate
	 	 	39	 
	4.4 Borrower Agent
	 	 	39	 
	4.5 One Obligation
	 	 	39	 
	4.6 Effect of Termination
	 	 	39	 
	4.7 Renewal Discussions
	 	 	40	 
	 
	 	 	 	 
	SECTION 5. PAYMENTS
	 	 	40	 
	5.1 General Payment Provisions
	 	 	40	 
	5.2 Repayment of Revolver Loans
	 	 	40	 
	5.3 [Intentionally Omitted]
	 	 	40	 
	5.4 Payment of Other Obligations
	 	 	40	 
	5.5 Marshaling; Payments Set Aside
	 	 	40	 
	5.6 Post-Default Allocation of Payments
	 	 	40	 
	5.7 Application of Payments
	 	 	41	 
	5.8 Loan Account; Account Stated
	 	 	42	 
	5.9 Taxes
	 	 	42	 
	5.10 Lender Tax Information
	 	 	43	 
	5.11 Nature and Extent of Each Borrower’s Liability
	 	 	43	 
	 
	 	 	 	 
	SECTION 6. CONDITIONS PRECEDENT
	 	 	45	 

 

 

	 	 	 	 	 
	 	 	Page	 
	6.1 Conditions Precedent to Initial Loans
	 	 	45	 
	6.2 Conditions Precedent to All Credit Extensions
	 	 	47	 
	 
	 	 	 	 
	SECTION 7. COLLATERAL
	 	 	47	 
	7.1 Grant of Security Interest
	 	 	47	 
	7.2 Lien on Deposit Accounts; Cash Collateral
	 	 	48	 
	7.3 [Intentionally Omitted]
	 	 	49	 
	7.4 Other Collateral
	 	 	49	 
	7.5 No Assumption of Liability
	 	 	49	 
	7.6 Further Assurances
	 	 	49	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL ADMINISTRATION
	 	 	50	 
	8.1 Borrowing Base Certificates
	 	 	50	 
	8.2 Administration of Accounts
	 	 	50	 
	8.3 Administration of Inventory
	 	 	51	 
	8.4 Administration of Equipment
	 	 	51	 
	8.5 Administration of Deposit Accounts
	 	 	52	 
	8.6 General Provisions
	 	 	52	 
	8.7 Power of Attorney
	 	 	53	 
	 
	 	 	 	 
	SECTION 9. REPRESENTATIONS AND WARRANTIES
	 	 	54	 
	9.1 General Representations and Warranties
	 	 	54	 
	9.2 Complete Disclosure
	 	 	58	 
	 
	 	 	 	 
	SECTION 10. COVENANTS AND CONTINUING AGREEMENTS
	 	 	59	 
	10.1 Affirmative Covenants
	 	 	59	 
	10.2 Negative Covenants
	 	 	62	 
	10.3 Financial Covenants
	 	 	68	 
	 
	 	 	 	 
	SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT
	 	 	68	 
	11.1 Events of Default
	 	 	68	 
	11.2 Remedies upon Default
	 	 	70	 
	11.3 License
	 	 	71	 
	11.4 Setoff
	 	 	71	 
	11.5 Remedies Cumulative; No Waiver
	 	 	71	 
	 
	 	 	 	 
	SECTION 12. AGENT
	 	 	72	 
	12.1 Appointment, Authority and Duties of Agent
	 	 	72	 
	12.2 Agreements Regarding Collateral and Field Examination Reports
	 	 	73	 
	12.3 Reliance By Agent
	 	 	73	 
	12.4 Action Upon Default
	 	 	73	 
	12.5 Ratable Sharing
	 	 	74	 
	12.6 Indemnification of Agent Indemnitees
	 	 	74	 
	12.7 Limitation on Responsibilities of Agent
	 	 	74	 
	12.8 Successor Agent and Co-Agents
	 	 	75	 
	12.9 Due Diligence and Non-Reliance
	 	 	75	 
	12.10 Replacement of Certain Lenders
	 	 	75	 
	12.11 Remittance of Payments and Collections
	 	 	76	 
	12.12 Agent in its Individual Capacity
	 	 	76	 
	12.13 Agent Titles
	 	 	77	 
	12.14 No Third Party Beneficiaries
	 	 	77	 

(ii)

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS
	 	 	77	 
	13.1 Successors and Assigns
	 	 	77	 
	13.2 Participations
	 	 	77	 
	13.3 Assignments
	 	 	78	 
	 
	 	 	 	 
	SECTION 14. MISCELLANEOUS
	 	 	78	 
	14.1 Consents, Amendments and Waivers
	 	 	78	 
	14.2 Indemnity
	 	 	79	 
	14.3 Notices and Communications
	 	 	79	 
	14.4 Performance of Borrowers’ Obligations
	 	 	80	 
	14.5 Credit Inquiries
	 	 	80	 
	14.6 Severability
	 	 	80	 
	14.7 Cumulative Effect; Conflict of Terms
	 	 	80	 
	14.8 Counterparts
	 	 	81	 
	14.9 Entire Agreement
	 	 	81	 
	14.10 Relationship with Lenders
	 	 	81	 
	14.11 No Advisory or Fiduciary Responsibility
	 	 	81	 
	14.12 Confidentiality
	 	 	81	 
	14.13 GOVERNING LAW
	 	 	82	 
	14.14 Consent to Forum
	 	 	82	 
	14.15 Waivers by Borrowers
	 	 	82	 
	14.16 Patriot Act Notice
	 	 	83	 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A

	 	Revolver Note
	Exhibit B

	 	Joinder Agreement
	Exhibit C

	 	Assignment and Acceptance
	Exhibit D

	 	Assignment Notice
	Exhibit E

	 	Compliance Certificate
	Exhibit F

	 	Continuing Letters of Credit
	 
	 	 
	 
	 	 
	Schedule 1.1

	 	Commitments of Lenders
	Schedule 8.5

	 	Deposit Accounts
	Schedule 8.6.1

	 	Business Locations
	Schedule 9.1.4

	 	Names and Capital Structure
	Schedule 9.1.11

	 	Patents, Trademarks, Copyrights and Licenses
	Schedule 9.1.14

	 	Environmental Matters
	Schedule 9.1.15

	 	Restrictive Agreements
	Schedule 9.1.16

	 	Litigation
	Schedule 9.1.18

	 	Pension Plans
	Schedule 9.1.20

	 	Labor Contracts
	Schedule 10.2.2

	 	Existing Liens
	Schedule 10.2.5

	 	Existing Investments
	Schedule 10.2.17

	 	Existing Affiliate Transactions

(iii)

 

LOAN AND SECURITY AGREEMENT

     THIS LOAN AND SECURITY AGREEMENT is dated as of June 30, 2010, among OLYMPIC STEEL, INC.,
an Ohio corporation (“Olympic Steel”), OLYMPIC STEEL LAFAYETTE, INC., an Ohio corporation
(“Olympic Lafayette”), OLYMPIC STEEL MINNEAPOLIS, INC., a Minnesota corporation
(“Olympic Minneapolis”), OLYMPIC STEEL IOWA, INC., an Iowa corporation (“Olympic
Iowa”), OLY STEEL WELDING, INC., a Michigan corporation (“Oly Welding”), OLY STEEL NC,
INC., a Delaware corporation (“Oly NC”), TINSLEY GROUP-PS&W, INC., a North Carolina
corporation (“Tinsley Group”), IS ACQUISITION, INC., an Ohio corporation (“IS
Acquisition”, and together with Olympic Steel, Olympic Lafayette, Olympic Minneapolis, Olympic
Iowa, Oly Welding, Oly NC and Tinsley Group, collectively, “Borrowers”), the financial
institutions party to this Agreement from time to time as lenders (collectively,
“Lenders”), and BANK OF AMERICA, N.A., a national banking association, as agent for the
Lenders (together with its successors and assigns, “Agent”).

R E C I T A L S:

     Borrowers have requested that Lenders provide a credit facility to Borrowers to finance their
mutual and collective business enterprise. Lenders are willing to provide the credit facility on
the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, for valuable consideration hereby acknowledged, the parties agree as follows:

SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION

     1.1 Definitions. As used herein, the following terms have the meanings set forth below:

     Account: as defined in the UCC, including all rights to payment for goods sold or
leased, or for services rendered.

     Account Debtor: a Person who is obligated under an Account, Chattel Paper or General
Intangible.

     Accounts Formula Amount: 85% of the Value of Eligible Accounts.

     Acquisition: any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets
of a Person, or of any business or division of a Person, (b) the acquisition of in excess of fifty
percent (50%) of record or beneficial ownership of any Equity Interests of any Person or otherwise
causing any Person to become a Subsidiary of a Borrower, or (c) a merger or consolidation or any
other combination with another Person.

     Adjusted EBITDA: EBITDA plus, with respect to any Target that is owned by the
Borrowers for which the Agent has received financial statements pursuant to Section 10.1.2(c) for
less than twelve (12) fiscal months, Pro Forma EBITDA allocated to each month prior to the
Acquisition thereof included in the trailing twelve (12) fiscal month period for which EBITDA is
being calculated, minus with respect to any Asset Disposition consummated within the period in
question, EBITDA attributable to the Subsidiary, profit centers, or other asset which is the
subject of such Asset Disposition from the beginning of such period until the date of consummation
of such Asset Disposition.

     Adjusted Fixed Charge Coverage Ratio: the ratio, determined on a consolidated basis
for

 

 

Borrowers and Subsidiaries for the most recent twelve fiscal month period, of (a) Adjusted
EBITDA minus Capital Expenditures (except those financed with Borrowed Money other than
Revolver Loans) and cash taxes paid (other than to the extent deducted in calculating EBITDA for
the applicable measurement period), to (b) Fixed Charges minus, without duplication,
interest and principal payments on Borrowed Money for such twelve fiscal month period that would
have been paid from the proceeds of any Asset Dispositions consummated within such twelve fiscal
month period if such Asset Disposition was consummated on the first day of such twelve fiscal month
period.

     Affiliate: with respect to any 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. “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 correlative meanings.

     Agent Indemnitees: Agent and its officers, directors, employees, Affiliates, agents
and attorneys.

     Agent Professionals: attorneys, accountants, appraisers, auditors, business valuation
experts, environmental engineers or consultants, turnaround consultants, and other professionals
and experts retained by Agent.

     Allocable Amount: as defined in Section 5.11.3.

     Anti-Terrorism Laws: any laws relating to terrorism or money laundering, including the
Patriot Act.

     Applicable Law: all laws, rules, regulations and governmental binding guidelines
applicable to the Person, conduct, transaction, agreement or matter in question, including all
applicable statutory law, common law and equitable principles, and all provisions of constitutions,
treaties, statutes, rules, regulations, orders and decrees of Governmental Authorities.

     Applicable Margin: with respect to any Type of Loan, the margin set forth below, and
with respect the fee payable pursuant to Section 3.2.1, the unused line fee percentage (the
“Unused Line Fee Percentage”) set forth below, in each case as determined by the Revolver
Utilization for the last Fiscal Quarter:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Base Rate	 	LIBOR	 	 
	 	 	 	 	Revolver	 	Revolver	 	Unused Line Fee
	Level	 	Revolver Utilization	 	Loans	 	Loans	 	Percentage
	I

	 	> $100,000,000
	 	 	1.50	%	 	 	3.00	%	 	 	0.375	%
	II

	 	> 50,000,000 < $100,000,000
	 	 	1.25	%	 	 	2.75	%	 	 	0.500	%
	III

	 	< 50,000,000
	 	 	1.00	%	 	 	2.50	%	 	 	0.625	%

Until October 1, 2010, margins and the unused line fee percentage shall be determined as if Level
III were applicable. On October 1, 2010 and thereafter, the margins and the Unused Line Fee
Percentage shall be subject to increase or decrease based on the Revolver Utilization as determined
by Agent for the last Fiscal Quarter, which change shall be effective on the first day of the
Fiscal Quarter immediately following such Fiscal Quarter.

     Approved Fund: any Person (other than a natural person) that is engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in its
ordinary course

-3-

 

of activities, and is administered or managed by a Lender, an entity that
administers or manages a Lender, or an Affiliate of either.

     Asset Disposition: a sale, lease, license, consignment, transfer or other disposition
of Property of an Obligor, including a disposition of Property in connection with a sale-leaseback
transaction or synthetic lease.

     Assignment and Acceptance: an assignment agreement between a Lender and Eligible
Assignee, in the form of Exhibit C.

     Availability: the Borrowing Base minus the principal balance of all Revolver Loans.

     Availability Reserve: the sum (without duplication) of (a) the Inventory Reserve; (b)
the Rent and Charges Reserve; (c) the LC Reserve; (d) the Bank Product Reserve; (e) the aggregate
amount of liabilities secured by Liens upon Collateral that are senior to Agent’s Liens (but
imposition of any such reserve shall not waive an Event of Default arising therefrom, if any); and
(f) such additional reserves, in such amounts and with respect to such matters, as Agent in its
Permitted Discretion may elect to impose from time to time.

     Bank of America: Bank of America, N.A., a national banking association, and its
successors and assigns.

     Bank of America Indemnitees: Bank of America and its officers, directors, employees,
Affiliates, agents and attorneys.

     Bank Product: any of the following products, services or facilities extended to any
Borrower or Subsidiary by a Lender or any of its Affiliates: (a) Cash Management Services; (b)
products under Hedging Agreements; (c) commercial credit card and merchant card services; and (d)
leases and other banking products or services as may be requested by any Borrower or Subsidiary,
other than Letters of Credit; provided, however, that for any of the foregoing to
be included as an “Obligation” for purposes of a distribution under Section 5.6.1, the applicable
Secured Party and Obligor must have provided written notice to Agent no later than the third day
following the establishment of the Bank Product of (i) the existence of such Bank Product and (ii)
the maximum dollar amount of obligations arising thereunder to be included as a Bank Product
Reserve (“Bank Product Amount”). The Bank Product Amount may be changed from time to time
upon written notice to Agent by the Secured Party and Obligor. No Bank Product Amount may be
established or increased at any time that a Default or Event of Default exists, or if a reserve in
such amount would cause an Overadvance.

     Bank Product Amount: as defined in the definition of Bank Product.

     Bank Product Debt: Debt and other obligations of an Obligor relating to Bank Products.

     Bank Product Reserve: the aggregate amount of reserves established by Agent from time
to time in its discretion in respect of Bank Product Debt.

     Bankruptcy Code: Title 11 of the United States Code.

     Base Rate: for any day, a per annum rate equal to the greatest of (a) the Prime Rate
for such day; (b) the Federal Funds Rate for such day, plus 0.50%; and (c) LIBOR for a 30 day
interest period as determined on such day, plus 1.5%.

-4-

 

     Base Rate Loan: any Loan that bears interest based on the Base Rate.

     Base Rate Revolver Loan: a Revolver Loan that bears interest based on the Base Rate.

     Board of Governors: the Board of Governors of the Federal Reserve System.

     Borrowed Money: with respect to any Obligor, without duplication, its (a) Debt that
(i) arises from the lending of money by any Person to such Obligor, (ii) is evidenced by notes,
drafts, bonds, debentures, credit documents or similar instruments, (iii) accrues interest or is a
type upon which interest charges are customarily paid (excluding trade payables owing in the
Ordinary Course of Business), or (iv) was issued or assumed as full or partial payment for
Property; (b) Capital Leases; (c) reimbursement obligations with respect to letters of credit; and
(d) guaranties of any Debt of the foregoing types owing by another Person.

     Borrower Agent: as defined in Section 4.4.

     Borrowing: a group of Loans of one Type that are made on the same day or are converted
into Loans of one Type on the same day.

     Borrowing Base: on any date of determination, an amount equal to the lesser of (a) the
aggregate amount of Revolver Commitments, minus the LC Reserve; or (b) the sum of the
Accounts Formula Amount, plus the Inventory Formula Amount, plus the Segregated
Account Cash Balance, minus the Availability Reserve.

     Borrowing Base Certificate: a certificate, in form and substance satisfactory to
Agent, by which Borrowers certify calculation of the Borrowing Base.

     Business Day: any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the laws of, or are in fact closed in, North Carolina, Ohio or
Illinois, and if such day relates to a LIBOR Loan, any such day on which dealings in Dollar
deposits are conducted between banks in the London interbank Eurodollar market.

     Capital Expenditures: all liabilities incurred or expenditures made by a Borrower or
Subsidiary for the acquisition of fixed assets, or any improvements, replacements, substitutions or
additions thereto with a useful life of more than one year.

     Capital Lease: any lease that is required to be capitalized for financial reporting
purposes in accordance with GAAP.

     Cash Collateral: cash, and any interest or other income earned thereon, that is
delivered to Agent to Cash Collateralize any Obligations.

     Cash Collateral Account: a demand deposit, money market or other account established
by Agent at such financial institution as Agent may select in its discretion, which account shall
be subject to Agent’s Liens for the benefit of Secured Parties.

     Cash Collateralize: the delivery of cash to Agent, as security for the payment of
Obligations, in an amount equal to (a) with respect to LC Obligations, 105% of the aggregate LC
Obligations, and (b) with respect to any inchoate, contingent or other Obligations (including
Obligations arising under Bank Products), Agent’s good faith estimate of the amount due or to
become due, including all fees and other amounts relating to such Obligations. “Cash
Collateralization” has a correlative meaning.

-5-

 

     Cash Equivalents: (a) marketable obligations issued or unconditionally guaranteed by,
and backed by the full faith and credit of, the United States government, maturing within 12 months
of the date of acquisition; (b) certificates of deposit, time deposits and bankers’ acceptances
maturing within 12 months of the date of acquisition, and overnight bank deposits, in each case
which are issued by a commercial bank organized under the laws of the United States or any state or
district thereof, rated A-1 (or better) by S&P or P-1 (or better) by Moody’s at the time of
acquisition, and (unless issued by a Lender) not subject to offset rights; (c) repurchase
obligations with a term of not more than 30 days for underlying investments of the types described
in clauses (a) and (b) entered into with any bank meeting the qualifications specified in clause
(b); (d) commercial paper rated A-1 (or better) by S&P or P-1 (or better) by Moody’s, and maturing
within nine months of the date of acquisition; and (e) shares of any money market fund that has
substantially all of its assets invested continuously in the types of investments referred to
above, has net assets of at least $500,000,000 and has the highest rating obtainable from either
Moody’s or S&P.

     Cash Management Services: any services provided from time to time by any Lender or any
of its Affiliates to any Borrower or Subsidiary in connection with operating, collections, payroll,
trust, or other depository or disbursement accounts, including automated clearinghouse, e-payable,
electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository,
information reporting, lockbox and stop payment services.

     CERCLA: the Comprehensive Environmental Response Compensation and Liability Act (42
U.S.C. § 9601 et seq.).

     Change in Law: the occurrence, after the date hereof, of (a) the adoption or taking
effect of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation or application thereof by any Governmental
Authority; or (c) the making or issuance of any request, binding guideline or directive by any
Governmental Authority.

     Change of Control:

     (a) Unless pursuant to mergers, consolidations or other business combinations permitted by
Section 10.2.9(a), Olympic Steel ceases to own and control, beneficially and of record, directly or
indirectly, all Equity Interests in any other Borrower or any Inactive Subsidiary;

     (b) the acquisition of ownership or voting control, directly or indirectly, beneficially or of
record, on or after the Closing Date, by any Person or group (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the “1934 Act”),
as then in effect), of shares representing more than twenty-five percent (25%) of the aggregate
Ordinary Voting Power represented by the issued and outstanding capital stock of Olympic Steel;

     (c) the occupation of a majority of the seats (other than vacant seats) on the board of
directors of Olympic Steel by Persons who were neither (i) nominated by the board of directors of
Olympic Steel nor (ii) appointed by directors so nominated, unless approved by the then majority of
directors; or

     (d) unless permitted by clause (g) of the definition of the term “Permitted Asset Disposition”
or in connection with a transaction permitted by Section 10.2.9(a), the sale or transfer of all or
substantially all of a Borrower’s assets are sold or transferred, in a single transaction or a
series of related transactions, to any person (within the meaning of Rule 13d-3 of the Securities
Exchange Commission under the 1934 Act, as in effect on the Closing Date) or related persons
constituting a group (within the meaning of Rule 13d-3 of the Securities Exchange Commission under
the 1934 Act, as in effect on the Closing Date).

-6-

 

For purposes of this definition, “Ordinary Voting Power” means the aggregate voting power
attributable to all shares of Voting Stock of Olympic Steel for purposes of electing directors of
Olympic Steel; and “Voting Stock” means shares of capital stock of any class or classes of a Person
the holders of which are ordinarily, in the absence of contingencies, entitled to elect corporate
directors (or Persons performing similar functions).

     Claims: all liabilities, obligations, losses, damages, penalties, judgments,
proceedings, interest, costs and expenses of any kind (including remedial response costs,
reasonable attorneys’ fees and Extraordinary Expenses) at any time (including after Full Payment of
the Obligations, resignation or replacement of Agent, or replacement of any Lender) incurred by or
asserted against any Indemnitee in any way relating to (a) any Loans, Letters of Credit, Loan
Documents, or the use thereof or transactions relating thereto, (b) any action taken or omitted to
be taken by any Indemnitee in connection with any Loan Documents, (c) the existence or perfection
of any Liens, or realization upon any Collateral, (d) exercise of any rights or remedies under any
Loan Documents or Applicable Law, or (e) failure by any Obligor to perform or observe any terms of
any Loan Document, in each case including all costs and expenses relating to any investigation,
litigation, arbitration or other proceeding (including an Insolvency Proceeding or appellate
proceedings), whether or not the applicable Indemnitee is a party thereto.

     Closing Date: as defined in Section 6.1.

     Code: the Internal Revenue Code of 1986, as amended.

     Collateral: all Property described in Section 7.1, all Property described in any
Security Documents as security for any Obligations, and all other Property that now or hereafter
secures (or is intended to secure) any Obligations.

     Commitment: for any Lender, the aggregate amount of such Lender’s Revolver Commitment.
“Commitments” means the aggregate amount of all Revolver Commitments.

     Commitment Termination Date: the earliest to occur of (a) the Revolver Termination
Date; (b) the date on which Borrowers terminate the Revolver Commitments pursuant to Section 2.1.4;
and (c) the date on which the Revolver Commitments are terminated pursuant to Section 11.2.

     Compliance Certificate: a certificate, substantially in the form of Exhibit E or
otherwise in form and substance satisfactory to Agent, by which Borrowers certify compliance with
Section 10.3 and calculate the Fixed Charge Coverage Ratio for the applicable period (regardless of
whether compliance with the Fixed Charge Coverage Ratio is tested for such period).

     Contingent Obligation: any obligation of a Person arising from a guaranty, indemnity
or other assurance of payment or performance of any Debt, lease, dividend or other obligation
(“primary obligations”) of another obligor (“primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such Person under any (a) guaranty,
endorsement, co-making or sale with recourse of an obligation of a primary obligor; (b) obligation
to make take-or-pay or similar payments regardless of nonperformance by any other party to an
agreement; and (c) arrangement (i) to purchase any primary obligation or security therefor, (ii) to
supply funds for the purchase or payment of any primary obligation, (iii) to maintain or assure
working capital, equity capital, net worth or solvency of the primary obligor, (iv) to purchase
Property or services for the purpose of assuring the ability of the primary obligor to perform a
primary obligation, or (v) otherwise to assure or hold harmless the holder of any primary
obligation against loss in respect thereof. The amount of any Contingent Obligation shall be
deemed to be the stated or determinable amount of the primary obligation (or, if less, the maximum
amount for which such Person may be liable under the instrument evidencing the Contingent
Obligation) or, if not

-7-

 

stated or determinable, the maximum reasonably anticipated liability with respect thereto.

     Continuing Letters of Credit: letters of credit issued by Comerica Bank copies of
which are attached as Exhibit F.

     Covenant Trigger Period: the period (a) commencing on the day that Availability is
less than the greater of (X) $20,000,000 and (Y) 15% of the aggregate amount of Revolver
Commitments on such day; and (b) continuing until the day Availability has been greater than the
greater of (X) $20,000,000 and (Y) 15% of the aggregate amount of Revolver Commitments, in the case
of clauses (b)(X)and (b)(Y), for a period of 30 consecutive days.

     CWA: the Clean Water Act (33 U.S.C. §§ 1251 et seq.).

     Debt: as applied to any Person, without duplication, (a) all Borrowed Money; (b) all
Contingent Obligations; (c) all reimbursement obligations in connection with letters of credit
issued for the account of such Person; and (d) in the case of a Borrower, the Obligations. The
Debt of a Person shall include any recourse Debt of any partnership in which such Person is a
general partner or joint venturer.

     Default: an event or condition that, with the lapse of time or giving of notice, would
constitute an Event of Default.

     Default Rate: for any Obligation (including, to the extent permitted by law, interest
not paid when due), 2% plus the interest rate otherwise applicable thereto.

     Defaulting Lender: any Lender, as determined by the Agent, that (a) fails to make any
payment or provide funds to Agent or any Borrower as required hereunder or fails otherwise to
perform its obligations under any Loan Document, and such failure is not cured within one Business
Day, or (b) is the subject of any Insolvency Proceeding. Any Defaulting Lender shall cease to be a
Defaulting Lender in the event and on the date that the Agent determines that a Defaulting Lender
has adequately remedied all matters that caused such Lender to be a Defaulting Lender.

     Deposit Account Control Agreements: the Deposit Account control agreements to be
executed by an institution maintaining a Deposit Account for a Borrower, in favor of Agent, for the
benefit of Secured Parties, as security for the Obligations.

     Distribution: any declaration or payment of a distribution, interest or dividend on
any Equity Interest (other than payment-in-kind); any distribution, advance or repayment of Debt to
a holder of Equity Interests; or any purchase, redemption, or other acquisition or retirement for
value of any Equity Interest.

     Dollars: lawful money of the United States.

     Dominion Account: a special account established by Borrowers at Bank of America or
another bank acceptable to Agent, over which Agent has exclusive control for withdrawal purposes.

     Earn-Out Obligations: unsecured obligations incurred or owing by one or more Borrowers
to seller(s) in a Permitted Acquisition to be satisfied by payment in cash and representing
“earn-outs” and other agreements to make any payment the amount of which is, or the terms of
payment of which are, in any respect subject to or contingent upon the revenues, income, cash flow,
profits or other result of operations of any Person or business.

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     EBITDA: determined on a consolidated basis for Borrowers and Subsidiaries, net income,
calculated before (i) interest expense, (ii) provision for income taxes, (iii) depreciation and
amortization expense (including, without limitation, amortization of intangible assets and
amortization of deferred financing fees and costs), (iv) gains or losses arising from the sale of
capital assets, (v) non-cash gains and losses arising from the write-up or write-down, as
applicable, of assets, and any other non-cash losses and non-cash charges (other than those
representing a reserve for or actual cash item in any future period), but in each case excluding
any charge that relates to the write-down or write-off of inventory, (vi) income tax refunds
received in cash, (vii) non-cash share based compensation expense and other non-cash expenses
(including non-cash expenses related to purchase accounting adjustments), and (viii) any
extraordinary non-cash gains (in each case, to the extent included in determining net income).

     Eligible Account: an Account owing to a Borrower that arises in the Ordinary Course of
Business from the sale of goods or rendition of services, is payable in Dollars and is deemed by
Agent, in its Permitted Discretion, to be an Eligible Account. Without limiting the foregoing, no
Account shall be an Eligible Account if (a) it is unpaid for more than 60 days after the original
due date, or more than 90 days after the original invoice date; (b) 25% or more of the Accounts
owing by the Account Debtor are not Eligible Accounts under the foregoing clause; (c) when
aggregated with other Accounts owing by the Account Debtor and its Affiliates, it exceeds 25% of
the aggregate Eligible Accounts (or such higher percentage as Agent may establish for the Account
Debtor from time to time); (d) it does not conform in any material respect with a covenant or
representation herein; (e) it is owing by a creditor or supplier, or is otherwise subject to a
potential offset, counterclaim, dispute, deduction, discount, recoupment, reserve, defense,
chargeback, credit or allowance (but ineligibility shall be limited to the amount thereof); (f) an
Insolvency Proceeding has been commenced by or against the Account Debtor; or the Account Debtor
has failed, has suspended or ceased doing business, is liquidating, dissolving or winding up its
affairs, or is not Solvent other than Accounts approved by Agent in its sole discretion owing to a
Borrower pursuant to an order granting critical vendor status to a Borrower; or the Borrower is not
able to bring suit or enforce remedies against the Account Debtor through judicial process; (g) the
Account Debtor is organized or has its principal offices or all or substantially all of its assets
outside the United States or Canada, unless Agent has consented thereto in its sole discretion as a
result of Agent’s determination that such Account Debtor has a significant United States presence;
(h) it is owing by a Government Authority, unless the Account Debtor is the United States or any
department, agency or instrumentality thereof and the Account has been assigned to Agent in
compliance with the Assignment of Claims Act; (i) it is not subject to a duly perfected, first
priority Lien in favor of Agent, or is subject to any other Lien (other than inchoate Liens
permitted by Section 10.2.2 that are at all times junior to Agent’s Liens (provided Agent
may impose a Reserve in the amount of the obligations secured by such Lien)); (j) the goods giving
rise to it have not been delivered to and accepted by the Account Debtor, the services giving rise
to it have not been accepted by the Account Debtor, or it otherwise does not represent a final
sale; (k) it is evidenced by Chattel Paper or an Instrument of any kind, or has been reduced to
judgment; (l) its payment has been extended, the Account Debtor has made a partial payment (solely
with respect to the invoice relating to such Account), or it arises from a sale on a
cash-on-delivery basis; (m) it arises from a sale to an Affiliate, from a sale on a bill-and-hold,
guaranteed sale, sale-or-return, sale-on-approval, or other repurchase or return basis, or from a
sale to a Person for personal, family or household purposes; (n) it represents a progress billing
or retainage, or relates to services for which a performance, surety or completion bond or similar
assurance has been issued; or (o) it includes a billing for interest, fees or late charges, but
ineligibility shall be limited to the extent thereof. In calculating delinquent portions of
Accounts under clauses (a) and (b), credit balances more than 90 days old will be excluded.

     Eligible Assignee: a Person that is (a) a Lender, U.S.-based Affiliate of a Lender or
Approved Fund; (b) any other financial institution approved by Agent (such consent not to be
unreasonably withheld) and Borrower Agent (which approval by Borrower Agent shall not be
unreasonably withheld or delayed, and shall be deemed given if no objection is made within five
Business Days after notice of the

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proposed assignment; provided that no consent of the Borrower Agent shall be required
if an Event of Default has occurred and is continuing), that is organized under the laws of the
United States or any state or district thereof, has total assets in excess of $5 billion, extends
asset-based lending facilities in its ordinary course of business and whose becoming an assignee
would not constitute a prohibited transaction under Section 4975 of the Code or any other
Applicable Law; and (c) during any Event of Default, any Person acceptable to Agent in its
discretion.

     Eligible In-Transit Inventory: Inventory owned by a Borrower that would be Eligible
Inventory if it were not subject to a Document and in transit from a foreign location to a location
of the Borrower within the United States, and that Agent, in its Permitted Discretion, deems to be
Eligible In-Transit Inventory. Without limiting the foregoing, no Inventory shall be Eligible
In-Transit Inventory unless it (a) is subject to a negotiable Document showing Agent (or, with the
consent of Agent, the applicable Borrower) as consignee, which Document is in the possession of
Agent or such other Person as Agent shall approve; (b) is fully insured in a manner satisfactory to
Agent; (c) has been identified to the applicable sales contract and title has passed to the
applicable Borrower; (d) is not sold by a vendor that has a right to reclaim, divert shipment of,
repossess, stop delivery, claim any reservation of title or otherwise assert Lien rights against
the Inventory, or with respect to whom any Borrower is in default of any obligations; (e) is
subject to purchase orders and other sale documentation satisfactory to Agent; (f) is shipped by a
common carrier that is not affiliated with the vendor; and (g) is being handled by a customs
broker, freight-forwarder or other handler that has delivered a Lien Waiver.

     Eligible Inventory: Inventory owned by a Borrower that Agent, in its Permitted
Discretion, deems to be Eligible Inventory. Without limiting the foregoing, no Inventory shall be
Eligible Inventory unless it (a) is finished goods or raw materials, and not packaging or shipping
materials, labels, samples, display items, bags, replacement parts or manufacturing supplies; (b)
is not held on consignment (unless approved by Agent and Agent has received acceptable
documentation requested by it with respect thereto), nor subject to any deposit or downpayment; (c)
is in new and saleable condition and is not damaged, defective, shopworn or otherwise unfit for
sale; (d) is not slow-moving or obsolete (unless otherwise determined by Agent) or unmerchantable,
and does not constitute returned or repossessed goods; (e) meets in all material respects all
standards imposed by any Governmental Authority, and complies in all materials respects with
applicable Environmental Laws; (f) conforms in all material respects with the covenants and
representations herein; (g) is subject to Agent’s duly perfected, first priority Lien, and no other
Lien (other than inchoate Liens permitted by Section 10.2.2 that are at all times junior to Agent’s
Liens (provided Agent may impose a Reserve in the amount of the obligations secured by such
Lien); (h) is within the continental United States or Canada, is not in transit except between
locations of Borrowers; (i) is not subject to any warehouse receipt or negotiable Document; (j) is
not subject to any License or other arrangement that restricts such Borrower’s or Agent’s right to
dispose of such Inventory, unless Agent has received an appropriate Lien Waiver; (k) is not located
on leased premises or in the possession of a warehouseman, processor, repairman, mechanic, shipper,
freight forwarder or other Person, unless the lessor or such Person has delivered a Lien Waiver or
an appropriate Rent and Charges Reserve has been established; (l) is reflected in the details of a
current perpetual inventory report; and (m) is located at any location if the aggregate book value
of Inventory at any such location (as reflected in the current perpetual inventory report) is less
than $50,000 (unless otherwise determined by Agent it its sole discretion).

     Enforcement Action: any action to enforce any Obligations or Loan Documents or to
realize upon any Collateral (whether by judicial action, self-help, notification of Account
Debtors, exercise of setoff or recoupment, or otherwise).

     Environmental Laws: all Applicable Laws (including all permits, rules, and regulations
promulgated by regulatory agencies), relating to pollution, protection of the environment and/or
the

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health/safety of Persons from exposure to Hazardous Materials (but excluding occupational
safety and health, to the extent regulated by OSHA), including CERCLA, RCRA and CWA.

     Environmental Notice: a notice (whether written or, to any Borrower’s knowledge, oral)
from any Governmental Authority or other Person of any possible noncompliance with, investigation
of a possible violation of, litigation relating to, or potential fine or liability (i) under any
Environmental Law, or with respect to (ii) any Environmental Release, (iii) environmental pollution
or (iv) exposure to Hazardous Materials.

     Environmental Release: a release as defined in CERCLA or under any other Environmental
Law.

     Equity Interest: the interest of any (a) shareholder in a corporation; (b) partner in
a partnership (whether general, limited, limited liability or joint venture); (c) member in a
limited liability company; or (d) other Person having any other form of equity security or
ownership interest.

     ERISA: the Employee Retirement Income Security Act of 1974.

     ERISA Affiliate: any trade or business (whether or not incorporated) under common
control with an Obligor within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

     ERISA Event: (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal
by any Obligor or ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by any Obligor or ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) any Obligor or ERISA Affiliate fails to meet any funding obligations with respect to any
Pension Plan or Multiemployer Plan, or requests a minimum funding waiver; (f) an event or condition
which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Pension Plan or Multiemployer Plan; or (g) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon any Obligor or ERISA Affiliate.

     Event of Default: as defined in Section 11.

     Excluded Accounts: as defined in Section 8.5.

     Excluded Equity: (i) any voting stock in excess of 65% of the outstanding voting stock
of any Foreign Subsidiary and (ii) any Equity Interest in G.S.P., LLC or OLP, LLC held by an
Obligor in each case to the extent the terms of the organizational documents of G.S.P., LLC or OLP,
LLC, as applicable, do not permit the grant of a security interest in G.S.P., LLC or OLP, LLC, as
applicable, by the holder thereof or the approval or consent to the creation of a security interest
in such Equity Interest that is required under such organizational documents has not been obtained.
For the purposes of this definition, “voting stock” means, with respect to any issuer, the issued
and outstanding shares of each class of Equity Interests of such issuer entitled to vote (within
the meaning of Treasury Regulations § 1.956-2(c)(2)).

     Excluded Tax: with respect to Agent, any Lender, Issuing Bank or any other recipient
of a payment to be made by or on account of any Obligation, (a) taxes imposed on or measured by (in
whole or in part) its overall revenue, overall net income (however denominated), net assets,
capital or net worth

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and franchise taxes imposed on it in lieu thereof, by the jurisdiction (or any political
subdivision thereof) (i) under the laws of which such recipient is organized or in which its
principal office is located, (ii) in which it is doing business or with which it has a present or
former connection, in each case, other than as a result of the Loan Documents, or (iii) in the case
of any Lender, in which its applicable Lending Office is located; (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any other jurisdiction in which any
Borrower is located; (c) any backup withholding of tax required by the Code to be withheld from
amounts payable to a Lender that has failed to comply with Section 5.10; and (d) in the case of a
Foreign Lender, any United States withholding of tax that is (i) required pursuant to laws in force
at the time such Lender becomes a Lender (or designates a new Lending Office) hereunder, or (ii)
attributable to such Lender’s failure or inability (other than as a result of a Change in Law) to
comply with Section 5.10, 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 Borrowers with respect to such withholding of tax.

     Extraordinary Expenses: all costs, expenses or advances that Agent may incur during an
Event of Default, or during the pendency of an Insolvency Proceeding of an Obligor, including those
relating to (a) any audit, inspection, repossession, storage, repair, appraisal, insurance,
manufacture, preparation or advertising for sale, sale, collection, or other preservation of or
realization upon any Collateral; (b) any action, arbitration or other proceeding (whether
instituted by or against Agent, any Lender, any Obligor, any representative of creditors of an
Obligor or any other Person) in any way relating to any Collateral (including the validity,
perfection, priority or avoidability of Agent’s Liens with respect to any Collateral), Loan
Documents, Letters of Credit or Obligations, including any lender liability or other Claims; (c)
the exercise, protection or enforcement of any rights or remedies of Agent in, or the monitoring
of, any Insolvency Proceeding; (d) settlement or satisfaction of any taxes, charges or Liens with
respect to any Collateral; (e) any Enforcement Action; (f) negotiation and documentation of any
modification, waiver, workout, restructuring or forbearance with respect to any Loan Documents or
Obligations; and (g) Protective Advances. Such costs, expenses and advances include transfer fees,
Other Taxes, storage fees, insurance costs, permit fees, utility reservation and reasonable standby
fees, legal fees, appraisal fees, brokers’ fees and commissions, auctioneers’ fees and commissions,
accountants’ fees, environmental study fees, wages and salaries paid to employees of any Obligor or
independent contractors in liquidating any Collateral, and travel expenses.

     Federal Funds Rate: (a) the weighted average of interest rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers on
the applicable Business Day (or on the preceding Business Day, if the applicable day is not a
Business Day), as published by the Federal Reserve Bank of New York on the next Business Day; or
(b) if no such rate is published on the next Business Day, the average rate (rounded up, if
necessary, to the nearest 1/8 of 1%) charged to Bank of America on the applicable day on such
transactions, as determined by Agent.

     Fee Letter: the fee letter agreement dated April 21, 2010, among Bank of America,
N.A., Banc of America Securities LLC and Olympic Steel.

     Fiscal Quarter: each period of three fiscal months, commencing on the first day of a
Fiscal Year.

     Fiscal Year: the fiscal year of Borrowers and Subsidiaries for accounting and tax
purposes, ending on December 31 of each year.

     Fixed Assets Debt Documents: as defined in Section 10.2.1(l).

     Fixed Charge Coverage Ratio: the ratio, determined on a consolidated basis for
Borrowers and Subsidiaries for the most recent twelve fiscal month period, of (a) EBITDA
minus Capital Expenditures

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(except those financed with Borrowed Money other than Revolver Loans) and cash taxes paid
(other than to the extent deducted in calculating EBITDA for the applicable measurement period), to
(b) Fixed Charges.

     Fixed Charges: the sum of interest expense (other than payment-in-kind), all principal
payments made on Borrowed Money (other than a Revolver Loan), and Distributions (other than
Upstream Payments) and repurchases of Equity Interests made by or on behalf of Olympic Steel.

     FLSA: the Fair Labor Standards Act of 1938.

     Foreign Lender: any Lender that is not a U.S. person as defined in Section 7701(a)(3)
of the Code.

     Foreign Plan: any employee benefit plan or arrangement (a) maintained or contributed
to by any Obligor or Subsidiary that is not subject to the laws of the United States; or (b)
mandated by a government other than the United States for employees of any Obligor or Subsidiary.

     Foreign Subsidiary: a Subsidiary that is a “controlled foreign corporation” under
Section 957 of the Code, such that a guaranty by such Subsidiary of the Obligations or a Lien on
the assets of such Subsidiary to secure the Obligations would result in material tax liability to
Borrowers.

     Full Payment: with respect to any Obligations, (a) the full and indefeasible cash
payment thereof (other than inchoate or contingent or reimbursable obligations for which no claim
has been asserted), including any interest, fees and other charges accruing during an Insolvency
Proceeding (whether or not allowed in the proceeding); (b) if such Obligations are LC Obligations
or inchoate or contingent in nature (other than inchoate or contingent or reimbursable obligations
for which no claim has been asserted), Cash Collateralization thereof (or delivery of a standby
letter of credit acceptable to Agent in its discretion, in the amount of required Cash Collateral);
and (c) a release of any Claims of Obligors against Agent, Lenders and Issuing Bank arising on or
before the payment date. No Loans shall be deemed to have been paid in full until all Commitments
related to such Loans have expired or been terminated.

     GAAP: generally accepted accounting principles in effect in the United States from
time to time.

     Governmental Approvals: all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and required reports to, all Governmental
Authorities.

     Governmental Authority: any federal, state, municipal, foreign or other governmental
department, agency, commission, board, bureau, court, tribunal, instrumentality, political
subdivision, or other entity or officer exercising executive, legislative, judicial, regulatory or
administrative functions for or pertaining to any government or court, in each case whether
associated with the United States, a state, district or territory thereof, or a foreign entity or
government.

     G.S.P., LLC: G.S.P., LLC., a Michigan limited liability company.

     Guarantor Payment: as defined in Section 5.11.3.

     Guarantors: each Person who guarantees payment or performance of any Obligations.

     Guaranty: each guaranty agreement executed by a Guarantor in favor of Agent.

     Hazardous Materials: all pollutants, contaminants, chemicals, wastes, and any other
infectious,

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carcinogenic, ignitable, corrosive, reactive, toxic or otherwise hazardous substances or
materials (whether solids, liquids or gases) subject to regulation, control or remediation under
applicable Environmental Laws.

     Hedging Agreement: an agreement relating to any swap, cap, floor, collar, option,
forward, cross right or obligation, or combination thereof or similar transaction, with respect to
interest rate, foreign exchange, currency, commodity, credit or equity risk.

     Inactive Subsidiaries: each of Olympic Receivables Inc., Olympic Trading, G.S.P., LLC,
Olyac and Olympic Receivables LLC, unless any of the foregoing Persons joins this Agreement as a
Borrower and becomes a Borrower hereunder pursuant to documentation reasonably satisfactory to
Agent.

     Increased Amount Date: as defined in Section 2.2.

     Indemnified Taxes: Taxes other than Excluded Taxes.

     Indemnitees: Agent Indemnitees, Lender Indemnitees, Issuing Bank Indemnitees and Bank
of America Indemnitees.

     Insolvency Proceeding: any case or proceeding commenced by or against a Person under
any state, federal or foreign law for, or any agreement of such Person to, (a) the entry of an
order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt
adjustment law; (b) the appointment of a receiver, trustee, liquidator, administrator, conservator
or other custodian for such Person or any part of its Property; or (c) an assignment or trust
mortgage for the benefit of creditors.

     Intellectual Property: all intellectual and similar Property of a Person, including
inventions, designs, patents, copyrights, trademarks, service marks, trade names, trade secrets,
confidential or proprietary information, customer lists, know-how, software and databases; all
embodiments or fixations thereof and all related documentation, applications, registrations and
franchises; all licenses or other rights to use any of the foregoing; and all books and records
relating to the foregoing.

     Intellectual Property Claim: any claim or assertion (whether in writing, by suit or
otherwise) that a Borrower’s or Subsidiary’s ownership, use, marketing, sale or distribution of any
Inventory, Equipment, Intellectual Property or other Property violates another Person’s
Intellectual Property.

     Interest Period: as defined in Section 3.1.3.

     Inventory: as defined in the UCC, including all goods intended for sale, lease,
display or demonstration; all work in process; and all raw materials, and other materials and
supplies of any kind that are or could be used in connection with the manufacture, printing,
packing, shipping, advertising, sale, lease or furnishing of such goods, or otherwise used or
consumed in a Borrower’s business (but excluding Equipment).

     Inventory Formula Amount: the lesser of (a) $90,000,000 or (b) the sum of (X) the
lesser of (i) 70% of the Value of Eligible Inventory; and (ii) 85% of the NOLV Percentage of the
Value of Eligible Inventory; plus (Y) the lesser of (i) 70% of the Value of Eligible In-Transit
Inventory; and (ii) 85% of the NOLV Percentage of the Value of Eligible In-Transit Inventory.

     Inventory Reserve: reserves established by Agent to reflect factors that may
negatively impact the Value of Inventory, including the determination of the Value of Inventory on
the basis of the lower of cost or market, change in salability, obsolescence, seasonality, theft,
shrinkage, imbalance, change in

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composition or mix, markdowns and vendor chargebacks.

     Investment: any acquisition of all or substantially all assets of a Person; any
acquisition of record or beneficial ownership of any Equity Interests of a Person; or any advance
or capital contribution to or other investment in a Person.

     IRS: the United States Internal Revenue Service.

     Issuing Bank: (i) Bank of America or an Affiliate of Bank of America and (ii) solely
with respect to the Continuing Letters of Credit, Comerica Bank.

     Issuing Bank Indemnitees: Issuing Bank and its officers, directors, employees,
Affiliates, agents and attorneys.

     Joint Venture: a corporation, association, joint stock company, business trust,
limited liability company or any other business entity of which not more than fifty percent (50%)
of the outstanding voting stock, share capital, membership or other interests, as the case may be,
is owned either directly or indirectly by any Person or one or more of its Subsidiaries.

     Joinder Agreement: an agreement substantially in the form of Exhibit B.

     LC Application: an application by Borrower Agent to Issuing Bank for issuance of a
Letter of Credit, in form and substance satisfactory to Issuing Bank.

     LC Conditions: the following conditions necessary for issuance of a Letter of Credit:
(a) each of the conditions set forth in Section 6; (b) after giving effect to such issuance, total
LC Obligations do not exceed the Letter of Credit Subline, no Overadvance exists and, if no
Revolver Loans are outstanding, the LC Obligations do not exceed the Borrowing Base (without giving
effect to the LC Reserve for purposes of this calculation); (c) the expiration date of such Letter
of Credit is (i) no more than 365 days from issuance, in the case of standby Letters of Credit,
(ii) no more than 120 days from issuance, in the case of documentary Letters of Credit, and (iii)
at least 20 Business Days prior to the Revolver Termination Date; (d) the Letter of Credit and
payments thereunder are denominated in Dollars; and (e) the purpose and form of the proposed Letter
of Credit is satisfactory to Agent and Issuing Bank in their reasonable discretion.

     LC Documents: all documents, instruments and agreements (including LC Requests and LC
Applications) delivered by Borrowers or any other Person to Issuing Bank or Agent in connection
with issuance, amendment or renewal of, or payment under, any Letter of Credit.

     LC Obligations: the sum (without duplication) of (a) all amounts owing by Borrowers
for any drawings under Letters of Credit; (b) the stated amount of all outstanding Letters of
Credit; and (c) all fees and other amounts owing with respect to Letters of Credit.

     LC Request: a request for issuance of a Letter of Credit, to be provided by Borrower
Agent to Issuing Bank, in form satisfactory to Agent and Issuing Bank.

     LC Reserve: the aggregate of all LC Obligations, other than (a) those that have been
Cash Collateralized; and (b) if no Default or Event of Default exists, those constituting charges
owing to the Issuing Bank.

     Lender Indemnitees: Lenders and their officers, directors, employees, Affiliates,
agents and attorneys.

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     Lenders: as defined in the preamble to this Agreement, including Agent in its capacity
as a provider of Swingline Loans and any other Person who hereafter becomes a “Lender” pursuant to
an Assignment and Acceptance or a Joinder Agreement.

     Lending Office: the office designated as such by the applicable Lender at the time it
becomes party to this Agreement or thereafter by notice to Agent and Borrower Agent.

     Letter of Credit: (i) Continuing Letters of Credit and (ii) any other standby or
documentary letter of credit issued by Issuing Bank for the account of a Borrower, or any
indemnity, guarantee, exposure transmittal memorandum or similar form of credit support issued by
Agent or Issuing Bank for the benefit of a Borrower.

     Letter of Credit Subline: $30,000,000.

     LIBOR: for any Interest Period with respect to a LIBOR Loan, the per annum rate of
interest (rounded up, if necessary, to the nearest 1/8th of 1%), determined by Agent at
approximately 11:00 a.m. (London time) two Business Days prior to commencement of such Interest
Period, for a term comparable to such Interest Period, equal to (a) the British Bankers Association
LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source
designated by Agent); or (b) if BBA LIBOR is not available for any reason, the interest rate at
which Dollar deposits in the approximate amount of the LIBOR Loan would be offered by Bank of
America’s London branch to major banks in the London interbank Eurodollar market. If the Board of
Governors imposes a Reserve Percentage with respect to LIBOR deposits, then LIBOR shall be the
foregoing rate, divided by 1 minus the Reserve Percentage.

     LIBOR Loan: each set of LIBOR Revolver Loans having a common length and commencement
of Interest Period.

     LIBOR Revolver Loan: a Revolver Loan that bears interest based on LIBOR.

     License: any license or agreement under which an Obligor is authorized to use
Intellectual Property in connection with any manufacture, marketing, distribution or disposition of
Collateral, any use of Property or any other conduct of its business.

     Licensor: any Person from whom an Obligor obtains the right to use any Intellectual
Property.

     Lien: any Person’s interest in Property securing an obligation owed to, or a claim by,
such Person, whether such interest is based on common law, statute or contract, including liens,
security interests, pledges, hypothecations, statutory trusts, reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases, and other
title exceptions and encumbrances affecting Property.

     Lien Waiver: an agreement, in form and substance satisfactory to Agent, by which (a)
for any material Collateral located on leased premises, the lessor waives or subordinates any Lien
it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the
Collateral or to use the premises to store or dispose of the Collateral; (b) for any Collateral
held by a warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives
or subordinates any Lien it may have on the Collateral, agrees to hold any Documents in its
possession relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to
Agent upon request; (c) for any Collateral held by

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a repairman, mechanic or bailee, such Person acknowledges Agent’s Lien, waives or subordinates
any Lien it may have on the Collateral, and agrees to deliver the Collateral to Agent upon request;
and (d) for any Collateral subject to a Licensor’s Intellectual Property rights, the Licensor
grants to Agent the right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to the
Collateral, including the right to dispose of it with the benefit of the Intellectual Property,
whether or not a default exists under any applicable License.

     Loan: a Revolver Loan.

     Loan Account: the loan account established by each Lender on its books pursuant to
Section 5.8.

     Loan Documents: this Agreement, Other Agreements and Security Documents.

     Loan Year: each 12 month period commencing on the Closing Date and on each anniversary
of the Closing Date.

     Margin Stock: as defined in Regulation U of the Board of Governors.

     Material Adverse Effect: the effect of any event or circumstance that, taken alone or
in conjunction with other events or circumstances, (a) has or could be reasonably expected to have
a material adverse effect on the business, results of operations, Properties (taken as a whole),
liabilities or financial condition of the Obligors (taken as a whole), on the enforceability of any
Loan Documents, or on the validity or priority of Agent’s Liens on any material portion of the
Collateral; (b) impairs the ability of any Obligor to perform any material obligations under the
Loan Documents, including repayment of any Obligations; or (c) otherwise impairs the ability of
Agent or any Lender to enforce or collect any Obligations or to realize upon any Collateral.

     Material Contract: any agreement or arrangement to which a Borrower or Subsidiary is
party (other than the Loan Documents) (a) that is deemed to be a material contract under any
securities law applicable to such Obligor, including the Securities Act of 1933; (b) for which
breach, termination, nonperformance or failure to renew could reasonably be expected to have a
Material Adverse Effect; or (c) that relates to Subordinated Debt, or Debt in an aggregate amount
of $1,000,000 or more.

     Moody’s: Moody’s Investors Service, Inc., and its successors.

     Multiemployer Plan: any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which any Obligor or ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     Net Proceeds: with respect to an Asset Disposition, proceeds (including, when
received, any deferred or escrowed payments) received by a Borrower or Subsidiary in cash from such
disposition, net of (a) reasonable and customary costs and expenses actually incurred in connection
therewith, including legal fees and sales commissions; (b) amounts applied to repayment of Debt
secured by a Permitted Lien which is either (i) senior to Agent’s Liens on Collateral sold or (ii)
on assets other than Collateral; (c) transfer or similar taxes; and (d) reserves for indemnities,
until such reserves are no longer needed.

     New Revolver Commitments: as defined in Section 2.2.

     New Lender: as defined in Section 2.2.

     New Revolver Loan: as defined in Section 2.2.

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     NOLV Percentage: the net orderly liquidation value of Inventory, expressed as a
percentage, expected to be realized at an orderly, negotiated sale held within a reasonable period
of time, net of all liquidation expenses, as determined from the most recent appraisal of
Borrowers’ Inventory performed by an appraiser and on terms satisfactory to Agent.

     Notes: each Revolver Note or other promissory note executed by a Borrower to evidence
any Obligations.

     Notice of Borrowing: a Notice of Borrowing to be provided by Borrower Agent to request
a Borrowing of Revolver Loans, in form satisfactory to Agent.

     Notice of Conversion/Continuation: a Notice of Conversion/Continuation to be provided
by Borrower Agent to request a conversion or continuation of any Loans as LIBOR Loans, in form
satisfactory to Agent.

     Obligations: all (a) principal of and premium, if any, on the Loans, (b) LC
Obligations and other obligations of Obligors with respect to Letters of Credit, (c) interest,
expenses, fees and other sums payable by Obligors under Loan Documents, (d) obligations of Obligors
under any indemnity for Claims, (e) Extraordinary Expenses, (f) Bank Product Debt to the extent
designated as such in writing to Agent by the applicable Lender or its Affiliate and a Borrower,
and (g) other Debts, obligations and liabilities of any kind owing by Obligors pursuant to the Loan
Documents, whether now existing or hereafter arising, whether evidenced by a note or other writing,
whether allowed in any Insolvency Proceeding, whether arising from an extension of credit, issuance
of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether direct
or indirect, absolute or contingent, due or to become due, primary or secondary, or joint or
several.

     Obligor: each Borrower, Guarantor, or other Person (other than Olympic Receivables
Inc.) that is liable for payment of any Obligations or that has granted a Lien in favor of Agent on
its assets to secure any Obligations.

     OLP, LLC: OLP, LLC, a Michigan limited liability company.

     Olyac: Olyac, Inc., a Delaware corporation.

     Olympic Receivables Inc.: Olympic Steel Receivables, Inc., a Delaware corporation.

     Olympic Receivables LLC: Olympic Steel Receivables, L.L.C., a Delaware limited
liability company.

     Olympic Trading: Olympic Steel Trading, Inc., an Ohio corporation.

     Ordinary Course of Business: the ordinary course of business of any Borrower or
Subsidiary, consistent with past practices and undertaken in good faith.

     Organic Documents: with respect to any Person, its charter, certificate or articles of
incorporation, bylaws, articles of organization, limited liability agreement, operating agreement,
members agreement, shareholders agreement, partnership agreement, certificate of partnership,
certificate of formation, voting trust agreement, or similar agreement or instrument governing the
formation or operation of such Person.

     OSHA: the Occupational Safety and Hazard Act of 1970.

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     Other Agreement: each Note; LC Document; Fee Letter; Lien Waiver; Borrowing Base
Certificate, Compliance Certificate, financial statement or report delivered hereunder (other than
projections and any other forward looking statement); or other document, instrument or agreement
(other than this Agreement or a Security Document) now or hereafter delivered by an Obligor or
other Person to Agent or a Lender in connection with any transactions relating hereto.

     Other Taxes: all present or future stamp or documentary taxes or any other excise or
property taxes, similar charges or similar levies arising from any payment made under any Loan
Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.

     Overadvance: as defined in Section 2.1.5.

     Overadvance Loan: a Base Rate Revolver Loan made when an Overadvance exists or is
caused by the funding thereof.

     Participant: as defined in Section 13.2.

     Patent Assignment: each patent collateral assignment agreement pursuant to which an
Obligor assigns to Agent, for the benefit of Secured Parties, such Obligor’s interests in its
patents, as security for the Obligations.

     Patriot Act: the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001).

     Payment Item: each check, draft or other item of payment payable to a Borrower,
including those constituting proceeds of any Collateral.

     PBGC: the Pension Benefit Guaranty Corporation.

     Pension Plan: any employee pension benefit plan (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by any Obligor or ERISA Affiliate or to which the Obligor or ERISA
Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any time during the
preceding five plan years.

     Permitted Acquisition: any Acquisition by a Borrower (i) of substantially all of the
assets of a Target, which assets are located in the United States or (ii) 100% of the Equity
Interest of a Target organized under the laws of any State in the United States or the District of
Columbia, in each case, to the extent that each of the following conditions shall have been
satisfied:

     (a) such Acquisition is not a hostile or contested Acquisition and has been approved by the
board of directors (or other similar body) and/or the stockholders or other equityholders of the
Target;

     (b) the business acquired in connection with such Acquisition is a business Borrowers are
permitted to engage in pursuant to Section 10.2.16;

     (c) to the extent the Acquisition will be financed in whole or in part with the proceeds of
any Loan, the conditions set forth in Section 6.2 shall have been satisfied;

     (d) both immediately before and after giving effect to such Acquisition, (A) each of the
representations and warranties in the Loan Documents is true and correct in all material respects
(without

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duplication of any materiality qualifier contained therein) (except (i) any such
representation or warranty which relates to a specified prior date and (ii) to the extent Agent has
been notified in writing by Borrowers that any representation or warranty is not correct in all
material respects and the Required Lenders have explicitly waived in writing compliance with such
representation or warranty) and (B) no Default or Event of Default exists or would result
therefrom;

     (e) Borrowers shall have furnished to Agent (and Agent shall promptly deliver same to Lenders)
at least ten (10) days (or such shorter period as is acceptable to Agent) prior to the consummation
thereof:

     (i) notice of such Acquisition;

     (ii) a draft of the purchase agreement and draft schedules and exhibits thereto
(followed by a copy of the final and executed purchase agreement and all schedules and
exhibits thereto no later than the date of the consummation of such Acquisition but prior to
such consummation) and all other business and financial information reasonably requested by
Agent (or any Lender through Agent), including projections of the Borrowing Base and
Availability; provided that if the proposed Acquisition is for a total consideration
of $5,000,000 or less, the information required to be delivered pursuant to this clause (ii)
shall be delivered to Agent only upon request by Agent,

     (iii) pro forma financial statements of the Borrowers and their Subsidiaries after
giving effect to the consummation of such Acquisition and a pro forma Compliance
Certificate, in form and substance satisfactory to Agent, demonstrating that immediately
after giving effect to such Acquisition, the Adjusted Fixed Charge Coverage Ratio
(recomputed for the most recent month for which financial statements have been delivered) is
at least 1.10 to 1.00 for the period of twelve fiscal months then most recently ended;

     (f) immediately before and after giving effect to such Acquisition, both actual and pro forma,
respectively, Availability exceeds 25% of the aggregate amount of Revolver Commitments then in
effect and Agent shall have received a certificate, in form and substance satisfactory to Agent,
from a knowledgeable Senior Officer of Borrower Agent, certifying (and showing the calculations
therefor in reasonable detail) compliance with the requirements of this clause;

     (g) if such Acquisition is an acquisition of the Equity Interest of a Person, such Acquisition
shall be structured either as a merger into one of the Borrowers or in such a way that the Target
shall become a wholly-owned Subsidiary of one of the Borrowers and a Borrower hereunder pursuant to
documentation reasonably satisfactory to Agent pursuant to Section 10.1.9 hereof substantially
contemporaneously with the consummation of such Acquisition;

     (h) no Borrower shall, as a result of or in connection with any such Acquisition, assume or
incur any (i) Debt (other than Revolver Loans), other than (x) (I) such Debt which does not exceed
$5,000,000 (exclusive of any Earn-Out Obligations) in the aggregate outstanding at any time for all
Permitted Acquisitions and which constitutes deferred purchase price owed to the applicable seller
and (II) the existing Debt of the Target which is assumed and not incurred in contemplation of such
Acquisition to the extent such Debt is separately permitted under Section 10.2.1(c), Section
10.2.1(e), Section 10.2.1(i) or Section 10.2.1(o) or (y) Earn-Out Obligations permitted under
clause (i) of the definition of the term “Permitted Contingent Obligations”, or (ii)
contingent liabilities (whether relating to environmental, tax, litigation, or other matters and
other than Earn-Out Obligations permitted under clause (i) of the definition of the term
“Permitted Contingent Obligations”) that, in the case of this clause

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(ii), could reasonably be expected, as of the date of such Acquisition, to result in
the existence or occurrence of a Material Adverse Effect; and

     (i) all Liens, other than Permitted Liens, on any property which constitutes Collateral under
this Agreement and which is acquired (or whose owner’s Equity Interest is acquired) shall be
terminated.

     Notwithstanding the foregoing, no Accounts or Inventory acquired in a Permitted Acquisition
shall be included as Eligible Accounts, Eligible Inventory or Eligible In-Transit Inventory until a
field examination (and, if required by Agent, an Inventory appraisal) with respect thereto has been
completed to the satisfaction of Agent, including the establishment of Reserves required in Agent’s
Permitted Discretion; provided that field examinations and appraisals in connection with
Permitted Acquisitions shall not count against the limited number of field examinations or
appraisals for which expense reimbursement may be sought under Section 10.1.1(b) hereof.

     Permitted Asset Disposition: as long as no Default or Event of Default exists (except
with respect to clause (a), clause (g) or clause (h) of this definition)
and all Net Proceeds are remitted to Agent (except with respect to Asset Disposition described in
clause (a) of this definition, the proceeds of which shall be deposited in a Dominion
Account), Asset Disposition that is (a) a sale of Inventory in the Ordinary Course of Business; (b)
disposition of obsolete, worn out or permanently retired assets or the disposition in the Ordinary
Course of Business of assets no longer used (unless it is no longer used primarily in order to take
advantage of this clause (b)) or useful in the conduct of Borrowers’ business; (c) a disposition of
Inventory that is obsolete, unmerchantable or otherwise unsalable in the Ordinary Course of
Business; (d) termination of a lease of real or personal Property that is not necessary for the
Ordinary Course of Business, could not reasonably be expected to have a Material Adverse Effect and
does not result from an Obligor’s default; (e) Asset Dispositions in which the sales price is at
least the fair market value of the assets sold and the aggregate fair market or book value
(whichever is greater) of such Asset Sales is less than $250,000 in any Fiscal Year and at least
80% of the consideration received is cash or Cash Equivalents; (f) sales of Equity Interests in
Olympic Steel under any employee stock purchase plan or employee stock option agreement and other
sales of Equity Interests in Olympic Steel which do not result in a Change of Control; (g)
transfers or other Asset Dispositions (other than transfers or Asset Dispositions of its own Equity
Interests) by any Borrower (other than Olympic Steel) to any other Borrower, (h) an Asset
Disposition constituting Cash Equivalents; (i) any trade-in or replacement of an asset (other than
Collateral) in the Ordinary Course of Business; (j) Asset Dispositions constituting mergers,
consolidations or other business combinations permitted by Section 10.2.9(a): and (k) approved in
writing by Agent and Required Lenders.

     Permitted Contingent Obligations: Contingent Obligations (a) arising from endorsements
of Payment Items for collection or deposit in the Ordinary Course of Business; (b) arising from
Hedging Agreements permitted hereunder; (c) existing on the Closing Date, and any extension or
renewal thereof that does not increase the amount of such Contingent Obligation when extended or
renewed; (d) incurred in the Ordinary Course of Business with respect to surety, appeal or
performance bonds, or other similar obligations; (e) arising from customary indemnification
obligations in favor of purchasers in connection with dispositions of assets permitted hereunder;
(f) arising under the Loan Documents; (g) arising under guarantees of the Subordinated Debt,
provided that such guarantee shall be subordinated to the same extent as the Subordinated
Debt is subordinated to Obligations; (h) arising with respect to customary indemnification
obligations in favor of sellers in connection with Permitted Acquisitions; (i) Earn-Out Obligations
incurred in connection with Permitted Acquisitions as long as the maximum amount of all liabilities
that may arise pursuant to all such Earn-Out Obligations does not exceed $2,000,000 in the
aggregate, (j) arising with respect to customary provisions of any customer agreement or purchase
order incurred in the Ordinary Course of Business; or (k) in an aggregate amount of $1,000,000 or
less at any time.

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     Permitted Discretion: a determination made in good faith and in the exercise of
discretion from the perspective of a secured asset-based lender.

     Permitted Lien: as defined in Section 10.2.2.

     Permitted Purchase Money Debt: Purchase Money Debt of Borrowers and Subsidiaries that
is unsecured or secured only by a Purchase Money Lien, as long as the aggregate amount does not
exceed $5,000,000 at any time.

     Person: any individual, corporation, limited liability company, partnership, joint
venture, joint stock company, land trust, business trust, unincorporated organization, Governmental
Authority or other entity.

     Plan: any employee benefit plan (as such term is defined in Section 3(3) of ERISA)
established by an Obligor or, with respect to any such plan that is subject to Section 412 of the
Code or Title IV of ERISA, an ERISA Affiliate.

     Prime Rate: the rate of interest announced by Bank of America from time to time as its
prime rate. Such rate is set by Bank of America on the basis of various factors, including its
costs and desired return, general economic conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above or below such rate. Any change in such
rate announced by Bank of America shall take effect at the opening of business on the day specified
in the public announcement of such change.

     Pro Forma EBITDA means, with respect to any Target, EBITDA for such Target for the
most recent twelve (12) fiscal month period preceding the acquisition thereof, adjusted by
verifiable expense reductions, if any, which are expected to be realized, in each case calculated
on a month by month basis by the Borrowers and consented to by the Agent.

     Pro Rata: with respect to any Lender, a percentage (carried out to the ninth decimal
place) determined (a) while Revolver Commitments are outstanding, by dividing the amount of such
Lender’s Revolver Commitment by the aggregate amount of all Revolver Commitments; and (b) at any
other time, by dividing the amount of such Lender’s Loans and LC Obligations by the aggregate
amount of all outstanding Loans and LC Obligations.

     Properly Contested: with respect to any obligation of an Obligor, (a) the obligation
is subject to a bona fide dispute regarding amount or the Obligor’s liability to pay; (b) the
obligation is being properly contested in good faith by appropriate proceedings promptly instituted
and diligently pursued; (c) appropriate reserves have been established in accordance with GAAP; (d)
non-payment could not have a Material Adverse Effect, nor result in forfeiture or sale of any
assets of the Obligor; (e) no Lien is imposed on assets of the Obligor, unless bonded and stayed to
the satisfaction of Agent; and (f) if the obligation results from entry of a judgment or other
order, such judgment or order is stayed pending appeal or other judicial review.

     Property: any interest in any kind of property or asset, whether real, personal or
mixed, or tangible or intangible.

     Protective Advances: as defined in Section 2.1.6.

     Purchase Money Debt: (a) Debt (other than the Obligations) for payment of any of the
purchase price of fixed assets; (b) Debt (other than the Obligations) incurred within 20 days
before or after

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acquisition of any fixed assets, for the purpose of financing any of the purchase price
thereof; and (c) any renewals, extensions or refinancings (but not increases) thereof.

     Purchase Money Lien: a Lien that secures Purchase Money Debt, encumbering only the
fixed assets acquired with such Debt and constituting a Capital Lease or a purchase money security
interest under the UCC.

     RCRA: the Resource Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).

     Real Estate: all right, title and interest (whether as owner, lessor or lessee) in any
real Property or any buildings, structures, parking areas or other improvements thereon.

     Refinancing Conditions: the following conditions for Refinancing Debt: (a) it is in
an aggregate principal amount that does not exceed the principal amount of the Debt being extended,
renewed or refinanced (other than an increase in an aggregate principal amount resulting solely
from any capitalized or payment-in-kind interest); (b) it has a final maturity no sooner than, a
weighted average life no less than, and, unless otherwise approved by Agent, an interest rate no
greater than, the Debt being extended, renewed or refinanced; (c) if subordinated, it is
subordinated to the Obligations at least to the same extent as the Debt being extended, renewed or
refinanced or otherwise on terms and conditions acceptable to Agent; (d) with respect to
Refinancing Debt with a principal amount in excess of $5,000,000, the representations, covenants
and defaults applicable to it are no less favorable (taken as a whole) in any material respect to
Borrowers than those applicable to the Debt being extended, renewed or refinanced, unless otherwise
approved by Agent; (e) no additional Lien is granted to secure it (other than additional Permitted
Liens on Property not constituting Collateral); (f) no additional Person is obligated on such Debt;
and (g) upon giving effect to it, no Default or Event of Default exists.

     Refinancing Debt: Borrowed Money that is the result of an extension, renewal or
refinancing of Debt permitted under Section 10.2.1(b), (d), (f), (l), (m) or (o).

     Reimbursement Date: as defined in Section 2.3.2.

     Rent and Charges Reserve: the aggregate of (a) all past due rent and other amounts
owing by an Obligor to any landlord, warehouseman, processor, repairman, mechanic, shipper, freight
forwarder, broker or other Person who possesses any Collateral or could assert a Lien on any
Collateral; and (b) a reserve at least equal to three months rent and other periodic charges that
would reasonably be expected to be payable to any such Person, unless it has executed a Lien
Waiver.

     Report: as defined in Section 12.2.3.

     Reportable Event: any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

     Reporting Trigger Period: the period (a) commencing on the day that an Event of
Default occurs, or Availability is less than $25,000,000; and (b) continuing until the day no
Default or Event of Default has existed for a period of 30 consecutive days and Availability has
been greater than $25,000,000 for a period of 30 consecutive days.

     Required Lenders: Lenders (subject to Section 4.2) having (a) Revolver Commitments in
excess of 50% of the aggregate Revolver Commitments; and (b) if the Revolver Commitments have
terminated, Loans in excess of 50% of all outstanding Loans; provided, that if, at any
time, there are four Lenders hereunder (other than Defaulting Lenders) that are non-Affiliates,
then “Required Lenders” shall mean at

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least two (2) Lenders that are non-Affiliates and that constitute “Required Lenders” as
determined in accordance with the foregoing calculation.

     Reserve Percentage: the reserve percentage (expressed as a decimal, rounded up to the
nearest 1/8th of 1%) applicable to member banks under regulations issued from time to time by the
Board of Governors for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently
referred to as “Eurocurrency liabilities”).

     Restricted Investment: any Investment by a Borrower or Subsidiary, other than (a)
Investments in Subsidiaries to the extent existing on the Closing Date and other Investments
existing on the Closing Date and set forth on Schedule 10.2.5; (b) Cash Equivalents that are
subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory
to Agent; (c) loans and advances permitted under Section 10.2.7; (d) Investments pursuant to
Hedging Agreements permitted hereunder; (e) Investments received in connection with the bankruptcy
or reorganization of, or settlement of delinquent Accounts and disputes with, customers and
suppliers, in each case in the Ordinary Course of Business; (f) Investments constituting deposits
made in connection with the purchase of goods or services in the Ordinary Course of Business in an
aggregate amount for such deposits not to exceed $500,000 at any one time; (g) Investments in or to
OLP, LLC existing on the Closing Date; (h) so long as no Default or Event of Default exists,
additional Investments in OLP, LLC not to exceed $500,000 in the aggregate in any Fiscal Year; (i)
so long as no Default or Event of Default exists, Investments in Joint Ventures and Foreign
Subsidiaries not to exceed $5,000,000 in the aggregate in any Fiscal Year; (j) so long as no
Default or Event of Default exists, other Investments not to exceed $500,000 in the aggregate; (k)
the investment of funds under the terms of the Olympic Steel, Inc. Executive Deferred Compensation
Plan dated effective December 1, 2004 and any other compensation plan established after the Closing
Date in the Ordinary Course of Business; (l) Permitted Acquisitions; and (m) formation, creation or
acquisition of one or more Subsidiaries after the Closing Date in accordance with Section 10.1.9
that become Borrowers hereunder. In valuing any Investments for the purpose of applying the
limitations set forth in any of the foregoing clauses of this definition (except as otherwise
expressly provided herein), such Investment shall be taken at the original cost thereof, without
allowance for any subsequent write-offs or appreciation or depreciation, but less any amount repaid
or recovered on account of capital or principal.

     Restrictive Agreement: an agreement (other than a Loan Document) that conditions or
restricts the right of any Borrower, Subsidiary or other Obligor to incur or repay Borrowed Money,
to grant Liens on any assets, to declare or make Distributions to a Borrower, to modify, extend or
renew any agreement evidencing Borrowed Money, or to repay any intercompany Debt.

     Revolver Commitment: for any Lender, its obligation to make Revolver Loans and to
participate in LC Obligations up to the maximum principal amount shown on Schedule 1.1 (subject to
any increase permitted pursuant to Section 2.2), or as hereafter determined pursuant to each
Assignment and Acceptance to which it is a party. “Revolver Commitments” means the
aggregate amount of such commitments of all Lenders.

     Revolver Loan: a loan made pursuant to Section 2.1, and any Swingline Loan,
Overadvance Loan or Protective Advance.

     Revolver Note: a promissory note to be executed by Borrowers in favor of a Lender in
the form of Exhibit A, which shall be in the amount of such Lender’s Revolver Commitment and shall
evidence the Revolver Loans made by such Lender.

     Revolver Termination Date: June 30, 2015.

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     Revolver Utilization: the average daily balance of Revolver Loans and stated amount
of Letters of Credit during any Fiscal Quarter.

     Royalties: all royalties, fees, expense reimbursement and other amounts payable by a
Borrower under a License.

     Sale and Leaseback Transaction: as defined in Section 10.2.20.

     S&P: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.

     Secured Parties: Agent, Issuing Bank, Lenders and providers of Bank Products.

     Security Documents: the Guaranties, Patent Assignments, Trademark Security Agreements,
Deposit Account Control Agreements, and all other documents, instruments and agreements now or
hereafter securing (or given with the intent to secure) any Obligations.

     Segregated Account Cash Balance: aggregate amount of Cash Equivalents credited to or
on deposit in a segregated securities account maintained with Bank of America over which Agent has
exclusive control and which is subject to a control agreement in favor of Agent, for the benefit of
Secured Parties, providing for “control” of such securities account within the meaning of Articles
8 and 9 of the UCC.

     Senior Officer: the chairman of the board, president, chief executive officer, chief
operating officer, chief financial officer or treasurer of a Borrower or, if the context requires,
an Obligor.

     Settlement Report: a report delivered by Agent to Lenders summarizing the Revolver
Loans and participations in LC Obligations outstanding as of a given settlement date, allocated to
Lenders on a Pro Rata basis in accordance with their Revolver Commitments.

     Solvent: as to any Person, such Person (a) owns Property whose fair salable value is
greater than the amount required to pay all of its debts (including contingent, subordinated,
unmatured and unliquidated liabilities); (b) owns Property whose present fair salable value (as
defined below) is greater than the probable total liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of such Person as they become absolute and matured; (c) is
able to generally pay all of its debts as they mature; (d) has capital that is not unreasonably
small for its business and is sufficient to carry on its business and transactions and all business
and transactions in which it is about to engage; (e) is not “insolvent” within the meaning of
Section 101(32) of the Bankruptcy Code; and (f) has not incurred (by way of assumption or
otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or
made any conveyance in connection therewith, with actual intent to hinder, delay or defraud either
present or future creditors of such Person or any of its Affiliates. “Fair salable value”
means the amount that could be obtained for assets within a reasonable time, either through
collection or through sale under ordinary selling conditions by a capable and diligent seller to an
interested buyer who is willing (but under no compulsion) to purchase.

     Subordinated Debt: Debt incurred by a Borrower that is expressly subordinate and
junior in right of payment to Full Payment of all Obligations, and is on terms (including maturity,
interest, fees, repayment, covenants and subordination) reasonably satisfactory to Agent.

     Subsidiary: any entity more than 50% of whose voting securities or Equity Interests is
owned by a Borrower or any combination of Borrowers (including indirect ownership by a Borrower
through other

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entities in which the Borrower directly or indirectly owns more than 50% of the voting
securities or Equity Interests).

     Sweep Trigger Period: the period (a) commencing on the day that an Event of Default
occurs, or Availability is less than the greater of (X) $22,000,000 and (Y) 15% of the aggregate
amount of Revolver Commitments on such date; and (b) continuing until the day no Default or Event
of Default exists and Availability has been greater than the greater of (X) $22,000,000 and (Y) 15%
of the aggregate amount of Revolver Commitments, in the case of clauses (b)(X)and
(b)(Y), for a period of 30 consecutive days.

     Swingline Loan: any Borrowing of Base Rate Revolver Loans funded with Agent’s funds,
until such Borrowing is settled among Lenders or repaid by Borrowers.

     Target: any Person or business unit or asset group of any Person acquired or proposed
to be acquired in an Acquisition.

     Taxes: all present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, similar fees or similar charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

     Trademark Security Agreement: each trademark security agreement pursuant to which an
Obligor grants to Agent, for the benefit of Secured Parties, a Lien on such Obligor’s interests in
trademarks, as security for the Obligations.

     Transferee: any actual or potential Eligible Assignee, Participant or other Person
acquiring an interest in any Obligations.

     Type: any type of a Loan (i.e., Base Rate Loan or LIBOR Loan) that has the same
interest option and, in the case of LIBOR Loans, the same Interest Period.

     UCC: the Uniform Commercial Code as in effect in the State of Illinois or, when the
laws of any other jurisdiction govern the perfection or enforcement of any Lien, the Uniform
Commercial Code of such jurisdiction.

     Unfunded Pension Liability: the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in
accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the
Code for the applicable plan year.

     Unused Line Fee Percentage: as defined in the definition of the term “Applicable
Margin”.

     Upstream Payment: a Distribution by a Subsidiary of a Borrower to such Borrower or to
another Subsidiary of such Borrower that is an Obligor.

     Value: (a) for Inventory, its value determined on the basis of the lower of cost or
market, calculated on actual cost specific identification basis, and excluding any portion of cost
attributable to intercompany profit among Borrowers and their Affiliates; and (b) for an Account,
its face amount, net of any returns, rebates, discounts (calculated on the shortest terms),
credits, allowances or Taxes (including sales, excise or other taxes) that have been or could be
claimed by the Account Debtor or any other Person.

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     1.2 Accounting Terms. Under the Loan Documents (except as otherwise specified herein), all accounting terms shall
be interpreted, all accounting determinations shall be made, and all financial statements shall be
prepared, in accordance with GAAP applied on a basis consistent with the most recent audited
financial statements of Borrowers delivered to Agent before the Closing Date and using the same
inventory valuation method as used in such financial statements, except for any change required or
permitted by GAAP if Borrowers’ certified public accountants concur in such change, the change is
disclosed to Agent, and Section 10.3 is amended in a manner satisfactory to Required Lenders to
take into account the effects of the change. If the Borrowers adopt the International Financial
Reporting Standards, and such change in accounting principles and/or adoption of such standards
results in a change in the method or results of calculation of financial covenants and/or defined
terms contained in this Agreement, then at the option of the Required Lenders or the Borrowers, the
parties will enter into good faith negotiations to amend such financial covenants and/or defined
terms in such manner as the parties shall agree, each acting reasonably, in order to reflect fairly
such changes and/or adoption so that the criteria for evaluating the financial condition of the
Borrowers shall be the same in commercial effect after, as well as before, such changes and/or
adoption are made (in which case the method and calculation of financial covenants and/or the
defined terms related thereto hereunder shall be determined in the manner so agreed).

     1.3 Uniform Commercial Code. As used herein, the following terms are defined in
accordance with the UCC in effect in the State of Illinois from time to time: “Chattel Paper,”
“Commercial Tort Claim,” “Deposit Account,” “Document,” “Equipment,” “General Intangibles,”
“Goods,” “Instrument,” “Investment Property,” “Letter-of-Credit Right” and “Supporting Obligation.”

     1.4 Certain Matters of Construction. The terms “herein,” “hereof,” “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any particular section,
paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. In the
computation of periods of time from a specified date to a later specified date, “from” means “from
and including,” and “to” and “until” each mean “to but excluding.” The terms “including” and
“include” shall mean “including, without limitation” and, for purposes of each Loan Document, the
parties agree that the rule of ejusdem generis shall not be applicable to limit any provision.
Section titles appear as a matter of convenience only and shall not affect the interpretation of
any Loan Document. All references to (a) laws or statutes include all related rules, regulations,
interpretations, amendments and successor provisions; (b) any document, instrument or agreement
include any amendments, waivers and other modifications, extensions or renewals (to the extent
permitted by the Loan Documents); (c) any section mean, unless the context otherwise requires, a
section of this Agreement; (d) any exhibits or schedules mean, unless the context otherwise
requires, exhibits and schedules attached hereto, which are hereby incorporated by reference; (e)
any Person include successors and assigns; (f) unless otherwise specified, time of day mean Chicago
time of day (daylight or standard, as applicable); or (g) discretion of Agent, Issuing Bank or any
Lender mean the sole and absolute discretion of such Person acting reasonably. All calculations of
Value, fundings of Loans, issuances of Letters of Credit and payments of Obligations shall be in
Dollars and, unless the context otherwise requires, all determinations (including calculations of
Borrowing Base and financial covenants) made from time to time under the Loan Documents shall be
made in light of the circumstances existing at such time. Borrowing Base calculations shall be
consistent with historical methods of valuation and calculation, and otherwise satisfactory to
Agent (and not necessarily calculated in accordance with GAAP). Borrowers shall have the burden of
establishing any alleged negligence, misconduct or lack of good faith by Agent, Issuing Bank or any
Lender under any Loan Documents. No provision of any Loan Documents shall be construed against any
party by reason of such party having, or being deemed to have, drafted the provision. Whenever the
phrase “to the best of Borrowers’ knowledge” or words of similar
import are used in any Loan Documents, it means actual knowledge of a Senior Officer, or
knowledge that a Senior Officer would have obtained if he or she had engaged in good faith

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and
diligent performance of his or her duties, including reasonably specific inquiries of employees or
agents and a good faith attempt to ascertain the matter to which such phrase relates.

SECTION 2. CREDIT FACILITIES

     2.1 Revolver Commitment.

          2.1.1 Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up
to its Revolver Commitment, on the terms set forth herein, to make Revolver Loans to Borrowers from
time to time through the Commitment Termination Date. The Revolver Loans may be repaid and
reborrowed as provided herein. In no event shall Lenders have any obligation to honor a request
for a Revolver Loan if the unpaid balance of Revolver Loans outstanding at such time (including the
requested Loan) would exceed the Borrowing Base.

          2.1.2 Revolver Notes. The Revolver Loans made by each Lender and interest
accruing thereon shall be evidenced by the records of Agent and such Lender. At the request of any
Lender, Borrowers shall deliver a Revolver Note to such Lender.

          2.1.3 Use of Proceeds. The proceeds of Revolver Loans shall be used by
Borrowers solely (a) to satisfy existing Debt; (b) to pay fees and transaction expenses associated
with the closing of this credit facility; (c) to pay Obligations in accordance with this Agreement;
(d) for working capital and other lawful general corporate purposes of Borrowers and (e) to issue
Letters of Credit in accordance with the terms hereof.

          2.1.4 Voluntary Reduction or Termination of Revolver Commitments.

               (a) The Revolver Commitments shall terminate on the Revolver Termination Date,
unless sooner terminated in accordance with this Agreement. Upon at least 30 days prior written
notice to Agent, Borrowers may, at their option, terminate the Revolver Commitments and this credit
facility. Any notice of termination given by Borrowers shall be irrevocable;
provided that such notice may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be revoked by Borrowers (by
notice to the Agent on or prior to the specified effective date) if such condition is not
satisfied. On the termination date, Borrowers shall make Full Payment of all Obligations.

               (b) Borrowers may permanently reduce the Revolver Commitments, on a Pro Rata basis
for each Lender, upon at least 30 days prior written notice to Agent, which notice shall specify
the amount of the reduction and shall be irrevocable once given. Each reduction shall be in a
minimum amount of $5,000,000, or an increment of $1,000,000 in excess thereof.

          2.1.5 Overadvances. If the aggregate Revolver Loans exceed the Borrowing
Base (“Overadvance”) at any time, the excess amount shall be payable by Borrowers on demand
by Agent or Required Lenders, but all such Revolver Loans shall nevertheless constitute Obligations
secured by the Collateral and entitled to all benefits of the Loan Documents. Unless its authority
has been revoked in writing by Required Lenders, Agent may require Lenders to honor requests for
Overadvance Loans and to forbear from requiring Borrowers to cure an Overadvance, (a) when no other
Event of Default is known
to Agent, as long as (i) the Overadvance does not continue for more than 30 consecutive days
(and no Overadvance may exist for at least five consecutive days thereafter before further
Overadvance Loans are required), and (ii) the Overadvance is not known by Agent to exceed 10% of
the aggregate Commitments then in effect; and (b) regardless of whether an Event of Default exists,
if Agent discovers an Overadvance not previously known by it to exist, as long as from the date of
such discovery the

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Overadvance (i) is not increased by more than 10% of the aggregate Commitments
then in effect, and (ii) does not continue for more than 30 consecutive days; provided,
however, that there shall be no more than three separate Overadvances in any Loan Year. In
no event shall Overadvance Loans be required that would cause the outstanding Revolver Loans and LC
Obligations to exceed the aggregate Revolver Commitments. Any funding of an Overadvance Loan or
sufferance of an Overadvance shall not constitute a waiver by Agent or Lenders of the Event of
Default caused thereby. In no event shall any Borrower or other Obligor be deemed a beneficiary of
this Section nor authorized to enforce any of its terms.

          2.1.6 Protective Advances. Agent shall be authorized, in its discretion, at
any time that any conditions in Section 6 are not satisfied, to make Base Rate Revolver Loans
(“Protective Advances”) (a) up to an aggregate amount of $2,500,000 outstanding at any
time, if Agent deems such Loans necessary or desirable to preserve or protect Collateral, or to
enhance the collectibility or repayment of Obligations; or (b) to pay any other amounts chargeable
to Obligors under any Loan Documents, including costs, fees and expenses; provided that,
the aggregate amount of outstanding Protective Advances plus the outstanding Revolver Loans and LC
Obligations shall not exceed the aggregate Revolving Commitments. Each Lender shall participate in
each Protective Advance on a Pro Rata basis. Required Lenders may at any time revoke Agent’s
authority to make further Protective Advances by written notice to Agent. Absent such revocation,
Agent’s determination that funding of a Protective Advance is appropriate shall be conclusive.

     2.2 Incremental Facilities.

               (a) Borrower Agent may by written notice to Agent elect to request, on behalf of
Borrowers, prior to the Revolver Termination Date, an increase to the existing Revolver Commitments
(any such increase, the “New Revolver Commitments”), by an amount not in excess of
$50,000,000 in the aggregate and not less than $20,000,000 individually (or such lesser amount
which (i) shall be approved by Agent or (ii) shall constitute the difference between $50,000,000
and all such New Revolver Commitments obtained prior to such date), and integral multiples of
$5,000,000 in excess of that amount. Each such notice shall specify (A) the date (each, an
“Increased Amount Date”) on which Borrowers propose that the New Revolver Commitments shall
be effective, which shall be a date not less than 10 Business Days after the date on which such
notice is delivered to Agent and (B) the identity of each Lender or other Person that is an
Eligible Assignee (each, a “New Lender”) to whom Borrowers propose any portion of such New
Revolver Commitments be allocated and the amounts of such allocations; provided that Agent
may elect or decline to arrange such New Revolver Commitments in its sole discretion and any Lender
approached to provide all or a portion of the New Revolver Commitments may elect or decline, in its
sole discretion, to provide a New Revolver Commitment. Such New Revolver Commitments shall become
effective as of such Increased Amount Date; provided that (1) no Default or Event of
Default shall exist on such Increased Amount Date before or after giving effect to such New
Revolver Commitments; (2) Borrower Agent shall have delivered pro forma financial statements and a
pro forma Compliance Certificate, dated as of the Increased Amount Date, in form and substance
satisfactory to Agent, demonstrating that immediately after giving effect to such New Revolver
Commitment, the Fixed Charge Coverage Ratio (recomputed for the most recent Fiscal Quarter for
which financial statements have been delivered) is at least 1.10 to 1.00 for the period of twelve
fiscal months
then most recently ended; (3) the New Revolver Commitments shall be effected pursuant to one
or more Joinder Agreements executed and delivered by Borrowers, the New Lender and Agent, each of
which shall be recorded by Agent, (4) each New Lender shall be subject to the requirements set
forth in, and shall deliver the documents required to be delivered pursuant to, Sections 5.10.1 and
5.10.2; (5) Borrowers shall make any payments required pursuant to Section 3.9 in connection with
the New Revolver Commitments and the re-allocation of loans contemplated by Section 2.2(b) below;
and (6)

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Borrowers shall deliver or cause to be delivered any customary legal opinions or other
documents reasonably requested by Agent in connection with any such transaction.

               (b) On any Increased Amount Date on which New Revolver Commitments are effected,
subject to the satisfaction of the foregoing terms and conditions, (i) each of the Lenders shall
assign to each of the New Lenders, and each of the New Lenders shall purchase from each of the
Lenders, at the principal amount thereof (together with accrued interest), such interests in the
Revolver Loans outstanding on such Increased Amount Date as shall be necessary in order that, after
giving effect to all such assignments and purchases, such Revolver Loans will be held by existing
Lenders and New Lenders ratably in accordance with their Revolver Commitments after giving effect
to the addition of such New Revolver Commitments to the Revolver Commitments, (ii) each New
Revolver Commitment shall be deemed for all purposes a Revolver Commitment and each Loan made
thereunder (a “New Revolver Loan”) shall be deemed, for all purposes, a Revolver Loan and (iii)
each New Lender shall become a Lender with respect to the New Revolver Commitment and all matters
relating thereto.

               (c) Agent shall notify Lenders promptly upon receipt of Borrower Agent’s notice of
each Increased Amount Date and in respect thereof (i) the New Revolver Commitments and the New
Lenders, and (ii) the respective interests in each Lender’s Revolver Loans subject to the
assignments contemplated by this Section 2.2.

               (d) The terms and provisions of the New Revolver Loans shall be identical to the
Revolver Loans. Each Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in
the opinion of Agent to effect the provision of this Section 2.2.

     2.3 Letter of Credit Facility.

          2.3.1 Issuance of Letters of Credit. Issuing Bank agrees to issue Letters
of Credit from time to time until 30 days prior to the Revolver Termination Date (or until the
Commitment Termination Date, if earlier), on the terms set forth herein, including the following:

               (a) Each Borrower acknowledges that Issuing Bank’s willingness to issue any Letter
of Credit is conditioned upon Issuing Bank’s receipt of a LC Application with respect to the
requested Letter of Credit, as well as such other instruments and agreements as Issuing Bank may
customarily require for issuance of a letter of credit of similar type and amount. Issuing Bank
shall have no obligation to issue any Letter of Credit unless (i) Issuing Bank receives a LC
Request and LC Application at least three Business Days prior to the requested date of issuance;
(ii) each LC Condition is satisfied; and (iii) if a Defaulting Lender exists, such Lender or
Borrowers have entered into arrangements satisfactory to Agent and Issuing Bank to eliminate any
funding risk associated with the Defaulting Lender. If Issuing Bank receives written notice from a
Lender at least five Business Days before issuance of a Letter of Credit that any LC Condition has
not been satisfied, Issuing Bank shall have no obligation to issue the requested Letter of Credit
(or any other) until such notice is withdrawn in writing by that Lender or until Required Lenders
have waived such condition in accordance with this Agreement. Prior
to receipt of any such notice, Issuing Bank shall not be deemed to have knowledge of any
failure of LC Conditions.

               (b) Letters of Credit may be requested by a Borrower only (i) to support obligations
of such Borrower or its Subsidiaries incurred in the Ordinary Course of Business; or (ii) for other
purposes as Agent and Lenders may approve from time to time in writing. The renewal or extension
of any Letter of Credit shall be treated as the issuance of a new Letter of Credit, except that
delivery of a new LC Application shall be required at the discretion of Issuing Bank.

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               (c) Borrowers assume all risks of the acts, omissions or misuses of any Letter of
Credit by the beneficiary. In connection with issuance of any Letter of Credit, none of Agent,
Issuing Bank or any Lender shall be responsible for the existence, character, quality, quantity,
condition, packing, value or delivery of any goods purported to be represented by any Documents;
any differences or variation in the character, quality, quantity, condition, packing, value or
delivery of any goods from that expressed in any Documents; the form, validity, sufficiency,
accuracy, genuineness or legal effect of any Documents or of any endorsements thereon; the time,
place, manner or order in which shipment of goods is made; partial or incomplete shipment of, or
failure to ship, any goods referred to in a Letter of Credit or Documents; any deviation from
instructions, delay, default or fraud by any shipper or other Person in connection with any goods,
shipment or delivery; any breach of contract between a shipper or vendor and a Borrower; errors,
omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telex, telecopy, e-mail, telephone or otherwise; errors in interpretation of technical
terms; the misapplication by a beneficiary of any Letter of Credit or the proceeds thereof; or any
consequences arising from causes beyond the control of Issuing Bank, Agent or any Lender, including
any act or omission of a Governmental Authority. The rights and remedies of Issuing Bank under the
Loan Documents shall be cumulative. Issuing Bank shall be fully subrogated to the rights and
remedies of each beneficiary whose claims against Borrowers are discharged with proceeds of any
Letter of Credit.

               (d) In connection with its administration of and enforcement of rights or remedies
under any Letters of Credit or LC Documents, Issuing Bank shall be entitled to act, and shall be
fully protected in acting, upon any certification, documentation or communication in whatever form
believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or
made by a proper Person. Issuing Bank may consult with and employ legal counsel, accountants and
other experts to advise it concerning its obligations, rights and remedies, and shall be entitled
to act upon, and shall be fully protected in any action taken in good faith reliance upon, any
advice given by such experts. Issuing Bank may employ agents and attorneys-in-fact in connection
with any matter relating to Letters of Credit or LC Documents, and shall not be liable for the
negligence or misconduct of agents and attorneys-in-fact selected with reasonable care.

          2.3.2 Reimbursement; Participations.

               (a) If Issuing Bank honors any request for payment under a Letter of Credit,
Borrowers shall pay to Issuing Bank, on the same day (“Reimbursement Date”), the amount
paid by Issuing Bank under such Letter of Credit, together with interest at the interest rate for
Base Rate Revolver Loans from the Reimbursement Date until payment by Borrowers. The obligation of
Borrowers to reimburse Issuing Bank for any payment made under a Letter of Credit shall be
absolute, unconditional, irrevocable, and joint and several, and shall be paid without regard to
any lack of validity or enforceability of any Letter of Credit or the existence of any claim,
setoff, defense or other right that Borrowers may have at any time against the beneficiary.
Whether or not Borrower Agent submits a Notice of Borrowing, Borrowers shall be deemed to have
requested a Borrowing of Base Rate Revolver Loans in an amount necessary to pay all amounts due
Issuing Bank on any Reimbursement Date and each
Lender agrees to fund its Pro Rata share of such Borrowing whether or not the Commitments have
terminated, an Overadvance exists or is created thereby, or the conditions in Section 6 are
satisfied.

               (b) Upon issuance of a Letter of Credit, each Lender shall be deemed to have
irrevocably and unconditionally purchased from Issuing Bank, without recourse or warranty, an
undivided Pro Rata
interest and participation in all LC Obligations relating to the Letter of
Credit. If Issuing Bank makes any payment under a Letter of Credit and Borrowers do not reimburse
such payment on the Reimbursement Date, Agent shall promptly notify Lenders and each Lender shall
promptly (within one Business Day) and unconditionally pay to Agent, for the benefit of Issuing
Bank, the Lender’s Pro Rata

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share of such payment. Upon request by a Lender, Issuing Bank shall
furnish copies of any Letters of Credit and LC Documents in its possession at such time.

               (c) The obligation of each Lender to make payments to Agent for the account of
Issuing Bank in connection with Issuing Bank’s payment under a Letter of Credit shall be absolute,
unconditional and irrevocable, not subject to any counterclaim, setoff, qualification or exception
whatsoever, and shall be made in accordance with this Agreement under all circumstances,
irrespective of any lack of validity or unenforceability of any Loan Documents; any draft,
certificate or other document presented under a Letter of Credit having been determined to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; or the existence of any setoff or defense that any Obligor may have with
respect to any Obligations. Issuing Bank does not assume any responsibility for any failure or
delay in performance or any breach by any Borrower or other Person of any obligations under any LC
Documents. Issuing Bank does not make to Lenders any express or implied warranty, representation
or guaranty with respect to the Collateral, LC Documents or any Obligor. Issuing Bank shall not be
responsible to any Lender for any recitals, statements, information, representations or warranties
contained in, or for the execution, validity, genuineness, effectiveness or enforceability of any
LC Documents; the validity, genuineness, enforceability, collectibility, value or sufficiency of
any Collateral or the perfection of any Lien therein; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Obligor.

               (d) No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any
action taken or omitted to be taken in connection with any LC Documents except as a result of its
actual gross negligence or willful misconduct. Issuing Bank shall not have any liability to any
Lender if Issuing Bank refrains from any action under any Letter of Credit or LC Documents until it
receives written instructions from Required Lenders.

          2.3.3 Cash Collateral. If any LC Obligations, whether or not then due or
payable, shall for any reason be outstanding at any time (a) that an Event of Default exists, (b)
that Availability is less than zero, (c) after the Commitment Termination Date, or (d) within 20
Business Days prior to the Revolver Termination Date, then Borrowers shall, at Issuing Bank’s or
Agent’s request, Cash Collateralize the stated amount of all outstanding Letters of Credit and pay
to Issuing Bank the amount of all other LC Obligations. Borrowers shall, on demand by Issuing Bank
or Agent from time to time, Cash Collateralize the LC Obligations of any Defaulting Lender. If
Borrowers fail to provide any Cash Collateral as required hereunder, Lenders may (and shall upon
direction of Agent) advance, as Revolver Loans, the amount of the Cash Collateral required (whether
or not the Commitments have terminated, an Overadvance exists or the conditions in Section 6 are
satisfied).

SECTION 3. INTEREST, FEES AND CHARGES

     3.1 Interest.

          3.1.1 Rates and Payment of Interest.

               (a) The Obligations shall bear interest (i) if a Base Rate Loan, at the Base Rate in
effect from time to time, plus the Applicable Margin for Base Rate Revolver Loans; (ii) if a LIBOR
Loan, at LIBOR for the applicable Interest Period, plus the Applicable Margin for LIBOR Revolver
Loans; and (iii) if any other Obligation (including, to the extent permitted by law, interest not
paid when due), at the Base Rate in effect from time to time, plus the Applicable Margin for Base
Rate Revolver Loans. Interest shall accrue from the date the Loan is advanced or the Obligation is
incurred or payable, until paid by Borrowers. If a Loan is repaid on the same day made, one day’s
interest shall accrue.

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               (b) During an Insolvency Proceeding with respect to any Borrower, or during any
other Event of Default if Agent or Required Lenders in their discretion so elect, outstanding
Obligations shall bear interest at the Default Rate (whether before or after any judgment). Each
Borrower acknowledges that the cost and expense to Agent and Lenders due to an Event of Default are
difficult to ascertain and that the Default Rate is a fair and reasonable estimate to compensate
Agent and Lenders for this.

               (c) Interest accrued on the Loans shall be due and payable in arrears, (i) on the
first day of each month; (ii) on any date of prepayment, with respect to the principal amount of
Loans being prepaid; and (iii) on the Commitment Termination Date. Interest accrued on any other
Obligations shall be due and payable as provided in the Loan Documents and, if no payment date is
specified, shall be due and payable on demand. Notwithstanding the foregoing, interest accrued at
the Default Rate shall be due and payable on demand.

          3.1.2 Application of LIBOR to Outstanding Loans.

               (a) Borrowers may on any Business Day, subject to delivery of a Notice of
Conversion/Continuation, elect to convert any portion of the Base Rate Loans to, or to continue any
LIBOR Loan at the end of its Interest Period as, a LIBOR Loan. During any Default or Event of
Default, Agent may (and shall at the direction of Required Lenders) declare that no Loan may be
made, converted or continued as a LIBOR Loan.

               (b) Whenever Borrowers desire to convert or continue Loans as LIBOR Loans, Borrower
Agent shall give Agent a Notice of Conversion/Continuation, no later than 11:00 a.m. at least three
Business Days before the requested conversion or continuation date. Promptly after receiving any
such notice, Agent shall notify each Lender thereof. Each Notice of Conversion/Continuation shall
be irrevocable, and shall specify the amount of Loans to be converted or continued, the conversion
or continuation date (which shall be a Business Day), and the duration of the Interest Period
(which shall be deemed to be 30 days if not specified). If, upon the expiration of any Interest
Period in respect of any LIBOR Loans, Borrowers shall have failed to deliver a Notice of
Conversion/Continuation, they shall be deemed to have elected to convert such Loans into Base Rate
Loans.

          3.1.3 Interest Periods. In connection with the making, conversion or
continuation of any LIBOR Loans, Borrowers shall select an interest period (“Interest
Period”) to apply, which interest period shall be 30, 60, or 90 days; provided,
however, that:

               (a) the Interest Period shall commence on the date the Loan is made or continued as,
or converted into, a LIBOR Loan, and shall expire on the numerically corresponding day in the
calendar month at its end;

               (b) if any Interest Period commences on a day for which there is no corresponding
day in the calendar month at its end or if such corresponding day falls after the last Business Day
of such month, then the Interest Period shall expire on the last Business Day of such month; and if
any Interest Period would expire on a day that is not a Business Day, the period shall expire on
the next Business Day; and

               (c) no Interest Period shall extend beyond the Revolver Termination Date.

          3.1.4 Interest Rate Not Ascertainable. If Agent shall determine that on any
date for determining LIBOR, due to any circumstance affecting the London interbank market, adequate
and fair

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means do not exist for ascertaining such rate on the basis provided herein, then Agent
shall immediately notify Borrowers of such determination. Until Agent notifies Borrowers that such
circumstance no longer exists, the obligation of Lenders to make LIBOR Loans shall be suspended,
and no further Loans may be converted into or continued as LIBOR Loans.

     3.2 Fees.

          3.2.1 Unused Line Fee. Borrowers shall pay to Agent, for the Pro Rata
benefit of Lenders (other than any Defaulting Lender for so long as such Defaulting Lender has not
funded its Pro Rata share of a Revolver Loan), a fee equal to the Unused Line Fee Percentage (set
forth in the definition of the term “Applicable Margin”) per annum times the amount by which the
Revolver Commitments (other than Revolving Commitments of a Defaulting Lender for so long as such
Defaulting Lender has not funded its Pro Rata share of a Revolver Loan) exceed the average daily
balance of Revolver Loans and stated amount of Letters of Credit during any month. Such fee shall
be payable in arrears, on the first day of each month and on the Commitment Termination Date.

          3.2.2 LC Facility Fees. Borrowers shall pay (a) to Agent, for the Pro Rata
benefit of Lenders, a fee equal to the Applicable Margin in effect for LIBOR Revolver Loans times
the average daily stated amount of Letters of Credit, which fee shall be payable monthly in
arrears, on the first day of each month; (b) to Agent, for its own account, a fronting fee equal to
0.25% per annum on the stated amount of each Letter of Credit, which fee shall be payable monthly
in arrears, on the first day of each month; and (c) to Issuing Bank, for its own account, all
customary charges associated with the issuance, amending, negotiating, payment, processing,
transfer and administration of Letters of Credit, which charges shall be paid as and when incurred.
During an Insolvency Proceeding with respect to any Borrower, or during any other Event of Default
if Agent or Required Lenders in their discretion so elect, the fee payable under clause (a) shall
be increased by 2% per annum.

          3.2.3 Agent Fees. In consideration of Agent’s syndication of the
Commitments and service as Agent hereunder, Borrowers shall pay to Agent, for its own account, the
fees described in the Fee Letter.

     3.3 Computation of Interest, Fees, Yield Protection. All interest, as well as fees and
other charges calculated on a per annum basis, shall be computed for the actual days elapsed, based
on a year of 360 days. Each determination by Agent of any interest, fees or interest rate
hereunder shall be final, conclusive and binding for all purposes, absent manifest error. All fees
shall be fully earned when due and shall not be subject to rebate, refund or proration. All fees
payable under Section 3.2 are compensation for services and are not, and shall not be
deemed to be, interest or any other charge for the use, forbearance or detention of money. A
certificate as to amounts payable by Borrowers under Section 3.4, 3.6, 3.7, 3.9 or 5.9, submitted
to Borrower Agent by Agent or the affected Lender, as applicable, shall be final, conclusive and
binding for all purposes, absent manifest error, and Borrowers shall pay such amounts to the
appropriate party within 10 days following receipt of the certificate.

     3.4 Reimbursement Obligations. Borrowers shall reimburse Agent for all Extraordinary
Expenses. Borrowers shall also reimburse Agent for all reasonable out-of-pocket and allocated
internal legal, accounting, appraisal, consulting, and other fees, costs and expenses incurred by
it in connection with (a) negotiation and preparation of any Loan Documents, including any
amendment or other modification thereof; (b) administration of and actions relating to any
Collateral, Loan Documents and transactions contemplated thereby, including any actions taken to
perfect or maintain priority of Agent’s Liens on any Collateral, to maintain any insurance required
hereunder or to verify Collateral; and (c) subject to the limits of Section 10.1.1(b), each
inspection, audit or appraisal with respect to any Obligor or Collateral, whether prepared by
Agent’s personnel or a third party. All reasonable
legal,
accounting

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and consulting fees shall be
charged to Borrowers by Agent’s professionals at their full hourly rates, regardless of any reduced
or alternative fee billing arrangements that Agent, any Lender or any of their Affiliates may have
with such professionals with respect to this or any other transaction. If, for any reason
(including inaccurate reporting on financial statements or a Compliance Certificate), it is
determined that (i) a higher Applicable Margin should have applied to a period than was actually
applied, then the proper margin shall be applied retroactively and Borrowers shall immediately pay
to Agent, for the Pro Rata benefit of Lenders, an amount equal to the difference between the amount
of interest and fees that would have accrued using the proper margin and the amount actually paid
and (ii) a lower Applicable Margin should have applied to a period than was actually applied, then,
neither Agent nor any Lender shall have any obligation to repay any interest or fees to Borrowers;
provided, if, no Event of Default exists, the amount equal to the difference between the amount of
interest and fees actually paid and the amount of interest and fees that would have accrued using
the proper Applicable Margin shall be credited in a manner reasonably acceptable to Agent against
interest and fees payable hereunder in the next succeeding period; provided, further, if as a
result of any restatement or other event a proper calculation of the Applicable Margin would have
resulted in higher pricing for one or more periods and lower pricing for one or more other periods
(due to the shifting of income or expenses from one period to another period or any similar
reason), then the amount payable by Borrowers pursuant to clause (i) above shall be based upon the
excess, if any, of the amount of interest and fees that should have been paid for all applicable
periods over the amount of interest and fees paid for all such periods. All amounts payable by
Borrowers under this Section shall be due on demand.

     3.5 Illegality. If any Lender determines that any Applicable Law has made it unlawful, or
that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain or fund LIBOR Loans, or to determine or charge interest rates
based upon LIBOR, or any Governmental Authority has imposed material restrictions on the authority
of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market,
then, on notice thereof by such Lender to Agent, any obligation of such Lender to make or continue
LIBOR Loans or to convert Base Rate Loans to LIBOR Loans shall be suspended until such Lender
notifies Agent that the circumstances giving rise to such determination no longer exist. Upon
delivery of such notice, Borrowers shall prepay or, if applicable, convert all LIBOR Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such LIBOR Loans to such day, or immediately, if such Lender may
not lawfully continue to maintain such LIBOR
Loans. Upon any such prepayment or conversion, Borrowers shall also pay accrued interest on
the amount so prepaid or converted.

     3.6 Inability to Determine Rates. If Required Lenders notify Agent for any reason in
connection with a request for a Borrowing of, or conversion to or continuation of, a LIBOR Loan
that (a) Dollar deposits are not being offered to banks in the London interbank Eurodollar market
for the applicable amount and Interest Period of such Loan, (b) adequate and reasonable means do
not exist for determining LIBOR for the requested Interest Period, or (c) LIBOR for the requested
Interest Period does not adequately and fairly reflect the cost to such Lenders of funding such
Loan, then Agent will promptly so notify Borrower Agent and each Lender. Thereafter, the
obligation of Lenders to make or maintain LIBOR Loans shall be suspended until Agent (upon
instruction by Required Lenders) revokes such notice. Upon receipt of such notice, Borrower Agent
may revoke any pending request for a Borrowing of, conversion to or continuation of a LIBOR Loan
or, failing that, will be deemed to have submitted a request for a Base Rate Loan.

     3.7 Increased Costs; Capital Adequacy.

          3.7.1 Change in Law. If any Change in Law shall:

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               (a) impose modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account of, or
credit extended or participated in by, any Lender (except any reserve requirement reflected in
LIBOR) or Issuing Bank;

               (b) subject any Lender or Issuing Bank to any Tax with respect to any Loan, Loan
Document, Letter of Credit or participation in LC Obligations, or change the basis of taxation of
payments to such Lender or Issuing Bank in respect thereof (except for Indemnified Taxes or Other
Taxes covered by Section 5.9 and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or Issuing Bank); or

               (c) impose on any Lender or Issuing Bank or the London interbank market any other
condition, cost or expense affecting any Loan, Loan Document, Letter of Credit or participation in
LC Obligations; and the result thereof shall be to increase the cost to such Lender of making or
maintaining any LIBOR Loan (or of maintaining its obligation to make any such Loan), or to increase
the cost to such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of
Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to
reduce the amount of any sum received or receivable by such Lender or Issuing Bank hereunder
(whether of principal, interest or any other amount) then, upon request of such Lender or Issuing
Bank, Borrowers will pay to such Lender or Issuing Bank, as applicable, such additional amount or
amounts as will compensate such Lender or Issuing Bank, as applicable, for such additional costs
incurred or reduction suffered.

          3.7.2 Capital Adequacy. If any Lender or Issuing Bank determines that any
Change in Law affecting such Lender or Issuing Bank or any Lending Office of such Lender or such
Lender’s or Issuing Bank’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s, Issuing Bank’s or holding
company’s capital as a consequence of this Agreement, or such Lender’s or Issuing Bank’s
Commitments, Loans, Letters of Credit or participations in LC Obligations, to a level below that
which such Lender, Issuing Bank or holding company would have achieved but for such Change in Law
(taking into consideration such
Lender’s, Issuing Bank’s and holding company’s policies with respect to capital adequacy),
then from time to time Borrowers will pay to such Lender or Issuing Bank, as the case may be, such
additional amount or amounts as will compensate it or its holding company for any such reduction
suffered.

          3.7.3 Compensation. Failure or delay on the part of any Lender or Issuing
Bank to demand compensation pursuant to this Section shall not constitute a waiver of its right to
demand such compensation, but Borrowers shall not be required to compensate a Lender or Issuing
Bank for any increased costs incurred or reductions suffered more than six months prior to the date
that the Lender or Issuing Bank notifies Borrower Agent of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or Issuing Bank’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the six-month period referred to above shall be extended to include
the period of retroactive effect thereof).

     3.8 Mitigation. If any Lender gives a notice under Section 3.5 or requests compensation
under Section 3.7, or if Borrowers are required to pay additional amounts with respect to a Lender
under Section 5.9, then such Lender shall use reasonable efforts to designate a different Lending
Office 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 (a) would eliminate
the need for such notice or reduce amounts payable or to be withheld in the future, as applicable;
and (b) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to it. Borrowers shall pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

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     3.9 Funding Losses. If for any reason (other than default by a Lender) (a) any Borrowing
of, or conversion to or continuation of, a LIBOR Loan does not occur on the date specified therefor
in a Notice of Borrowing or Notice of Conversion/Continuation (whether or not withdrawn), (b) any
repayment or conversion of a LIBOR Loan occurs on a day other than the end of its Interest Period,
or (c) Borrowers fail to repay a LIBOR Loan when required hereunder, then Borrowers shall pay to
Agent its customary administrative charge and to each Lender all losses and expenses that it
sustains as a consequence thereof, including loss of anticipated profits and any loss or expense
arising from liquidation or redeployment of funds or from fees payable to terminate deposits of
matching funds. Lenders shall not be required to purchase Dollar deposits in the London interbank
market or any other offshore Dollar market to fund any LIBOR Loan, but the provisions hereof shall
be deemed to apply as if each Lender had purchased such deposits to fund its LIBOR Loans.

     3.10 Maximum Interest. Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by Applicable Law (“maximum rate”). If
Agent or any Lender shall receive interest in an amount that exceeds the maximum rate, the excess
interest shall be applied to the principal of the Obligations or, if it exceeds such unpaid
principal, refunded to Borrowers. In determining whether the interest contracted for, charged or
received by Agent or a Lender exceeds the maximum rate, such Person may, to the extent permitted by
Applicable Law, (a) characterize any payment that is not principal as an expense, fee or premium
rather than 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
contemplated term of the Obligations hereunder.

SECTION 4. LOAN ADMINISTRATION

     4.1 Manner of Borrowing and Funding Revolver Loans.

          4.1.1 Notice of Borrowing.

               (a) Whenever Borrowers desire funding of a Borrowing of Revolver Loans, Borrower
Agent shall give Agent a Notice of Borrowing. Such notice must be received by Agent no later than
12:00 noon (i) on the Business Day of the requested funding date, in the case of Base Rate Loans,
and (ii) at least three Business Days prior to the requested funding date, in the case of LIBOR
Loans. Notices received after 12:00 noon shall be deemed received on the next Business Day. Each
Notice of Borrowing shall be irrevocable and shall specify (A) the amount of the Borrowing, (B) the
requested funding date (which must be a Business Day), (C) whether the Borrowing is to be made as
Base Rate Loans or LIBOR Loans, and (D) in the case of LIBOR Loans, the duration of the applicable
Interest Period (which shall be deemed to be 30 days if not specified).

               (b) Unless payment is otherwise timely made by Borrowers, the becoming due of any
Obligations (whether principal, interest, fees or other charges, including Extraordinary Expenses,
LC Obligations, Cash Collateral and Bank Product Debt) shall be deemed to be a request for
Base
Rate Revolver Loans on the due date, in the amount of such Obligations. The proceeds of such
Revolver Loans shall be disbursed as direct payment of the relevant Obligation. In addition, Agent
may, at its option, charge such Obligations then due and owing against the Loan or any operating,
investment or other account of a Borrower maintained with Agent or any of its Affiliates.

               (c) If Borrowers establish a controlled disbursement account with Agent or any
Affiliate of Agent, then the presentation for payment of any check or other item of payment drawn
on such account at a time when there are insufficient funds to cover it shall be deemed to be a
request for

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 Base Rate Revolver Loans on the date of such presentation, in the amount of the check
and items presented for payment. The proceeds of such Revolver Loans may be disbursed directly to
the controlled disbursement account or other appropriate account.

          4.1.2 Fundings by Lenders. Each Lender shall timely honor its Revolver
Commitment by funding its Pro Rata share of each Borrowing of Revolver Loans that is properly
requested hereunder. Except for Borrowings to be made as Swingline Loans, Agent shall endeavor to
notify Lenders of each Notice of Borrowing (or deemed request for a Borrowing) by 12:00 noon on the
proposed funding date for Base Rate Loans or by 3:00 p.m. at least two Business Days before any
proposed funding of LIBOR Loans. Each Lender shall fund to Agent such Lender’s Pro Rata share of
the Borrowing to the account specified by Agent in immediately available funds not later than 2:00
p.m. on the requested funding date, unless Agent’s notice is received after the times provided
above, in which event Lender shall fund its Pro Rata share by 11:00 a.m. on the next Business Day.
Subject to its receipt of such amounts from Lenders, Agent shall disburse the proceeds of the
Revolver Loans as directed by Borrower Agent. Unless Agent shall have received (in sufficient time
to act) written notice from a Lender that it does not intend to fund its Pro Rata share of a
Borrowing, Agent may assume that such Lender has deposited or promptly will deposit its share with
Agent, and Agent may disburse a corresponding amount to Borrowers. If a Lender’s share of any
Borrowing or of any settlement pursuant to Section 4.1.3(b) is not received by Agent, then
Borrowers agree to repay to Agent on demand the amount of such share, together with interest
thereon from the date disbursed until repaid, at the rate applicable to the Borrowing.

          4.1.3 Swingline Loans; Settlement.

               (a) Agent may, but shall not be obligated to, advance Swingline Loans to Borrowers,
up to an aggregate outstanding amount of $20,000,000, unless the funding is specifically required
to be made by all Lenders hereunder. Each Swingline Loan shall constitute a Revolver Loan for all
purposes, except that payments thereon shall be made to Agent for its own account. The obligation
of Borrowers to repay Swingline Loans shall be evidenced by the records of Agent and need not be
evidenced by any promissory note.

               (b) To facilitate administration of the Revolver Loans, Lenders and Agent agree
(which agreement is solely among them, and not for the benefit of or enforceable by any Borrower)
that settlement among them with respect to Swingline Loans and other Revolver Loans may take place
on a date determined from time to time by Agent, which shall occur at least once each week. On
each settlement date, settlement shall be made with each Lender in accordance with the Settlement
Report delivered by Agent to Lenders. Between settlement dates, Agent may in its discretion apply
payments on Revolver Loans to Swingline Loans, regardless of any designation by Borrower or any
provision herein to the contrary. Each Lender’s obligation to make settlements with Agent is
absolute and unconditional, without offset, counterclaim or other defense, and whether or not the
Commitments have terminated, an Overadvance exists or the conditions in Section 6 are satisfied.
If, due to an Insolvency Proceeding with respect to a Borrower or otherwise, any Swingline Loan may
not be settled among Lenders hereunder, then each Lender shall be deemed to have purchased from
Agent a Pro Rata participation in each unpaid Swingline Loan and shall transfer the amount of such
participation to Agent, in immediately available funds, within one Business Day after Agent’s
request therefor.

          4.1.4 Notices. Each Borrower authorizes Agent and Lenders to extend,
convert or continue Loans, effect selections of interest rates, and transfer funds to or on behalf
of Borrowers based on telephonic or e-mailed instructions. Borrowers shall confirm each such
request by prompt delivery to Agent of a Notice of Borrowing or Notice of Conversion/Continuation,
if applicable, but if it differs in any material respect from the action taken by Agent or Lenders,
the records of Agent and Lenders shall govern. Neither Agent nor any Lender shall have any
liability for any loss suffered by a Borrower as a

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result of Agent or any Lender acting upon its
understanding of telephonic or e-mailed instructions from a person believed in good faith by Agent
or any Lender to be a person authorized to give such instructions on a Borrower’s behalf.

     4.2 Defaulting Lender. Agent may (but shall not be required to), in its discretion,
retain any payments or other funds received by Agent that are to be provided to a Defaulting Lender
hereunder, and may apply such funds to such Lender’s defaulted obligations or readvance the funds
to Borrowers in accordance with this Agreement. The failure of any Lender to fund a Loan, to make
any payment in respect of LC Obligations or to otherwise perform its obligations hereunder shall
not relieve any other Lender of its obligations, and no Lender shall be responsible for default by
another Lender. Lenders and Agent agree (which agreement is solely among them, and not for the
benefit of or enforceable by any Borrower) that, solely for purposes of determining a Defaulting
Lender’s right to vote on matters relating to the Loan Documents and to share in payments, fees and
Collateral proceeds thereunder, a Defaulting Lender shall not be deemed to be a “Lender” until all
its defaulted obligations have been cured.

     4.3 Number and Amount of LIBOR Loans; Determination of Rate. Each Borrowing of LIBOR
Loans when made shall be in a minimum amount of $5,000,000, plus any increment of $1,000,000 in
excess thereof. Upon determining LIBOR for any Interest Period
requested by Borrowers, Agent shall promptly notify Borrowers thereof by telephone or
electronically and, if requested by Borrowers, shall confirm any telephonic notice in writing.

     4.4 Borrower Agent. Each Borrower hereby designates Olympic Steel (“Borrower
Agent”) as its representative and agent for all purposes under the Loan Documents, including
requests for Loans and Letters of Credit, designation of interest rates, delivery or receipt of
communications, preparation and delivery of Borrowing Base and financial reports, receipt and
payment of Obligations, requests for waivers, amendments or other accommodations, actions under the
Loan Documents (including in respect of compliance with covenants), and all other dealings with
Agent, Issuing Bank or any Lender. Borrower Agent hereby accepts such appointment. Agent and
Lenders shall be entitled to rely upon, and shall be fully protected in relying upon, any notice or
communication (including any notice of borrowing) delivered by Borrower Agent on behalf of any
Borrower. Agent and Lenders may give any notice or communication with a Borrower hereunder to
Borrower Agent on behalf of such Borrower. Each of Agent, Issuing Bank and Lenders shall have the
right, in its discretion, to deal exclusively with Borrower Agent for any or all purposes under the
Loan Documents. Each Borrower agrees that any notice, election, communication, representation,
agreement or undertaking made on its behalf by Borrower Agent shall be binding upon and enforceable
against it.

     4.5 One Obligation. The Loans, LC Obligations and other Obligations shall constitute one
general obligation of Borrowers and (unless otherwise expressly provided in any Loan Document)
shall be secured by Agent’s Lien upon all Collateral; provided, however, that Agent
and each Lender shall be deemed to be a creditor of, and the holder of a separate claim against,
each Borrower to the extent of any Obligations jointly or severally owed by such Borrower.

     4.6 Effect of Termination. On the effective date of any termination of the Commitments,
all Obligations shall be immediately due and payable, and any Lender may terminate its and its
Affiliates’ Bank Products (including, only with the consent of Agent, any Cash Management
Services). All undertakings of Borrowers (other than those that survive by their terms) contained
in the Loan Documents shall survive any termination until Full Payment of the Obligations, and
Agent shall retain its Liens in the Collateral and all of its rights and remedies under the Loan
Documents until Full Payment of the Obligations. Notwithstanding Full Payment of the Obligations,
Agent shall not be required to terminate its Liens in any Collateral unless, with respect to any
damages Agent may incur as a result of the dishonor or return of Payment Items applied to
Obligations, Agent receives (a) a written agreement, executed by

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Borrowers, indemnifying Agent and
Lenders from any such damages; or (b) such Cash Collateral as Agent, in its reasonable discretion,
deems necessary to protect against any such damages. Sections 2.3, 3.4, 3.6, 3.7, 3.9, 5.5, 5.9,
5.10, 12, 14.2 and this Section, and the obligation of each Obligor and Lender with respect to each
indemnity given by it in any Loan Document, shall survive Full Payment of the Obligations and any
release relating to this credit facility.

     4.7 Renewal Discussions.

     Provided that no Default or Event of Default has occurred and is continuing, Agent agrees to
enter into discussions with Borrower Agent, upon a request from Borrower Agent, regarding an
extension
of the then applicable Revolver Termination Date to a date that is one year later than the
Revolver Termination Date then in effect.

SECTION 5. PAYMENTS

     5.1 General Payment Provisions. All payments of Obligations shall be made in Dollars,
without offset, counterclaim or defense of any kind, free of (and without deduction for) any Taxes,
and in immediately available funds, not later than 1:00 p.m. on the due date. Any payment after
such time shall be deemed made on the next Business Day. Any payment of a LIBOR Loan prior to the
end of its Interest Period shall be accompanied by all amounts due under Section 3.9. Any
prepayment of Loans shall be applied first to Base Rate Loans and then to LIBOR Loans.

     5.2 Repayment of Revolver Loans. Revolver Loans shall be due and payable in full on the
Revolver Termination Date, unless payment is sooner required hereunder. Revolver Loans may be
prepaid from time to time, without penalty or premium. Concurrently with any Asset Disposition,
Borrowers shall repay the Revolver Loans (or in the case of Asset Disposition permitted by
clause (a) of the definition of the term “Permitted Asset Disposition”, deposit the
proceeds thereof in a Dominion Account) in an amount equal to the Net Proceeds of such Asset
Disposition. Notwithstanding anything herein to the contrary, if an Overadvance exists, Borrowers
shall, on the sooner of Agent’s demand or the first Business Day after any Borrower has knowledge
thereof, repay the outstanding Revolver Loans in an amount sufficient to reduce the principal
balance of Revolver Loans to the Borrowing Base.

     5.3 [Intentionally Omitted].

     5.4 Payment of Other Obligations. Obligations other than Loans, including LC Obligations
and Extraordinary Expenses, shall be paid by Borrowers as provided in the Loan Documents or, if no
payment date is specified, on demand.

     5.5 Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any
obligation to marshal any assets in favor of any Obligor or against any Obligations. If any
payment by or on behalf of Borrowers is made to Agent, Issuing Bank or any Lender, or Agent,
Issuing Bank or any Lender exercises a right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by Agent, Issuing Bank or
such Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then to the
extent of such recovery, the Obligation originally intended to be satisfied, and all Liens, rights
and remedies relating thereto, shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred.

     5.6 Post-Default Allocation of Payments.

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          5.6.1 Allocation. Notwithstanding anything herein to the contrary, during
an Event of Default, monies to be applied to the Obligations, whether arising from payments by
Obligors, realization on Collateral, setoff or otherwise, shall be allocated as follows:

               (a) first, to all costs and expenses, including Extraordinary Expenses,
owing to Agent;

               (b) second, to all amounts owing to Agent on Swingline Loans;

               (c) third, to all amounts owing to Issuing Bank on LC Obligations;

               (d) fourth, to all Obligations constituting fees (excluding amounts relating
to Bank Products);

               (e) fifth, to all Obligations constituting interest (excluding amounts
relating to Bank Products);

               (f) sixth, to provide Cash Collateral for outstanding Letters of Credit;

               (g) seventh, to all other Obligations, other than (A) Bank Product Debt
relating to Bank Products described in clauses (a), (c) and (d) of the
definition thereof and (B) such amount of Bank Product Debt relating to Bank Products described in
clause (b) of the definition thereof that exceeds the amount of the Bank Product Reserve as
determined by Agent and established in respect of such Bank Product Debt; and

               (h) last, to Bank Product Debt relating to Bank Products described in
clauses (a), (c) and (d) of the definition thereof and such amount of Bank
Product Debt relating to Bank Products described in clause (b) of the definition thereof
that exceeds the amount of the Bank Product Reserve as determined by Agent and established in
respect of such Bank Product Debt.

Amounts shall be applied to each category of Obligations set forth above until Full Payment thereof
and then to the next category. If amounts are insufficient to satisfy a category, they shall be
applied on a pro rata basis among the Obligations in the category. Amounts distributed with
respect to any Bank Product Debt shall be the applicable Bank Product Amount last reported to
Agent. Agent shall have no obligation to calculate the amount to be distributed with respect to
any Bank Product Debt, but may rely upon written notice of the amount (setting forth a reasonably
detailed calculation) from the Secured Party. In the absence of such notice, Agent may assume the
amount to be distributed is the Bank Product Amount last reported to it. The allocations set forth
in this Section are solely to determine the rights and priorities of Agent and Lenders as among
themselves, and may be changed by agreement among them without the consent of any Obligor. This
Section is not for the benefit of or enforceable by any Borrower.

          5.6.2 Erroneous Application. Agent shall not be liable for any application
of amounts made by it in good faith and, if any such application is subsequently determined to have
been made in error, the sole recourse of any Lender or other Person to which such amount should
have been made shall be to recover the amount from the Person that actually received it (and, if
such amount was received by any Lender, such Lender hereby agrees to return it).

     5.7 Application of Payments. The ledger balance in the main Dominion Account as of the
end of a Business Day shall be
applied to the Obligations at the beginning of the next Business Day, during any Sweep Trigger
Period. If, as a result of such application, a credit balance exists, the balance

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shall not accrue
interest in favor of Borrowers and shall be made available to Borrowers as long as no Event of
Default exists. Each Borrower irrevocably waives the right to direct the application of any
payments or Collateral proceeds while an Event of Default exists, and agrees that Agent shall have
the continuing, exclusive right to apply and reapply same against the Obligations, in such manner
as Agent deems advisable, while an Event of Default exists.

     5.8 Loan Account; Account Stated.

          5.8.1 Loan Account. Agent shall maintain in accordance with its usual and
customary practices an account or accounts (“Loan Account”) evidencing the Debt of
Borrowers resulting from each Loan or issuance of a Letter of Credit from time to time. Any
failure of Agent to record anything in the Loan Account, or any error in doing so, shall not limit
or otherwise affect the obligation of Borrowers to pay any amount owing hereunder. Agent may
maintain a single Loan Account in the name of Borrower Agent, and each Borrower confirms that such
arrangement shall have no effect on the joint and several character of its liability for the
Obligations.

          5.8.2 Entries Binding. Entries made in the Loan Account shall constitute
presumptive evidence of the information contained therein. If any information contained in the
Loan Account is provided to or inspected by any Person, then such information shall be conclusive
and binding on such Person for all purposes absent manifest error, except to the extent such Person
notifies Agent in writing within 30 days after receipt or inspection that specific information is
subject to dispute.

     5.9 Taxes.

          5.9.1 Payments Free of Taxes. All payments by Obligors of Obligations shall
be free and clear of and without reduction for any Indemnified Taxes or Other Taxes. If Applicable
Law requires any Obligor or Agent to withhold or deduct any Tax (including backup withholding or
withholding of Tax), the withholding or deduction shall be based on information provided pursuant
to Section 5.10 and the Obligor or Agent, as applicable, shall pay the amount withheld or deducted
to the relevant Governmental Authority. If the withholding or deduction is made on account of
Indemnified Taxes or Other Taxes, the sum payable by Borrowers shall be increased so that Agent,
Lender or Issuing Bank, as applicable, receives an amount equal to the sum it would have received
if no such withholding or deduction (including deductions applicable to additional sums payable
under this Section) had been made. Without limiting the foregoing, Borrowers shall timely pay all
Other Taxes to the relevant Governmental Authorities.

          5.9.2 Payment. Borrowers shall indemnify, hold harmless and reimburse
(within 10 days after demand therefor) Agent, Lenders and Issuing Bank for any Indemnified Taxes or
Other Taxes (including those attributable to amounts payable under this Section) withheld or
deducted by any Obligor or Agent, or paid by Agent, any Lender or Issuing Bank, with respect to any
Obligations, Letters of Credit or Loan Documents, whether or not such Taxes were properly asserted
by the relevant Governmental Authority, and including all penalties, interest and reasonable
expenses relating thereto, as well as any amount that a Lender or Issuing Bank fails to pay
indefeasibly to Agent under Section 5.10; provided,that Borrowers shall not be obligated
to indemnify Agent or any Lender or Issuing Bank for any interest, additions to tax or penalties
resulting from such Person’s gross negligence or willful misconduct as
determined by a final non-appealable judgment of a court of competent jurisdiction. A
certificate as to the amount of any such payment or liability delivered to Borrower Agent by Agent,
or by a Lender or Issuing Bank (with a copy to Agent), shall be conclusive, absent manifest error.
As soon as practicable after any payment of Taxes by a Borrower, Borrower Agent shall deliver to
Agent a receipt from the Governmental Authority or other evidence of payment reasonably
satisfactory to Agent.

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     5.10 Lender Tax Information.

          5.10.1 Status of Lenders. Each Lender shall deliver documentation and
information to Agent and Borrower Agent, at the times and in form required by Applicable Law or
reasonably requested by Agent or Borrower Agent, sufficient to permit Agent or Borrowers to
determine (a) whether or not payments made with respect to Obligations are subject to Taxes, (b) if
applicable, the required rate of withholding or deduction, and (c) such Lender’s entitlement to any
available exemption from, or reduction of, applicable Taxes for such payments or otherwise to
establish such Lender’s status for withholding of tax purposes in the applicable jurisdiction.

          5.10.2 Documentation. If a Borrower is resident for tax purposes in the
United States, any Lender that is a “United States person” within the meaning of section
7701(a)(30) of the Code shall deliver to Agent and Borrower Agent IRS Form W-9 or such other
documentation or information prescribed by Applicable Law or reasonably requested by Agent or
Borrower Agent to determine whether such Lender is subject to backup withholding or information
reporting requirements. If any Foreign Lender is entitled to any exemption from or reduction of
withholding of tax for payments with respect to the Obligations, it shall deliver to Agent and
Borrower Agent, on or prior to the date on which it becomes a Lender hereunder (and from time to
time thereafter upon request by Agent or Borrower Agent, but only if such Foreign Lender is legally
entitled to do so), (a) IRS Form W-8BEN claiming eligibility for benefits of an income tax treaty
to which the United States is a party; (b) IRS Form W-8ECI; (c) IRS Form W-8IMY and all required
supporting documentation; (d) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under section 881(c) of the Code, IRS Form W-8BEN and a
certificate showing such Foreign Lender is not (i) a “bank” within the meaning of section
881(c)(3)(A) of the Code, (ii) a “10 percent shareholder” of any Obligor within the meaning of
section 881(c)(3)(B) of the Code, or (iii) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code; or (e) any other form prescribed by Applicable Law as a basis for
claiming exemption from or a reduction in withholding of tax, together with such supplementary
documentation necessary to allow Agent and Borrowers to determine the withholding or deduction
required to be made.

          5.10.3 Lender Obligations. Each Lender and Issuing Bank shall promptly
notify Borrowers and Agent of any change in circumstances that would change any claimed Tax
exemption or reduction. Each Lender and Issuing Bank shall indemnify, hold harmless and reimburse
(within 10 days after demand therefor) Borrowers and Agent for any Taxes, losses, claims,
liabilities, penalties, interest and expenses (including reasonable attorneys’ fees) incurred by or
asserted against a Borrower or Agent by any Governmental Authority due to such Lender’s or Issuing
Bank’s failure to deliver, or inaccuracy or deficiency in, any documentation required to be
delivered by it pursuant to this Section. Each Lender and Issuing Bank authorizes Agent to set off
any amounts due to Agent under this Section against any amounts payable to such Lender or Issuing
Bank under any Loan Document.

     5.11 Nature and Extent of Each Borrower’s Liability.

          5.11.1 Joint and Several Liability. Each Borrower agrees that it is jointly
and severally liable for, and absolutely and unconditionally guarantees to Agent and Lenders the
prompt payment and performance of, all Obligations and all agreements under the Loan Documents.
Each Borrower agrees that its guaranty obligations hereunder constitute a continuing guaranty of
payment and not of collection, that such obligations shall not be discharged until Full Payment of
the Obligations, and that such obligations are absolute and unconditional, irrespective of (a) the
genuineness, validity, regularity, enforceability, subordination or any future modification of, or
change in, any Obligations or Loan Document, or any other document, instrument or agreement to
which any Obligor is or may become a party or be bound; (b) the absence of any action to enforce
this Agreement (including this Section) or any other Loan Document, or any waiver, consent or
indulgence of any kind by Agent or any Lender with

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respect thereto; (c) the existence, value or
condition of, or failure to perfect a Lien or to preserve rights against, any security or guaranty
for the Obligations or any action, or the absence of any action, by Agent or any Lender in respect
thereof (including the release of any security or guaranty); (d) the insolvency of any Obligor; (e)
any election by Agent or any Lender in an Insolvency Proceeding for the application of Section
1111(b)(2) of the Bankruptcy Code; (f) any borrowing or grant of a Lien by any other Borrower, as
debtor-in-possession under Section 364 of the Bankruptcy Code or otherwise; (g) the disallowance of
any claims of Agent or any Lender against any Obligor for the repayment of any Obligations under
Section 502 of the Bankruptcy Code or otherwise; or (h) any other action or circumstances that
might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor,
except Full Payment of all Obligations.

          5.11.2 Waivers.

               (a) Each Borrower expressly waives all rights that it may have now or in the future
under any statute, at common law, in equity or otherwise, to compel Agent or Lenders to marshal
assets or to proceed against any Obligor, other Person or security for the payment or performance
of any Obligations before, or as a condition to, proceeding against such Borrower. Each Borrower
waives all defenses available to a surety, guarantor or accommodation co-obligor other than Full
Payment of all Obligations. It is agreed among each Borrower, Agent and Lenders that the
provisions of this Section 5.11 are of the essence of the transaction contemplated by the Loan
Documents and that, but for such provisions, Agent and Lenders would decline to make Loans and
issue Letters of Credit. Each Borrower acknowledges that its guaranty pursuant to this Section is
necessary to the conduct and promotion of its business, and can be expected to benefit such
business.

               (b) Agent and Lenders may, in their discretion, pursue such rights and remedies as
they deem appropriate, including realization upon Collateral by judicial foreclosure or
non-judicial sale or enforcement, without affecting any rights and remedies under this Section
5.11. If, in taking any action in connection with the exercise of any rights or remedies, Agent or
any Lender shall forfeit any other rights or remedies, including the right to enter a deficiency
judgment against any Borrower or other Person, whether because of any Applicable Laws pertaining to
“election of remedies” or otherwise, each Borrower consents to such action and waives any claim
based upon it, even if the action may result in loss of any rights of subrogation that any Borrower
might otherwise have had. Any election of remedies that results in denial or impairment of the
right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not impair
any other Borrower’s obligation to pay the full amount of the Obligations. Each Borrower waives
all rights and defenses arising out of an election of remedies, such as nonjudicial foreclosure
with respect to any security for the Obligations, even though that election of remedies destroys
such Borrower’s rights of subrogation against any other Person. Agent may bid all or a portion of
the Obligations at any foreclosure or trustee’s sale or at any private sale, and the amount of such
bid need not be paid by Agent but shall be credited against the Obligations. The amount of the
successful bid at any such sale, whether Agent or any other Person is the successful bidder, shall
be conclusively deemed to be the fair market value of the Collateral, and the difference between
such bid amount and the remaining balance of the Obligations shall be conclusively deemed to
be the amount of the Obligations guaranteed under this Section 5.11, notwithstanding that any
present or future law or court decision may have the effect of reducing the amount of any
deficiency claim to which Agent or any Lender might otherwise be entitled but for such bidding at
any such sale.

          5.11.3 Extent of Liability; Contribution.

               (a) Notwithstanding anything herein to the contrary, each Borrower’s liability under
this Section 5.11 shall be limited to the greater of (i) all amounts for which such Borrower is
primarily liable, as described below, and (ii) such Borrower’s Allocable Amount.

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               (b) If any Borrower makes a payment under this Section 5.11 of any Obligations
(other than amounts for which such Borrower is primarily liable) (a “Guarantor Payment”)
that, taking into account all other Guarantor Payments previously or concurrently made by any other
Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid
the aggregate Obligations satisfied by such Guarantor Payments in the same proportion that such
Borrower’s Allocable Amount bore to the total Allocable Amounts of all Borrowers, then such
Borrower shall be entitled to receive contribution and indemnification payments from, and to be
reimbursed by, each other Borrower for the amount of such excess, pro rata based upon their
respective Allocable Amounts in effect immediately prior to such Guarantor Payment. The
“Allocable Amount” for any Borrower shall be the maximum amount that could then be
recovered from such Borrower under this Section 5.11 without rendering such payment voidable under
Section 548 of the Bankruptcy Code or under any applicable state fraudulent transfer or conveyance
act, or similar statute or common law.

               (c) Nothing contained in this Section 5.11 shall limit the liability of any Borrower
to pay Loans made directly or indirectly to that Borrower (including Loans advanced to any other
Borrower and then re-loaned or otherwise transferred to, or for the benefit of, such Borrower), LC
Obligations relating to Letters of Credit issued to support such Borrower’s business, and all
accrued interest, fees, expenses and other related Obligations with respect thereto, for which such
Borrower shall be primarily liable for all purposes hereunder. Agent and Lenders shall have the
right, at any time in their discretion, to condition Loans and Letters of Credit upon a separate
calculation of borrowing availability for each Borrower and to restrict the disbursement and use of
such Loans and Letters of Credit to such Borrower.

          5.11.4 Joint Enterprise. Each Borrower has requested that Agent and Lenders
make this credit facility available to Borrowers on a combined basis, in order to finance
Borrowers’ business most efficiently and economically. Borrowers’ business is a mutual and
collective enterprise, and the successful operation of each Borrower is dependent upon the
successful performance of the integrated group. Borrowers believe that consolidation of their
credit facility will enhance the borrowing power of each Borrower and ease administration of the
facility, all to their mutual advantage. Borrowers acknowledge that Agent’s and Lenders’
willingness to extend credit and to administer the Collateral on a combined basis hereunder is done
solely as an accommodation to Borrowers and at Borrowers’ request.

          5.11.5 Subordination. Each Borrower hereby subordinates any claims,
including any rights at law or in equity to payment, subrogation, reimbursement, exoneration,
contribution, indemnification or set off, that it may have at any time against any other Obligor,
howsoever arising, to the Full Payment of all Obligations.

SECTION 6. CONDITIONS PRECEDENT

     6.1 Conditions Precedent to Initial Loans. In addition to the conditions set forth in
Section 6.2, Lenders shall not be required to fund any requested Loan, issue any Letter of Credit,
or otherwise extend credit to Borrowers hereunder, until the date (“Closing Date”) that
each of the following conditions has been satisfied:

               (a) Notes shall have been executed by Borrowers and delivered to each Lender that
requests issuance of a Note. Each other Loan Document shall have been duly executed and delivered
to Agent by each of the signatories thereto, and each Obligor shall be in compliance with all terms
thereof.

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               (b) Agent shall have made or provisions shall have been made for all filings or
recordations necessary to perfect its Liens in the Collateral, as well as UCC and Lien searches and
other evidence satisfactory to Agent that such Liens are the only Liens upon the Collateral, except
Permitted Liens.

               (c) Agent shall have received duly executed agreements establishing each Dominion
Account and related lockbox, in form and substance, and with financial institutions, satisfactory
to Agent.

               (d) Agent shall have received certificates, in form and substance satisfactory to
it, from a knowledgeable Senior Officer of each Borrower certifying that, after giving effect to
the initial Loans and transactions hereunder, (i) such Borrower is Solvent; (ii) no Default or
Event of Default exists; (iii) the representations and warranties set forth in Section 9 are true
and correct in all material respect (without duplication of any materiality qualifier contained
therein); and (iv) such Borrower has complied with all agreements and conditions to be satisfied by
it under the Loan Documents.

               (e) Agent shall have received a certificate of a duly authorized officer of each
Obligor, certifying (i) that attached copies of such Obligor’s Organic Documents are true and
complete, and in full force and effect, without amendment except as shown; (ii) that an attached
copy of resolutions authorizing execution and delivery of the Loan Documents is true and complete,
and that such resolutions are in full force and effect, were duly adopted, have not been amended,
modified or revoked; and (iii) to the title, name and signature of each Person authorized to sign
the Loan Documents. Agent may conclusively rely on this certificate until it is otherwise notified
by the applicable Obligor in writing.

               (f) Agent shall have received a written opinion of Jones Day, as well as any local
counsel to Borrowers, in form and substance satisfactory to Agent.

               (g) Agent shall have received copies of the charter documents of each Obligor,
certified by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of
organization. Agent shall have received good standing certificates for each Obligor, issued by the
Secretary of State or other appropriate official of such Obligor’s jurisdiction of organization and
each jurisdiction where such Obligor’s conduct of business or ownership of Property necessitates
qualification and where failure to be so qualified would reasonably be expected to have a Material
Adverse Effect.

               (h) Agent shall have received copies of policies or certificates of insurance for
the insurance policies carried by Borrowers, together with lender’s loss payable endorsement with
respect to property insurance policies related to the Collateral and additional insured
endorsements with respect to liability insurance policies, all in compliance with the Loan
Documents.

               (i) Agent shall have completed its business, financial and legal due diligence of
Obligors (including evidence that Borrowers have received all governmental and third party consents
and approvals necessary to consummate the transactions contemplated hereunder), including an
appraisal of Borrowers’ Inventory, a roll-forward of its previous field examination, with results
satisfactory to Agent. No material adverse change in the financial condition of the Obligors
(taken as a whole) since December 31, 2009 or in the quality, quantity or value of the Collateral
(taken as a whole) shall have occurred since May 25, 2010.

               (j) Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders
on the Closing Date.

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               (k) Agent shall have received a Borrowing Base Certificate prepared as of May 31,
2010. Upon giving effect to the initial funding of Loans and issuance of Letters of Credit, and
the payment by Borrowers of all fees and expenses incurred in connection herewith as well as any
payables stretched beyond their customary payment practices, Availability shall be at least
$25,000,000.

               (l) Agent shall have received financial projections of the Borrowers for fiscal
years 2010-2012, evidencing Borrowers’ compliance with the financial covenants set forth in Section
10.3 and interim financial statements for the Borrowers as of a date not more than thirty (30) days
prior to the Closing Date.

               (m) Since December 31, 2009 there has not been a material disruption of or material
adverse change in the financial, banking or capital markets (as determined by Agent in its
discretion) that would impair, in Agent’s reasonable judgment, a successful syndication of the
Revolver Commitments.

               (n) All conditions precedent in any other Loan Document shall be satisfied.

     6.2 Conditions Precedent to All Credit Extensions. Agent, Issuing Bank and Lenders shall
not be required to fund any Loans or arrange for issuance of any Letters of Credit, unless the
following conditions are satisfied:

               (a) No Default or Event of Default shall exist at the time of, or result from, such
funding or issuance;

               (b) The representations and warranties of each Obligor in the Loan Documents shall
be true and correct in all material respects (without duplication of any materiality qualifier
contained therein) on the date of, and upon giving effect to, such funding or issuance (except for
representations and warranties that expressly relate to an earlier date);

               (c) No event shall have occurred or circumstance exist that has or could reasonably
be expected to have a Material Adverse Effect; and

               (d) With respect to issuance of a Letter of Credit, the LC Conditions shall be
satisfied.

Each request (or deemed request) by Borrowers for funding of a Loan or issuance of a Letter of
Credit shall constitute a representation by Borrowers that the foregoing conditions are satisfied
on the date of such request and on the date of such funding or issuance.

SECTION 7. COLLATERAL

     7.1 Grant of Security Interest. To secure the prompt payment and performance of all
Obligations, each Borrower hereby grants to Agent, for the benefit of Secured Parties, a continuing
security interest in and Lien upon all Property (other than Real Estate, Equipment and fixtures) of
such Borrower, including all of the following Property, whether now owned or hereafter acquired,
and wherever located:

               (a) all Accounts;

               (b) all Chattel Paper, including electronic chattel paper;

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               (c) all Commercial Tort Claims, including those shown on Schedule 9.1.16;

               (d) all Deposit Accounts;

               (e) all Documents;

               (f) all General Intangibles, including Intellectual Property;

               (g) all Goods, including Inventory (but excluding Equipment and fixtures);

               (h) all Instruments;

               (i) all Investment Property;

               (j) all Letter-of-Credit Rights;

               (k) all Supporting Obligations;

               (l) all monies, whether or not in the possession or under the control of Agent, a
Lender, or a bailee or Affiliate of Agent or a Lender, including any Cash Collateral;

               (m) all accessions to, substitutions for, and all replacements, products, and cash
and non-cash proceeds of the foregoing, including proceeds of and unearned premiums with respect to
insurance policies, and claims against any Person for loss, damage or destruction of any
Collateral; and

               (n) all books and records (including customer lists, files, correspondence, tapes,
computer programs, print-outs and computer records) pertaining to the foregoing.

     Notwithstanding anything herein to the contrary, in no event shall the security interest
attach to, or the terms “Collateral” be deemed to include the following (collectively, the
“Excluded Property”): (i) Excluded Equity, (ii) any “intent to use” trademark applications
for which a statement of use has not been filed (but only until such statement is filed), and (iii)
any lease, license, contract or agreement to which a Borrower is a party, in any case if and for so
long as and to the extent that (A) such lease, license, contract or agreement prohibits or requires
the consent of any Person other than a Borrower which has not been obtained as a condition to the
creation by such Borrower of a Lien on any right, title or interest in such lease, license,
contract or agreement or any of such Borrower’s rights or interests thereunder or (B) to the extent
that any Applicable Law prohibits the creation of a Lien thereon, but only, with respect to the
prohibition in (A) and (B), to the extent, and for as long as, such prohibition is not terminated
or rendered unenforceable or otherwise deemed ineffective by the UCC or any other Applicable Law;
provided, however, “Excluded Property” shall not include any proceeds, products,
substitutions or replacements of Excluded Property (unless such proceeds, products, substitutions
or replacements would otherwise constitute Excluded Property).

     7.2 Lien on Deposit Accounts; Cash Collateral

          7.2.1 Deposit Accounts. To further secure the prompt payment and
performance of all Obligations, each Borrower hereby grants to Agent, for the benefit of Secured
Parties, a continuing security interest in and Lien upon all amounts credited to any Deposit
Account of such Borrower, including any sums in any blocked or lockbox accounts or in any accounts
into which such sums are swept. Each Borrower hereby authorizes and directs each bank or other
depository to deliver to Agent,

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upon request, all balances in any Deposit Account (other than an Excluded Account) maintained
by such Borrower, without inquiry into the authority or right of Agent to make such request.

          7.2.2 Cash Collateral. Any Cash Collateral may be invested, at Agent’s
discretion, in Cash Equivalents, but Agent shall have no duty to do so, regardless of any agreement
or course of dealing with any Borrower, and shall have no responsibility for any investment or
loss. Each Borrower hereby grants to Agent, for the benefit of Secured Parties, a security
interest in all Cash Collateral held from time to time and all proceeds thereof, as security for
the Obligations, whether such Cash Collateral is held in a Cash Collateral Account or elsewhere.
Agent may apply Cash Collateral to the payment of any Obligations, in such order as Agent may
elect, as they become due and payable. Each Cash Collateral Account and all Cash Collateral shall
be under the sole dominion and control of Agent. No Borrower or other Person claiming through or
on behalf of any Borrower shall have any right to any Cash Collateral, until Full Payment of all
Obligations.

     7.3 [Intentionally Omitted].

     7.4 Other Collateral.

          7.4.1 Commercial Tort Claims. Borrowers shall promptly notify Agent in
writing if any Borrower has a Commercial Tort Claim (other than, as long as no Event of Default
exists, a Commercial Tort Claim for less than $100,000), shall promptly amend Schedule 9.1.16 to
include such claim, and shall take such actions as Agent deems appropriate to subject such claim to
a duly perfected, first priority Lien in favor of Agent (for the benefit of Secured Parties).

          7.4.2 Certain After-Acquired Collateral. Borrowers shall promptly notify
Agent in writing if, after the Closing Date, any Borrower obtains any interest in any Collateral
consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Intellectual Property,
Investment Property or Letter-of-Credit Rights (other than, as long as no Event of Default exists,
any Collateral consisting of Chattel Paper, Documents, Instruments, Intellectual Property,
Investment Property or Letter-of-Credit Rights with a value of less than $1,000,000 in the
aggregate for all such Chattel Paper, Documents, Instruments, Intellectual Property, Investment
Property and Letter-of-Credit Rights) and, upon Agent’s request, shall promptly take such actions
as Agent deems appropriate to effect Agent’s duly perfected, first priority Lien upon such
Collateral, including obtaining any appropriate possession, control agreement or Lien Waiver. If
any Collateral is in the possession of a third party, at Agent’s request, Borrowers shall use
commercially reasonable efforts to obtain an acknowledgment that such third party holds the
Collateral for the benefit of Agent.

     7.5 No Assumption of Liability. The Lien on Collateral granted hereunder is given as security only and shall not subject
Agent or any Lender to, or in any way modify, any obligation or liability of Borrowers relating to
any Collateral.

     7.6 Further Assurances. Promptly upon request, Borrowers shall deliver such instruments, assignments, title
certificates, or other documents or agreements, and shall take such actions, as Agent deems
appropriate under Applicable Law to evidence or perfect its Lien on any Collateral, or otherwise to
give effect to the intent of this Agreement. Each Borrower authorizes Agent to file any financing
statement that indicates the Collateral as “all assets (other than equipment and fixtures)” or “all personal property
(other than equipment and fixtures)” of such Borrower, or words to similar effect, and ratifies any
action taken by Agent before the Closing Date to effect or perfect its Lien on any Collateral.

     7.7 Release of Collateral. At the time that Lenders authorize Agent to release Liens pursuant to Section 12.2.1(a) and
subject to Section 4.6, the Collateral shall be released from the Lien

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created hereby and all
rights to the Collateral shall revert to the Borrowers. At the request of any Borrower following
any such termination, the Agent shall deliver to such Borrower any Collateral of such Borrower held
by the Agent hereunder and execute and deliver to such Borrower such documents as such Grantor
shall reasonably request to evidence such termination.

SECTION 8. COLLATERAL ADMINISTRATION

     8.1 Borrowing Base Certificates. By the 20th day of each month, Borrowers shall deliver to Agent (and Agent shall promptly
deliver same to Lenders) a Borrowing Base Certificate prepared as of the close of business of the
previous month, and at such other times as Agent may request during any Reporting Trigger Period.
All calculations of Availability in any Borrowing Base Certificate shall originally be made by
Borrowers and certified by a Senior Officer, provided that Agent may from time to time
review and adjust any such calculation (a) to reflect its reasonable estimate of declines in value
of any Collateral, due to collections received in the Dominion Account or otherwise; (b) to adjust
advance rates to reflect changes in dilution, quality, mix and other factors affecting Collateral;
and (c) to the extent the calculation is not made in accordance with this Agreement or does not
accurately reflect the Availability Reserve.

     8.2 Administration of Accounts.

          8.2.1 Records and Schedules of Accounts. Each Borrower shall keep accurate
and complete records of its Accounts, including all payments and collections thereon, and shall
submit to Agent sales, collection, reconciliation and other reports in form satisfactory to Agent,
on such periodic basis as Agent may request (but in any event no less frequently than monthly), and
Agent shall promptly deliver same to Lenders. Each Borrower shall also provide to Agent (and Agent
shall promptly deliver same to Lenders), on or before the 20th day of each month and at such other
times as Agent may request during any Reporting Trigger Period, a detailed aged trial balance of
all Accounts as of the end of the preceding month and as of the end of such other period as Agent
may request during any Reporting Trigger Period, specifying each Account’s Account Debtor name and
address, amount, invoice date and due date, showing any discount, allowance, credit, authorized
return or dispute, and including such proof of delivery, copies of invoices and invoice registers,
copies of related documents, repayment histories, status reports and other information as Agent may
reasonably request. If Accounts in an aggregate face amount of $5,000,000 or more cease to be
Eligible Accounts, Borrowers shall notify Agent of such occurrence promptly (and in any event
within one Business Day) after any Borrower has knowledge thereof.

          8.2.2 Taxes. If an Account of any Borrower includes a charge for any Taxes,
Agent is authorized, in its discretion, to pay the amount thereof to the proper taxing authority
for the account of such Borrower and to charge Borrowers therefor; provided, however, that neither
Agent nor Lenders shall be liable for any Taxes that may be due from Borrowers or with respect to
any Collateral.

          8.2.3 Account Verification. Whether or not a Default or Event of Default
exists, Agent shall have the right at any time, in the name of Agent, any designee of Agent or any
Borrower, to verify the validity, amount or any other matter relating to any Accounts of Borrowers
by mail, telephone or otherwise. Borrowers shall cooperate fully with Agent in an effort to
facilitate and promptly conclude any such verification process; provided that Agent shall
use reasonable efforts to notify Borrower Agent of such verification.

          8.2.4 Maintenance of Dominion Account. Borrowers shall maintain Dominion
Accounts pursuant to lockbox or other arrangements acceptable to Agent. Borrowers shall obtain an
agreement (in form and substance satisfactory to Agent) from each lockbox servicer and Dominion

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Account bank, establishing Agent’s control over and Lien in the lockbox or Dominion Account, which
may be exercised by Agent during any Sweep Trigger Period, requiring immediate deposit of all
remittances received in the lockbox to a Dominion Account, and waiving offset rights of such
servicer or bank, except for customary administrative charges. If a Dominion Account is not
maintained with Bank of America, Agent may, during any Sweep Trigger Period, require immediate
transfer of all funds in such account to a Dominion Account maintained with Bank of America. Agent
and Lenders assume no responsibility to Borrowers for any lockbox arrangement or Dominion Account,
including any claim of accord and satisfaction or release with respect to any Payment Items
accepted by any bank.

          8.2.5 Proceeds of Collateral. Borrowers shall request in writing and
otherwise take all reasonably necessary steps to ensure that all payments on Accounts or otherwise
relating to Collateral are made directly to a Dominion Account (or a lockbox relating to a Dominion
Account). If any Borrower or Subsidiary receives cash or Payment Items with respect to any
Collateral, it shall hold same in trust for Agent and promptly (not later than the next Business
Day) deposit same into a Dominion Account.

     8.3 Administration of Inventory.

          8.3.1 Records and Reports of Inventory. Each Borrower shall keep accurate
and complete records of its Inventory, including costs and daily withdrawals and additions, and
shall submit to Agent inventory and reconciliation reports in form satisfactory to Agent, on such
periodic basis as Agent may request (but in any event no less frequently than monthly), and Agent
shall promptly deliver same to Lenders. Each Borrower shall conduct a physical inventory at least
once per calendar year (and on a more frequent basis if requested by Agent during any Reporting
Trigger Period) and periodic cycle counts consistent with historical practices, and shall provide
to Agent a report (Agent shall promptly deliver same to Lenders) based on each such inventory and
count promptly upon completion thereof, together with such supporting information as Agent may
request. Agent may participate in and observe each physical count at no cost to Borrowers unless
such participation or observation takes place during the annual inspection under Section 10.1.1
hereunder.

          8.3.2 Returns of Inventory. No Borrower shall return any Inventory to a
supplier, vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is
in the Ordinary Course of Business; (b) no Event of Default or Overadvance exists or would result
therefrom; (c) Agent is promptly notified if the aggregate Value of all Inventory returned in any
month exceeds $5,000,000; and (d) any payment received by a Borrower for a return is promptly
remitted to Agent for application to the Obligations.

          8.3.3 Acquisition, Sale and Maintenance. No Borrower shall acquire or
accept any Inventory on consignment or approval, and shall take all steps to assure that all
Inventory is produced in accordance with Applicable Law, including the FLSA in all material
respects. Borrowers shall use, store and maintain all Inventory with reasonable care and caution, in accordance with applicable
standards of any insurance and in conformity with all Applicable Law in all material respects, and
shall make current rent payments (within applicable grace periods provided for in leases) at all
locations where any Collateral is located.

     8.4 Administration of Equipment.

          8.4.1 [Reserved]

          8.4.2 [Reserved]

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          8.4.3 Condition of Equipment. The Equipment is in good operating condition
and repair, and all necessary replacements and repairs (in the business judgment of the Borrowers)
have been made, reasonable wear and tear excluded.

     8.5 Administration of Deposit Accounts. Schedule 8.5 sets forth all Deposit Accounts maintained by Borrowers, including all
Dominion Accounts. Each Borrower shall take all actions necessary to establish Agent’s control of
each such Deposit Account (other than an account exclusively used for payroll, payroll taxes or
employee benefits, zero balance disbursement accounts (it being understood and agreed that
Borrowers shall not maintain cash on deposit in disbursement accounts in excess of outstanding
checks and wire transfers payable from such accounts and amounts necessary to meet minimum balance
requirements) or accounts containing not more than $100,000 in the aggregate for all such accounts
at any time (collectively, the “Excluded Accounts”)). Each Borrower shall be the sole
account holder of each Deposit Account and shall not allow any other Person (other than Agent) to
have control over a Deposit Account or any Property deposited therein. Each Borrower shall
promptly notify Agent of any opening or closing of a Deposit Account and, with the consent of
Agent, will amend Schedule 8.5 to reflect same. Each Borrower shall (i) request in writing and
otherwise take such reasonable steps to ensure that all Account Debtors forward payment directly to
lockboxes and Dominion Accounts maintained pursuant to and in accordance with Section 8.2.4, and
(ii) deposit or cause to be deposited promptly, and in any event no later than the first Business
Day after the date of receipt thereof, all cash, checks, drafts or other similar items of payment
relating to or constituting payments made in respect of any and all Collateral (whether or not
otherwise delivered to a lockbox) into one or more Dominion Accounts. All Net Proceeds of the sale
or other disposition of any Collateral, shall be deposited directly into the applicable Dominion
Accounts.

     8.6 General Provisions.

          8.6.1 Location of Collateral. All tangible items of Collateral (other than
Inventory in transit, Collateral in the possession of Agent or a Lender, or at locations at which
the aggregate value of Collateral does not exceed $25,000 for each such location and $100,000 in
the aggregate for all such locations) shall at all times be kept by Borrowers at the business
locations set forth in Schedule 8.6.1, except that Borrowers may (a) make sales or other
dispositions of Collateral in accordance with Section 10.2.6; and (b) move Collateral to another
location in the United States, provided that such location is or will be identified on the
first Borrowing Base Certificate that is delivered after Collateral is moved to such location.

          8.6.2 Insurance of Collateral; Condemnation Proceeds.

               (a) Each Borrower shall maintain insurance with respect to the Collateral, covering
casualty, hazard, theft, malicious mischief, flood and other risks, in amounts, with endorsements
and with insurers (with a Best Rating of at least A7, unless otherwise approved by Agent)
satisfactory to Agent (it being understood and agreed that the insurance of the Borrowers in place
on the Closing Date and insurers providing it are satisfactory to Agent). All proceeds under each
policy in respect of Collateral shall be payable to Agent. From time to time upon request,
Borrowers shall deliver to Agent the originals or certified copies of its insurance policies.
Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing
Agent as loss payee in respect of the property insurance policies relating to the Collateral and
additional insured in respect of the liability insurance policies, as applicable; (ii) requiring 30
days prior written notice to Agent in the event of cancellation of the policy for any reason
whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by
any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the
premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to
provide and pay for any insurance, Agent may, at its option, but shall not be required to, procure
the

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insurance and charge Borrowers therefor. Each Borrower agrees to deliver to Agent, promptly as
rendered, copies of all reports made to insurance companies. While no Event of Default exists,
Borrowers may settle, adjust or compromise any insurance claim relating to Collateral, as long as
the proceeds are delivered to Agent. If an Event of Default exists, only Agent shall be authorized
to settle, adjust and compromise such claims relating to Collateral.

               (b) Any Net Proceeds of insurance relating to any Collateral and any awards arising
from condemnation of any Collateral shall be paid to Agent. Any such proceeds or awards that
relate to Collateral shall be applied to payment of the Revolver Loans, and then to any other
Obligations outstanding.

          8.6.3 Protection of Collateral. All expenses of protecting, storing,
warehousing, insuring, handling, maintaining and shipping any Collateral, all Taxes payable with
respect to any Collateral (including any sale thereof), and all other payments required to be made
by Agent to any Person to realize upon any Collateral, shall be borne and paid by Borrowers. Agent
shall not be liable or responsible in any way for the safekeeping of any Collateral, for any loss
or damage thereto (except for reasonable care in its custody while Collateral is in Agent’s actual
possession), for any diminution in the value thereof, or for any act or default of any
warehouseman, carrier, forwarding agency or other Person whatsoever, but the same shall be at
Borrowers’ sole risk.

          8.6.4 Defense of Title to Collateral. Each Borrower shall at all times
defend its title to Collateral and Agent’s Liens therein against all Persons, claims and demands
whatsoever, except Permitted Liens.

     8.7 Power of Attorney. Each Borrower hereby irrevocably constitutes and appoints Agent (and all Persons designated
by Agent) as such Borrower’s true and lawful attorney (and agent-in-fact) for the purposes provided
in this Section. Agent, or Agent’s designee, may, without notice and in either its or a Borrower’s
name, but at the cost and expense of Borrowers:

          (a) Endorse a Borrower’s name on any Payment Item or other proceeds of Collateral
(including proceeds of insurance) that come into Agent’s possession or control; and

          (b) During an Event of Default, (i) notify any Account Debtors of the assignment of
their Accounts, demand and enforce payment of Accounts by legal proceedings or otherwise, and
generally exercise any rights and remedies with respect to Accounts; (ii) settle, adjust, modify,
compromise, discharge or release any Accounts or other Collateral, or any legal proceedings brought
to collect Accounts or Collateral; (iii) sell or assign any Accounts and other Collateral upon
such terms, for such amounts and at such times as Agent deems advisable; (iv) collect, liquidate
and receive balances in Deposit Accounts or investment accounts, and take control, in any manner,
of proceeds of Collateral; (v) prepare, file and sign a Borrower’s name to a proof of claim or
other document in a bankruptcy of an Account Debtor, or to any notice, assignment or satisfaction
of Lien or similar document; (vi) receive, open and dispose of mail addressed to a Borrower, and
notify postal authorities to deliver any such mail to an address designated by Agent; (vii) endorse
any Chattel Paper, Document, Instrument, bill of lading, or other document or agreement relating to
any Accounts, Inventory or other Collateral; (viii) use a Borrower’s stationery and sign its name
to verifications of Accounts and notices to Account Debtors; (ix) use information contained in any
data processing, electronic or information systems relating to Collateral; (x) make and adjust
claims under insurance policies; (xi) take any action as may be necessary or appropriate to obtain
payment under any letter of credit, banker’s acceptance or other instrument for which a Borrower is
a beneficiary; and (xii) take all other actions as Agent deems appropriate to fulfill any
Borrower’s obligations under the Loan Documents.

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SECTION 9. REPRESENTATIONS AND WARRANTIES

     9.1 General Representations and Warranties. To induce Agent and Lenders to enter into this Agreement and to make available the
Commitments, Loans and Letters of Credit, each Borrower represents and warrants that:

          9.1.1 Organization and Qualification. Each Borrower and Subsidiary is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization. Each Borrower and Subsidiary is duly qualified, authorized to do business and in
good standing as a foreign corporation in each jurisdiction where failure to be so qualified could
reasonably be expected to have a Material Adverse Effect.

          9.1.2 Power and Authority. Each Obligor is duly authorized to execute,
deliver and perform the Loan Documents to which it is a party. The execution, delivery and
performance of the Loan Documents have been duly authorized by all necessary action, and do not (a)
require any consent or approval of any holders of Equity Interests of any Obligor, other than those
already obtained; (b) contravene the Organic Documents of any Obligor; (c) violate or cause a
default under any Applicable Law or Material Contract; or (d) result in or require the imposition
of any Lien (other than Permitted Liens) on any Property of any Obligor.

          9.1.3 Enforceability. Each Loan Document is a legal, valid and binding
obligation of each Obligor party thereto, enforceable in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’ rights and by
equitable principles (regardless of whether enforcement is sought in equity or at law).

          9.1.4 Capital Structure. Schedule 9.1.4 shows, as of the Closing Date for
each Borrower and Subsidiary, (A) its name and its jurisdiction of organization and (B) other than
with respect to Olympic Steel, its authorized and issued Equity Interests, the holders of its
Equity Interests, and all agreements binding on such holders with respect to their Equity
Interests. Except as disclosed on Schedule 9.1.4, in the five years preceding the Closing Date, no
Borrower or Subsidiary has acquired any substantial assets from any other Person nor been the
surviving entity in a merger or combination. Each Borrower has good title to its Equity Interests
in its Subsidiaries, subject only to Agent’s Lien and Permitted Liens, and all such Equity
Interests are duly issued, fully paid and non-assessable. There are no outstanding purchase
options, warrants, subscription rights, agreements to issue or sell, convertible interests, phantom rights or powers of attorney relating to Equity Interests of any Borrower
(other than Olympic Steel) or any Subsidiary.

          9.1.5 Title to Properties; Priority of Liens. Each Borrower and Subsidiary
has good and marketable title to (or valid leasehold interests in) all of its Real Estate, and good
title to all of its personal Property, including all Property reflected in any financial statements
delivered to Agent or Lenders, in each case free of Liens except Permitted Liens or any defects in
title which do not constitute Liens and that individually or in the aggregate could not reasonably
be expected to have a Material Adverse Effect. Each Borrower and Subsidiary has paid and
discharged all lawful claims that, if unpaid, could become a Lien on its Properties, other than
Permitted Liens. Subject to any actions required to be taken solely by Agent, including the filing
of UCC-1 financing statements, all Liens of Agent in the Collateral are duly perfected, first
priority Liens, subject only to Permitted Liens that are expressly allowed to have priority over
Agent’s Liens.

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          9.1.6 Accounts. Agent may rely, in determining which Accounts are Eligible
Accounts, on all statements and representations made by Borrowers with respect thereto. Borrowers
warrant, with respect to each Account at the time it is shown as an Eligible Account in a Borrowing
Base Certificate, that:

               (a) it is genuine and in all respects what it purports to be, and is not evidenced
by a judgment;

               (b) it arises out of a completed, bona fide sale and delivery of goods in the
Ordinary Course of Business, and substantially in accordance with any purchase order, contract or
other document relating thereto;

               (c) it is for a sum certain, maturing as stated in the invoice covering such sale, a
copy of which has been furnished or is available to Agent on request;

               (d) it is not subject to any offset, Lien (other than Agent’s Lien), deduction,
defense, dispute, counterclaim or other adverse condition except as arising in the Ordinary Course
of Business and disclosed in the Borrowing Base Certificate and, if requested since the date of the
last Borrowing Base Certificate, otherwise disclosed to Agent; and it is absolutely owing by the
Account Debtor, without contingency in any respect;

               (e) no purchase order, agreement, document or Applicable Law restricts assignment of
the Account to Agent (regardless of whether, under the UCC, the restriction is ineffective), and
the applicable Borrower is the sole payee or remittance party shown on the invoice;

               (f) no extension, compromise, settlement, modification, credit, deduction or return
has been authorized with respect to the Account, except discounts or allowances granted in the
Ordinary Course of Business for prompt payment that are reflected on the face of the invoice
related thereto and in the reports submitted to Agent hereunder; and

               (g) to the Borrowers’ knowledge, (i) there are no facts or circumstances that are
reasonably likely to impair the enforceability or collectibility of such Account; (ii) the Account
Debtor had the capacity to contract when the Account arose, continues to meet the applicable
Borrower’s customary credit standards, is Solvent, is not contemplating or subject to an Insolvency
Proceeding, and has not failed, or suspended or ceased doing business; and (iii) there are no
proceedings or actions threatened or pending against any Account Debtor that could reasonably be
expected to have a material adverse effect on the Account Debtor’s financial condition.

          9.1.7 Financial Statements. The consolidated and consolidating balance
sheets, and related statements of income, cash flow and shareholder’s equity, of Borrowers and
Subsidiaries that have been and are hereafter delivered to Agent and Lenders, are prepared in
accordance with GAAP (subject to year-end adjustments and the omission of notes thereto in the case
of interim statements), and fairly present in all material respects the financial positions and
results of operations of Borrowers and Subsidiaries at the dates and for the periods indicated.
All projections and other forward looking statements delivered from time to time to Agent and
Lenders have been prepared in good faith, based on assumptions believed to be reasonable in light
of the circumstances at such time, it being recognized that actual results may materially differ
therefrom. Since December 31, 2009, there has been no change in the financial condition of any
Borrower or Subsidiary that could reasonably be expected to have a Material Adverse Effect. No
financial statement (excluding projections and other forward looking statements) delivered to Agent
or Lenders at the time furnished contains any untrue statement of a material fact, nor 

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fails to
disclose any material fact necessary to make such statement not materially misleading. Each
Borrower and Subsidiary is Solvent.

          9.1.8 Surety Obligations. No Borrower or Subsidiary is obligated as surety
or indemnitor under any bond or other contract that assures payment or performance of any
obligation of any Person, except as permitted hereunder.

          9.1.9 Taxes. Each Borrower and Subsidiary has filed all income and other
material tax returns and other reports that it is required by law to file, and has, to the best of
Borrowers’ knowledge, paid, or made provision for the payment of, all Taxes due and owing (whether
or not shown or reportable on any tax returns or other reports), except to the extent being
Properly Contested. The provision for Taxes on the books of each Borrower and Subsidiary is
adequate for all years not closed by applicable statutes, and for its current Fiscal Year.

          9.1.10 Brokers. There are no brokerage commissions, finder’s fees or
investment banking fees payable in connection with any transactions contemplated by the Loan
Documents.

          9.1.11 Intellectual Property. Each Borrower and Subsidiary owns or has the
lawful right to use all Intellectual Property necessary for the conduct of its business, without,
to any Borrower’s knowledge, conflict with any rights of others. There is no pending or, to any
Borrower’s knowledge, threatened Intellectual Property Claim with respect to any Borrower, any
Subsidiary or any of their Property (including any Intellectual Property). Except as disclosed on
Schedule 9.1.11, as of the Closing Date, no Borrower or Subsidiary pays or owes any Royalty or
other compensation to any Person with respect to any Intellectual Property. All federally
registered Intellectual Property (other than off-the-shelf software) owned, used or licensed by, or
otherwise subject to any interests of, any Borrower or Subsidiary is, as of the Closing Date, shown
on Schedule 9.1.11.

          9.1.12 Governmental Approvals. Each Borrower and Subsidiary has, is in
compliance with, and is in good standing with respect to, all material Governmental Approvals
necessary to conduct its business and to own, lease and operate its Properties. All necessary
import, export or other licenses, permits or certificates for the import or handling of any goods
or other Collateral have been procured and are in effect, and Borrowers and Subsidiaries have
complied with all foreign and domestic laws with respect to the shipment and importation of any
goods or Collateral, except where noncompliance could not reasonably be expected to have a Material
Adverse Effect.

          9.1.13 Compliance with Laws. Each Borrower and Subsidiary has duly
complied, and its Properties and business operations are in compliance, in all material respects
with all Applicable Law, except where noncompliance could not reasonably be expected to have a
Material Adverse Effect. As of the Closing Date, there have been no citations, notices or orders
of material noncompliance issued to any Borrower or Subsidiary under any Applicable Law, and there
have been no citations, notices or orders of material noncompliance issued to any Borrower or Subsidiary under any Applicable Law
after the Closing Date of which Borrower Agent has not provided notice thereof to Agent. No
Inventory has been produced in violation of the FLSA.

          9.1.14 Compliance with Environmental Laws. Except as disclosed on Schedule
9.1.14 or as would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect: no Borrower’s or Subsidiary’s past or present operations, Real Estate, or other
Properties are subject to any federal, state, or local investigation to determine whether any
remedial action is needed to address any environmental pollution, Hazardous Material or
environmental clean-up; no Borrower or Subsidiary has received any Environmental Notice; and no
Borrower or Subsidiary is aware 

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of any reasonably likely liability with respect to any
Environmental Release, environmental pollution, or Hazardous Material on any Real Estate now or
previously owned, leased, or operated by it.

          9.1.15 Burdensome Contracts. No Borrower or Subsidiary is a party or
subject to any contract, agreement or charter restriction that would reasonably be expected to have
a Material Adverse Effect. No Borrower or Subsidiary is, as of the Closing Date, party or subject
to any Restrictive Agreement, except as shown on Schedule 9.1.15. No such Restrictive Agreement
prohibits the execution, delivery or performance of any Loan Document by an Obligor.

          9.1.16 Litigation. Except as shown on Schedule 9.1.16, there are no
proceedings or investigations pending or, to any Borrower’s knowledge, threatened against any
Borrower or Subsidiary, or any of their businesses or Properties, that (a) relate to any Loan
Documents or transactions contemplated thereby; or (b) would reasonably be expected to have a
Material Adverse Effect. Except as shown on such Schedule or as provided in a notice to Agent
pursuant to Section 7.4.1, no Obligor has a Commercial Tort Claim (other than, as long as no
Default or Event of Default exists, a Commercial Tort Claim for less than $100,000). No Borrower
or Subsidiary is in default in any material respect with respect to any order, injunction or
judgment of any Governmental Authority.

          9.1.17 No Defaults. No event or circumstance has occurred or exists that
constitutes a Default or Event of Default. No Borrower or Subsidiary is in default (after giving
effect to any applicable cure period) under any Material Contract or in the payment of any Borrowed
Money in excess of $2,500,000. There is no basis upon which any party (other than a Borrower or
Subsidiary) could terminate a Material Contract prior to its scheduled termination date.

          9.1.18 ERISA. Except as disclosed on Schedule 9.1.18 or as would not
reasonably be expected to have a Material Adverse Effect:

               (a) Each Plan is in compliance in with the applicable provisions of ERISA, the Code,
and other federal and state laws. Each Plan that is intended to qualify under Section 401(a) of
the Code has received a favorable determination letter (or, in the case of a prototype or volume
submitter plan, an opinion letter) from the IRS or an application for such a letter is currently
being processed by the IRS with respect thereto and, to the knowledge of Borrowers, nothing has
occurred which would prevent, or cause the loss of, such qualification. Each Obligor and ERISA
Affiliate has made all required contributions to each Plan subject to Section 412 of the Code, and
no application for a funding waiver or an extension of any amortization period pursuant to Section
412 of the Code has been made with respect to any Plan.

               (b) There are no pending or, to the knowledge of Borrowers, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan. There has
been no prohibited transaction or violation of the fiduciary responsibility rules with respect to
any Plan.

               (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) no Obligor or ERISA Affiliate has incurred,
or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension
Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) no Obligor or
ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) no
Obligor or ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA.

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               (d) With respect to any Foreign Plan, (i) all employer and employee contributions
required by law or by the terms of the Foreign Plan have been made, or, if applicable, accrued, in
accordance with normal accounting practices; (ii) the fair market value of the assets of each
funded Foreign Plan, the liability of each insurer for any Foreign Plan funded through insurance,
or the book reserve established for any Foreign Plan, together with any accrued contributions, is
sufficient to procure or provide for the accrued benefit obligations with respect to all current
and former participants in such Foreign Plan according to the actuarial assumptions and valuations
most recently used to account for such obligations in accordance with applicable generally accepted
accounting principles; and (iii) it has been registered as required and has been maintained in good
standing with applicable regulatory authorities.

          9.1.19 Trade Relations. There exists no actual or threatened termination,
limitation or modification of any business relationship between any Borrower or Subsidiary and any
customer or supplier, or any group of customers or suppliers, who individually or in the aggregate
are material to the business of such Borrower or Subsidiary, except in each case as would not
reasonably be expected to have a Material Adverse Effect. There exists no condition or
circumstance that could reasonably be expected to materially impair the ability of any Borrower or
Subsidiary to conduct its business at any time hereafter in substantially the same manner as
conducted on the Closing Date.

          9.1.20 Labor Relations. Except as described on Schedule 9.1.20, as of the
Closing Date, no Borrower or Subsidiary is party to or bound by any collective bargaining
agreement, management agreement or consulting agreement. There are no material grievances,
disputes or controversies with any union or other organization of any Borrower’s or Subsidiary’s
employees, or, to any Borrower’s knowledge, any asserted or threatened strikes, work stoppages or
demands for collective bargaining, except as would not reasonably be expected to have a Material
Adverse Effect.

          9.1.21 Payable Practices. No Borrower or Subsidiary has made any material
change in its historical accounts payable practices from those in effect on the Closing Date.

          9.1.22 Not a Regulated Entity. No Obligor is (a) an “investment company” or
a “person directly or indirectly controlled by or acting on behalf of an investment company” within
the meaning of the Investment Company Act of 1940; or (b) subject to regulation under the Federal
Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable Law
regarding its authority to incur Debt.

          9.1.23 Margin Stock. No Borrower or Subsidiary 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. No Loan proceeds or Letters of Credit will be used by
Borrowers to purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry,
any Margin Stock or for any related purpose governed by Regulations T, U or X of the Board of
Governors.

          9.1.24 Inactive Subsidiaries. No Inactive Subsidiary (a) has any assets
with a net book value which, when taken together with the net book value of the assets of all other
Inactive Subsidiaries exceeds $500,000 in the aggregate, (b) has any material liabilities or (c) is
engaged in any trade or business (other than the maintenance of its existence and activities
incidental thereto).

     9.2 Complete Disclosure. No Loan Document contains any untrue statement of a material fact, nor fails to disclose
any material fact necessary to make the statements contained therein not materially misleading.
There is no fact or circumstance that any Obligor has failed to disclose to Agent in writing that
could reasonably be expected to have a Material Adverse Effect.

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SECTION 10. COVENANTS AND CONTINUING AGREEMENTS

     10.1 Affirmative Covenants. As long as any Commitments or Obligations are outstanding, each Borrower shall, and shall
cause each Subsidiary to:

          10.1.1 Inspections; Appraisals.

               (a) Permit Agent from time to time, subject (except when a Default or Event of
Default exists) to reasonable notice and normal business hours, to visit and inspect the Properties
of any Borrower or Subsidiary, inspect, audit and make extracts from any Borrower’s or Subsidiary’s
books and records, and discuss with its officers, employees, agents, advisors and independent
accountants such Borrower’s or Subsidiary’s business, financial condition, assets, prospects and
results of operations. Lenders may participate in any such visit or inspection, at their own
expense. Neither Agent nor any Lender shall have any duty to any Borrower to make any inspection,
nor to share any results of any inspection, appraisal or report with any Borrower. Borrowers
acknowledge that all inspections, appraisals and reports are prepared by Agent and Lenders for
their purposes, and Borrowers shall not be entitled to rely upon them.

               (b) Reimburse Agent for all reasonable out-of-pocket and allocate internal charges,
costs and expenses of Agent in connection with (i) examinations of any Obligor’s books and records
or any other financial or Collateral matters as Agent deems appropriate, up to one time per Loan
Year; and (ii) appraisals of Inventory, up to one time per Loan Year; provided,
however, that if an examination or appraisal is initiated during any Reporting Trigger
Period, all reasonable out-of-pocket and allocated internal charges, costs and expenses therefor
shall be reimbursed by Borrowers without regard to such limits. Subject to and without limiting
the foregoing, Borrowers specifically agree to pay Agent’s then standard charges for each day that
an employee of Agent or its Affiliates is engaged in any examination activities, and shall pay the
standard charges of Agent’s examination group (for the information purposes only, the per day per
field examiner charge as of the date hereof is currently $1,000 per day). This Section shall not
be construed to limit Agent’s right to conduct examinations or to obtain appraisals at any time in
its discretion, nor to use third parties for such purposes.

          10.1.2 Financial and Other Information. Keep adequate records and books of
account with respect to its business activities, in which proper entries are made in accordance
with GAAP reflecting all financial transactions; and furnish to Agent and Lenders:

               (a) as soon as available, and in any event within 120 days after the close of each
Fiscal Year, balance sheets as of the end of such Fiscal Year and the related statements of income,
cash flow and shareholders’ equity for such Fiscal Year, on consolidated bases for Borrowers and
Subsidiaries, which consolidated statements shall be audited and certified (without a “going
concern” or like qualification or exception and without any qualification or exception as to the
scope of such audit) by a firm of independent certified public accountants of recognized standing
selected by Borrowers and acceptable to Agent (it being agreed that PricewaterhouseCoopers LLP is
acceptable to Agent), and shall set forth in comparative form corresponding figures for the
preceding Fiscal Year and other information acceptable to Agent; provided, however, that
such requirements for the furnishing of such annual financial statements may be fulfilled by the
furnishing of the annual report of Borrowers and Subsidiaries on Form 10-K (within the 120 day
period set forth herein), which includes financial statements, as filed with the Securities and
Exchange Commission, for the applicable Fiscal Year, and notice to Agent of such filing (within the
120 day period set forth herein);

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               (b) as soon as available, and in any event within 45 days after the end of each
Fiscal Quarter, unaudited balance sheets as of the end of such Fiscal Quarter and the related
statements of income and cash flow for such Fiscal Quarter and for the portion of the Fiscal Year
then elapsed, on consolidated bases for Borrowers and Subsidiaries, setting forth in comparative
form corresponding figures for the preceding Fiscal Year and certified by the chief financial
officer of Borrower Agent as prepared in accordance with GAAP and fairly presenting the financial
position and results of operations for such Fiscal Quarter and period, subject to normal year-end
adjustments and the absence of footnotes; provided, however, that such requirements for the
furnishing of such quarterly financial statements may be fulfilled by the furnishing of the
quarterly report of Borrowers and Subsidiaries on Form 10-Q (within the 45 day period set forth
herein), which includes financial statements, as filed with the Securities and Exchange Commission,
for the applicable Fiscal Quarter, and notice to Agent of such filing (within the 45 day period set
forth herein)

               (c) as soon as available, and in any event within 30 days after the end of each
fiscal month (except for the last month of each Fiscal Year, in which case, within 60 days after
the end of such fiscal month), unaudited balance sheets as of the end of such fiscal month and the
related statements of income and cash flow for such fiscal month and for the portion of the Fiscal
Year then elapsed, on consolidated bases for Borrowers and Subsidiaries, setting forth in
comparative form corresponding figures for the preceding Fiscal Year and certified by the chief
financial officer of Borrower Agent as prepared in accordance with GAAP and fairly presenting the
financial position and results of operations for such month and period, subject to normal year-end
adjustments and the absence of footnotes;

               (d) concurrently with delivery of financial statements under clauses (a), (b) and
(c) above, or more frequently if requested by Agent while an Event of Default exists, a Compliance
Certificate executed by the chief financial officer of Borrower Agent;

               (e) concurrently with delivery of financial statements under clause (a) above,
copies of all management letters and other material reports submitted to Borrowers by their
accountants in connection with such financial statements;

               (f) not later than 30 days after the end of each Fiscal Year, projections of
Borrowers’ consolidated balance sheets, results of operations, cash flow and Availability for the
next Fiscal Year, month by month;

               (g) at Agent’s request, a listing of each Borrower’s trade payables, specifying the
trade creditor and balance due, and a detailed trade payable aging, all in form satisfactory to
Agent;

               (h) promptly after the sending or filing thereof, copies of any proxy statements,
financial statements or reports that any Borrower has made generally available to its
shareholders in their capacities as such; copies of any regular, periodic and special reports
or registration statements or prospectuses that any Borrower files with the Securities and Exchange
Commission or any other Governmental Authority, or any securities exchange; and copies of any press
releases or other statements made available by a Borrower to the public concerning material changes
to or developments in the business of such Borrower;

               (i) promptly upon Agent’s or any Lender request, copies of any annual report filed
or to be filed in connection with each Plan or Foreign Plan; and

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               (j) such other reports and information (financial or otherwise) as Agent may
reasonably request from time to time in connection with any Collateral or any Borrower’s,
Subsidiary’s or other Obligor’s financial condition or business.

          10.1.3 Notices. Notify Agent and Lenders in writing, promptly after a
Borrower’s obtaining knowledge thereof, of any of the following that affects an Obligor: (a) the
threat or commencement of any proceeding or investigation, whether or not covered by insurance,
that would have a Material Adverse Effect; (b) any pending or threatened labor dispute, strike or
walkout, or the expiration of any material labor contract; (c) any material default under or
termination of a Material Contract (other than a termination in accordance with its terms); (d) the
existence of any Default or Event of Default; (e) any judgment in an amount exceeding $1,000,000;
(f) the assertion of any Intellectual Property Claim, that would reasonably be expected to have a
Material Adverse Effect; (g) any violation or asserted violation of any Applicable Law (including
ERISA, OSHA, FLSA, or any Environmental Laws) that would have a Material Adverse Effect; (h) any
Environmental Release by an Obligor or on any Property owned, leased or occupied by an Obligor; or
receipt of any Environmental Notice, in each case that would reasonably be expected to result in
liability of Borrowers in excess of $1,000,000 in the aggregate; (i) the occurrence of any ERISA
Event that would reasonably be expected to result in liability of Borrowers in excess of $1,000,000
in the aggregate; (j) the discharge of or any withdrawal or resignation by Borrowers’ independent
accountants; or (k) any opening of a new office or place of business, at least 30 days prior to
such opening.

          10.1.4 Landlord and Storage Agreements. Upon request, provide Agent with
copies of all existing agreements, and promptly after execution thereof provide Agent with copies
of all future agreements, between an Obligor and any landlord, warehouseman, processor, shipper,
bailee or other Person that owns any premises at which any Collateral in excess of $100,000 may be
kept or that otherwise may possess or handle any Collateral in excess of $100,000.

          10.1.5 Compliance with Laws. Comply with all Applicable Laws, including
ERISA, Environmental Laws, FLSA, OSHA, Anti-Terrorism Laws, and laws regarding collection and
payment of Taxes, and maintain all Governmental Approvals necessary to the ownership of its
Properties or conduct of its business, unless failure to comply (other than failure to comply with
Anti-Terrorism Laws) or maintain would not reasonably be expected to have a Material Adverse
Effect. Without limiting the generality of the foregoing, if any Environmental Release occurs at
or on any Properties of any Borrower or Subsidiary, in each case that would reasonably be expected
to result in liability of Borrowers in excess of $1,000,000 in the aggregate it shall act promptly
and diligently to investigate and report to Agent and all required Governmental Authorities the
extent of, and to take remedial action required by Environmental Law to respond to such
Environmental Release, whether or not directed to do so by any Governmental Authority.

          10.1.6 Taxes. Pay and discharge all federal and other material Taxes prior
to the date on which they become delinquent or penalties attach, unless such Taxes are being
Properly Contested.

          10.1.7 Insurance. In addition to the insurance required hereunder with
respect to Collateral, maintain insurance with insurers with a Best Rating of at least A7, unless
otherwise approved by Agent, (a) with respect to the Properties and business of Borrowers and
Subsidiaries of such type (including product liability, workers’ compensation, larceny,
embezzlement, or other criminal misappropriation insurance), in such amounts, and with such
coverages and deductibles as are customary for companies similarly situated; and (b) business
interruption insurance in an amount not less than $15,000,000, with deductibles and subject to an
Insurance Assignment satisfactory to Agent.

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          10.1.8 Licenses. Keep each License affecting any Collateral (including the
manufacture, distribution or disposition of Inventory) or any other material Property of Borrowers
and Subsidiaries in full force and effect; promptly notify Agent of any proposed modification to
any such License, or entry into any new License, pay all Royalties in the Ordinary Course of
Business; and notify Agent of any default or breach asserted by any Person to have occurred under
any material License.

          10.1.9 Future Subsidiaries. Promptly (and in any event, within 30 days)
notify Agent upon any Person becoming a Subsidiary and, if such Person is not a Foreign Subsidiary,
cause it to either become a Borrower hereunder or guaranty the Obligations, in either case in a
manner satisfactory to Agent, and to execute and deliver such documents, instruments and agreements
and to take such other actions as Agent shall require to evidence and perfect a Lien in favor of
Agent (for the benefit of Secured Parties) on all assets of such Person (other than Real Estate,
Equipment and fixtures), including delivery of such customary legal opinions, in form and substance
satisfactory to Agent, as it shall deem appropriate.

          10.1.10 Post-Closing Undertaking. On or before (A) the 60th day following
the Closing Date, Borrowers shall use commercially reasonable efforts to deliver or cause to be
delivered to Agent (unless waived by Agent or unless such deadline is extended by Agent in writing,
in each case in its sole discretion), Lien Waivers with respect to each of the locations at which
Eligible Inventory is located and such other locations set forth in Schedule 8.6.1 and (B) the 10th
Business Day following the Closing Date, Borrowers shall deliver or cause to be delivered to Agent
(unless such deadline is extended by Agent in writing in its sole discretion) original stock
certificates representing all of the issued and outstanding Equity Interests in each of Tinsley
Group and Oly NC.

     10.2 Negative Covenants. As long as any Commitments or Obligations are outstanding, each Borrower shall not, and
shall cause each Subsidiary not to:

          10.2.1 Permitted Debt. Create, incur, guarantee or suffer to exist any
Debt, except:

               (a) the Obligations;

               (b) Subordinated Debt;

               (c) Permitted Purchase Money Debt;

               (d) Borrowed Money (other than the Obligations, Subordinated Debt and Permitted
Purchase Money Debt), but only to the extent outstanding on the Closing Date and not satisfied with
proceeds of the initial Loans;

               (e) Bank Product Debt;

               (f) Debt permitted to be assumed or incurred in a Permitted Acquisition pursuant to
clause (h) (other than clause (h)(x)(II)) of the definition of the term “Permitted
Acquisition”;

               (g) Permitted Contingent Obligations;

               (h) Refinancing Debt as long as each Refinancing Condition is satisfied;

               (i) Debt in respect of Taxes, to the extent that payment thereof shall not at the
time be required to be made in accordance with Section 10.1.6;

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               (j) Debt arising from judgments or decrees in circumstances not constituting an
Event of Default under Section 11.1(h);

               (k) intercompany loans by a Borrower to another Borrower but only to the extent
permitted under Section 10.2.7(e);

               (l) Debt secured by Liens permitted by Section 10.2.2(q) as long as, in each case,
(i) after giving effect to the incurrence of such Debt, the Fixed Charge Coverage Ratio (recomputed
for the most recent month for which financial statements have been delivered by adding such Debt to
the amount of Fixed Charges as if such Debt was incurred on the first day of the period of twelve
fiscal months then most recently ended) is at least 1.25 to 1.00 for the period of twelve fiscal
months then most recently ended, (ii) Agent has received projections taking into account such Debt
(prepared by the Borrowers in good faith, based on assumptions believed to be reasonable in light
of the circumstances at such time) showing that the Fixed Charge Coverage Ratio shall
continue to be at least 1.25 to 1.00 for the period of twelve fiscal months subsequent to the
incurrence of such Debt, (iii) after giving effect to the incurrence of such Debt, Availability is
greater than 25% of the aggregate amount of Revolver Commitments then in effect, and (iv) such Debt
has other terms and is evidenced and governed by documents that have been approved by Agent in
advance in writing (such documents being the “Fixed Assets Debt Documents”) and Agent has
received copies of all such Fixed Assets Debt Documents, certified as true and complete copies
thereof;

               (m) Debt issued under Olympic Steel’s Registration Statement on Form S-3, as may be
amended from time to time, as long as, in each case, (i) after giving effect to the incurrence of
such Debt, the Fixed Charge Coverage Ratio (recomputed for the most recent month for which
financial statements have been delivered by adding such Debt to the amount of Fixed Charges as if
such Debt was incurred on the first day of the period of twelve fiscal months then most recently
ended) is at least 1.25 to 1.00 for the period of twelve fiscal months then most recently ended,
(ii) Agent has received projections taking into account such Debt (prepared by the Borrowers in
good faith, based on assumptions believed to be reasonable in light of the circumstances at such
time) showing that the Fixed Charge Coverage Ratio shall continue to be at least 1.25 to
1.00 for the period of twelve fiscal months subsequent to the incurrence of such Debt, and (iii)
Availability is greater than 25% of the aggregate amount of Revolver Commitments then in effect;

               (n) current unsecured trade, utility or nonextraordinary accounts payable (including
without limitation, operating leases and short term Debt owed to vendors) arising in the Ordinary
Course of Business; and

               (o) Debt consisting of Capital Leases secured by Liens permitted by Section
10.2.2(k) as long as the aggregate amount of any such Debt incurred after the Closing
Date does not exceed $5,000,000 in the aggregate during the term of this Agreement (for the
avoidance of doubt, Debt permitted by Section 10.2.1(l) above shall not constitute Debt permitted
by this Section 10.2.1(o)).

     10.2.2 Permitted Liens. Create or suffer to exist any Lien upon any of its
Property, except the following (collectively, “Permitted Liens”):

               (a) Liens in favor of Agent;

               (b) Purchase Money Liens securing Permitted Purchase Money Debt;

               (c) Liens for Taxes not yet delinquent or being Properly Contested;

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               (d) statutory Liens (including carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s and landlord’s Liens but excluding Liens for Taxes or imposed under ERISA) arising in
the Ordinary Course of Business, but only if (i) payment of the obligations secured thereby is not
overdue for a period of more than 30 days or is being Properly Contested; provided,
however, that a reserve or other appropriate provisions shall have been made therefor, and
(ii) such Liens do not materially impair the value or use of the Property or materially impair
operation of the business of any Borrower or Subsidiary;

               (e) Liens incurred or deposits made in the Ordinary Course of Business to secure the
performance of tenders, bids, leases (whether operating leases or Capital Leases), trade contracts
(except those relating to Borrowed Money), statutory obligations (including workers’ compensation,
unemployment insurance and other social security legislation), liability to insurance carriers
under insurance or self-insurance arrangements, surety, customs, stay and appeal bonds, performance
and return of money bonds, and other similar obligations, or arising as a result of progress
payments under government contracts, as long as, in the case of any such Liens that are on any
asset or property that constitutes Collateral, such Liens are at all times junior to Agent’s Liens;

               (f) Liens arising in the Ordinary Course of Business that are subject to Lien
Waivers;

               (g) Liens arising by virtue of a judgment or judicial order against any Borrower or
Subsidiary, or any Property of a Borrower or Subsidiary other than an attachment or judgment Lien
constituting an Event of Default under Section 11.1(h), as long as such Liens are (i) in existence
for less than 30 consecutive days or being Properly Contested, and (ii) in the case of any such
Liens that are on any asset or property that constitutes Collateral, at all times junior to Agent’s
Liens;

               (h) easements, rights-of-way, restrictions, covenants or other agreements of record,
and other similar charges or encumbrances on Real Estate, that do not secure any monetary
obligation and do not interfere with the Ordinary Course of Business;

               (i) normal and customary rights of setoff upon deposits in favor of depository
institutions, and Liens of a collecting bank on Payment Items in the course of collection;

               (j) leases or subleases of Real Estate granted to third parties in the Ordinary
Course of Business and not interfering in any material respect with the ordinary conduct of
business by any Borrower or Subsidiary;

               (k) any interest or title of a lessor or sublessor under any operating lease or
Capital Lease permitted by Section 10.2.1(n) and Section 10.2.1(o);

               (l) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods in the Ordinary Course
of Business;

               (m) any zoning or similar law or right reserved to or vested in any governmental
office or agency to control or regulate the use of any Real Estate;

               (n) licenses of patents, trademarks and other intellectual property rights granted
by any Borrower or Subsidiary in the Ordinary Course of Business and not interfering in any
material respect with the ordinary conduct of business by any Borrower or Subsidiary;

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               (o) Liens created under the Sale and Leaseback Transactions permitted under Section
10.2.20, provided that any such Liens do not at any time encumber any Property other than
the Property which is the subject of such Sale and Leaseback Transaction; and

               (p) the Investments permitted under clause (f) of the definition of the term
“Restricted Investments”, to the extent such Investments constitute Liens;

               (q) Liens created after the Closing Date on any Real Estate, fixtures and/or
Equipment (other than Equipment subject to Purchase Money Liens permitted hereunder) owned or
acquired by any Borrower or Subsidiary securing Debt permitted by Section 10.2.1(l) as long as
Agent shall have received such access and other customary intercreditor agreements with the holders
of such Debt or their agents (on behalf of such holders), all in form and substance satisfactory to
Agent, in its sole discretion, as Agent may request; and

               (r) existing Liens shown on Schedule 10.2.2.

          10.2.3 Inactive Subsidiaries. No Inactive Subsidiary shall (a) acquire any
assets which, when taken together with the net book value of the assets of all other Inactive
Subsidiaries exceeds $500,000 in the aggregate, (b) incur any liabilities (whether to an Affiliate
or otherwise) other than for franchise taxes, maintenance fees and other de minimus expenses or (c)
engage in any trade or business (other than the maintenance of its existence and activities
incidental thereto).

          10.2.4 Distributions; Upstream Payments. Declare or make any Distributions,
except Upstream Payments; or create or suffer to exist any encumbrance or restriction on the
ability of a Subsidiary to make any Upstream Payment, except for restrictions under the Loan
Documents, under Applicable Law or in effect on the Closing Date as shown on Schedule 9.1.15 and
except, as long as no Event of Default exists or would result therefrom:

               (a) Distributions by Olympic Steel to the holders of its Equity Interests payable
solely in common stock of the type currently held by such holders;

               (b) Olympic Steel may issue stock option, restricted stock unit, share or other
Equity Interest under its 2007 Omnibus Incentive Plan or any other stock option, restricted stock
unit, share or other Equity Interest plan of Olympic Steel;

               (c) (i) Distributions by Olympic Steel to, and repurchases by Olympic Steel of
Equity Interests from, the holders of Equity Interests of Olympic Steel not to exceed $2,500,000 in
the aggregate during any Fiscal Year; and (ii) Distributions by Olympic Steel to, and repurchases
by Olympic Steel of Equity Interests from, the holders of Equity Interests of Olympic Steel in
excess of $2,500,000 in the aggregate during any Fiscal Year as long as (A) not less than five (5)
Business Day prior to the date of such proposed Distribution or repurchase, Agent shall have received written notice thereof
together with pro forma financial statements and a pro forma Compliance Certificate, dated as of
the date of the proposed Distribution or repurchases, in form and substance satisfactory to Agent,
demonstrating that immediately after giving effect to such proposed Distribution or repurchase, the
Fixed Charge Coverage Ratio (recomputed for the most recent Fiscal Quarter for which financial
statements have been delivered by adding such proposed Distribution or repurchase to the amount of
Fixed Charges as of the last day of such Fiscal Quarter) is at least 1.10 to 1.00 for the period of
twelve fiscal months then most recently ended and (B) after giving effect to any such proposed
Distribution or repurchase, Availability is greater than 25% of the aggregate amount of Revolver
Commitments then in effect.

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          10.2.5 Restricted Investments. Make any Restricted Investment.

          10.2.6 Disposition of Assets. Make any Asset Disposition, except a
Permitted Asset Disposition or a transfer of Property by a Subsidiary or Obligor to a Borrower.

          10.2.7 Loans. Make any loans or other advances of money to any Person,
except (a) advances to an officer or employee for salary, travel expenses, commissions and similar
items in the Ordinary Course of Business; (b) (i) loans and advances to employees, officers and
directors in connection with equity incentive arrangements in an aggregate amount not to exceed
$675,000 plus accrued interest at any time outstanding, provided that the proceeds of such
loans and advances are paid to any Borrower or Subsidiary, as applicable, in connection with such
equity incentive arrangements and (ii) other loans and advances to employees in aggregate amount
not to exceed $500,000 at any time outstanding; (c) prepaid expenses and extensions of trade credit
made in the Ordinary Course of Business; (d) deposits with financial institutions permitted
hereunder; and (e) as long as no Event of Default under Section 11.1(a), 11.1(b) or 11.1(k),
intercompany loans by a Borrower to another Borrower.

          10.2.8 Restrictions on Payment of Certain Debt. Make

               (a) any payments (whether voluntary or mandatory, or a prepayment, redemption,
retirement, defeasance or acquisition) with respect to any Subordinated Debt, except regularly
scheduled payments of principal, interest and fees, but only to the extent permitted under any
subordination agreement relating to such Debt; or

               (b) any voluntary payment, prepayment, redemption, retirement, defeasance or
acquisition of (i) Borrowed Money (other than the Obligations and Debt described in the immediately
succeeding clause (ii)) prior to its due date under the agreements evidencing such Debt as in
effect on the Closing Date (or as amended thereafter with the consent of Agent) or (ii) Debt
permitted by Section 10.2.1(l) or Section 10.2.1(m) prior to its due date under the agreements
evidencing such Debt, unless, in the case of each clause (i) and (ii), (A) after giving effect to
such payment, prepayment, redemption, retirement or defeasance, (x) the Fixed Charge Coverage Ratio
(recomputed for the most recent month for which financial statements have been delivered) is at
least 1.25 to 1.00 for the period of twelve fiscal months then most recently ended, (y) Agent has
received projections taking into account such payment, prepayment, redemption, retirement or
defeasance (prepared by the Borrowers in good faith, based on assumptions believed to be reasonable
in light of the circumstances at such time) showing that the Fixed Charge Coverage Ratio shall
continue to be at least 1.25 to 1.00 for the period of twelve fiscal months subsequent to such
payment, prepayment, redemption, retirement or defeasance, and (z) after giving effect to such
payment, prepayment, redemption, retirement or defeasance, Availability is greater than 25% of the
aggregate amount of Revolver Commitments then in effect or (B) such payment, prepayment,
redemption, retirement or defeasance is consented to in writing by Agent.

          10.2.9 Fundamental Changes.

               (a) Merge, combine or consolidate with any Person, or liquidate, wind up its affairs
or dissolve itself, in each case whether in a single transaction or in a series of related
transactions, except for mergers or consolidations (i) of a wholly-owned Subsidiary with another
wholly-owned Subsidiary (provided that in the case any such Subsidiary is a Borrower, the
Subsidiary that is a Borrower shall survive such merger or consolidation), or into a Borrower, (ii)
of a Borrower with another Borrower (provided that in the case any such Borrower is Olympic
Steel, Olympic Steel shall survive such merger or consolidation), (iii) which constitutes a
Permitted Acquisition or (iv) except that any Subsidiary or

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Borrower (other than Olympic Steel) may
liquidate or dissolve into a Borrower if the Borrowers determine in good faith that such
liquidation or dissolution is in the best interests of the Borrowers; or

               (b) Without at least ten (10) days’ prior written notice to Agent and the
acknowledgement of Agent that all actions required by Agent, including those to continue the
perfection of its Liens, have been completed, change its name or conduct business under any
fictitious name; change its tax, charter or other organizational identification number; or change
its form or state of organization.

          10.2.10 Subsidiaries. Form or acquire any Subsidiary after the Closing
Date, except in accordance with Sections 10.1.9 and 10.2.5; or permit any existing Subsidiary to
issue any additional Equity Interests except director’s qualifying shares.

          10.2.11 Organic Documents. Amend, modify or otherwise change any of its
Organic Documents as in effect on the Closing Date except to the extent that any such amendment or
change (i) does not violate the terms and conditions of this Agreement or any of the other Loan
Documents, (ii) does not materially adversely affect the interest of the Lenders as creditors under
this Agreement, the other Loan Documents or any other document or instrument in any respect, (iv)
is required by Applicable Law or (v) could not reasonably be expected to have a Material Adverse
Effect.

          10.2.12 Tax Consolidation. File or consent to the filing of any
consolidated income tax return with any Person other than Borrowers and Subsidiaries.

          10.2.13 Accounting Changes. Make any material change in accounting
treatment or reporting practices, except as required or permitted by GAAP, from GAAP to IFRS and in
accordance with Section 1.2; or change its Fiscal Year.

          10.2.14 Restrictive Agreements. Become a party to any Restrictive
Agreement, except a Restrictive Agreement (a) in effect on the Closing Date; (b) governing Liens on
fixed assets in the Fixed Asset Debt Documents as long as no provision contained therein prohibits
or restricts the indebtedness or performance of any obligations by an Obligor under the Loan
Document or the Liens granted on the Collateral in favor of Agent; (c) relating to other secured
Debt permitted hereunder, as long as no provision contained therein prohibits or restricts the
indebtedness or performance of any obligations by an Obligor under the Loan Document or the Liens
granted on the Collateral in favor of Agent; (d) constituting customary restrictions on assignment
in leases and other contracts; (e) relating to Subordinated Debt as long as no provision contained
therein prohibits or restricts the indebtedness or performance of any obligations by an Obligor
under the Loan Document or the Liens granted on the Collateral in favor of Agent; and (f) relating
to Debt permitted under Section 10.2.1(m) as long as no provision contained therein prohibits or
restricts the indebtedness or performance of any obligations by an Obligor under the Loan Document
or the Liens granted on the Collateral in favor of Agent.

          10.2.15 Hedging Agreements. Enter into any Hedging Agreement, except to
hedge risks arising in the Ordinary Course of Business and not for speculative purposes, including
for the avoidance of doubt, material Hedging Agreements in the Ordinary Course of Business and not
for speculative purposes.

          10.2.16 Conduct of Business. Engage in any business, other than the
business conducted by the Borrowers as conducted on the Closing Date, businesses reasonably related
thereto, logical extensions thereof and, in each case, any activities incidental thereto.

          10.2.17 Affiliate Transactions. Enter into or be party to any transaction
with an Affiliate, except (a) transactions contemplated by the Loan Documents; (b) payment of
reasonable 

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compensation to officers and employees for services actually rendered, and loans and
advances permitted by Section 10.2.7; (c) payment of customary directors’ fees and indemnities; (d)
transactions solely among Obligors and their Subsidiaries not prohibited under the Loan Documents;
(e) transactions with Affiliates that were entered into prior to the Closing Date, as shown on
Schedule 10.2.17; (f) Distributions to any Affiliate of Olympic Steel permitted by Section
10.2.4(b), and (g) transactions with Affiliates in the Ordinary Course of Business, upon fair and
reasonable terms (which, if involving payment or payment obligations in excess of $2,500,000, have
been fully disclosed to Agent) and no less favorable (considered as a whole) than would be obtained
in a comparable arm’s-length transaction with a non-Affiliate.

          10.2.18 Plans. Become party to any Multiemployer Plan or Foreign Plan,
other than any in existence on the Closing Date or which related to a Target and arise due to a
Permitted Acquisition so long as such new Multiemployer Plan or Foreign Plan is not entered into in
connection with such Permitted Acquisition.

          10.2.19 Amendments to Subordinated Debt or Fixed Assets Debt Documents.
Except to the extent permitted pursuant to a subordination and/or intercreditor agreement, if any,
related to the Subordinated Debt or the Debt issued under the Fixed Assets Debt Documents or as may
be agreed by Agent, amend, supplement or otherwise modify any Fixed Assets Debt Document or any
document, instrument or agreement relating to any Subordinated Debt, if such modification (a)
increases the principal balance of such Debt (excluding increases in the principal balance solely
as a result of any capitalized interest or payment-in-kind interest), or increases any required
payment of principal or interest; (b) accelerates the date on which any installment of principal or
any interest is due, or adds any additional mandatory redemption, put or mandatory prepayment
provisions; (c) shortens the final maturity date or otherwise accelerates amortization; (d)
increases the interest rate; (e) increases or adds any fees or charges; (f) modifies any covenant
in a manner or adds any representation, covenant or default that is more onerous or restrictive in
any material respect for any Borrower or Subsidiary, or that is otherwise materially adverse to any
Borrower, any Subsidiary or Lenders; or (g) results in the Obligations not being fully benefited by
the subordination or intercreditor provisions thereof, if applicable.

          10.2.20 Sale and Leaseback. Enter into any arrangement with any Person
providing for the leasing by any Borrower or Subsidiary of real or personal Property which has been
or is to be sold or transferred by such Borrower or such Subsidiary to such Person or to any other
Person to whom funds have been or are to be advanced by such Person on the security of such
Property or of rental obligations of such Borrower or such Subsidiary, as the case may be (each
such arrangement being a “Sale and Leaseback Transaction”), provided that (i) the
Net Proceeds of such sale are applied to the Obligations outstanding relating to Revolver Loans
(without resulting in a reduction of the Commitments) and (ii) the aggregate fair market value
(measured at the time of the applicable sale or transfer) of all Property covered by all Sale and
Leaseback Transactions entered into during the term of this Agreement that are outstanding at any
time shall not exceed $5,000,000.

     10.3 Financial Covenants. As long as any Commitments or Obligations are outstanding, Borrowers shall maintain a Fixed
Charge Coverage Ratio of at least 1.10 to 1.00 for each period of twelve fiscal months ending
during or immediately before any Covenant Trigger Period.

SECTION 11. EVENTS OF DEFAULT; REMEDIES ON DEFAULT

     11.1 Events of Default. Each of the following shall be an “Event of Default” hereunder, if the same shall
occur for any reason whatsoever, whether voluntary or involuntary, by operation of law or
otherwise:

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          (a) A Borrower fails to pay (i) the principal or any interest on Obligations when
due (whether at stated maturity, on demand, upon acceleration or otherwise), (ii) any reimbursement
obligations for any payment made under a Letter of Credit or (iii) any fees and charges payable to
the Lenders or Agent hereunder and, in the case of such failure to pay any interest or fees or
charges, such failure continues for three (3) Business Days;

          (b) A Borrower fails to pay Obligations (other than Obligations described in clause
(a) above) when due (whether at stated maturity, on demand, upon acceleration or otherwise) and
such failure continues for three (3) Business Days;

          (c) Any representation, warranty or other written statement of an Obligor made in
connection with any Loan Documents or transactions contemplated thereby is incorrect or misleading
in any material respect when made or deemed made;

          (d) A Borrower breaches or fail to perform any covenant contained in Section 7.2,
7.4, 7.6, 8.1, 8.2.4, 8.2.5, 8.6.2, 10.1.1, 10.1.2, 10.1.3(d), 10.1.7, 10.1.10, 10.2 or 10.3;

          (e) An Obligor breaches or fails to perform any other covenant contained in any Loan
Documents, and such breach or failure is not cured within 30 days after a Senior Officer of such
Obligor has knowledge thereof or receives notice thereof from Agent, whichever is sooner; provided,
however, that such notice and opportunity to cure shall not apply if the breach or failure to
perform is not capable of being cured within such period or is a willful breach by an Obligor;

          (f) A Guarantor repudiates, revokes or attempts to revoke its Guaranty; an Obligor
or third party (other than a third party with no reasonable basis or standing, as determined by
Agent in its sole discretion) denies or contests the validity or enforceability of any Loan
Documents or Obligations, or the perfection or priority of any Lien granted to Agent; or any Loan
Document ceases to be in full force or effect for any reason (other than a waiver or release by
Agent and Lenders or other than a termination in accordance with its terms);

          (g) Any breach or default of an Obligor occurs under any document, instrument or
agreement to which it is a party or by which it or any of its Properties is bound, relating to any
Debt (other than the Obligations) in excess of $2,500,000, if the maturity of or any payment with
respect to such Debt may be accelerated or demanded due to such breach;

          (h) Any judgment or order for the payment of money is entered against an Obligor in
an amount that exceeds, individually or cumulatively with all unsatisfied judgments or orders
against all Obligors, $2,500,000 (net of any insurance coverage therefor acknowledged in writing by
the insurer) and such judgments or orders shall not have been paid and satisfied,
vacated, discharged, stayed or bonded pending appeal within 30 days from the entry thereof;

          (i) A loss, theft, damage or destruction occurs with respect to any Collateral if
the amount not covered by insurance exceeds $2,500,000;

          (j) An Obligor is enjoined, restrained or in any way prevented by any Governmental
Authority from conducting any material part of its business; an Obligor suffers the loss,
revocation or termination of any material license, permit, lease or agreement necessary to its
business; there is a cessation of any material part of an Obligor’s business for a material period
of time; any material Collateral or Property of an Obligor is taken or impaired through condemnation; an Obligor

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agrees to or commences any liquidation, dissolution or winding up of its
affairs except as permitted by Section 10.2.9; or a Borrower is not Solvent;

          (k) An Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer
of settlement, extension or composition to its unsecured creditors generally; a trustee is
appointed to take possession of any substantial Property of or to operate any of the business of an
Obligor; or an Insolvency Proceeding is commenced against an Obligor and: the Obligor consents to
institution of the proceeding, the petition commencing the proceeding is not timely contested by
the Obligor, the petition is not dismissed within 60 days after filing, or an order for relief is
entered in the proceeding;

          (l) (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan
(A) that has resulted or would reasonably be expected to result in liability of Obligors to one or
more Pension Plans, Multiemployer Plans or PBGC in excess of $2,500,000 in the aggregate, or (B)
that constitutes grounds for appointment of a trustee for or termination by the PBGC of any Pension
Plan or Multiemployer Plan; (ii) Obligors or ERISA Affiliates fail to pay when due any installment
payment with respect to their withdrawal liability under Section 4201 of ERISA under one or more
Multiemployer Plans in excess of $2,500,000 in the aggregate; or (iii) any event similar to the
foregoing occurs or exists with respect to one or more Foreign Plans, which, if similar to the
foregoing clause (i)(A) or clause (ii), would result in liability of Obligors in
excess of $2,500,000;

          (m) An Obligor or any of its Senior Officers is criminally indicted or convicted for
(i) a felony committed in the conduct of the Obligor’s business, or (ii) violating any state or
federal law (including the Controlled Substances Act, Money Laundering Control Act of 1986 and
Illegal Exportation of War Materials Act) that could lead to forfeiture of any material Property or
any Collateral; or

          (n) A Change of Control occurs; or

          (o) any event occurs or condition exists that has a Material Adverse Effect.

     11.2 Remedies upon an Event of Default. If an Event of Default described in Section 11.1(k) occurs with respect to any Borrower,
then to the extent permitted by Applicable Law, all Obligations shall become automatically due and
payable and all Commitments shall terminate, without any action by Agent or notice of any kind. In
addition, or if any other Event of Default exists, Agent may in its discretion (and shall upon
written direction of Required Lenders) do any one or more of the following from time to time:

          (a) declare any Obligations immediately due and payable, whereupon they shall be due
and payable without diligence, presentment, demand, protest or notice of any kind, all of which are
hereby waived by Borrowers to the fullest extent permitted by law;

          (b) terminate, reduce or condition any Commitment, or make any adjustment to the
Borrowing Base;

          (c) require Obligors to Cash Collateralize LC Obligations, Bank Product Debt and
other Obligations that are contingent or not yet due and payable, and, if Obligors fail promptly to
deposit such Cash Collateral, Agent may (and shall upon the direction of Required Lenders) advance the
required Cash Collateral as Revolver Loans (whether or not an Overadvance exists or is created
thereby, or the conditions in Section 6 are satisfied); and

          (d) exercise any other rights or remedies afforded under any agreement, by law, at
equity or otherwise, including the rights and remedies of a secured party under the UCC. Such
rights and 

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remedies include the rights to (i) take possession of any Collateral; (ii) require
Borrowers to assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place
designated by Agent; (iii) enter any premises where Collateral is located and store Collateral on
such premises until sold (and if the premises are owned or leased by a Borrower, Borrowers agree
not to charge for such storage); and (iv) sell or otherwise dispose of any Collateral in its then
condition, or after any further manufacturing or processing thereof, at public or private sale,
with such notice as may be required by Applicable Law, in lots or in bulk, at such locations, all
as Agent, in its discretion, deems advisable. Each Borrower agrees that 10 days notice of any
proposed sale or other disposition of Collateral by Agent shall be reasonable. Agent shall have
the right to conduct such sales on any Obligor’s premises, without charge, and such sales may be
adjourned from time to time in accordance with Applicable Law. Agent shall have the right to sell,
lease or otherwise dispose of any Collateral for cash, credit or any combination thereof, and Agent
may purchase any Collateral at public or, if permitted by law, private sale and, in lieu of actual
payment of the purchase price, may set off the amount of such price against the Obligations.

     11.3 License. Agent is hereby granted an irrevocable, non-exclusive license or other right to use,
license or sub-license (without payment of royalty or other compensation to any Person) any or all
Intellectual Property of Borrowers, computer hardware and software, trade secrets, brochures,
customer lists, promotional and advertising materials, labels, packaging materials and other
Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or
otherwise exercising any rights or remedies with respect to, any Collateral. Each Borrower’s
rights and interests under Intellectual Property shall inure to Agent’s benefit.

     11.4 Setoff. At any time an Event of Default exists, Agent, Issuing Bank, Lenders, and any of their
Affiliates are authorized, to the fullest extent permitted by Applicable Law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by Agent,
Issuing Bank, such Lender or such Affiliate to or for the credit or the account of an Obligor
against any Obligations, irrespective of whether or not Agent, Issuing Bank, such Lender or such
Affiliate shall have made any demand under this Agreement or any other Loan Document and although
such Obligations may be contingent or unmatured or are owed to a branch or office of Agent, Issuing
Bank, such Lender or such Affiliate different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of Agent, Issuing Bank, each Lender and each such
Affiliate under this Section are in addition to other rights and remedies (including other rights
of setoff) that such Person may have.

     11.5 Remedies Cumulative; No Waiver. 

          11.5.1 Cumulative Rights. All agreements, warranties, guaranties,
indemnities and other undertakings of Borrowers under the Loan Documents are cumulative and not in
derogation of each other. The rights and remedies of Agent and Lenders are cumulative, may be
exercised at any time and from time to time, concurrently or in any order, and are not exclusive of
any other rights or remedies available by agreement, by law, at equity or otherwise. All such
rights and remedies shall continue in full force and effect until Full Payment of all Obligations.

     11.5.2 Waivers. No waiver or course of dealing shall be established by (a) the
failure or delay of Agent or any Lender to require strict performance by Borrowers with any terms
of the Loan Documents, or to exercise any rights or remedies with respect to Collateral or
otherwise; (b) the making of any Loan or issuance of any Letter of Credit during a Default, Event
of Default or other failure to satisfy any conditions precedent; or (c) acceptance by Agent or any
Lender of any payment or performance by an Obligor under any Loan Documents in a manner other than
that specified therein. It is expressly acknowledged by Borrowers that any failure to satisfy a
financial covenant on a measurement date shall not be cured or remedied by satisfaction of such
covenant on a subsequent date.

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SECTION 12. AGENT

     12.1 Appointment, Authority and Duties of Agent.

          12.1.1 Appointment and Authority. Each Lender appoints and designates Bank
of America as Agent hereunder. Agent may, and each Lender authorizes Agent to, enter into all Loan
Documents to which Agent is intended to be a party and accept all Security Documents, for Agent’s
benefit and the Pro Rata benefit of Lenders. Each Lender agrees that any action taken by Agent or
Required Lenders in accordance with the provisions of the Loan Documents, and the exercise by Agent
or Required Lenders of any rights or remedies set forth therein, together with all other powers
reasonably incidental thereto, shall be authorized by and binding upon all Lenders. Without
limiting the generality of the foregoing, Agent shall have the sole and exclusive authority to (a)
act as the disbursing and collecting agent for Lenders with respect to all payments and collections
arising in connection with the Loan Documents; (b) execute and deliver as Agent each Loan Document,
including any intercreditor or subordination agreement, and accept delivery of each Loan Document
from any Obligor or other Person; (c) act as collateral agent for Secured Parties for purposes of
perfecting and administering Liens under the Loan Documents, and for all other purposes stated
therein; (d) manage, supervise or otherwise deal with Collateral; and (e) take any Enforcement
Action or otherwise exercise any rights or remedies with respect to any Collateral under the Loan
Documents, Applicable Law or otherwise. The duties of Agent shall be ministerial and
administrative in nature, and Agent shall not have a fiduciary relationship with any Lender,
Secured Party, Participant or other Person, by reason of any Loan Document or any transaction
relating thereto. Agent alone shall be authorized to determine whether any Accounts or Inventory
constitute Eligible Accounts, Eligible In-Transit Inventory or Eligible Inventory, or whether to
impose or release any reserve, and to exercise its Permitted Discretion in connection therewith,
which determinations and judgments, if exercised in good faith, shall exonerate Agent from
liability to any Lender or other Person for any error in judgment.

          12.1.2 Duties. Agent shall not have any duties except those expressly set
forth in the Loan Documents. The conferral upon Agent of any right shall not imply a duty on
Agent’s part to exercise such right, unless instructed to do so by Required Lenders in accordance
with this Agreement.

          12.1.3 Agent Professionals. Agent may perform its duties through agents and
employees. Agent may consult with and employ Agent Professionals, and shall be entitled to act
upon, and shall be fully protected in any action taken in good faith reliance upon, any advice
given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of
any agents, employees or Agent Professionals selected by it with reasonable care.

          12.1.4 Instructions of Required Lenders. The rights and remedies conferred
upon Agent under the Loan Documents may be exercised without the necessity of joinder of any other
party, unless required by Applicable Law. Agent may request instructions from Required Lenders
with respect to any act (including the failure to act) in connection with any Loan Documents, and
may seek assurances to its satisfaction from Lenders of their indemnification obligations under
Section 12.6 against all Claims that could be incurred by Agent in connection with any act. Agent
shall be entitled to refrain from any act until it has received such instructions or assurances,
and Agent shall not incur liability to any Person by reason of so refraining. Instructions of
Required Lenders shall be binding upon all Lenders, and no Lender shall have any right of action
whatsoever against Agent as a result of Agent acting or refraining from acting in accordance with
the instructions of Required Lenders. Notwithstanding the foregoing, instructions by and consent
of all Lenders shall be required in the circumstances described in Section
14.1.1, and in no event shall Required Lenders, without the prior written consent of each
Lender, direct Agent to accelerate and demand payment of Loans held by one Lender without
accelerating and demanding payment of all other Loans, nor to terminate the Commitments of one
Lender without

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terminating the Commitments of all Lenders. In no event shall Agent be required to
take any action that, in its opinion, is contrary to Applicable Law or any Loan Documents or could
subject any Agent Indemnitee to personal liability.

     12.2 Agreements Regarding Collateral and Field Examination Reports.

          12.2.1 Lien Releases; Care of Collateral. Lenders authorize Agent to
release any Lien with respect to any Collateral (a) upon Full Payment of the Obligations; (b) that
is the subject of an Asset Disposition which Borrowers certify in writing to Agent is a Permitted
Asset Disposition or a Lien which Borrowers certify is a Permitted Lien entitled to priority over
Agent’s Liens (and Agent may rely conclusively on any such certificate without further inquiry);
(c) that does not constitute a material part of the Collateral (except as permitted by Section
14.1.1(d)(iv) to the extent permitted with the consent of the Required Lenders); or (d) with the
written consent of all Lenders. Lenders authorize Agent to subordinate its Liens to any Purchase
Money Lien permitted hereunder. Agent shall have no obligation to assure that any Collateral
exists or is owned by a Borrower, or is cared for, protected or insured, nor to assure that Agent’s
Liens have been properly created, perfected or enforced, or are entitled to any particular
priority, nor to exercise any duty of care with respect to any Collateral.

          12.2.2 Possession of Collateral. Agent and Lenders appoint each Lender as
agent (for the benefit of Secured Parties) for the purpose of perfecting Liens in any Collateral
held or controlled by such Lender, to the extent such Liens are perfected by possession or control.
If any Lender obtains possession or control of any Collateral, it shall notify Agent thereof and,
promptly upon Agent’s request, deliver such Collateral to Agent or otherwise deal with it in
accordance with Agent’s instructions.

          12.2.3 Reports. Agent shall promptly forward to each Lender, when complete,
copies of any field audit, examination or appraisal report prepared by or for Agent with respect to
any Obligor or Collateral (“Report”). Each Lender agrees (a) that neither Bank of America
nor Agent makes any representation or warranty as to the accuracy or completeness of any Report,
and shall not be liable for any information contained in or omitted from any Report; (b) that the
Reports are not intended to be comprehensive audits or examinations, and that Agent or any other
Person performing any audit or examination will inspect only specific information regarding
Obligations or the Collateral and will rely significantly upon Borrowers’ books and records as well
as upon representations of Borrowers’ officers and employees; and (c) to keep all Reports
confidential and strictly for such Lender’s internal use, and not to distribute any Report (or the
contents thereof) to any Person (except to such Lender’s Participants, attorneys and accountants)
or use any Report in any manner other than administration of the Loans and other Obligations. Each
Lender agrees to indemnify and hold harmless Agent and any other Person preparing a Report from any
action such Lender may take as a result of or any conclusion it may draw from any Report, as well
as from any Claims arising as a direct or indirect result of Agent furnishing a Report to such
Lender.

     12.3 Reliance By Agent. Agent shall be entitled to rely, and shall be fully protected in
relying, upon any certification, notice or other communication (including those by telephone,
telex, telegram, telecopy or e-mail) believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person, and upon the advice and statements of Agent
Professionals.

     12.4 Action Upon Default. Agent shall not be deemed to have knowledge of any Default or Event of Default unless it
has received written notice from a Lender or Borrower specifying the occurrence and nature thereof.
If any Lender acquires knowledge of a Default or Event of Default, it shall promptly notify Agent
and the other Lenders thereof in writing. Each Lender agrees that, except as otherwise provided in
any Loan Documents or with the written consent of Agent and Required Lenders, it will not take any
Enforcement Action, accelerate Obligations under any Loan Documents, or exercise any

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right that it might otherwise have under Applicable Law to credit bid at foreclosure sales, UCC sales or other
similar dispositions of Collateral. Notwithstanding the foregoing, however, a Lender may take
action to preserve or enforce its rights against an Obligor where a deadline or limitation period
is applicable that would, absent such action, bar enforcement of Obligations held by such Lender,
including the filing of proofs of claim in an Insolvency Proceeding.

     12.5 Ratable Sharing. If any Lender shall obtain any payment or reduction of any
Obligation, whether through set-off or otherwise, in excess of its share of such Obligation,
determined on a Pro Rata basis or in accordance with Section 5.6.1, as applicable, such Lender
shall forthwith purchase from Agent, Issuing Bank and the other Lenders such participations in the
affected Obligation as are necessary to cause the purchasing Lender to share the excess payment or
reduction on a Pro Rata basis or in accordance with Section 5.6.1, as applicable. If any of such
payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall be
rescinded and the purchase price restored to the extent of such recovery, but without interest. No
Lender shall set off against any Dominion Account without the prior consent of Agent.

     12.6 Indemnification of Agent Indemnitees. EACH LENDER SHALL INDEMNIFY AND HOLD HARMLESS
AGENT INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS (BUT WITHOUT LIMITING THE
INDEMNIFICATION OBLIGATIONS OF OBLIGORS UNDER ANY LOAN DOCUMENTS), ON A PRO RATA BASIS, AGAINST ALL
CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY AGENT INDEMNITEE, PROVIDED THE CLAIM RELATES
TO OR ARISES FROM AN AGENT INDEMNITEE ACTING AS OR FOR AGENT (IN ITS CAPACITY AS AGENT)
PROVIDED, HOWEVER, THAT NO LENDER SHALL BE LIABLE TO ANY AGENT INDEMNITEE TO THE
EXTENT SUCH LIABILITY HAS RESULTED PRIMARILY FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
SUCH AGENT INDEMNITEE, AS DETERMINED BY A COURT OF COMPETENT JURISDICTION IN A FINAL NON-APPEALABLE
JUDGMENT OR ORDER. In Agent’s discretion, it may reserve for any such Claims made against an Agent
Indemnitee, and may satisfy any judgment, order or settlement relating thereto, from proceeds of
Collateral prior to making any distribution of Collateral proceeds to Lenders. If Agent is sued by
any receiver, bankruptcy trustee, debtor-in-possession or other Person for any alleged preference
or fraudulent transfer, then any monies paid by Agent in settlement or satisfaction of such
proceeding, together with all interest, costs and expenses (including attorneys’ fees) incurred in
the defense of same, shall be promptly reimbursed to Agent by each Lender to the extent of its Pro
Rata share.

     12.7 Limitation on Responsibilities of Agent. Agent shall not be liable to Lenders for any
action taken or omitted to be taken under the Loan Documents, except for losses directly and solely
caused by Agent’s gross negligence or willful misconduct. Agent does not assume any responsibility
for any failure or delay in performance or any breach by any Obligor or Lender of any obligations
under the Loan Documents. Agent does not make to Lenders any express or implied warranty,
representation or guarantee with respect to any Obligations, Collateral, Loan Documents or Obligor.
No Agent Indemnitee shall be responsible to Lenders for any
recitals, statements, information, representations or warranties contained in any Loan
Documents; the execution, validity, genuineness, effectiveness or enforceability of any Loan
Documents; the genuineness, enforceability, collectibility, value, sufficiency, location or
existence of any Collateral, or the validity, extent, perfection or priority of any Lien therein;
the validity, enforceability or collectibility of any Obligations; or the assets, liabilities,
financial condition, results of operations, business, creditworthiness or legal status of any
Obligor or Account Debtor. No Agent Indemnitee shall have any obligation to any Lender to
ascertain or inquire into the existence of any Default or Event of Default, the observance or
performance by any Obligor of any terms of the Loan Documents, or the satisfaction of any
conditions precedent contained in any Loan Documents.

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     12.8 Successor Agent and Co-Agents.

          12.8.1 Resignation; Successor Agent. Subject to the appointment and
acceptance of a successor Agent as provided below, Agent may resign at any time by giving at least
30 days written notice thereof to Lenders and Borrowers. Upon receipt of such notice, Required
Lenders shall have the right to appoint a successor Agent which shall be (a) a Lender or an
Affiliate of a Lender; or (b) a commercial bank that is organized under the laws of the United
States or any state or district thereof, has a combined capital surplus of at least $500,000,000
and (provided no Event of Default exists) is reasonably acceptable to Borrowers. If no successor
agent is appointed prior to the effective date of the resignation of Agent, then Agent may appoint
a successor agent from among Lenders. Upon acceptance by a successor Agent of an appointment to
serve as Agent hereunder, such successor Agent shall thereupon succeed to and become vested with
all the powers and duties of the retiring Agent without further act, and the retiring Agent shall
be discharged from its duties and obligations hereunder but shall continue to have the benefits of
the indemnification set forth in Sections 12.6 and 14.2. Notwithstanding any Agent’s resignation,
the provisions of this Section 12 shall continue in effect for its benefit with respect to any
actions taken or omitted to be taken by it while Agent. Any successor to Bank of America by merger
or acquisition of stock or this loan shall continue to be Agent hereunder without further act on
the part of the parties hereto, unless such successor resigns as provided above.

          12.8.2 Separate Collateral Agent. It is the intent of the parties that
there shall be no violation of any Applicable Law denying or restricting the right of financial
institutions to transact business in any jurisdiction. If Agent believes that it may be limited in
the exercise of any rights or remedies under the Loan Documents due to any Applicable Law, Agent
may appoint an additional Person who is not so limited, as a separate collateral agent or
co-collateral agent. If Agent so appoints a collateral agent or co-collateral agent, each right
and remedy intended to be available to Agent under the Loan Documents shall also be vested in such
separate agent. Every covenant and obligation necessary to the exercise thereof by such agent
shall run to and be enforceable by it as well as Agent. Lenders shall execute and deliver such
documents as Agent deems appropriate to vest any rights or remedies in such agent. If any
collateral agent or co-collateral agent shall die or dissolve, become incapable of acting, resign
or be removed, then all the rights and remedies of such agent, to the extent permitted by
Applicable Law, shall vest in and be exercised by Agent until appointment of a new agent.

     12.9 Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it has,
independently and without reliance upon Agent or any other Lenders, and based upon such documents,
information and analyses as it has deemed appropriate, made its own credit analysis of each Obligor
and its own decision to enter into this Agreement and to fund Loans and participate in LC
Obligations hereunder. Each Lender has made such inquiries concerning the Loan Documents, the
Collateral and each Obligor as such Lender feels necessary. Each Lender further acknowledges and
agrees that the other Lenders and Agent have made no representations or warranties concerning any
Obligor, any Collateral or the legality, validity, sufficiency
or enforceability of any Loan Documents or Obligations. Each Lender will, independently and
without reliance upon the other Lenders or Agent, and based upon such financial statements,
documents and information as it deems appropriate at the time, continue to make and rely upon its
own credit decisions in making Loans and participating in LC Obligations, and in taking or
refraining from any action under any Loan Documents. Except for notices, reports and other
information expressly requested by a Lender, Agent shall have no duty or responsibility to provide
any Lender with any notices, reports or certificates furnished to Agent by any Obligor or any
credit or other information concerning the affairs, financial condition, business or Properties of
any Obligor (or any of its Affiliates) which may come into possession of Agent or any of Agent’s
Affiliates.

     12.10 Replacement of Certain Lenders. If a Lender (a) is a Defaulting Lender, (b) fails to
give its consent to any amendment, waiver or action for which consent of all Lenders was required
and

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Required Lenders consented or (c) has requested a payment pursuant to Section 3.7 or 5.9, then,
in addition to any other rights and remedies that any Person may have, Agent may (or if requested
by Borrowers, shall), by notice to such Lender within 120 days after such event, require such
Lender to assign all of its rights and obligations under the Loan Documents to Eligible Assignee(s)
specified by Agent (or, in the case of a request by Borrowers, to Eligible Assignee(s) specified by
the Borrowers that have been consented to by Agent), pursuant to appropriate Assignment and
Acceptance(s) and within 20 days after Agent’s notice. Agent is irrevocably appointed as
attorney-in-fact to execute any such Assignment and Acceptance if the Lender fails to execute same.
Such Lender shall be entitled to receive, in cash, concurrently with such assignment, all amounts
owed to it under the Loan Documents, including all principal, interest and fees through the date of
assignment (but excluding any prepayment charge).

     12.11 Remittance of Payments and Collections.

          12.11.1 Remittances Generally. All payments by any Lender to Agent shall be
made by the time and on the day set forth in this Agreement, in immediately available funds. If no
time for payment is specified or if payment is due on demand by Agent and request for payment is
made by Agent by 12:00 noon on a Business Day, payment shall be made by Lender not later than 2:00
p.m. on such day, and if request is made after 12:00 noon, then payment shall be made by 11:00 a.m.
on the next Business Day. Payment by Agent to any Lender shall be made by wire transfer, in the
type of funds received by Agent. Any such payment shall be subject to Agent’s right of offset for
any amounts due from such Lender under the Loan Documents.

          12.11.2 Failure to Pay. If any Lender fails to pay any amount when due by
it to Agent pursuant to the terms hereof, such amount shall bear interest from the due date until
paid at the rate determined by Agent as customary in the banking industry for interbank
compensation. In no event shall Borrowers be entitled to receive credit for any interest paid by a
Lender to Agent, nor shall any Defaulting Lender be entitled to interest on any amounts held by
Agent pursuant to Section 4.2.

          12.11.3 Recovery of Payments. If Agent pays any amount to a Lender in the
expectation that a related payment will be received by Agent from an Obligor and such related
payment is not received, then Agent may recover such amount from each Lender that received it. If
Agent determines at any time that an amount received under any Loan Document must be returned to an
Obligor or paid to any other Person pursuant to Applicable Law or otherwise, then, notwithstanding
any other term of any Loan Document, Agent shall not be required to distribute such amount to any
Lender. If any amounts received and applied by Agent to any Obligations are later required to be
returned by Agent
pursuant to Applicable Law, each Lender shall pay to Agent, on demand, such Lender’s Pro Rata
share of the amounts required to be returned.

     12.12 Agent in its Individual Capacity. As a Lender, Bank of America shall have the same
rights and remedies under the other Loan Documents as any other Lender, and the terms “Lenders,”
“Required Lenders” or any similar term shall include Bank of America in its capacity as a Lender.
Each of Bank of America and its Affiliates may accept deposits from, maintain deposits or credit
balances for, invest in, lend money to, provide Bank Products to, act as trustee under indentures
of, serve as financial or other advisor to, and generally engage in any kind of business with,
Obligors and their Affiliates, as if Bank of America were any other bank, without any duty to
account therefor (including any fees or other consideration received in connection therewith) to
the other Lenders. In their individual capacity, Bank of America and its Affiliates may receive
information regarding Obligors, their Affiliates and their Account Debtors (including information
subject to confidentiality obligations), and each Lender agrees that Bank of America and its
Affiliates shall be under no obligation to provide such information to Lenders, if acquired in such
individual capacity and not as Agent hereunder.

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     12.13 Agent Titles. Each Lender, other than Bank of America, that is designated (on the
cover page of this Agreement or otherwise) by Bank of America as an “Agent” or “Arranger” of any
type shall not have any right, power, responsibility or duty under any Loan Documents other than
those applicable to all Lenders, and shall in no event be deemed to have any fiduciary relationship
with any other Lender.

     12.14 No Third Party Beneficiaries. This Section 12 is an agreement solely among Lenders
and Agent, and shall survive Full Payment of the Obligations. This Section 12 (other than Section
12.10) does not confer any rights or benefits upon Borrowers or any other Person. As between
Borrowers and Agent, any action that Agent may take under any Loan Documents or with respect to any
Obligations shall be conclusively presumed to have been authorized and directed by Lenders.

SECTION 13. BENEFIT OF AGREEMENT; ASSIGNMENTS AND PARTICIPATIONS

     13.1 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of Borrowers, Agent, Lenders, and their respective successors and assigns, except that (a) no
Borrower shall have the right to assign its rights or delegate its obligations under any Loan
Documents; and (b) any assignment by a Lender must be made in compliance with Section 13.3. Agent
may treat the Person which made any Loan as the owner thereof for all purposes until such Person
makes an assignment in accordance with Section 13.3. Any authorization or consent of a Lender
shall be conclusive and binding on any subsequent transferee or assignee of such Lender.

     13.2 Participations.

          13.2.1 Permitted Participants; Effect. Any Lender may, in the ordinary
course of its business and in accordance with Applicable Law, at any time sell to a financial
institution (“Participant”)
a participating interest in the rights and obligations of such Lender under any Loan
Documents. Despite any sale by a Lender of participating interests to a Participant, such Lender’s
obligations under the Loan Documents shall remain unchanged, such Lender shall remain solely
responsible to the other parties hereto for performance of such obligations, such Lender shall
remain the holder of its Loans and Commitments for all purposes, all amounts payable by Borrowers
shall be determined as if such Lender had not sold such participating interests, and Borrowers and
Agent shall continue to deal solely and directly with such Lender in connection with the Loan
Documents. Each Lender shall be solely responsible for notifying its Participants of any matters
under the Loan Documents, and Agent and the other Lenders shall not have any obligation or
liability to any such Participant. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 5.9 unless Borrowers agree otherwise in
writing.

          13.2.2 Voting Rights. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, waiver or other modification of any Loan
Documents other than that which forgives principal, interest or fees, reduces the stated interest
rate or fees payable with respect to any Loan or Commitment in which such Participant has an
interest, postpones the Commitment Termination Date or any date fixed for any regularly scheduled
payment of principal, interest or fees on such Loan or Commitment, or releases any Borrower,
Guarantor or the Collateral in excess of the amount set forth in Section 14.1.1(d)(iv).

          13.2.3 Benefit of Set-Off. Borrowers agree that each Participant shall have
a right of set-off in respect of its participating interest to the same extent as if such interest
were owing directly to a Lender, and each Lender shall also retain the right of set-off with
respect to any participating interests sold by it. By exercising any right of set-off, a
Participant agrees to share with Lenders all amounts received through its set-off, in accordance
with Section 12.5 as if such Participant were a Lender.

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     13.3 Assignments.

          13.3.1 Permitted Assignments. A Lender may assign to an Eligible Assignee
any of its rights and obligations under the Loan Documents, as long as (a) each assignment is of a
constant, and not a varying, percentage of the transferor Lender’s rights and obligations under the
Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of
$10,000,000 (unless otherwise agreed by Agent in its discretion) and integral multiples of
$1,000,000 in excess of that amount; (b) except in the case of an assignment in whole of a Lender’s
rights and obligations, the aggregate amount of the Commitments retained by the transferor Lender
is at least $10,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the parties
to each such assignment shall execute and deliver to Agent, for its acceptance and recording, an
Assignment and Acceptance. Nothing herein shall limit the right of a Lender to pledge or assign
any rights under the Loan Documents to (i) any Federal Reserve Bank or the United States Treasury
as collateral security pursuant to Regulation A of the Board of Governors and any Operating
Circular issued by such Federal Reserve Bank, or (ii) counterparties to swap agreements relating to
any Loans; provided, however, that any payment by Borrowers to the assigning Lender
in respect of any Obligations assigned as described in this sentence shall satisfy Borrowers’
obligations hereunder to the extent of such payment, and no such assignment shall release the
assigning Lender from its obligations hereunder. Notwithstanding any other provisions of this
Agreement to the contrary, no Lender may sell, assign or transfer all or any part of its rights,
benefits or obligations under this Agreement or the other Loan Documents if such sale, assignment
or transfer would result in a non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code.

          13.3.2 Effect; Effective Date. Upon delivery to Agent of an assignment
notice in the form of Exhibit D and a processing fee of $3,500 (unless otherwise agreed by Agent in
its discretion), the assignment shall become effective as specified in the notice, if it complies
with this Section 13.3. From such effective date, the Eligible Assignee shall for all purposes be
a Lender under the Loan Documents, and shall have all rights and obligations of a Lender
thereunder. Upon consummation of an assignment, the transferor Lender, Agent and Borrowers shall
make appropriate arrangements for issuance of replacement and/or new Notes, as applicable. The
transferee Lender shall comply with Section 5.10 and deliver, upon request, an administrative
questionnaire satisfactory to Agent.

SECTION 14. MISCELLANEOUS

     14.1 Consents, Amendments and Waivers.

          14.1.1 Amendment. No modification of any Loan Document, including any
extension or amendment of a Loan Document or any waiver of a Default or Event of Default, shall be
effective without the prior written agreement of Agent (with the consent of Required Lenders) and
each Obligor party to such Loan Document; provided, however, that

               (a) without the prior written consent of Agent, no modification shall be effective
with respect to any provision in a Loan Document that relates to any rights, duties or discretion
of Agent;

               (b) without the prior written consent of Issuing Bank, no modification shall be
effective with respect to any LC Obligations or Section 2.3;

               (c) without the prior written consent of Agent and each affected Lender, no
modification shall be effective that would (i) increase the Commitment of such Lender; (ii) reduce the

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amount of, or waive or delay payment of, any principal, interest or fees payable to such
Lender; or (iii) extend the Revolver Termination Date;

               (d) without the prior written consent of all Lenders (except a Defaulting Lender as
provided in Section 4.2), no modification shall be effective that would (i) alter Section 5.6, 7.1
(except to add Collateral) or 14.1.1; (ii) amend the definition of Borrowing Base (or any defined
term used in such definition), Pro Rata or Required Lenders; (iii) increase any advance rate, or
(except in the case of any amendment necessary to implement the terms of the New Revolver
Commitments in accordance with the terms hereof (which shall be in writing and need only be
executed by Agent and Borrowers) increase total Commitments; (iv) release Collateral with a book
value greater than $10,000,000 during any calendar year, except as currently contemplated by the
Loan Documents; or (v) release any Obligor from liability for any Obligations, if such Obligor is
Solvent at the time of the release except for any merger, consolidation, dissolution or
liquidation of an Obligor permitted by Section 10.2.9(a); and

               (e) any amendment necessary to implement the terms of the New Revolver Commitments
in accordance with the terms hereof shall be in writing and need only be executed by Agent and
Borrowers.

          14.1.2 Limitations. The agreement of Borrowers shall not be necessary to
the effectiveness of any modification of a Loan Document that deals solely with the rights and
duties of
Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to
the Fee Letter or any agreement relating to a Bank Product shall be required for any modification
of such agreement, and any non-Lender that is party to a Bank Product agreement shall have no right
to participate in any manner in modification of any other Loan Document. Any waiver or consent
granted by Agent or Lenders hereunder shall be effective only if in writing and only for the matter
specified.

          14.1.3 Payment for Consents. No Borrower will, directly or indirectly, pay
any remuneration or other thing of value, whether by way of additional interest, fee or otherwise,
to any Lender (in its capacity as a Lender hereunder) as consideration for agreement by such Lender
with any modification of any Loan Documents, unless such remuneration or value is concurrently
paid, on the same terms, on a Pro Rata basis to all Lenders providing their consent.

     14.2 Indemnity. SUBJECT TO THE FOLLOWING SENTENCE, EACH BORROWER SHALL INDEMNIFY AND HOLD
HARMLESS THE INDEMNITEES AGAINST ANY CLAIMS THAT MAY BE INCURRED BY OR ASSERTED AGAINST ANY
INDEMNITEE, INCLUDING CLAIMS ARISING FROM THE NEGLIGENCE OF AN INDEMNITEE. In no event shall any
party to a Loan Document have any obligation thereunder to indemnify or hold harmless an Indemnitee
with respect to a Claim that is determined in a final, non-appealable judgment by a court of
competent jurisdiction to result from the gross negligence or willful misconduct of such
Indemnitee.

     14.3 Notices and Communications.

          14.3.1 Notice Address. Subject to Section 4.1.4, all notices and other
communications by or to a party hereto shall be in writing and shall be given to any Borrower, at
Borrower Agent’s address shown on the signature pages hereof, and to any other Person at its
address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after
the Closing Date, at the address shown on its Assignment and Acceptance), or at such other address
as a party may hereafter specify by notice in accordance with this Section 14.3. Each such notice
or other communication shall be effective only (a) if given by facsimile transmission, when
transmitted to the applicable facsimile number, if confirmation of receipt is received; (b) if
given by mail, three Business

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Days after deposit in the U.S. mail, with first-class postage
pre-paid, addressed to the applicable address; or (c) if given by personal delivery, when duly
delivered to the notice address with receipt acknowledged. Notwithstanding the foregoing, no
notice to Agent pursuant to Section 2.1.4, 2.3, 3.1.2, 4.1.1 or 5.3.3 shall be effective until
actually received by the individual to whose attention at Agent such notice is required to be sent.
Any written notice or other communication that is not sent in conformity with the foregoing
provisions shall nevertheless be effective on the date actually received by the noticed party. Any
notice received by Borrower Agent shall be deemed received by all Borrowers.

          14.3.2 Electronic Communications; Voice Mail. Electronic mail and internet
websites may be used only for routine communications, such as financial statements, Borrowing Base
Certificates and other information required by Section 10.1.2, administrative matters, distribution
of Loan Documents for execution, and matters permitted under Section 4.1.4. Agent and Lenders make
no assurances as to the privacy and security of electronic communications. Except as set forth in
the preceding sentence, electronic and voice mail may not be used as effective notice under the
Loan Documents.

          14.3.3 Non-Conforming Communications. Agent and Lenders may rely upon any
notices purportedly given by or on behalf of any Borrower even if such notices were not made in a
manner specified herein, were incomplete or were not confirmed, or if the terms thereof, as
understood by the recipient, varied from a later confirmation. Each Borrower shall indemnify and
hold harmless each Indemnitee from any liabilities, losses, costs and expenses arising from any
telephonic communication purportedly given by or on behalf of a Borrower.

     14.4 Performance of Borrowers’ Obligations. Agent may, in its discretion at any time and
from time to time, at Borrowers’ expense, pay any amount or, upon notice to Borrower Agent unless
an Event of Default exists, do any act required of a Borrower under any Loan Documents or otherwise
lawfully requested by Agent to (a) enforce any Loan Documents or collect any Obligations; (b)
protect, insure, maintain or realize upon any Collateral; or (c) defend or maintain the validity or
priority of Agent’s Liens in any Collateral, including any payment of a judgment, insurance
premium, warehouse charge, finishing or processing charge, or landlord claim, or any discharge of a
Lien. All reasonable payments, costs and expenses (including Extraordinary Expenses) of Agent
under this Section shall be reimbursed to Agent by Borrowers, on demand, with interest from the
date incurred to the date of payment thereof at the Default Rate applicable to Base Rate Revolver
Loans. Any payment made or action taken by Agent under this Section shall be without prejudice to
any right to assert an Event of Default or to exercise any other rights or remedies under the Loan
Documents.

     14.5 Credit Inquiries. Each Borrower hereby authorizes Agent and Lenders (but they shall
have no obligation) to respond to usual and customary credit inquiries from third parties
concerning any Borrower or Subsidiary.

     14.6 Severability. Wherever possible, each provision of the Loan Documents shall be
interpreted in such manner as to be valid under Applicable Law. If any provision is found to be
invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the
remaining provisions of the Loan Documents shall remain in full force and effect.

     14.7 Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents are
cumulative. The parties acknowledge that the Loan Documents may use several limitations, tests or
measurements to regulate similar matters, and they agree that these are cumulative and that each
must be performed as provided. Except as otherwise provided in another Loan Document (by specific
reference to the applicable provision of this Agreement), if any provision contained herein is in
direct conflict with any provision in another Loan Document, the provision herein shall govern and
control.

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     14.8 Counterparts. Any Loan Document may be executed in counterparts, each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement shall become effective when Agent has received counterparts bearing the signatures
of all parties hereto. Delivery of a signature page of any Loan Document by telecopy or other
electronic means shall be effective as delivery of a manually executed counterpart of such
agreement.

     14.9 Entire Agreement. Time is of the essence of the Loan Documents. The Loan Documents
constitute the entire contract among the parties relating to the subject matter hereof, and
supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof.

     14.10 Relationship with Lenders. The obligations of each Lender hereunder are several, and
no Lender shall be responsible for the obligations or Commitments of any other Lender. Amounts
payable hereunder to each Lender shall be a separate and independent debt. It shall not be
necessary for Agent or any other Lender to be joined as an additional party in any proceeding for
such purposes. Nothing in this Agreement and no action of Agent or Lenders pursuant to the Loan
Documents shall be deemed to constitute Agent and Lenders to be a partnership, association, joint
venture or any other kind of entity, nor to constitute control of any Borrower.

     14.11 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated by any Loan Document, Borrowers acknowledge and agree that (a)(i) this
credit facility and any related arranging or other services by Agent, any Lender, any of their
Affiliates or any arranger are arm’s-length commercial transactions between Borrowers and such
Person; (ii) Borrowers have consulted their own legal, accounting, regulatory and tax advisors to
the extent they have deemed appropriate; and (iii) Borrowers are capable of evaluating and
understanding, and do understand and accept, the terms, risks and conditions of the transactions
contemplated by the Loan Documents; (b) each of Agent, Lenders, their Affiliates and any arranger
is and has been acting solely as a principal in connection with this credit facility, is not the
financial advisor, agent or fiduciary for Borrowers, any of their Affiliates or any other Person,
and has no obligation with respect to the transactions contemplated by the Loan Documents except as
expressly set forth therein; and (c) Agent, Lenders, their Affiliates and any arranger may be
engaged in a broad range of transactions that involve interests that differ from those of Borrowers
and their Affiliates, and have no obligation to disclose any of such interests to Borrowers or
their Affiliates. To the fullest extent permitted by Applicable Law, each Borrower hereby waives
and releases any claims that it may have against Agent, Lenders, their Affiliates and any arranger
with respect to any breach or alleged breach of agency or fiduciary duty in connection with any
aspect of any transaction contemplated by a Loan Document.

     14.12 Confidentiality. Each of Agent, Lenders and Issuing Bank agrees to maintain the
confidentiality of all Information (as defined below), except that Information may be disclosed (a)
to its Affiliates, and to its and their partners, directors, officers, employees, agents, advisors
and representatives (provided such Persons are informed of the confidential nature of the
Information and instructed to keep it confidential); (b) to the extent requested by any
governmental, regulatory or self-regulatory authority purporting to have jurisdiction over it or
its Affiliates; (c) to the extent required by Applicable Law or by any subpoena or other legal
process; (d) to any other party hereto; (e) in connection with any action or proceeding, or other
exercise of rights or remedies, relating to any Loan Documents or Obligations; (f) subject to an
agreement containing provisions substantially the same as this Section, to any Transferee or any
actual or prospective party (or its advisors) to any Bank Product; (g) with the consent of Borrower
Agent; or (h) to the extent such Information (i) becomes publicly available other than as a result
of a breach of this Section or (ii) is available to Agent, any Lender, Issuing Bank or any of their
Affiliates on a nonconfidential basis from a source other than Borrowers. Notwithstanding the
foregoing, Agent and Lenders may publish or disseminate general information describing this credit
facility, including the

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names and addresses of Borrowers and a general description of Borrowers’ businesses, and may
use Borrowers’ logos, trademarks or product photographs in advertising materials, provided,
however, that (i) Agent and Lenders provide Borrowers with a copy for their review
reasonably prior to publishing or disseminating such information and (ii) such general information
does not include any information required to be kept confidential by this Section 14.12. As used
herein, “Information” means all information received from an Obligor or Subsidiary relating
to it or its business. Any Person required to maintain the confidentiality of Information pursuant
to this Section shall be deemed to have complied if it exercises the same degree of care that it
accords its own confidential information. Each of Agent, Lenders and Issuing Bank acknowledges
that (i) Information may include material non-public information concerning an Obligor or
Subsidiary; (ii) it has developed compliance procedures regarding the use of material non-public
information; and (iii) it will handle such material non-public information in accordance with
Applicable Law, including federal and state securities laws.

     14.13 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, UNLESS OTHERWISE
SPECIFIED, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS, WITHOUT GIVING EFFECT TO ANY
CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

     14.14 Consent to Forum.

          14.14.1 Forum. EACH BORROWER HEREBY CONSENTS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER THE CITY OF
CHICAGO, STATE OF ILLINOIS, IN ANY PROCEEDING OR DISPUTE RELATING IN ANY WAY TO ANY LOAN DOCUMENTS,
AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT. EACH BORROWER
IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S
PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM. EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.3.1.
Nothing herein shall limit the right of Agent or any Lender to bring proceedings against any
Obligor in any other court, nor limit the right of any party to serve process in any other manner
permitted by Applicable Law. Nothing in this Agreement shall be deemed to preclude enforcement by
Agent of any judgment or order obtained in any forum or jurisdiction.

     14.15 Waivers by Borrowers. To the fullest extent permitted by Applicable Law, each
Borrower waives (a) the right to trial by jury (which Agent, Issuing Bank and each Lender hereby
also waives) in any proceeding or dispute of any kind relating in any way to any Loan Documents,
Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, default,
non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial
paper, accounts, documents, instruments, chattel paper and guaranties at any time held by Agent on
which a Borrower may in any way be liable, and hereby ratifies anything Agent may do in this
regard; (c) notice prior to taking possession or control of any Collateral; (d) any bond or
security that might be required by a court prior to allowing Agent to exercise any rights or
remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim against
Agent or any Lender, on any theory of liability, for special, indirect, consequential, exemplary or
punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement Action, Obligations, Loan Documents or
transactions relating thereto; and (g) notice of acceptance hereof. Each party hereto acknowledges
that the foregoing waivers are a material inducement to each other party hereto entering into this
Agreement and that each party hereto is relying upon the foregoing in their dealings with each
other party hereto. Each party hereto has reviewed the foregoing waivers with its legal counsel
and has

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knowingly and voluntarily waived its jury trial and other rights following consultation
with legal counsel. In the event of litigation, this Agreement may be filed as a written consent
to a trial by the court.

     14.16 Patriot Act Notice. Agent and Lenders hereby notify Borrowers that pursuant to the
requirements of the Patriot Act, Agent and Lenders are required to obtain, verify and record
information that identifies each Borrower, including its legal name, address, tax ID number and
other information that will allow Agent and Lenders to identify it in accordance with the Patriot
Act. Agent and Lenders will also require information regarding each personal guarantor, if any,
and may require information regarding Borrowers’ management and owners, such as legal name,
address, social security number and date of birth.

[Remainder of page intentionally left blank; signatures begin on following page]

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     IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date set forth
above.

	 	 	 	 	 
	 	BORROWERS:

OLYMPIC STEEL, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Treasurer and
Assistant Secretary 	 
	 
	 	OLYMPIC STEEL LAFAYETTE, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Treasurer and
Assistant Secretary 	 
	 
	 	OLYMPIC STEEL MINNEAPOLIS, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Vice President, Treasurer
and Assistant Secretary 	 
	 
	 	OLYMPIC STEEL IOWA, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Treasurer and
Assistant Secretary 	 
	 
	 	OLY STEEL WELDING, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Vice President, and
Treasurer 	 
	 

Signature Page to the 

Loan and Security Agreement

 

 

     IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date set forth
above.

	 	 	 	 	 
	 	BORROWERS:

OLY STEEL NC, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 
	 	TINSLEY GROUP-PS&W, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Treasurer and
Assistant Secretary 	 
	 
	 	IS ACQUISITION, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer, Treasurer and
Assistant Secretary 	 
	 

Signature Page to the 

Loan and Security Agreement

 

 

     IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date set forth
above.

	 	 	 	 	 
	 	AGENT AND LENDERS:

BANK OF AMERICA, N.A.,

as Agent and Lender

 	 
	 	By:  	/s/ Donald A. Mastro
 	 
	 	 	Name:  	Donald A. Mastro 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A.,

as Lender

 	 
	 	By:  	/s/ Matthew A. Brewer
 	 
	 	 	Name:  	Matthew A. Brewer 	 
	 	 	Title:  	Vice President 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

as Lender

 	 
	 	By:  	/s/ Timothy Kenealy
 	 
	 	 	Name:  	Timothy Kenealy 	 
	 	 	Title:  	Vice President 	 
	 
	 	COMERICA BANK,

as Lender

 	 
	 	By:  	/s/ John E. Spidel
 	 
	 	 	Name:  	John E. Spidel 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to the 

Loan and Security Agreement

 

 

EXHIBIT A

to

Loan and Security Agreement

REVOLVER NOTE

	 	 	 	 	 

	[Date]

	 	$         
              
                 
	 	[Chicago, Illinois]

     OLYMPIC STEEL, INC., an Ohio corporation (“Olympic Steel”), OLYMPIC STEEL LAFAYETTE,
INC., an Ohio corporation (“Olympic Lafayette”), OLYMPIC STEEL MINNEAPOLIS, INC., a
Minnesota corporation (“Olympic Minneapolis”), OLYMPIC STEEL IOWA, INC., an Iowa
corporation (“Olympic Iowa”), OLY STEEL WELDING, INC., a Michigan corporation (“Oly
Welding”), OLY STEEL NC, INC., a Delaware corporation (“Oly NC”), TINSLEY GROUP-PS&W,
INC., a North Carolina corporation (“Tinsley Group”), IS ACQUISITION, INC., an Ohio
corporation, (“IS Acquisition”, and together with Olympic Steel, Olympic Lafayette, Olympic
Minneapolis, Olympic Iowa, Oly Welding, Oly NC and Tinsley Group, collectively,
“Borrowers”), for value received, hereby unconditionally promise to pay, on a joint and
several basis, to the order of                                                              (“Lender”), the principal sum
of                                          DOLLARS ($                    ), or such lesser amount as may be advanced by Lender
as Revolver Loans and owing as LC Obligations from time to time under the Loan Agreement described
below, together with all accrued and unpaid interest thereon. Terms are used herein as defined in
the Loan and Security Agreement dated as of June 30, 2010, among Borrowers, Bank of America, N.A.,
as Agent, Lender, and certain other financial institutions, as such agreement may be amended,
modified, renewed or extended from time to time (“Loan Agreement”).

Principal of and interest on this Note from time to time outstanding shall be due and payable as
provided in the Loan Agreement. This Note is issued pursuant to and evidences Revolver Loans and
LC Obligations under the Loan Agreement, to which reference is made for a statement of the rights
and obligations of Lender and the duties and obligations of Borrowers. The Loan Agreement contains
provisions for acceleration of the maturity of this Note upon the happening of certain stated
events, and for the borrowing, prepayment and reborrowing of amounts upon specified terms and
conditions.

     The holder of this Note is hereby authorized by Borrowers to record on a schedule annexed to
this Note (or on a supplemental schedule) the amounts owing with respect to Revolver Loans and LC
Obligations, and the payment thereof. Failure to make any notation, however, shall not affect the
rights of the holder of this Note or any obligations of Borrowers hereunder or under any other Loan
Documents.

     Time is of the essence of this Note. Each Borrower and all endorsers, sureties and guarantors
of this Note hereby severally waive demand, presentment for payment, protest, notice of protest,
notice of intention to accelerate the maturity of this Note, diligence in collecting, the bringing
of any suit against any party, and any notice of or defense on account of any extensions, renewals,
partial payments, or changes in any manner of or in this Note or in any of its terms, provisions
and covenants, or any releases or substitutions of any security, or any delay, indulgence or other
act of any trustee or any holder hereof, whether before or after maturity. Borrowers jointly and
severally agree to pay, and to save the holder of this Note harmless against, any liability for the
payment of all costs and expenses (including without limitation reasonable attorneys’ fees) if this
Note is collected by or through an attorney-at-law.

     In no contingency or event whatsoever shall the amount paid or agreed to be paid to the holder
of this Note for the use, forbearance or detention of money advanced hereunder exceed the highest
lawful rate permitted under Applicable Law. If any such excess amount is inadvertently paid by
Borrowers or

 

 

inadvertently received by the holder of this Note, such excess shall be returned to Borrowers
or credited as a payment of principal, in accordance with the Loan Agreement. It is the intent
hereof that Borrowers not pay or contract to pay, and that holder of this Note not receive or
contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that
which may be paid by Borrowers under Applicable Law.

     This Note shall be governed by the laws of the State of Illinois, without giving effect to any
conflict of law principles (but giving effect to federal laws relating to national banks).

     IN WITNESS WHEREOF, this Revolver Note is executed as of the date set forth above.

	 	 	 	 	 
	 	OLYMPIC STEEL, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	OLYMPIC STEEL LAFAYETTE, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	OLYMPIC STEEL MINNEAPOLIS, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	OLYMPIC STEEL IOWA, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	OLY STEEL WELDING, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	OLY STEEL NC, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	TINSLEY GROUP-PS&W, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 
	 
	 	IS ACQUISITION, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

EXHIBIT B

to

Loan and Security Agreement

JOINDER AGREEMENT

          THIS JOINDER AGREEMENT, dated as of [                     ___, 20___] (this “Joinder Agreement”),
by and among [NEW LENDERS] (each a “New Lender” and collectively the “New
Lenders”), OLYMPIC STEEL, INC., an Ohio corporation (“Olympic Steel”), OLYMPIC STEEL LAFAYETTE,
INC., an Ohio corporation (“Olympic Lafayette”), OLYMPIC STEEL MINNEAPOLIS, INC., a
Minnesota corporation (“Olympic Minneapolis”), OLYMPIC STEEL IOWA, INC., an Iowa
corporation (“Olympic Iowa”), OLY STEEL WELDING, INC., a Michigan corporation (“Oly
Welding”), OLY STEEL NC, INC., a Delaware corporation (“Oly NC”), TINSLEY GROUP-PS&W,
INC., a North Carolina corporation (“Tinsley Group”), IS ACQUISITION, INC., an Ohio
corporation (“IS Acquisition”, and together with Olympic Steel, Olympic Lafayette, Olympic
Minneapolis, Olympic Iowa, Oly Welding, Oly NC and Tinsley Group, collectively,
“Borrowers”), and BANK OF AMERICA, N.A., a national banking association, as agent for the
Lenders (together with its successors and assigns, “Agent”).

RECITALS:

          WHEREAS, reference is hereby made to the Loan and Security Agreement, dated as of June 30,
2010 (as it may be amended, restated, supplemented or otherwise modified from time to time, the
“Loan Agreement’’; the terms defined therein and not otherwise defined herein being used
herein as therein defined), by and among the Lenders party thereto from time to time, Borrowers and
Agent; and

          WHEREAS, subject to the terms and conditions of the Loan Agreement, Borrowers may increase the
existing Revolver Commitments by entering into one or more Joinder Agreements with the New Lenders.

          NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

          Each New Lender party hereto hereby agrees to commit to provide its respective Commitment as
set forth on Schedule A annexed hereto (with respect to such New Lender, its “New Revolver
Commitment” and collectively, the “New Revolver Commitments”, on [___, 201_]
(the “Increased Amount Date”), on the terms and subject to the conditions set forth below:

          Each New Lender (i) confirms that it has received copies of the Loan Agreement and such other
Loan Documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Joinder Agreement; (ii) agrees that it will, independently and without
reliance upon Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Agreement; (iii) appoints and authorizes Agent to take such action as agent
on its behalf and to exercise such powers under the Loan Agreement as are delegated to Agent by the
terms thereof, together with such powers as are incidental thereto; and (iv) agrees that it will
perform in accordance with their terms all of the obligations which by the terms of the Loan
Agreement are required to be performed by it as a Lender.

 

 

          Each New Lender hereby agrees to make its New Revolver Commitment on the following terms and
conditions:

	1.	 	[insert any agreed upon terms to the extent consistent with Section 2.2 of the Credit
Agreement].
	 
	2.	 	[New Lenders. Each New Lender acknowledges and agrees that upon its execution of this
Joinder Agreement that such New Lender shall become a “Lender” under, and for all purposes of,
the Loan Agreement and the other Loan Documents, and shall be subject to and bound by the
terms thereof, and shall perform all the obligations of and shall have all rights of a Lender
thereunder.]1
	 
	3.	 	Loan Agreement Governs. Except as set forth in this Joinder Agreement, New Revolver
Commitments shall otherwise be subject to the provisions of the Loan Agreement and the other
Loan Documents.
	 
	4.	 	Borrower’s Certifications. By its execution of this Joinder Agreement, each Borrower hereby
certifies that:

	 	i.	 	The representations and warranties of each Obligor in the Loan
Documents are true and correct in all material respects (without duplication of
any materiality qualifier contained therein) on and as of the date hereof to
the same extent as though made on and as of the date hereof (except for
representations and warranties that expressly relate to an earlier date)
	 
	 	ii.	 	No Default or Event of Default exists on the Increased Amount
Date before or after giving effect to the New Revolver Commitments; and
	 
	 	iii.	 	Each Borrower has satisfied all conditions which Section 2.2 of
the Loan Agreement provides shall be performed or satisfied by it on or before
the Increased Amount Date.
	 
	 	iv.	 	Set forth on Attachment A are pro forma financial
statements and a pro forma Compliance Certificate, dated as of the Increased
Amount Date, in form and substance satisfactory to Agent, demonstrating that
immediately after giving effect to such New Revolver Commitment, the Fixed
Charge Coverage Ratio (recomputed for the most recent Fiscal Quarter for which
financial statements have been delivered) is at least 1.10 to 1.00 for the
period of twelve months then most recently ended.

	5.	 	Borrower Covenants. By its execution of this Joinder Agreement, Borrowers hereby covenants
that on the Increased Amount Date:

	 	i.	 	Borrowers shall make any payments required pursuant to Section
3.9 of the Loan Agreement in connection with the New Revolver Commitments and
the re-allocation of loans contemplated by Section 2.2(b) of the Loan
Agreement; and
	 
	 	ii.	 	Borrower shall deliver or cause to be delivered any customary
legal opinions or

 

			
	1	 	Insert bracketed language if the lending institution is not already a
Lender.

 

 

	 	 	 	other documents reasonably requested by Agent in connection with in
connection with this Joinder Agreement.

	6.	 	Eligible Assignee. By its execution of this Joinder Agreement, each New Lender represents
and warrants that it is an Eligible Assignee.
	 
	7.	 	Notice. For purposes of the Loan Agreement, the initial notice address of each New Lender
shall be as set forth below its signature below.
	 
	8.	 	Non-US Lenders. For each New Lender, delivered herewith to Agent and Borrower Agent are such
forms, certificates or other evidence with respect to United States federal income tax
withholding matters as such New Lender may be required to deliver to Agent and Borrower Agent
pursuant to Sections 5.10.1 and 5.10.2 of the Loan Agreement.
	 
	9.	 	Recordation of the New Revolver Commitments. Upon execution and delivery hereof, Agent will
record New Revolver Loans made by New Lenders in accordance with the terms of the Loan
Agreement.
	 
	10.	 	Amendment, Modification and Waiver. This Joinder Agreement may not be amended, modified or
waived except by an instrument or instruments in writing signed and delivered on behalf of
each of the parties hereto.
	 
	11.	 	Entire Agreement. This Joinder Agreement, the Loan Agreement and the other Loan Documents
constitute the entire agreement among the parties with respect to the subject matter hereof
and thereof and supersede all other prior agreements and understandings, both written and
verbal, among the parties or any of them with respect to the subject matter hereof.
	 
	12.	 	GOVERNING LAW. THIS JOINDER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF ILLINOIS.
	 
	13.	 	Severability. Any term or provision of this Joinder Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or unenforceable the
remaining terms and provisions of this Joinder Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Joinder Agreement in any other
jurisdiction. If any provision of this Joinder Agreement is so broad as to be unenforceable,
the provision shall be interpreted to be only so broad as would be enforceable.
	 
	14.	 	Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
to be an original, but all of which shall constitute one and the same agreement.

[Remainder of page intentionally left blank]

 

 

          IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute
and deliver this Joinder Agreement as of [                    ,                     ].

	 	 	 	 	 
	 	[NAME OF NEW LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Notice Address:

Attention:

Telephone:

Facsimile:

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	OLYMPIC STEEL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	OLYMPIC STEEL LAFAYETTE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	OLYMPIC STEEL MINNEAPOLIS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	OLYMPIC STEEL IOWA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	OLY STEEL WELDING, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	OLY STEEL NC, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 
	 
	 	TINSLEY GROUP-PS&W, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	IS ACQUISITION, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Authorized Officer] 	 

 

 

	 	 	 	 	 
	 	Consented to by:

BANK OF AMERICA, N.A.,

as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE A

TO JOINDER AGREEMENT

	 	 	 	 	 	 
	Name of Lender	 	Type of Commitment	 	Amount
	[              
                     
     ]
	 	New Revolver Commitment
	 	 	$ 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	Total: 	$
	 
	 	 	 	 	 

 

 

EXHIBIT C

to

Loan and Security Agreement

ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Loan and Security Agreement dated as of June 30, 2010, as amended
(“Loan Agreement”), among OLYMPIC STEEL, INC., an Ohio corporation (“Olympic
Steel”), OLYMPIC STEEL LAFAYETTE, INC., an Ohio corporation (“Olympic Lafayette”),
OLYMPIC STEEL MINNEAPOLIS, INC., a Minnesota corporation (“Olympic Minneapolis”), OLYMPIC
STEEL IOWA, INC., an Iowa corporation (“Olympic Iowa”), OLY STEEL WELDING, INC., a
Michigan corporation (“Oly Welding”), OLY STEEL NC, INC., a Delaware corporation (“Oly
NC”), TINSLEY GROUP-PS&W, INC., a North Carolina corporation (“Tinsley Group”), IS
ACQUISITION, INC., an Ohio corporation, (“IS Acquisition”, and together with Olympic Steel,
Olympic Lafayette, Olympic Minneapolis, Olympic Iowa, Oly Welding, Oly NC and Tinsley Group,
collectively, “Borrowers”), BANK OF AMERICA, N.A., as agent (“Agent”) for the
financial institutions from time to time party to the Loan Agreement (“Lenders”), and such
Lenders. Terms are used herein as defined in the Loan Agreement.

            
                     
                     
            (“Assignor”) and     
                     
                    
                     
              
 (“Assignee”) agree as follows:

     1. Assignor hereby assigns to Assignee and Assignee hereby purchases and assumes from Assignor
(a) a principal amount of $                    
of Assignor’s outstanding Revolver Loans and $                     of
Assignor’s participations in LC Obligations, and (b) the amount
of $                     of Assignor’s
Revolver Commitment (which represents ___% of the total Revolver Commitments) (the foregoing items
being, collectively, the “Assigned Interest”), together with an interest in the Loan
Documents corresponding to the Assigned Interest. This Agreement shall be effective as of the date
(“Effective Date”) indicated in the corresponding Assignment Notice delivered to Agent,
provided such Assignment Notice is executed by Assignor, Assignee, Agent and Borrower Agent, if
applicable. From and after the Effective Date, Assignee hereby expressly assumes, and undertakes
to perform, all of Assignor’s obligations in respect of the Assigned Interest, and all principal,
interest, fees and other amounts which would otherwise be payable to or for Assignor’s account in
respect of the Assigned Interest shall be payable to or for Assignee’s account, to the extent such
amounts accrue on or after the Effective Date.

     2. Assignor (a) represents that as of the date hereof, prior to giving effect to this
assignment, its Revolver Commitment is $               
     ,the outstanding balance of its Revolver Loans and participations in LC
Obligations is $                  
  ; (b) makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties or representations made in or
in connection with the Loan Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Agreement or any other instrument or document
furnished pursuant thereto, other than that Assignor is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; and (c) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of Borrowers or the performance by Borrowers of their obligations under the
Loan Documents. [Assignor is attaching the Note[s] held by it and requests that Agent exchange
such Note[s] for new Notes payable to Assignee [and Assignor].]

     3. Assignee (a) represents and warrants that it is legally authorized to enter into this
Assignment and Acceptance; (b) confirms that it has received copies of the Loan Agreement and such

 

 

other Loan Documents and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Assignment and Acceptance; (c) agrees that it shall, independently
and without reliance upon Assignor and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents; (d) confirms that it is an Eligible Assignee; (e) appoints and authorizes
Agent to take such action as agent on its behalf and to exercise such powers under the Loan
Agreement as are delegated to Agent by the terms thereof, together with such powers as are
incidental thereto; (f) agrees that it will observe and perform all obligations that are required
to be performed by it as a “Lender” under the Loan Documents; and (g) represents and warrants that
the assignment evidenced hereby will not result in a non-exempt “prohibited transaction” under
Section 406 of ERISA.

     4. This Agreement shall be governed by the laws of the State of Illinois. If any provision is
found to be invalid under Applicable Law, it shall be ineffective only to the extent of such
invalidity and the remaining provisions of this Agreement shall remain in full force and effect.

     5. Each notice or other communication hereunder shall be in writing, shall be sent by
messenger, by telecopy or facsimile transmission, or by first-class mail, shall be deemed given
when sent and shall be sent as follows:

	 	(a)	 	If to Assignee, to the following address (or to such other
address as Assignee may designate from time to time):
	 
	 	 	 	                  
                   
                     
                      
	 
	 	 	 	                  
                    
                     
                     
	 
	 	 	 	                  
                 
                     
                        

	 	(b)	 	If to Assignor, to the following address (or to such other
address as Assignor may designate from time to time):
	 
	 	 	 	                 
                   
                    
                        
	 
	 	 	 	                
                      
                    
                      
	 
	 	 	 	                  
                        
                       
               

     Payments hereunder shall be made by wire transfer of immediately available Dollars as follows:

     If to Assignee, to the following account (or to such other account as Assignee may designate
from time to time):

	 	 	 	                  
                          
                       
            
	 
	 	 	 	                   
                        
                      
              
	 
	 	 	 	ABA No.                 
                    
                          
	 
	 	 	 	                   
                       
                         
            
	 
	 	 	 	Account No.                 
                    
                     
	 
	 	 	 	Reference:                 
                    
                         

 

 

     If to Assignor, to the following account (or to such other account as Assignor may designate
from time to time):

	 	 	 	                  
                   
                     
                      
	 
	 	 	 	                   
                   
                    
                      
	 
	 	 	 	ABA No.                  
                    
                          
	 
	 	 	 	                  
                   
                    
                       
	 
	 	 	 	Account No.                  
                    
                     

	 	 	 	Reference:                  
                    
                   
      

 

 

     IN WITNESS WHEREOF, this Assignment and Acceptance is executed as of                     .

	 	 	 	 	 	 	 

	 	 	 	 	 
	 

	 	(“Assignee”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	(“Assignor”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT D

to

Loan and Security Agreement

ASSIGNMENT NOTICE

     Reference is made to (1) the Loan and Security Agreement dated as of June 30, 2010, as amended
(“Loan Agreement”), among OLYMPIC STEEL, INC., an Ohio corporation (“Olympic
Steel”), OLYMPIC STEEL LAFAYETTE, INC., an Ohio corporation (“Olympic Lafayette”),
OLYMPIC STEEL MINNEAPOLIS, INC., a Minnesota corporation (“Olympic Minneapolis”), OLYMPIC
STEEL IOWA, INC., an Iowa corporation (“Olympic Iowa”), OLY STEEL WELDING, INC., a
Michigan corporation (“Oly Welding”), OLY STEEL NC, INC., a Delaware corporation (“Oly
NC”), TINSLEY GROUP-PS&W, INC., a North Carolina corporation (“Tinsley Group”), IS
ACQUISITION, INC., an Ohio corporation (“IS Acquisition”, and together with Olympic Steel,
Olympic Lafayette, Olympic Minneapolis, Olympic Iowa, Oly Welding, Oly NC and Tinsley Group,
collectively, “Borrowers”), BANK OF AMERICA, N.A., as agent (“Agent”) for the
financial institutions from time to time party to the Loan Agreement (“Lenders”), and such
Lenders; and (2) the Assignment and Acceptance dated as of         
            , 20___(“Assignment
Agreement”), between               
                  
         (“Assignor”) and     
                  
                  
(“Assignee”). Terms are used herein as defined in the Loan Agreement.

     Assignor hereby notifies Borrowers and Agent of Assignor’s intent to assign to Assignee
pursuant to the Assignment Agreement (a) a principal amount of $       
              of Assignor’s outstanding
Revolver Loans and $               
      of Assignor’s participations in LC Obligations, and (b) the amount
of $                 
    of Assignor’s Revolver Commitment (which represents ___% of the total Revolver
Commitments) (the foregoing items being, collectively, the “Assigned Interest”), together
with an interest in the Loan Documents corresponding to the Assigned Interest. This Agreement
shall be effective as of the date (“Effective Date”) indicated below, provided this
Assignment Notice is executed by Assignor, Assignee, Agent and Borrower Agent, if applicable.
Pursuant to the Assignment Agreement, Assignee has expressly assumed all of Assignor’s obligations
under the Loan Agreement to the extent of the Assigned Interest, as of the Effective Date.

     For purposes of the Loan Agreement, Agent shall deem Assignor’s Revolver Commitment to be
reduced by $              
      , and Assignee’s Revolver Commitment to be increased by $  
                  .

     The address of Assignee to which notices and information are to be sent under the terms of the
Loan Agreement is:

      

      

      

     The address of Assignee to which payments are to be sent under the terms of the Loan Agreement
is shown in the Assignment and Acceptance.

     This Notice is being delivered to Borrowers and Agent pursuant to Section 13.3 of the Loan
Agreement. Please acknowledge your acceptance of this Notice by executing and returning to
Assignee and Assignor a copy of this Notice.

     IN WITNESS WHEREOF, this Assignment Notice is executed as of                                         .

 

 

	 	 	 	 	 	 	 

	 	 	 	 	 
	 	 	(“Assignee”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(“Assignor”)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

ACKNOWLEDGED AND AGREED,

AS OF THE DATE SET FORTH ABOVE:

BORROWER AGENT:*

OLYMPIC STEEL, INC.

	 	 	 	 	 

	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

 

			
	*	 	No signature required if Assignee is a Lender, U.S.-based Affiliate of a Lender or Approved
Fund, or if an Event of Default exists.

BANK OF AMERICA, N.A.,

as Agent

	 	 	 	 	 

	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

 

 

EXHIBIT E

to

Loan and Security Agreement

COMPLIANCE CERTIFICATE

     The undersigned, duly appointed and acting Chief Financial Officer of OLYMPIC STEEL, INC., an
Ohio corporation (“Olympic Steel”), a Borrower Agent for itself and OLYMPIC STEEL
LAFAYETTE, INC., an Ohio corporation (“Olympic Lafayette”), OLYMPIC STEEL MINNEAPOLIS,
INC., a Minnesota corporation (“Olympic Minneapolis”), OLYMPIC STEEL IOWA, INC., an Iowa
corporation (“Olympic Iowa”), OLY STEEL WELDING, INC., a Michigan corporation
(“Oly Welding”), OLY STEEL NC, INC., a Delaware corporation (“Oly NC”), TINSLEY
GROUP-PS&W, INC., a North Carolina corporation (“Tinsley Group”), IS ACQUISITION, INC., an
Ohio corporation (“IS Acquisition”, and together with Olympic Steel, Olympic Lafayette,
Olympic Minneapolis, Olympic Iowa, Oly Welding, Oly NC and Tinsley Group, collectively,
“Borrowers”), being duly authorized, hereby delivers this Compliance Certificate to the
BANK OF AMERICA, N.A., in its capacity as agent (“Agent”) for the financial institutions
from time to time party to the Loan Agreement referenced below (“Lenders”), pursuant to
Section 10.1.2(d) of that certain Loan and Security Agreement, dated as of ___, 2010,
among the Borrowers, the Lenders party thereto, and the Agent, as such agreement may be amended,
restated, or otherwise modified from time to time, reference to which hereby is made (the “Loan
Agreement”). Terms defined in the Loan Agreement, wherever used herein, shall have the same
meanings as are prescribed by the Loan Agreement.

	 	1.	 	The Borrower Agent hereby delivers to the Agent [check as applicable]:
	 
	 	[_] 	 	 the consolidated audited Fiscal Year-end financial statements of Borrowers and
Subsidiaries and accountant’s certificate required by Section 10.1.2(a) of the Loan
Agreement, each dated as of ___, 201_;
	 
	 	[_]	 	 the consolidating unaudited Fiscal Quarter-end financial statements of
Borrowers and Subsidiaries required by Section 10.1.2(b) of the Loan Agreement, dated
as of , 201_;
	 
	 	[_]	 	 the consolidated unaudited month-end financial statements required by
Section 10.1.2(c) of the Loan Agreement, dated as of ___, 201_;

Such financial statements have been prepared in accordance with GAAP applied consistently
throughout the periods reflected therein [(other than for omission of footnotes and subject to
year-end audit adjustments)] and fairly present in all material respects the financial position and
results of operations of the Borrowers and Subsidiaries at the dates and for the periods indicated.

     2. The undersigned hereby certifies to the Agent and the Lenders that (a) the representations
and warranties of each Obligor in the Loan Documents are true and correct in all material respects
on and as of the date of this Compliance Certificate as if made on and as of the date hereof
(without duplication of any materiality qualifier contained therein and except for representations
and warranties that expressly relate to an earlier date) and (b) except as set forth on Exhibit
A hereto, the Obligors are, at the date of this Compliance Certificate, in compliance in all
material respects with all of their respective covenants and agreements in the Loan Agreement and
the other Loan Documents.

     3. The undersigned hereby further certifies to the Agent and the Lenders [check as

 

 

applicable]:

	 	[_]	 	 No Default or Event of Default exists as of the date hereof.
	 
	 	[_]	 	 One or more Defaults or Events of Default exist as of the date hereof.
Included within Exhibit A attached hereto is a written description specifying each such
Default or Event of Default, its nature, when it occurred, and the steps being taken by
the Obligors with respect thereto. Except as so specified, no Default or Event of
Default exists as of the date hereof.

     4. Exhibit B attached hereto sets forth the calculations the Fixed Charge Coverage
Ratio as of the effective date of the financial statements referenced in paragraph 1
preceding.

     5. The undersigned hereby certifies that [no] [Covenant Trigger Period][Reporting Trigger
Period][Sweep Trigger Period] commenced during the period covered by the financial statements
referenced in paragraph 1 of this Compliance Certificate.

     Date of execution of this Compliance Certificate:                     , 201___.

	 	 	 	 	 
	 	BORROWER AGENT:

OLYMPIC STEEL, INC., for itself and as agent for the other Borrowers

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT E

to

Loan and Security Agreement

Continuing Letters of Credit

Intentionally Omitted

 

 

SCHEDULE 1.1

to

Loan and Security Agreement

COMMITMENTS OF LENDERS

	 	 	 	 	 	 	 	 	 
	Lender	 	Revolver Commitment	 	 	Total Commitments	 
	Bank of America, N.A.
	 	$	45,000,000	 	 	$	45,000,000	 
	JPMorgan Chase Bank, N.A.
	 	$	35,000,000	 	 	$	35,000,000	 
	KeyBank National Association
	 	$	25,000,000	 	 	$	25,000,000	 
	Comerica Bank
	 	$	20,000,000	 	 	$	20,000,000	 
	Total
	 	 	 	 	 	$	125,000,000	 
	 
	 	 	 	 	 	 	 

 

 

SCHEDULE 8.5

to

Loan and Security Agreement

DEPOSIT ACCOUNTS

	 	 	 	 	 	 	 
	Depository Bank	 	Account Name	 	Type of Account	 	Account Number
	KeyBank National Association
	 	NA	 	Concentration Account	 	359681226437
	Bank of America, N.A.
	 	Connecticut	 	Petty Cash	 	0000-0194-2646
	Bank of America, N.A.
	 	Southern	 	Petty Cash	 	81606691
	Bank of America, N.A.
	 	Southern	 	Petty Cash	 	334010352417
	Comerica
	 	Detroit	 	Petty Cash	 	1851893915
	F&M Trust — Memorial Square Office
	 	Chambersburg	 	Petty Cash	 	0013557
	PNC Bank, National Association
	 	Philadelphia	 	Petty Cash	 	8550421359
	Wells Fargo, NA.
	 	Chicago	 	Petty Cash	 	4121316137
	Wells Fargo, N.A.
	 	Coil	 	Petty Cash	 	1062238
	Wells Fargo, N.A.
	 	Iowa	 	Petty Cash	 	3001011514
	Wells Fargo, N.A.
	 	Plate	 	Petty Cash	 	6355021182

 

 

SCHEDULE 8.6.1

to

Loan and Security Agreement

BUSINESS LOCATIONS

Chief Executive Office: 5096 Richmond Road, Bedford Heights, Ohio 44146

Other Locations:

     5080 Richmond Road, Bedford Heights, Ohio 44146

     555 Commercial Parkway, Dover, Ohio 44622

     3600 North Military Road, Detroit, Michigan 48210

     1901 Mitchell Blvd., Schaumburg, Illinois 60193

     625 Xenium Lane, Plymouth, Minnesota 55441

     13100 15th Avenue North, Plymouth, Minnesota 55441

     6425 State Street, Bettendorf, Iowa 52722

     One Eastern Steel Road, Milford, Connecticut 06460

     1530 Nitterhouse Drive, Chambersburg, Pennsylvania 17201

     1599 Nitterhouse Drive, Chambersburg, Pennsylvania 17201

     509 Bankhead Highway, Winder, Georgia 30680

     3031 Hamp Stone Road, Siler City, North Carolina 27344

     587 Barrow Park Drive, Winder, Georgia 30680

     5060 Richmond Road, Bedford Heights, Ohio 44146

     3 South Second Street, Fernandina Beach, Florida 32034

     891-B Cockerill Road, Sumter, South Carolina 29154

     One Media Place, 1023 E. Baltimore Pike – Suite 220, Media, Pennsylvania 19063

     31360 Solon Road, Solon, Ohio 44139

     6595 24th Avenue NE, Moses Lake, Washington 98837

 

 

The following bailees, warehouseman, similar parties and consignees hold inventory of a
Borrower or Subsidiary:

	 	 	 	 	 	 	 	 	 
	Warehouse Name	 	Address	 	City	 	State	 	Zip code
	Albany Mfg. Co.
	 	35747 CO RD 10	 	Albany	 	MN	 	56307
	Capacity Warehouse Distribution
	 	17065 Hess Ave	 	Melvindale	 	MI	 	48122
	Central 57
	 	4589 Johnstown Parkway	 	Cleveland	 	OH	 	44128
	Chemcoaters
	 	700 Chase Street	 	Gary	 	IN	 	46404
	Cleveland division
	 	5060 Richmond Road	 	Bedford Heights	 	OH	 	44146
	Electric Coating Technologies
	 	4407 Railroad Avenue	 	East Chicago	 	IN	 	46312
	Empire Stevedoring
	 	7600 Avenue  P 47/48	 	Houston	 	TX	 	77012
	Fanello Industries
	 	50 E Main St	 	Lavonia	 	GA	 	30553
	Feralloy Processing
	 	600 George Nelson Dr.	 	Portage	 	IN	 	46368
	Ferrous Metal
	 	11103 Memphis Avenue	 	Cleveland	 	OH	 	44144
	Ferrous South — Stock
	 	38 County Rd 370	 	Iuka	 	MS	 	38852
	Fulton County
	 	7800 State Route 109	 	Delta	 	OH	 	43515
	Gateway Co.
	 	109 E Ohio	 	Joliet	 	IL	 	60432
	GM Stainless
	 	41 ImClone Drive	 	Camden	 	NJ	 	8876
	Gradall (Rear dock)
	 	406 Mill Avenue S.W.	 	New Philadelphia	 	OH	 	44663
	Gulf Stream Marine
	 	C/O Greensport Terminal, 13609 Industrial Road	 	Houston	 	TX	 	77015
	Heidtman Steel
	 	2121 Gray’s Road	 	Baltimore	 	MD	 	21222
	Heidtman Steel
	 	630 Lavoy Rd	 	Erie	 	MI	 	48133
	Heidtman Steel — Cleveland
	 	4600 Heidtman Parkway	 	Cleveland	 	OH	 	44127
	Hendrick
	 	1 Seventh Avenue	 	Carbondale	 	PA	 	18407
	Hendrick
	 	2555 Decade Ct.	 	Elgin	 	IL	 	60123
	Hendrick
	 	1 Seventh Avenue	 	Carbondale	 	PA	 	18407
	Indiana Pickling
	 	6650 Nautical Drive	 	Portage	 	IN	 	46368
	Kirk & Blum
	 	3120 Forrer Street	 	Cincinnati	 	OH	 	45209
	Logistec USA, Inc.
	 	100 Waterfront Street, P. O Box 9411	 	New Haven	 	CT	 	06534
	Main Steel
	 	761 Bedford St., Nw	 	Atlanta	 	GA	 	30318
	Main Steel — Bartlett
	 	802 East Devon Avenue	 	Bartlett	 	IL	 	60103

 

 

	 	 	 	 	 	 	 	 	 
	Warehouse Name	 	Address	 	City	 	State	 	Zip code
	Main Steel — Harmony
	 	6 Whitey Drive	 	Harmony	 	PA	 	16037
	Main Steel — Union, NJ
	 	1061 Lousons Road	 	Union	 	NJ	 	07083
	Main Steel (Wheeling)
	 	571 S Wheeling Road	 	Wheeling	 	IL	 	60090
	Main Steel
	 	3805-B Henricks Rd.	 	Youngstown	 	OH	 	44515
	Maryland Metals
	 	4425A North Point Blvd.	 	Baltimore	 	MD	 	21222
	Moses Lake
	 	6595 24TH ST NE	 	Moses Lake	 	WA	 	98837
	NACME
	 	429 N 127TH ST	 	Chicago	 	IL	 	60628
	Ohio Pickling & Processing
	 	1149 Campbell Street	 	Toledo	 	OH	 	43607
	Panther Precision Machine
	 	6640 Sunwood Drive NW	 	Ramsey	 	MN	 	55303
	Precoat Metals — Portage
	 	6300 US 12 Route 249	 	Portage	 	IN	 	46368
	Precoat/Midwest Metals Granite
	 	25 Northgate Industrial Drive	 	Granite City	 	IL	 	62040
	Pro-Fabricators, Inc.
	 	12745 Smitsburg Pike	 	Smithburg	 	MD	 	21783
	Samuel Steel Pickling
	 	1400 Enterprise Parkway	 	Twinsburg	 	OH	 	44087
	Schebler Company
	 	HWY 67 & Fenno Road	 	Bettendorf	 	IA	 	52722
	Service Steel
	 	P.O. Box 9607	 	Houston	 	TX	 	77213
	Shear-Rite
	 	80 Newtown Road	 	Plainview	 	NY	 	11803
	South Jersey Port Corporation
	 	Camden Terminal	 	Camden	 	NJ	 	08104
	Specialty Metals
	 	837 Seasons Road	 	Stow	 	OH	 	44224
	SSTOR
	 	10 Station St. Ext.	 	Loyalhanna	 	PA	 	15661
	Steel Warehouse of Chattanooga
	 	600 River Terminal	 	Chattanooga	 	TN	 	37406
	Stock — JBI
	 	234 South Holland Dr	 	Pendergrass	 	GA	 	30567
	Storage & Processors
	 	 C/O Greensport Terminal, 13609 Industrial Road	 	Houston	 	TX	 	77015
	The Material Works
	 	101 South Main Street	 	Red Bud	 	IL	 	62278
	TSA ARLINGTON
	 	2810 Randol Mill Rd.	 	Arlington	 	TX	 	76011
	Uniserv
	 	4500 Parkway Road	 	Brookfield	 	OH	 	44403
	Vision Pickling & Processing
	 	9341 State Route 23	 	Waterman	 	IL	 	60556
	Voss Steel
	 	7925 Beech Daly	 	Taylor	 	MI	 	48180
	Wayne Industries, Inc.
	 	36253 Michigan Ave	 	Wayne	 	MI	 	48184

 

 

	 	 	 	 	 	 	 	 	 
	Warehouse Name	 	Address	 	City	 	State	 	Zip code
	Werk Brau
	 	2800 Fostoria Road	 	Findlay	 	OH	 	45840
	Worthington Steel
	 	6303 Country Road 10	 	Delta	 	OH	 	43515
	Worthington Steel — Porter
	 	100 Worthington Drive	 	Porter	 	IN	 	46304

 

 

SCHEDULE 9.1.4

to

Loan and Security Agreement

NAMES AND CAPITAL STRUCTURE

	1.	 	The corporate names and jurisdictions of organization of each Borrower and Subsidiary, and
authorized and issued Equity Interests of each Borrower (other than Olympic Steel) and
Subsidiary are as follows:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number and Class of
	 	 	 	 	Number and Class of	 	Issued Share and
	Name	 	Jurisdiction	 	Authorized Shares	 	Record Owner
	Olympic Steel, Inc.

	 	Ohio
	 	20,000,000 common shares
no par value

5,000,000 preferred shares
	 	10,883,411 common
shares as of April
29, 2010
	 
	 	 	 	 	 	 
	Olympic Steel Lafayette,
Inc.

	 	Ohio
	 	850 shares common stock,
no par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Olympic Steel Minneapolis,
Inc.

	 	Minnesota
	 	100 shares common stock,
no par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Olympic Steel Iowa, Inc.

	 	Iowa
	 	100 shares common stock,
no par value
	 	100 shares (owned
by Olympic Steel
Minneapolis, Inc.)
	 
	 	 	 	 	 	 
	Oly Steel Welding, Inc.

	 	Michigan
	 	60,000 shares common
stock, no par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Olympic Steel Receivables
L.L.C.

	 	Delaware
	 	NA
	 	99% membership
interests issued to
Olympic Steel, Inc. 

1% membership
interest issued to
Olympic Steel
Receivables, Inc.
	 
	 	 	 	 	 	 
	Oly Steel NC, Inc.

	 	Delaware
	 	100 shares common stock,
no par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Tinsley Group-PS&W, Inc.

	 	North Carolina
	 	100,000 shares common
stock, no par value
	 	5,000 shares (owned
by Oly Steel NC,
Inc.)
	 
	 	 	 	 	 	 
	IS Acquisition, Inc.

	 	Ohio
	 	100 shares common stock,
$.01 par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Olyac, Inc.

	 	Delaware
	 	100 shares common stock,
$.01 par value
	 	100 shares (owned
by Olympic Steel,
Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number and Class of
	 	 	 	 	Number and Class of	 	Issued Share and
	Name	 	Jurisdiction	 	Authorized Shares	 	Record Owner
	Olympic Steel Receivables,
Inc.

	 	Delaware
	 	850 shares common stock,
$.01 par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	Olympic Steel Trading, Inc.

	 	Ohio
	 	850 shares common stock,
no par value
	 	100 shares (owned
by Olympic Steel,
Inc.)
	 
	 	 	 	 	 	 
	G.S.P., LLC

	 	Michigan
	 	NA
	 	100% membership
interest issued to
Oly Steel Welding,
Inc.

	2.	 	All agreements binding on holders of Equity Interests of Borrowers (other than Olympic
Steel) and Subsidiaries with respect to such interests are as follows:

None.

	3.	 	In the five years preceding the Closing Date, no Borrower or Subsidiary has acquired any
substantial assets from any other Person nor been the surviving entity in a merger or
combination, except:

Tinsley / PS&W  — June 2006

Integrity Stainless — Jan 2010

 

 

SCHEDULE 9.1.11

to

Loan and Security Agreement

PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES

	1.	 	Borrowers’ and Subsidiaries’ federally registered patents:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Status in Patent	 	Federal	 	 
	Patent	 	Owner	 	Office	 	Registration No.	 	Registration Date

None.

	2.	 	Borrowers’ and Subsidiaries’ federally registered trademarks:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Status in Trademark	 	Federal	 	 
	Trademark	 	Owner	 	Office	 	Registration No.	 	Registration Date
	OLY-FLATBRITE
	 	Olympic Steel, Inc.
	 	Registered
	 	2994499
	 	09/13/05

	3.	 	Borrowers’ and Subsidiaries’ federally registered copyrights:

	 	 	 	 	 	 	 
	Copyright	 	Claimant	 	Copyright Number	 	Registration Date
	Contra Program
	 	Olympic Steel, Inc.
	 	TXu110424
	 	04/16/82

	4.	 	Borrowers’ and Subsidiaries’ licenses (other than routine business licenses, authorizing
them to transact business in local jurisdictions):

	 	 	 	 	 	 	 
	Licensor	 	Description of License	 	Term of License		Royalties Payable

None.

 

 

SCHEDULE 9.1.14

to

Loan and Security Agreement

ENVIRONMENTAL MATTERS

None.

 

 

SCHEDULE 9.1.15

to

Loan and Security Agreement

RESTRICTIVE AGREEMENTS

None.

 

 

SCHEDULE 9.1.16

to

Loan and Security Agreement

LITIGATION

	1.	 	Proceedings and investigations pending against Borrowers or Subsidiaries:

None.

	2.	 	Threatened proceedings or investigations of which any Borrower or Subsidiary is aware:

None.

	3.	 	Pending Commercial Tort Claim of any Obligor:

None.

 

 

SCHEDULE 9.1.18

to

Loan and Security Agreement

PENSION PLAN DISCLOSURES

None.

 

 

SCHEDULE 9.1.20

to

Loan and Security Agreement

LABOR CONTRACTS

	 	 	 	 	 	 	 	 	 
	Parties	 	Type of Agreement	 	Term of Agreement
	MN Coil (Int’l Brotherhood of Teamsters, Chauffeurs,
Warehousemen & Helpers of
America)
	 	Union contract	 	September 30, 2010
	 
	 	 	 	 	 	 	 	 
	MN Plate (Int’l Brotherhood of Teamsters, Chauffeurs,
Warehousemen & Helpers of
America)
	 	Union contract	 	March 31, 2012
	 
	 	 	 	 	 	 	 	 
	Detroit (Int’l Union of Operating Engineers)
	 	Union contract	 	August 31, 2012

 

 

SCHEDULE 10.2.2

to

Loan and Security Agreement

EXISTING LIENS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel Iowa, Inc.

	 	IA
	 	State
	 	Wells Fargo Bank, N.A.
	 	UCC: X10000874-0

File Date: 1/8/10
	 	Equipment
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Lafayette, Inc.

	 	OH
	 	State
	 	MISA Metal Blanking, Inc.
	 	UCC: OH00064987591

File Date: 6/12/03

Amendment: 20040980626

File Date: 4/5/04

Continuation: 20081540578

File Date: 6/2/08
	 	Steel coils pursuant to Toll Agreement between Secured Party and Debtor

*Notice Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Lafayette, Inc.
Lafeyette Steel & Processing

	 	OH
	 	State
	 	Marubeni-Itochu Steel America, Inc.
	 	UCC: OH00112477802

File Date: 3/5/07
	 	Steel coils pursuant to Toll Agreement between Secured Party and Debtor

*Notice Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Lafayette, Inc.

	 	OH
	 	State
	 	ArcelorMittal USA Inc.
	 	UCC: OH00131740511

File Date: 12/19/08
	 	Steel
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Minneapolis, Inc.

	 	MN
	 	State
	 	Genie Industries, Inc.
	 	UCC: 200916492845

File Date: 6/19/09
	 	Steel Plates
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Minneapolis, Inc.

	 	MN
	 	State
	 	Steel Technologies Inc.
	 	UCC: 200917354768

File Date: 9/11/09
	 	All steel coils

*Filed for notice purposes only

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel Minneapolis, Inc.
Olympic Steel Inc.

	 	MN
	 	State
	 	Coilplus-Pennsylvania, Inc. 

Coilplus, Inc. 

Coilplus-North Carolina, Inc.
	 	UCC: 201019255215

File Date: 2/24/10
	 	Secured Parties shall ship to Debtors carbon steel products to be stored or processed

*Filing for notification purposes
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	General Electric Capital Corporation
	 	UCC: AP322923

File Date: 3/27/01

Amendment: 20060470692

File Date: 2/16/06

Continuation: 20060470644

File Date: 2/16/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	General Electric Capital Corporation
	 	UCC: AP322924

File Date: 3/27/01

Amendment: 20060470658

File Date: 2/16/06

Continuation: 20060470622

File Date: 2/16/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	General Electric Capital Corporation
	 	UCC: OH00056944086

File Date: 10/28/02

Continuation: 20071980324

File Date: 7/17/07
	 	LEASED EQUIPMENT

*Filed Solely as a precaution

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel, Inc.

	 	OH
	 	State
	 	The CIT Group/Equipment Financing, Inc.
	 	UCC: OH00058857144

File Date: 1/10/03

Continuation: 20071980756

File Date: 7/13/07

Continuation: 20072120760

File Date: 7/31/07
	 	Equipment
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	Maxus Leasing Group, Inc.
	 	UCC: OH00074298229

File Date: 2/26/04

Amendment: 20041470256

File Date: 5/21/04

Continuation: 20082960426

File Date: 10/21/08
	 	LEASED EQUIPMENT
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance, a division of Key
Corporate Capital Inc.
	 	UCC: OH00078771227

File Date: 6/24/04

Continuation: 20090820344

File Date: 3/23/09
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance, a division of Key
Corporate Capital Inc.
	 	UCC: OH00082121488

File Date: 10/4/04

Continuation: 20091830344

File Date: 7/2/09
	 	LEASED EQUIPMENT

*Filed Solely as a precaution

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance, a division of Key
Corporate Capital Inc.
	 	UCC: OH00085212868

File Date: 1/4/05

Continuation: 20092870600

File Date: 10/14/09
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00088837603

File Date: 4/29/05

Continuation: 20100280188

File Date: 1/28/10
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00094686478

File Date: 10/26/05
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	General Electric Capital Corporation
	 	UCC: OH00098932122

File Date: 2/21/06
	 	In-Lieu Filing

LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Amended: Banc of America Leasing & Capital, LLC
Original secured Party: Fleet Capital Corporation
	 	UCC: OH00101778716

File Date: 5/4/06

Amendment: 20061280150

File Date: 5/31/06
	 	LEASED EQUIPMENT

*Precautionary Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Banc of America Leasing & Capital, LLC
	 	UCC: OH00102805958

File Date: 6/2/06
	 	LEASED EQUIPMENT

*Precautionary Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Banc of America Leasing & Capital, LLC
	 	UCC: OH00104254840

File Date: 7/10/06
	 	LEASED EQUIPMENT

*Precautionary Filing

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Mitsui Steel, Inc.
	 	UCC: OH00104285007

File Date: 7/11/06
	 	All steel coils owned or acquired by Mitsui Steel, inc. and secured or placed on the
premises of Olympic Steel, Inc.

*Filed for Notice purposes
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00106062380

File Date: 8/31/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Marlin Leasing Corp
	 	UCC: OH00106131135

File Date: 9/1/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Banc of America Leasing & Capital, LLC
	 	UCC: OH00106731531

File Date: 9/19/06
	 	LEASED EQUIPMENT

*Precautionary Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Greater Bay Bank N.A.
	 	UCC: OH00116955294

File Date: 7/6/07
	 	LEASED EQUIPMENT

*Filed for Notice purposes
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00119579683

File Date: 9/28/07
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00119585656

File Date: 9/28/07
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	NMHG Financial Services, Inc.
	 	UCC: OH00125614435

File Date: 4/11/08
	 	LEASED EQUIPMENT

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Alliance Steel Corporation
	 	UCC: OH00129035118

File Date: 8/19/08
	 	Steel and other products owned by Bailor (Secured Party)
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	Key Equipment Finance Inc.
	 	UCC: OH00131165854

File Date: 11/24/08
	 	Equipment
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	ArcelorMittal USA Inc.
	 	UCC: OH00131740733

File Date: 12/19/08
	 	Steel
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	A2 Sales, LLC d/b/a Alliance Steel 1, LLC
	 	UCC: OH00132225388

File Date: 1/9/09
	 	Steel and other products owned by Bailor (Secured Party)
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	SSAB Turnplat AB
	 	UCC: OH00135020670

File Date: 5/29/09
	 	Consigned Inventory of steel
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	National City Bank, as Agent
Shiloh Industries, Inc.
	 	UCC: OH00135824816

File Date: 7/7/09
	 	Any and all inventory and/or equipment of Bailor/Consignor

*Precautionary Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel, Inc.

	 	OH
	 	State
	 	IBM Credit LLC
	 	UCC: OH00139340995

File Date: 12/29/09
	 	Equipment

*Precautionary Filing
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00139387458

File Date: 12/30/09
	 	Equipment

*For informational purposes only
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00139387569

File Date: 12/30/09
	 	Equipment

*For informational purposes only

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00139387670

File Date: 12/30/09
	 	Equipment

*For informational purposes only
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00139599285

File Date: 1/11/10
	 	Equipment

*For informational purposes only
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00140091949

File Date: 2/3/10
	 	Equipment

*For informational purposes only
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00140092062

File Date: 2/3/10
	 	Equipment

*For informational purposes only
	 
	 	 	 	 	 	 	 	 	 	 
	Olympic Steel Inc.

	 	OH
	 	State
	 	US Bancorp
	 	UCC: OH00140691234

File Date: 3/9/10
	 	Equipment

*For informational purposes only

	Olympic Steel, Inc.

	 	OH
	 	State
	 	Capital One Equipment Leasing & Finance
	 	UCC: OH00142167679

File Date: 5/13/10
	 	LEASED EQUIPMENT
	 
	 	 	 	 	 	 	 	 	 	 
	Amended: Tinsley Group-PS&W, Inc.

Original Debtor: Precision Steel
& Welding, Inc.

	 	NC
	 	State
	 	General Electric Capital Corporation
	 	UCC: 20010000689

File Date: 1/3/01

Amendment: 20050102434B

File Date: 10/25/05

Continuation: 20050102435C

File Date: 10/25/05
	 	LEASED EQUIPMENT

*Filed Solely as a precaution

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UCC Filing 
No./Filing	 	 
	Debtor	 	State	 	Jurisdiction	 	Secured Party	 	Date	 	Collateral
	Amended: Tinsley Group-PS&W, Inc. 

Original Debtor: Precision Steel
& Welding, Inc.

	 	NC
	 	State
	 	General Electric Capital Corporation
	 	UCC: 20010000690

File Date: 1/3/01

Continuation: 20050102429G

File Date: 10/25/05

Amendment: 20050102427E

File Date: 10/25/05
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Amended: Tinsley Group-PS&W, Inc. 

Original Debtor: Precision Steel
& Welding, Inc.

	 	NC
	 	State
	 	General Electric Capital Corporation
	 	UCC: 20010025017

File Date: 3/3/01

Continuation: 20060011143K

File Date: 2/3/06

Amendment: 20060011142J

File Date: 2/3/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution
	 
	 	 	 	 	 	 	 	 	 	 
	Tinsley Group-PS&W, Inc.

	 	NC
	 	State
	 	General Electric Capital Corporation
	 	UCC: 20060017280H

File Date: 2/20/06
	 	LEASED EQUIPMENT

*Filed Solely as a precaution

 

 

SCHEDULE 10.2.5

to

Loan and Security Agreement

EXISTING INVESTMENTS

Oly Steel Welding, Inc. owns 50% of the membership interest in OLP, LLC.

 

 

SCHEDULE 10.2.17

to

Loan and Security Agreement

EXISTING AFFILIATE TRANSACTIONS

A related entity owns and leases to Olympic Steel, Inc. the warehouse located at 5060 Richmond
Road, Bedford Heights, Ohio 44146.exv4w3

EXHIBIT 4.3

DEPOSIT AGREEMENT

by and among

CAMELOT INFORMATION SYSTEMS INC.

AND

CITIBANK, N.A.,

as Depositary,

AND

THE HOLDERS AND BENEFICIAL OWNERS OF

AMERICAN DEPOSITARY SHARES

ISSUED HEREUNDER

Dated as of [DATE], 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS
	 	 	1	 
	Section 1.1 “ADS Record Date”
	 	 	1	 
	Section 1.2 “Affiliate”
	 	 	2	 
	Section 1.3 “American Depositary Receipt(s)”, “ADR(s)” and “Receipt(s)”
	 	 	2	 
	Section 1.4 “American Depositary Share(s)” and “ADS(s)”
	 	 	2	 
	Section 1.5 “Applicant”
	 	 	2	 
	Section 1.6 “Articles of Association”
	 	 	2	 
	Section 1.7 “Beneficial Owner”
	 	 	2	 
	Section 1.8 “Certificated ADS(s)”
	 	 	2	 
	Section 1.9 “Commission”
	 	 	3	 
	Section 1.10 “Company”
	 	 	3	 
	Section 1.11 “Custodian”
	 	 	3	 
	Section 1.12 “Deliver” and “Delivery”
	 	 	3	 
	Section 1.13 “Deposit Agreement”
	 	 	3	 
	Section 1.14 “Depositary”
	 	 	3	 
	Section 1.15 “Deposited Securities”
	 	 	3	 
	Section 1.16 “Dollars” and “$”
	 	 	3	 
	Section 1.17 “DTC”
	 	 	3	 
	Section 1.18 “DTC Participant”
	 	 	4	 
	Section 1.19 “Exchange Act”
	 	 	4	 
	Section 1.20 “Foreign Currency”
	 	 	4	 
	Section 1.21 “Full Entitlement ADR(s)”, “Full Entitlement ADS(s)” and “Full Entitlement Share(s)”
	 	 	4	 
	Section 1.22 “Holder(s)”
	 	 	4	 
	Section 1.23 “Partial Entitlement ADR(s)”, “Partial Entitlement ADS(s)” and
“Partial Entitlement Share(s)”
	 	 	4	 
	Section 1.24 “Pre-Release Transaction”
	 	 	4	 
	Section 1.25 “Principal Office”
	 	 	4	 
	Section 1.26 “Registrar”
	 	 	4	 
	Section 1.27 “Restricted Securities”
	 	 	4	 
	Section 1.28 “Restricted ADR(s)”, “Restricted ADS(s)” and “Restricted Shares”
	 	 	5	 
	Section 1.29 “Securities Act”
	 	 	5	 
	Section 1.30 “Share Registrar”
	 	 	5	 
	Section 1.31 “Shares”
	 	 	5	 
	Section 1.32 “Uncertificated ADS(s)”
	 	 	5	 
	Section 1.33 “United States” and “U.S.”
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	APPOINTMENT OF DEPOSITARY; FORM OF RECEIPTS; DEPOSIT OF SHARES; EXECUTION AND DELIVERY, TRANSFER
AND SURRENDER OF RECEIPTS
	 	 	6	 
	Section 2.1 Appointment of Depositary
	 	 	6	 

 

 

	 	 	 	 	 
	Section 2.2 Form and Transferability of ADSs
	 	 	6	 
	Section 2.3 Deposit of Shares
	 	 	8	 
	Section 2.4 Registration and Safekeeping of Deposited Securities
	 	 	9	 
	Section 2.5 Issuance of ADSs
	 	 	9	 
	Section 2.6 Transfer, Combination and Split-up of ADRs
	 	 	10	 
	Section 2.7 Surrender of ADSs and Withdrawal of Deposited Securities
	 	 	11	 
	Section 2.8 Limitations on Execution and Delivery, Transfer, etc. of ADSs;
Suspension of Delivery, Transfer, etc
	 	 	12	 
	Section 2.9 Lost ADRs, etc
	 	 	13	 
	Section 2.10 Cancellation and Destruction of Surrendered ADRs; Maintenance of
Records
	 	 	13	 
	Section 2.11 Escheatment
	 	 	13	 
	Section 2.12 Partial Entitlement ADSs
	 	 	13	 
	Section 2.13 Certificated/Uncertificated ADSs
	 	 	14	 
	Section 2.14 Restricted ADSs
	 	 	16	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	CERTAIN OBLIGATIONS OF HOLDERS AND BENEFICIAL OWNERS OF ADSs
	 	 	17	 
	Section 3.1 Proofs, Certificates and Other Information
	 	 	17	 
	Section 3.2 Liability for Taxes and Other Charges
	 	 	18	 
	Section 3.3 Representations and Warranties on Deposit of Shares
	 	 	18	 
	Section 3.4 Compliance with Information Requests
	 	 	19	 
	Section 3.5 Ownership Restrictions
	 	 	19	 
	Section 3.6 Reporting Obligations and Regulatory Approvals
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	THE DEPOSITED SECURITIES
	 	 	20	 
	Section 4.1 Cash Distributions
	 	 	20	 
	Section 4.2 Distribution in Shares
	 	 	20	 
	Section 4.3 Elective Distributions in Cash or Shares
	 	 	21	 
	Section 4.4 Distribution of Rights to Purchase Additional ADSs
	 	 	22	 
	Section 4.5 Distributions Other Than Cash, Shares or Rights to Purchase Shares
	 	 	23	 
	Section 4.6 Distributions with Respect to Deposited Securities in Bearer Form
	 	 	24	 
	Section 4.7 Redemption
	 	 	25	 
	Section 4.8 Conversion of Foreign Currency
	 	 	25	 
	Section 4.9 Fixing of ADS Record Date
	 	 	26	 
	Section 4.10 Voting of Deposited Securities
	 	 	26	 
	Section 4.11 Changes Affecting Deposited Securities
	 	 	28	 
	Section 4.12 Available Information
	 	 	29	 
	Section 4.13 Reports
	 	 	29	 
	Section 4.14 List of Holders
	 	 	29	 
	Section 4.15 Taxation
	 	 	30	 

3

 

	 	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY
	 	 	31	 
	Section 5.1 Maintenance of Office and Transfer Books by the Registrar
	 	 	31	 
	Section 5.2 Exoneration
	 	 	31	 
	Section 5.3 Standard of Care
	 	 	32	 
	Section 5.4 Resignation and Removal of the Depositary; Appointment of Successor Depositary
	 	 	33	 
	Section 5.5 The Custodian
	 	 	33	 
	Section 5.6 Notices and Reports
	 	 	34	 
	Section 5.7 Issuance of Additional Shares, ADSs etc
	 	 	35	 
	Section 5.8 Indemnification
	 	 	36	 
	Section 5.9 Fees and Charges of Depositary
	 	 	37	 
	Section 5.10 Pre-Release Transactions
	 	 	38	 
	Section 5.11 Restricted Securities Owners
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	AMENDMENT AND TERMINATION
	 	 	39	 
	Section 6.1 Amendment/Supplement
	 	 	39	 
	Section 6.2 Termination
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	41	 
	Section 7.1 Counterparts
	 	 	41	 
	Section 7.2 No Third-Party Beneficiaries
	 	 	41	 
	Section 7.3 Severability
	 	 	41	 
	Section 7.4 Holders and Beneficial Owners as Parties; Binding Effect
	 	 	41	 
	Section 7.5 Notices
	 	 	41	 
	Section 7.6 Governing Law and Jurisdiction
	 	 	42	 
	Section 7.7 Assignment
	 	 	44	 
	Section 7.8 Compliance with U.S. Securities Laws
	 	 	44	 
	Section 7.9 British Virgin Islands Law References
	 	 	44	 
	Section 7.10 Titles and References
	 	 	44	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	                     Form of ADR
	 	 	A-1	 
	                     Fee Schedule
	 	 	B-1	 

4

 

DEPOSIT AGREEMENT

     DEPOSIT AGREEMENT, dated as of [DATE], 2010, by and among (i) CAMELOT INFORMATION SYSTEMS
INC., a company incorporated under the laws of the British Virgin Islands, and its successors (the
“Company”), (ii) CITIBANK, N.A., a national banking association organized under the laws of the
United States of America acting in its capacity as depositary, and any successor depositary
hereunder (the “Depositary”), and (iii) all Holders and Beneficial Owners of American Depositary
Shares issued hereunder (all such capitalized terms as hereinafter defined).

WITNESSETH THAT:

     WHEREAS, the Company desires to establish with the Depositary an ADR facility to provide for
the deposit of the Shares (as hereinafter defined) and the creation of American Depositary Shares
representing the Shares so deposited; and

     WHEREAS, the Depositary is willing to act as the Depositary for such ADR facility upon the
terms set forth in the Deposit Agreement (as hereinafter defined); and

     WHEREAS, any American Depositary Receipts issued pursuant to the terms of the Deposit
Agreement are to be substantially in the form of Exhibit A attached hereto, with
appropriate insertions, modifications and omissions, as hereinafter provided in the Deposit
Agreement; and

     WHEREAS, the American Depositary Shares to be issued pursuant to the terms of the Deposit
Agreement are to be listed for trading on the New York Stock Exchange; and

     WHEREAS, the Board of Directors of the Company (or an authorized committee thereof) has duly
approved the establishment of an ADR facility upon the terms set forth in the Deposit Agreement,
the execution and delivery of the Deposit Agreement on behalf of the Company, and the actions of
the Company and the transactions contemplated herein.

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

ARTICLE I

DEFINITIONS

     All capitalized terms used, but not otherwise defined, herein shall have the meanings set
forth below, unless otherwise clearly indicated:

     Section 1.1 “ADS Record Date” shall have the meaning given to such term in Section 4.9.

1

 

     Section 1.2 “Affiliate” shall have the meaning assigned to such term by the Commission (as
hereinafter defined) under Regulation C promulgated under the Securities Act (as hereinafter
defined), or under any successor regulation thereto.

     Section 1.3 “American Depositary Receipt(s)”, “ADR(s)” and “Receipt(s)”
shall mean the certificate(s) issued by the Depositary to evidence the American Depositary Shares
issued under the terms of the Deposit Agreement in the form of Certificated ADS(s) (as hereinafter
defined), as such ADRs may be amended from time to time in accordance with the provisions of the
Deposit Agreement. An ADR may evidence any number of ADSs and may, in the case of ADSs held
through a central depository such as DTC, be in the form of a “Balance Certificate.”

     Section 1.4 “American Depositary Share(s)” and “ADS(s)” shall mean the rights and
interests in the Deposited Securities (as hereinafter defined) granted to the Holders and
Beneficial Owners pursuant to the terms and conditions of the Deposit Agreement and, if issued as
Certificated ADS(s), (as hereinafter defined) the ADR(s) issued to evidence such ADSs. ADS(s) may
be issued under the terms of the Deposit Agreement in the form of (a) Certificated ADS(s) (as
hereinafter defined), in which case the ADS(s) are evidenced by ADR(s), or (b) Uncertificated
ADS(s) (as hereinafter defined), in which case the ADS(s) are not evidenced by ADR(s) but are
reflected on the direct registration system maintained by the Depositary for such purposes under
the terms of Section 2.13. Unless otherwise specified in the Deposit Agreement or in any ADR, or
unless the context otherwise requires, any reference to ADS(s) shall include Certificated ADS(s)
and Uncertificated ADS(s), individually or collectively, as the context may require. Each ADS
shall represent the right to receive, subject to the terms and conditions of the Deposit Agreement
and the applicable ADR (if issued as a Certificated ADS) four (4) Share(s) until there shall occur
a distribution upon Deposited Securities referred to in Section 4.2 or a change in Deposited
Securities referred to in Section 4.11 with respect to which additional ADSs are not issued, and
thereafter each ADS shall represent the right to receive, subject to the terms and conditions of
the Deposit Agreement and the applicable ADR (if issued as a Certificated ADS), the Deposited
Securities determined in accordance with the terms of such Sections.

     Section 1.5 “Applicant” shall have the meaning given to such term in Section 5.10.

     Section 1.6 “Articles of Association” shall mean the Articles of Association of the
Company, as amended and restated from time to time.

     Section 1.7 “Beneficial Owner” shall mean, as to any ADS, any person or entity having a
beneficial interest deriving from the ownership of such ADS. A Beneficial Owner of ADSs may or may
not be the Holder of such ADSs. A Beneficial Owner shall be able to exercise any right or receive
any benefit hereunder solely through the person who is the Holder of the ADSs owned by such
Beneficial Owner. Unless otherwise identified to the Depositary, a Holder shall be deemed to be
the Beneficial Owner of all the ADSs registered in his/her/its name.

     Section 1.8 “Certificated ADS(s)” shall have the meaning set forth in Section 2.13.

2

 

     Section 1.9 “Commission” shall mean the Securities and Exchange Commission of the United
States or any successor governmental agency thereto in the United States.

     Section 1.10 “Company” shall mean Camelot Information Systems Inc., a company incorporated
and existing under the laws of the British Virgin Islands, and its successors.

     Section 1.11 “Custodian” shall mean (i) as of the date hereof, Citibank, N.A. — Hong Kong,
having its principal office at 10/F, Harbour Front (II), 22 Tak Fung Street, Hung Hom, Kowloon,
Hong Kong, as the custodian for the purposes of the Deposit Agreement, (ii) Citibank, N.A., acting
as custodian of Deposited Securities pursuant to the Deposit Agreement, and (iii) any other entity
that may be appointed by the Depositary pursuant to the terms of Section 5.5 as successor,
substitute or additional custodian hereunder. The term “Custodian” shall mean any Custodian
individually or all Custodians collectively, as the context requires.

     Section 1.12 “Deliver” and “Delivery” shall mean when used in respect of ADSs,
Deposited Securities and Shares, either (i) the physical delivery of certificate(s) representing
such securities, or (ii) the electronic delivery of such securities by means of book-entry
transfer, if available.

     Section 1.13 “Deposit Agreement” shall mean this Deposit Agreement and all exhibits hereto,
as the same may from time to time be amended and supplemented from time to time in accordance with
the terms of the Deposit Agreement.

     Section 1.14 “Depositary” shall mean Citibank, N.A., a national banking association
organized under the laws of the United States, in its capacity as depositary under the terms of the
Deposit Agreement, and any successor depositary hereunder.

     Section 1.15 “Deposited Securities” shall mean Shares at any time deposited under the
Deposit Agreement and any and all other securities, property and cash held by the Depositary or the
Custodian in respect thereof, subject, in the case of cash, to the provisions of Section 4.8. The
collateral delivered in connection with Pre-Release Transactions described in Section 5.10 shall
not constitute Deposited Securities.

     Section 1.16 “Dollars” and “$” shall refer to the lawful currency of the United
States.

     Section 1.17 “DTC” shall mean The Depository Trust Company, a national clearinghouse and
the central book-entry settlement system for securities traded in the United States and, as such,
the custodian for the securities of DTC Participants (as hereinafter defined) maintained in DTC,
and any successor thereto.

3

 

     Section 1.18 “DTC Participant” shall mean any financial institution (or any nominee of such
institution) having one or more participant accounts with DTC for receiving, holding and delivering
the securities and cash held in DTC. A DTC Participant may or may not be a Beneficial Owner. If a
DTC Participant is not the Beneficial Owner of the ADSs credited to its account at DTC, or of the
ADSs in respect of which the DTC Participant is otherwise acting, such DTC Participant shall be
deemed, for all purposes hereunder, to have all requisite authority to act on behalf of the
Beneficial Owner(s) of the ADSs credited to its account at DTC or in respect of which the DTC
Participant is so acting.

     Section 1.19 “Exchange Act” shall mean the United States Securities Exchange Act of 1934,
as amended from time to time.

     Section 1.20 “Foreign Currency” shall mean any currency other than Dollars.

     Section 1.21 “Full Entitlement ADR(s)”, “Full Entitlement ADS(s)” and “Full
Entitlement Share(s)” shall have the respective meanings set forth in Section 2.11.

     Section 1.22 “Holder(s)” shall mean the person(s) in whose name the ADSs are registered on
the books of the Depositary (or the Registrar, if any) maintained for such purpose. A Holder may
or may not be a Beneficial Owner. If a Holder is not the Beneficial Owner of the ADS(s) registered
in its name, such person shall be deemed, for all purposes hereunder, to have all requisite
authority to act on behalf of the Beneficial Owners of the ADSs registered in its name.

     Section 1.23 “Partial Entitlement ADR(s)”, “Partial Entitlement ADS(s)” and
“Partial Entitlement Share(s)” shall have the respective meanings set forth in Section
2.12.

     Section 1.24 “Pre-Release Transaction” shall have the meaning set forth in Section 5.10.

     Section 1.25 “Principal Office” shall mean, when used with respect to the Depositary, the
principal office of the Depositary at which at any particular time its depositary receipts business
shall be administered, which, at the date of the Deposit Agreement, is located at 388 Greenwich
Street, New York, New York 10013, U.S.A.

     Section 1.26 “Registrar” shall mean the Depositary or any bank or trust company having an
office in the Borough of Manhattan, The City of New York, which shall be appointed by the
Depositary to register issuances, transfers and cancellations of ADSs as herein provided, and shall
include any co-registrar appointed by the Depositary for such purposes. Registrars (other than the
Depositary) may be removed and substitutes appointed by the Depositary. Each Registrar (other than
the Depositary) appointed pursuant to the Deposit Agreement shall be required to give notice in
writing to the Depositary accepting such appointment and agreeing to be bound by the applicable
terms of the Deposit Agreement.

     Section 1.27 “Restricted Securities” shall mean Shares, Deposited Securities or ADSs which
(i) have been acquired directly or indirectly from the Company or any of its Affiliates in a

4

 

transaction or chain of transactions not involving any public offering and are subject to resale
limitations under the Securities Act or the rules issued thereunder, or (ii) are held by an officer
or director (or persons performing similar functions) or other Affiliate of the Company, or (iii)
are subject to other restrictions on sale or deposit under the laws of the United States, the
British Virgin Islands, or under a shareholder agreement or the Articles of Association of the
Company or under the regulations of an applicable securities exchange unless, in each case, such
Shares, Deposited Securities or ADSs are being transferred or sold to persons other than an
Affiliate of the Company in a transaction (a) covered by an effective resale registration
statement, or (b) exempt from the registration requirements of the Securities Act (as hereinafter
defined), and the Shares, Deposited Securities or ADSs are not, when held by such person(s),
Restricted Securities.

     Section 1.28 “Restricted ADR(s)”, “Restricted ADS(s)” and “Restricted
Shares” shall have the respective meanings set forth in Section 2.14.

     Section 1.29 “Securities Act” shall mean the United States Securities Act of 1933, as
amended from time to time.

     Section 1.30 “Share Registrar” shall mean Morgan and Morgan or any other institution
organized under the laws of the British Virgin Islands appointed by the Company to carry out the
duties of registrar for the Shares, and any successor thereto.

     Section 1.31 “Shares” shall mean the Company’s ordinary shares, par value $0.01 per share,
validly issued and outstanding and fully paid and may, if the Depositary so agrees after
consultation with the Company, include evidence of the right to receive Shares; provided
that in no event shall Shares include evidence of the right to receive Shares with respect
to which the full purchase price has not been paid or Shares as to which preemptive rights have
theretofore not been validly waived or exercised; provided further,
however, that, if there shall occur any change in par or nominal value, split-up,
consolidation, reclassification, exchange, conversion or any other event described in Section 4.11
in respect of the Shares of the Company, the term “Shares” shall thereafter, to the maximum extent
permitted by law, represent the successor securities resulting from such event.

     Section 1.32 “Uncertificated ADS(s)” shall have the meaning set forth in Section 2.13.

     Section 1.33 “United States” and “U.S.” shall have the meaning assigned to it in
Regulation S as promulgated by the Commission under the Securities Act.

5

 

ARTICLE II

APPOINTMENT OF DEPOSITARY; FORM OF RECEIPTS;

DEPOSIT OF SHARES; EXECUTION AND

DELIVERY, TRANSFER AND SURRENDER OF RECEIPTS

     Section 2.1 Appointment of Depositary. The Company hereby appoints the Depositary as
depositary for the Deposited Securities and hereby authorizes and directs the Depositary to act in
accordance with the terms and conditions set forth in the Deposit Agreement and the applicable
ADRs. Each Holder and each Beneficial Owner, upon acceptance of any ADSs (or any interest therein)
issued in accordance with the terms and conditions of the Deposit Agreement shall be deemed for all
purposes to (a) be a party to and bound by the terms of the Deposit Agreement and the applicable
ADR(s), and (b) appoint the Depositary its attorney-in-fact, with full power to delegate, to act on
its behalf and to take any and all actions contemplated in the Deposit Agreement and the applicable
ADR(s), to adopt any and all procedures necessary to comply with applicable law and to take such
action as the Depositary in its sole discretion may deem necessary or appropriate to carry out the
purposes of the Deposit Agreement and the applicable ADR(s), the taking of such actions to be the
conclusive determinant of the necessity and appropriateness thereof.

     Section 2.2 Form and Transferability of ADSs.

     (a) Form. Certificated ADSs shall be evidenced by definitive ADRs which shall be
engraved, printed, lithographed or produced in such other manner as may be agreed upon by the
Company and the Depositary. ADRs may be issued under the Deposit Agreement in denominations of any
whole number of ADSs. The ADRs shall be substantially in the form set forth in Exhibit A
to the Deposit Agreement, with any appropriate insertions, modifications and omissions, in each
case as otherwise contemplated in the Deposit Agreement or required by law. ADRs shall be (i)
dated, (ii) signed by the manual or facsimile signature of a duly authorized signatory of the
Depositary, (iii) countersigned by the manual or facsimile signature of a duly authorized signatory
of the Registrar, and (iv) registered in the books maintained by the Registrar for the registration
of issuances and transfers of ADSs. No ADR and no Certificated ADS evidenced thereby shall be
entitled to any benefits under the Deposit Agreement or be valid or enforceable for any purpose
against the Depositary or the Company, unless such ADR shall have been so dated, signed,
countersigned and registered. ADRs bearing the facsimile signature of a duly-authorized signatory
of the Depositary or the Registrar, who at the time of signature was a duly-authorized signatory of
the Depositary or the Registrar, as the case may be, shall bind the Depositary, notwithstanding the
fact that such signatory has ceased to be so authorized prior to the delivery of such ADR by the
Depositary. The ADRs shall bear a CUSIP number that is different from any CUSIP number that was,
is or may be assigned to any depositary receipts previously or subsequently issued pursuant to any
other arrangement between the Depositary (or any other depositary) and the Company and which are
not ADRs outstanding hereunder.

     (b) Legends. The ADRs may be endorsed with, or have incorporated in the text thereof,
such legends or recitals not inconsistent with the provisions of the Deposit Agreement as (i) may
be necessary to enable the Depositary and the Company to perform their respective

6

 

obligations hereunder, (ii) may be required to comply with any applicable laws or regulations,
or with the rules and regulations of any securities exchange or market upon which ADSs may be
traded, listed or quoted, or to conform with any usage with respect thereto, (iii) may be necessary
to indicate any special limitations or restrictions to which any particular ADRs or ADSs are
subject by reason of the date of issuance of the Deposited Securities or otherwise, or (iv) may be
required by any book-entry system in which the ADSs are held. Holders and Beneficial Owners shall
be deemed, for all purposes, to have notice of, and to be bound by, the terms and conditions of the
legends set forth, in the case of Holders, on the ADR registered in the name of the applicable
Holders or, in the case of Beneficial Owners, on the ADR representing the ADSs owned by such
Beneficial Owners.

     (c) Title. Subject to the limitations contained herein and in the ADR, title to an
ADR (and to each Certificated ADS evidenced thereby) shall be transferable upon the same terms as a
certificated security under the laws of the State of New York, provided that, in the case of
Certificated ADSs, such ADR has been properly endorsed or is accompanied by proper instruments of
transfer. Notwithstanding any notice to the contrary, the Depositary and the Company may deem and
treat the Holder of an ADS (that is, the person in whose name an ADS is registered on the books of
the Depositary) as the absolute owner thereof for all purposes. Neither the Depositary nor the
Company shall have any obligation nor be subject to any liability under the Deposit Agreement or
any ADR to any holder or any Beneficial Owner unless, in the case of a holder of ADSs, such holder
is the Holder registered on the books of the Depositary or, in the case of a Beneficial Owner, such
Beneficial Owner, or the Beneficial Owner’s representative, is the Holder registered on the books
of the Depositary.

     (d) Book-Entry Systems. The Depositary shall make arrangements for the acceptance of
the ADSs into DTC. All ADSs held through DTC will be registered in the name of the nominee for DTC
(currently “Cede & Co.”). As such, the nominee for DTC will be the only “Holder” of all ADSs held
through DTC. Unless issued by the Depositary as Uncertificated ADSs, the ADSs registered in the
name of Cede & Co. will be evidenced by one or more ADR(s) in the form of a “Balance Certificate,”
which will provide that it represents the aggregate number of ADSs from time to time indicated in
the records of the Depositary as being issued hereunder and that the aggregate number of ADSs
represented thereby may from time to time be increased or decreased by making adjustments on such
records of the Depositary and of DTC or its nominee as hereinafter provided. Citibank, N.A. (or
such other entity as is appointed by DTC or its nominee) may hold the “Balance Certificate” as
custodian for DTC. Each Beneficial Owner of ADSs held through DTC must rely upon the procedures of
DTC and the DTC Participants to exercise or be entitled to any rights attributable to such ADSs.
The DTC Participants shall for all purposes be deemed to have all requisite power and authority to
act on behalf of the Beneficial Owners of the ADSs held in the DTC Participants’ respective
accounts in DTC and the Depositary shall for all purposes be authorized to rely upon any
instructions and information given to it by DTC Participants. So long as ADSs are held through DTC
or unless otherwise required by law, ownership of beneficial interests in the ADSs registered in
the name of the nominee for DTC will be shown on, and transfers of such ownership will be effected
only through, records maintained by (i) DTC or its nominee (with respect to the interests of DTC

7

 

Participants), or (ii) DTC Participants or their nominees (with respect to the interests of
clients of DTC Participants).

     Section 2.3 Deposit of Shares. Subject to the terms and conditions of the Deposit
Agreement and applicable law, Shares or evidence of rights to receive Shares (other than Restricted
Securities) may be deposited by any person (including the Depositary in its individual capacity but
subject, however, in the case of the Company or any Affiliate of the Company, to Section 5.7) at
any time, whether or not the transfer books of the Company or the Share Registrar, if any, are
closed, by Delivery of the Shares to the Custodian. Every deposit of Shares shall be accompanied
by the following: (A) (i) in the case of Shares represented by certificates issued in registered
form, appropriate instruments of transfer or endorsement, in a form satisfactory to the Custodian,
(ii) in the case of Shares represented by certificates in bearer form, the requisite coupons and
talons pertaining thereto, and (iii) in the case of Shares delivered by book-entry transfer,
confirmation of such book-entry transfer to the Custodian or that irrevocable instructions have
been given to cause such Shares to be so transferred, (B) such certifications and payments
(including, without limitation, the Depositary’s fees and related charges) and evidence of such
payments (including, without limitation, stamping or otherwise marking such Shares by way of
receipt) as may be required by the Depositary or the Custodian in accordance with the provisions of
the Deposit Agreement and applicable law, (C) if the Depositary so requires, a written order
directing the Depositary to issue and deliver to, or upon the written order of, the person(s)
stated in such order the number of ADSs representing the Shares so deposited, (D) evidence
satisfactory to the Depositary (which may be an opinion of counsel) that all necessary approvals
have been granted by, or there has been compliance with the rules and regulations of, any
applicable governmental agency in the British Virgin Islands, and (E) if the Depositary so
requires, (i) an agreement, assignment or instrument satisfactory to the Depositary or the
Custodian which provides for the prompt transfer by any person in whose name the Shares are or have
been recorded to the Custodian of any distribution, or right to subscribe for additional Shares or
to receive other property in respect of any such deposited Shares or, in lieu thereof, such
indemnity or other agreement as shall be satisfactory to the Depositary or the Custodian and (ii)
if the Shares are registered in the name of the person on whose behalf they are presented for
deposit, a proxy or proxies entitling the Custodian to exercise voting rights in respect of the
Shares for any and all purposes until the Shares so deposited are registered in the name of the
Depositary, the Custodian or any nominee.

     Without limiting any other provision of the Deposit Agreement, the Depositary shall instruct
the Custodian not to, and the Depositary shall not knowingly, accept for deposit (a) any Restricted
Securities (except as contemplated by Section 2.14) nor (b) any fractional Shares or fractional
Deposited Securities nor (c) a number of Shares or Deposited Securities which upon application of
the ADS to Shares ratio would give rise to fractional ADSs. No Shares shall be accepted for
deposit unless accompanied by evidence, if any is required by the Depositary, that is reasonably
satisfactory to the Depositary or the Custodian that all conditions to such deposit have been
satisfied by the person depositing such Shares under the laws and regulations of the British Virgin
Islands and any necessary approval has been granted by any applicable governmental body in the
British Virgin Islands, if any. The Depositary may issue ADSs against evidence of rights to
receive Shares from the Company, any agent of the Company or any custodian, registrar, transfer
agent, clearing agency or other entity involved in ownership or transaction

8

 

records in respect of the Shares. Such evidence of rights shall consist of written blanket or
specific guarantees of ownership of Shares furnished by the Company or any such custodian,
registrar, transfer agent, clearing agency or other entity involved in ownership or transaction
records in respect of the Shares.

     Without limitation of the foregoing, the Depositary shall not knowingly accept for deposit
under the Deposit Agreement (A) any Shares or other securities required to be registered under the
provisions of the Securities Act, unless (i) a registration statement is in effect as to such
Shares or other securities or (ii) the deposit is made upon terms contemplated in Section 2.14, or
(B) any Shares or other securities the deposit of which would violate any provisions of the
Articles of Association of the Company. For purposes of the foregoing sentence, the Depositary
shall be entitled to rely upon representations and warranties made or deemed made pursuant to the
Deposit Agreement and shall not be required to make any further investigation. The Depositary will
comply with written instructions of the Company (received by the Depositary reasonably in advance)
not to accept for deposit hereunder any Shares identified in such instructions at such times and
under such circumstances as may reasonably be specified in such instructions in order to facilitate
the Company’s compliance with the securities laws of the United States.

     Section 2.4 Registration and Safekeeping of Deposited Securities. The Depositary shall
instruct the Custodian upon each Delivery of certificates representing registered Shares being
deposited hereunder with the Custodian (or other Deposited Securities pursuant to Article IV
hereof), together with the other documents above specified, to present such certificate(s),
together with the appropriate instrument(s) of transfer or endorsement, duly stamped, to the Share
Registrar for transfer and registration of the Shares (as soon as transfer and registration can be
accomplished and at the expense of the person for whom the deposit is made) in the name of the
Depositary, the Custodian or a nominee of either. Deposited Securities shall be held by the
Depositary or by a Custodian for the account and to the order of the Depositary or a nominee in
each case on behalf of the Holders and Beneficial Owners, at such place or places as the Depositary
or the Custodian shall determine.

     Section 2.5 Issuance of ADSs. The Depositary has made arrangements with the Custodian for
the Custodian to confirm to the Depositary upon receipt of a deposit of Shares (i) that a deposit
of Shares has been made pursuant to Section 2.3, (ii) that such Deposited Securities have been
recorded in the name of the Depositary, the Custodian or a nominee of either on the shareholders’
register maintained by or on behalf of the Company by the Share Registrar if registered Shares have
been deposited or, if deposit is made by book-entry transfer, confirmation of such transfer, (iii)
that all required documents have been received, and (iv) the person(s) to whom or upon whose order
ADSs are deliverable in respect thereof and the number of ADSs to be so delivered. Such
notification may be made by letter, cable, telex, SWIFT message or, at the risk and expense of the
person making the deposit, by facsimile or other means of electronic transmission. Upon receiving
such notice from the Custodian, the Depositary, subject to the terms and conditions of the Deposit
Agreement and applicable law, shall issue the ADSs representing the Shares so deposited to or upon
the order of the person(s) named in the notice delivered to the Depositary and, if applicable,
shall execute and deliver at its Principal Office Receipt(s) registered in the name(s) requested by
such person(s) and evidencing

9

 

the aggregate number of ADSs to which such person(s) are entitled, but, in each case, only upon payment to the
Depositary of the charges of the Depositary for accepting a deposit, issuing ADSs (as set forth in
Section 5.9 and Exhibit B hereto) and all taxes and governmental charges and fees payable
in connection with such deposit and the transfer of the Shares and the issuance of the ADS(s). The
Depositary shall only issue ADSs in whole numbers and deliver, if applicable, ADR(s) evidencing
whole numbers of ADSs. Nothing herein shall prohibit any Pre-Release Transaction upon the terms
set forth in the Deposit Agreement.

     Section 2.6 Transfer, Combination and Split-up of ADRs(a) .

     (a) Transfer. The Registrar shall register the transfer of ADRs (and of the ADSs
represented thereby) on the books maintained for such purpose and the Depositary shall (x) cancel
such ADRs and execute new ADRs evidencing the same aggregate number of ADSs as those evidenced by
the ADRs canceled by the Depositary, (y) cause the Registrar to countersign such new ADRs and (z)
Deliver such new ADRs to or upon the order of the person entitled thereto, if each of the following
conditions has been satisfied: (i) the ADRs have been duly Delivered by the Holder (or by a duly
authorized attorney of the Holder) to the Depositary at its Principal Office for the purpose of
effecting a transfer thereof, (ii) the surrendered ADRs have been properly endorsed or are
accompanied by proper instruments of transfer (including signature guarantees in accordance with
standard securities industry practice), (iii) the surrendered ADRs have been duly stamped (if
required by the laws of the State of New York or of the United States), and (iv) all applicable
fees and charges of, and expenses incurred by, the Depositary and all applicable taxes and
governmental charges (as are set forth in Section 5.9 and Exhibit B hereto) have been paid,
subject, however, in each case, to the terms and conditions of the applicable ADRs, of the Deposit
Agreement and of applicable law, in each case as in effect at the time thereof.

     (b) Combination & Split Up. The Registrar shall register the split-up or combination
of ADRs (and of the ADSs represented thereby) on the books maintained for such purpose and the
Depositary shall (x) cancel such ADRs and execute new ADRs for the number of ADSs requested, but in
the aggregate not exceeding the number of ADSs evidenced by the ADRs cancelled by the Depositary,
(y) cause the Registrar to countersign such new ADRs and (z) Deliver such new ADRs to or upon the
order of the Holder thereof, if each of the following conditions has been satisfied: (i) the ADRs
have been duly Delivered by the Holder (or by a duly authorized attorney of the Holder) to the
Depositary at its Principal Office for the purpose of effecting a split-up or combination thereof,
and (ii) all applicable fees and charges of, and expenses incurred by, the Depositary and all
applicable taxes and governmental charges (as are set forth in Section 5.9 and Exhibit B
hereto) have been paid, subject, however, in each case, to the terms and conditions of the
applicable ADRs, of the Deposit Agreement and of applicable law, in each case as in effect at the
time thereof.

     (c) Co-Transfer Agents. The Depositary may appoint one or more co-transfer agents for
the purpose of effecting transfers, combinations and split-ups of ADRs at designated transfer
offices on behalf of the Depositary, and the Depositary shall notify the Company in writing upon
any such appointment. In carrying out its functions, a co-transfer agent may require evidence of
authority and compliance with applicable laws and other requirements by

10

 

Holders or persons entitled to such ADRs and will be entitled to protection and indemnity to
the same extent as the Depositary. Such co-transfer agents may be removed and substitutes
appointed by the Depositary, and the Depositary shall notify the Company of any such removal or
substitution. Each co-transfer agent appointed under this Section 2.6 (other than the Depositary)
shall give notice in writing to the Depositary accepting such appointment and agreeing to be bound
by the applicable terms of the Deposit Agreement.

     Section 2.7 Surrender of ADSs and Withdrawal of Deposited Securities. The Holder of
ADSs shall be entitled to Delivery (at the Custodian’s designated office) of the Deposited
Securities at the time represented by the ADSs upon satisfaction of each of the following
conditions: (i) the Holder (or a duly-authorized attorney of the Holder) has duly Delivered ADSs to
the Depositary at its Principal Office (and if applicable, the ADRs evidencing such ADSs) for the
purpose of withdrawal of the Deposited Securities represented thereby, (ii) if applicable and so
required by the Depositary, the ADRs Delivered to the Depositary for such purpose have been
properly endorsed in blank or are accompanied by proper instruments of transfer in blank (including
signature guarantees in accordance with standard securities industry practice), (iii) if so
required by the Depositary, the Holder of the ADSs has executed and delivered to the Depositary a
written order directing the Depositary to cause the Deposited Securities being withdrawn to be
Delivered to or upon the written order of the person(s) designated in such order, and (iv) all
applicable fees and charges of, and expenses incurred by, the Depositary and all applicable taxes
and governmental charges (as are set forth in Section 5.9 and Exhibit B) have been paid,
subject, however, in each case, to the terms and conditions of the ADRs evidencing the surrendered
ADSs, of the Deposit Agreement, of the Company’s Articles of Association and of any applicable laws
and the rules of the applicable book-entry settlement entity, and to any provisions of or governing
the Deposited Securities, in each case as in effect at the time thereof.

     Upon satisfaction of each of the conditions specified above, the Depositary (i) shall cancel
the ADSs Delivered to it (and, if applicable, the ADRs evidencing the ADSs so Delivered), (ii)
shall direct the Registrar to record the cancellation of the ADSs so Delivered on the books
maintained for such purpose, and (iii) shall direct the Custodian to Deliver, or cause the Delivery
of, in each case, without unreasonable delay, the Deposited Securities represented by the ADSs so
canceled together with any certificate or other document of title for the Deposited Securities, or
evidence of the electronic transfer thereof (if available), as the case may be, to or upon the
written order of the person(s) designated in the order delivered to the Depositary for such
purpose, subject however, in each case, to the terms and conditions of the Deposit Agreement, of
the ADRs evidencing the ADSs so cancelled, of the Articles of Association of the Company, of any
applicable laws and of the rules of the applicable book-entry settlement entity, and to the terms
and conditions of or governing the Deposited Securities, in each case as in effect at the time
thereof.

     The Depositary shall not accept for surrender ADSs representing less than one (1) Share. In
the case of the Delivery to it of ADSs representing a number other than a whole number of Shares,
the Depositary shall cause ownership of the appropriate whole number of Shares to be Delivered in
accordance with the terms hereof, and shall, at the discretion of the Depositary, either (i) return
to the person surrendering such ADSs the number of ADSs representing any

11

 

remaining fractional Share, or (ii) sell or cause to be sold the fractional Share represented
by the ADSs so surrendered in a riskless capacity, in a public sale or if no public sale market is
available, in a private sale, and remit the proceeds of such sale (net of (a) applicable fees and
charges of, and expenses incurred by, the Depositary and (b) taxes withheld) to the person
surrendering the ADSs.

     Notwithstanding anything else contained in any ADR or the Deposit Agreement, the Depositary
may make delivery at the Principal Office of the Depositary of (i) any cash dividends or cash
distributions, or (ii) any proceeds from the sale of any distributions of shares or rights, which
are at the time held by the Depositary in respect of the Deposited Securities represented by the
ADSs surrendered for cancellation and withdrawal. At the request, risk and expense of any Holder
so surrendering ADSs, and for the account of such Holder, the Depositary shall direct the Custodian
to forward (to the extent permitted by law) any cash or other property (other than securities) held
by the Custodian in respect of the Deposited Securities represented by such ADSs to the Depositary
for delivery at the Principal Office of the Depositary. Such direction shall be given by letter
or, at the request, risk and expense of such Holder, by cable, telex or facsimile transmission.

     Section 2.8 Limitations on Execution and Delivery, Transfer, etc. of ADSs; Suspension of
Delivery, Transfer, etc.

     (a) Additional Requirements. As a condition precedent to the execution and delivery,
registration of issuance, transfer, split-up, combination or surrender, of any ADS, the delivery of
any distribution thereon, or the withdrawal of any Deposited Securities, the Depositary or the
Custodian may require (i) payment from the depositor of Shares or presenter of ADSs or of an ADR of
a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or
registration fee with respect thereto (including any such tax or charge and fee with respect to
Shares being deposited or withdrawn) and payment of any applicable fees and charges of the
Depositary as provided in Section 5.9 and Exhibit B, (ii) the production of proof
satisfactory to it as to the identity and genuineness of any signature or any other matter
contemplated by Section 3.1, and (iii) compliance with (A) any laws or governmental regulations
relating to the execution and delivery of ADRs or ADSs or to the withdrawal of Deposited Securities
and (B) such reasonable regulations as the Depositary and the Company may establish consistent with
the provisions of the representative ADR, if applicable, the Deposit Agreement and applicable law.

     (b) Additional Limitations. The issuance of ADSs against deposits of Shares generally
or against deposits of particular Shares may be suspended, or the deposit of particular Shares may
be refused, or the registration of transfer of ADSs in particular instances may be refused, or the
registration of transfers of ADSs generally may be suspended, during any period when the transfer
books of the Company, the Depositary, a Registrar or the Share Registrar are closed or if any such
action is deemed necessary or advisable by the Depositary (whereupon the Depositary shall notify
the Company in writing) or the Company, in good faith, at any time or from time to time because of
any requirement of law or regulation, any government or governmental body or commission or any
securities exchange on which the ADSs or Shares are listed, or under any provision of the Deposit
Agreement or the representative ADR(s), if

12

 

applicable, or under any provision of, or governing, the Deposited Securities, or because of a
meeting of shareholders of the Company or for any other reason, subject, in all cases, to Section
7.8.

     (c) Regulatory Restrictions. Notwithstanding any provision of the Deposit Agreement
or any ADR(s) to the contrary, Holders are entitled to surrender outstanding ADSs to withdraw the
Deposited Securities associated herewith at any time subject only to (i) temporary delays caused by
closing the transfer books of the Depositary or the Company or the deposit of Shares in connection
with voting at a shareholders’ meeting or the payment of dividends, (ii) the payment of fees, taxes
and similar charges, (iii) compliance with any U.S. or foreign laws or governmental regulations
relating to the ADSs or to the withdrawal of the Deposited Securities, and (iv) other circumstances
specifically contemplated by Instruction I.A.(l) of the General Instructions to Form F-6 (as such
General Instructions may be amended from time to time).

     Section 2.9 Lost ADRs, etc. In case any ADR shall be mutilated, destroyed, lost, or
stolen, the Depositary shall execute and deliver a new ADR of like tenor at the expense of the
Holder (a) in the case of a mutilated ADR, in exchange of and substitution for such mutilated ADR
upon cancellation thereof, or (b) in the case of a destroyed, lost or stolen ADR, in lieu of and in
substitution for such destroyed, lost, or stolen ADR, after the Holder thereof (i) has submitted to
the Depositary a written request for such exchange and substitution before the Depositary has
notice that the ADR has been acquired by a bona fide purchaser, (ii) has provided such security or
indemnity (including an indemnity bond) as may be required by the Depositary to save it and any of
its agents harmless, and (iii) has satisfied any other reasonable requirements imposed by the
Depositary, including, without limitation, evidence satisfactory to the Depositary of such
destruction, loss or theft of such ADR, the authenticity thereof and the Holder’s ownership
thereof.

     Section 2.10 Cancellation and Destruction of Surrendered ADRs; Maintenance of Records. All
ADRs surrendered to the Depositary shall be canceled by the Depositary. Canceled ADRs shall not be
entitled to any benefits under the Deposit Agreement or be valid or enforceable against the
Depositary or the Company for any purpose. The Depositary is authorized to destroy ADRs so
canceled, provided the Depositary maintains a record of all destroyed ADRs. Any ADSs held in
book-entry form (i.e., through accounts at DTC) shall be deemed canceled when the Depositary causes
the number of ADSs evidenced by the Balance Certificate to be reduced by the number of ADSs
surrendered (without the need to physically destroy the Balance Certificate).

     Section 2.11 Escheatment. In the event any unclaimed property relating to the ADSs, for
any reason, is in the possession of Depositary and has not been claimed by the Holder thereof or
cannot be delivered to the Holder thereof through usual channels, the Depositary shall, upon
expiration of any applicable statutory period relating to abandoned property laws, escheat such
unclaimed property to the relevant authorities in accordance with the laws of each of the relevant
States of the United States.

     Section 2.12 Partial Entitlement ADSs. In the event any Shares are deposited which (i)
entitle the holders thereof to receive a per-share distribution or other entitlement in an amount

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different from the Shares then on deposit or (ii) are not fully fungible (including, without
limitation, as to settlement or trading) with the Shares then on deposit (the Shares then on
deposit collectively, “Full Entitlement Shares” and the Shares with different entitlement,
“Partial Entitlement Shares”), the Depositary shall (i) cause the Custodian to hold Partial
Entitlement Shares separate and distinct from Full Entitlement Shares, and (ii) subject to the
terms of the Deposit Agreement, issue ADSs representing Partial Entitlement Shares which are
separate and distinct from the ADSs representing Full Entitlement Shares, by means of separate
CUSIP numbering and legending (if necessary) and, if applicable, by issuing ADRs evidencing such
ADSs with applicable notations thereon (“Partial Entitlement ADSs/ADRs” and “Full
Entitlement ADSs/ADRs”, respectively). If and when Partial Entitlement Shares become Full
Entitlement Shares, the Depositary shall (a) give notice thereof to Holders of Partial Entitlement
ADSs and give Holders of Partial Entitlement ADRs the opportunity to exchange such Partial
Entitlement ADRs for Full Entitlement ADRs, (b) cause the Custodian to transfer the Partial
Entitlement Shares into the account of the Full Entitlement Shares, and (c) take such actions as
are necessary to remove the distinctions between (i) the Partial Entitlement ADRs and ADSs, on the
one hand, and (ii) the Full Entitlement ADRs and ADSs on the other. Holders and Beneficial Owners
of Partial Entitlement ADSs shall only be entitled to the entitlements of Partial Entitlement
Shares. Holders and Beneficial Owners of Full Entitlement ADSs shall be entitled only to the
entitlements of Full Entitlement Shares. All provisions and conditions of the Deposit Agreement
shall apply to Partial Entitlement ADRs and ADSs to the same extent as Full Entitlement ADRs and
ADSs, except as contemplated by this Section 2.12. The Depositary is authorized to take any and
all other actions as may be necessary (including, without limitation, making the necessary
notations on ADRs) to give effect to the terms of this Section 2.12. The Company agrees to give
timely written notice to the Depositary if any Shares issued or to be issued are Partial
Entitlement Shares and shall assist the Depositary with the establishment of procedures enabling
the identification of Partial Entitlement Shares upon Delivery to the Custodian.

     Section 2.13 Certificated/Uncertificated ADSs. Notwithstanding any other provision of the
Deposit Agreement, the Depositary may, at any time and from time to time, issue ADSs that are not
evidenced by ADRs (such ADSs, the “Uncertificated ADS(s)” and the ADS(s) evidenced by
ADR(s), the “Certificated ADS(s)”). When issuing and maintaining Uncertificated ADS(s)
under the Deposit Agreement, the Depositary shall at all times be subject to (i) the standards
applicable to registrars and transfer agents maintaining direct registration systems for equity
securities in New York and issuing uncertificated securities under New York law, and (ii) the terms
of New York law applicable to uncertificated equity securities. Uncertificated ADSs shall not be
represented by any instruments but shall be evidenced by registration in the books of the
Depositary maintained for such purpose. Holders of Uncertificated ADSs, that are not subject to
any registered pledges, liens, restrictions or adverse claims of which the Depositary has notice at
such time, shall at all times have the right to exchange the Uncertificated ADS(s) for Certificated
ADS(s) of the same type and class, subject in each case to applicable laws and any rules and
regulations the Depositary may have established in respect of the Uncertificated ADSs. Holders of
Certificated ADSs shall, if the Depositary maintains a direct registration system for the ADSs,
have the right to exchange the Certificated ADSs for Uncertificated ADSs upon (i) the due surrender
of the Certificated ADS(s) to the Depositary for

14

 

such purpose and (ii) the presentation of a written request to that effect to the Depositary, subject in each case to (a)
all liens and restrictions noted on the ADR evidencing the Certificated ADS(s) and all adverse
claims of which the Depositary then has notice, (b) the terms of the Deposit Agreement and the
rules and regulations that the Depositary may establish for such purposes hereunder, (c) applicable
law, and (d) payment of the Depositary fees and expenses applicable to such exchange of
Certificated ADS(s) for Uncertificated ADS(s). Uncertificated ADSs shall in all respects be
identical to Certificated ADS(s) of the same type and class, except that (i) no ADR(s) shall be, or
shall need to be, issued to evidence Uncertificated ADS(s), (ii) Uncertificated ADS(s) shall,
subject to the terms of the Deposit Agreement, be transferable upon the same terms and conditions
as uncertificated securities under New York law, (iii) the ownership of Uncertificated ADS(s) shall
be recorded on the books of the Depositary maintained for such purpose and evidence of such
ownership shall be reflected in periodic statements provided by the Depositary to the Holder(s) in
accordance with applicable New York law, (iv) the Depositary may from time to time, upon notice to
the Holders of Uncertificated ADSs affected thereby, establish rules and regulations, and amend or
supplement existing rules and regulations, as may be deemed reasonably necessary to maintain
Uncertificated ADS(s) on behalf of Holders, provided that (a) such rules and regulations do not
conflict with the terms of the Deposit Agreement and applicable law, and (b) the terms of such
rules and regulations are readily available to Holders upon request, (v) the Uncertificated ADS(s)
shall not be entitled to any benefits under the Deposit Agreement or be valid or enforceable for
any purpose against the Depositary or the Company unless such Uncertificated ADS(s) is/are
registered on the books of the Depositary maintained for such purpose, (vi) the Depositary may, in
connection with any deposit of Shares resulting in the issuance of Uncertificated ADSs and with any
transfer, pledge, release and cancellation of Uncertificated ADSs, require the prior receipt of
such documentation as the Depositary may deem reasonably appropriate, and (vii) upon termination of
the Deposit Agreement, the Depositary shall not require Holders of Uncertificated ADSs to
affirmatively instruct the Depositary before remitting proceeds from the sale of the Deposited
Securities represented by such Holders’ Uncertificated ADSs under the terms of Section 6.2 of the
Deposit Agreement. When issuing ADSs under the terms of the Deposit Agreement, including, without
limitation, issuances pursuant to Sections 2.5, 4.2, 4.3, 4.4, 4.5 and 4.11, the Depositary may in
its discretion determine to issue Uncertificated ADSs rather than Certificated ADSs, unless
otherwise specifically instructed by the applicable Holder to issue Certificated ADSs. All
provisions and conditions of the Deposit Agreement shall apply to Uncertificated ADSs to the same
extent as to Certificated ADSs, except as contemplated by this Section 2.13. The Depositary is
authorized and directed to take any and all actions and establish any and all procedures deemed
reasonably necessary to give effect to the terms of this Section 2.13. Any references in the
Deposit Agreement or any ADR(s) to the terms “American Depositary Share(s)” or “ADS(s)” shall,
unless the context otherwise requires, include Certificated ADS(s) and Uncertificated ADS(s).
Except as set forth in this Section 2.13 and except as required by applicable law, the
Uncertificated ADSs shall be treated as ADSs issued and outstanding under the terms of the Deposit
Agreement. In the event that, in determining the rights and obligations of parties hereto with
respect to any Uncertificated ADSs, any conflict arises between (a) the terms of the Deposit
Agreement (other than this Section 2.13) and (b) the terms of this Section 2.13, the terms and
conditions set forth in this Section 2.13 shall be controlling and shall govern

15

 

the rights and obligations of the parties to the Deposit Agreement pertaining to the Uncertificated
ADSs.

     Section 2.14 Restricted ADSs. The Depositary shall, at the request and expense of the
Company, establish procedures enabling the deposit hereunder of Shares that are Restricted
Securities in order to enable the holder of such Shares to hold its ownership interests in such
Restricted Shares in the form of ADSs issued under the terms hereof (such Shares, “Restricted
Shares”). Upon receipt of a written request from the Company to accept Restricted Shares for
deposit hereunder, the Depositary agrees to establish procedures permitting the deposit of such
Restricted Shares and the issuance of ADSs representing the right to receive, subject to the terms
of the Deposit Agreement and the applicable ADR (if issued as a Certificated ADS), such deposited
Restricted Shares (such ADSs, the “Restricted ADSs,” and the ADRs evidencing such
Restricted ADSs, the “Restricted ADRs”). Notwithstanding anything contained in this
Section 2.14, the Depositary and the Company may, to the extent not prohibited by law, agree to
issue the Restricted ADSs in uncertificated form (“Uncertificated Restricted ADSs”) upon
such terms and conditions as the Company and the Depositary may deem necessary and appropriate.
The Company shall assist the Depositary in the establishment of such procedures and agrees that it
shall take all steps necessary and satisfactory to the Depositary to insure that the establishment
of such procedures does not violate the provisions of the Securities Act or any other applicable
laws. The depositors of such Restricted Shares and the holders of the Restricted ADSs may be
required prior to the deposit of such Restricted Shares, the transfer of the Restricted ADRs and
the Restricted ADSs evidenced thereby or the withdrawal of the Restricted Shares represented by
Restricted ADSs to provide such written certifications or agreements as the Depositary or the
Company may require. The Company shall provide to the Depositary in writing the legend(s) to be
affixed to the Restricted ADRs (if Restricted ADSs are to be issued as Certificated ADSs), or to be
included in the statements issued from time to time to Holders of Uncertificated ADSs (if issued as
Uncertificated Restricted ADSs), which legends shall (i) be in a form reasonably satisfactory to
the Depositary and (ii) contain the specific circumstances under which the Restricted ADSs, and, if
applicable, the Restricted ADRs evidencing the Restricted ADSs may be transferred or the Restricted
Shares withdrawn. The Restricted ADSs issued upon the deposit of Restricted Shares shall be
separately identified on the books of the Depositary and the Restricted Shares so deposited shall,
to the extent required by law, be held separate and distinct from the other Deposited Securities
held hereunder. The Restricted Shares and the Restricted ADSs shall not be eligible for
Pre-Release Transactions. The Restricted ADSs shall not be eligible for inclusion in any
book-entry settlement system, including, without limitation, DTC, and shall not in any way be
fungible with the ADSs issued under the terms hereof that are not Restricted ADSs. The Restricted
ADSs, and, if applicable, the Restricted ADRs evidencing the Restricted ADSs shall be transferable
only by the Holder thereof upon delivery to the Depositary of (i) all documentation otherwise
contemplated by the Deposit Agreement and (ii) an opinion of counsel satisfactory to the Depositary
setting forth, inter alia, the conditions upon which the Restricted ADSs presented, and, if
applicable, the Restricted ADRs evidencing the Restricted ADSs are transferable by the Holder
thereof under applicable securities laws and the transfer restrictions contained in the legend
applicable to the Restricted ADSs presented for transfer. Except as set forth in this Section 2.14
and except as required by applicable law, the Restricted ADRs and the Restricted ADSs evidenced
thereby shall be treated as ADRs and ADSs issued

16

 

and outstanding under the terms of the Deposit Agreement. In the event that, in determining the
rights and obligations of parties hereto with respect to any Restricted ADSs, any conflict arises
between (a) the terms of the Deposit Agreement (other than this Section 2.14) and (b) the terms of
(i) this Section 2.14 or (ii) the applicable Restricted ADR, the terms and conditions set forth in
this Section 2.14 and of the Restricted ADR shall be controlling and shall govern the rights and
obligations of the parties to the Deposit Agreement pertaining to the deposited Restricted Shares,
the Restricted ADSs and Restricted ADRs.

     If the Restricted ADRs, the Restricted ADSs and the Restricted Shares cease to be Restricted
Securities, the Depositary, upon receipt of (x) an opinion of counsel satisfactory to the
Depositary setting forth, inter alia, that the Restricted ADRs, the Restricted ADSs and the
Restricted Shares are not as of such time Restricted Securities, and (y) instructions from the
Company to remove the restrictions applicable to the Restricted ADRs, the Restricted ADSs and the
Restricted Shares, shall (i) eliminate the distinctions and separations that may have been
established between the applicable Restricted Shares held on deposit under this Section 2.14 and
the other Shares held on deposit under the terms of the Deposit Agreement that are not Restricted
Shares, (ii) treat the newly unrestricted ADRs and ADSs on the same terms as, and fully fungible
with, the other ADRs and ADSs issued and outstanding under the terms of the Deposit Agreement that
are not Restricted ADRs or Restricted ADSs, (iii) take all actions necessary to remove any
distinctions, limitations and restrictions previously existing under this Section 2.14 between the
applicable Restricted ADRs and Restricted ADSs, respectively, on the one hand, and the other ADRs
and ADSs that are not Restricted ADRs or Restricted ADSs, respectively, on the other hand,
including, without limitation, by making the newly-unrestricted ADSs eligible for Pre-Release
Transactions and for inclusion in the applicable book-entry settlement systems.

ARTICLE III

CERTAIN OBLIGATIONS OF HOLDERS

AND BENEFICIAL OWNERS OF ADSs

     Section 3.1 Proofs, Certificates and Other Information. Any person presenting Shares for
deposit, any Holder and any Beneficial Owner may be required, and every Holder and Beneficial Owner
agrees, from time to time to provide to the Depositary and the Custodian such proof of citizenship
or residence, taxpayer status, payment of all applicable taxes or other governmental charges,
exchange control approval, legal or beneficial ownership of ADSs and Deposited Securities,
compliance with applicable laws, the terms of the Deposit Agreement or the ADR(s) evidencing the
ADSs and the provisions of, or governing, the Deposited Securities, to execute such certifications
and to make such representations and warranties, and to provide such other information and
documentation (or, in the case of Shares in registered form presented for deposit, such information
relating to the registration on the books of the Company or of the Share Registrar) as the
Depositary or the Custodian may deem necessary or proper or as the Company may reasonably require
by written request to the Depositary consistent with its obligations under the Deposit Agreement
and the applicable ADR(s). The Depositary and the Registrar, as applicable, may withhold the
execution or delivery or registration of transfer of any ADR or ADS or the distribution or sale of
any dividend or distribution of rights or of the proceeds thereof or, to the extent not limited by
the terms of Section 7.8, the delivery of any

17

 

Deposited Securities until such proof or other information is filed or such certifications are
executed, or such representations and warranties are made, or such other documentation or
information provided, in each case to the Depositary’s, the Registrar’s and the Company’s
satisfaction. The Depositary shall provide the Company, in a timely manner, with copies or
originals if necessary and appropriate of (i) any such proofs of citizenship or residence, taxpayer
status, or exchange control approval or copies of written representations and warranties which it
receives from Holders and Beneficial Owners, and (ii) any other information or documents which the
Company may reasonably request and which the Depositary shall request and receive from any Holder
or Beneficial Owner or any person presenting Shares for deposit or ADSs for cancellation, transfer
or withdrawal. Nothing herein shall obligate the Depositary to (i) obtain any information for the
Company if not provided by the Holders or Beneficial Owners, or (ii) verify or vouch for the
accuracy of the information so provided by the Holders or Beneficial Owners.

     Section 3.2 Liability for Taxes and Other Charges. Any tax or other governmental charge
payable by the Custodian or by the Depositary with respect to any ADR or any Deposited Securities
or ADSs shall be payable by the Holders and Beneficial Owners to the Depositary. The Company, the
Custodian and/or the Depositary may withhold or deduct from any distributions made in respect of
Deposited Securities and may sell for the account of a Holder and/or Beneficial Owner any or all of
the Deposited Securities and apply such distributions and sale proceeds in payment of any taxes
(including applicable interest and penalties) or charges that are or may be payable by Holders or
Beneficial Owners in respect of the ADSs, Deposited Securities and ADRs, the Holder and the
Beneficial Owner remaining liable for any deficiency. The Custodian may refuse the deposit of
Shares and the Depositary may refuse to issue ADSs, to deliver ADRs, register the transfer of ADSs,
register the split-up or combination of ADRs and (subject to Section 7.8) the withdrawal of
Deposited Securities until payment in full of such tax, charge, penalty or interest is received.
Every Holder and Beneficial Owner agrees to indemnify the Depositary, the Company, the Custodian,
and any of their agents, officers, employees and Affiliates for, and to hold each of them harmless
from, any claims with respect to taxes (including applicable interest and penalties thereon)
arising from any tax benefit obtained for such Holder and/or Beneficial Owner.

     Section 3.3 Representations and Warranties on Deposit of Shares. Each person depositing
Shares under the Deposit Agreement shall be deemed thereby to represent and warrant that (i) such
Shares and the certificates therefor are duly authorized, validly issued, fully paid,
non-assessable and legally obtained by such person, (ii) all preemptive (and similar) rights, if
any, with respect to such Shares have been validly waived or exercised, (iii) the person making
such deposit is duly authorized so to do, (iv) the Shares presented for deposit are free and clear
of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and (v) the Shares
presented for deposit are not, and the ADSs issuable upon such deposit will not be, Restricted
Securities (except as contemplated in Section 2.14), and (vi) the Shares presented for deposit have
not been stripped of any rights or entitlements. Such representations and warranties shall survive
the deposit and withdrawal of Shares, the issuance and cancellation of ADSs in respect thereof and
the transfer of such ADSs. If any such representations or warranties are false

18

 

in any way, the Company and the Depositary shall be authorized, at the cost and expense of the
person depositing Shares, to take any and all actions necessary to correct the consequences
thereof.

     Section 3.4 Compliance with Information Requests. Notwithstanding any other provision of
the Deposit Agreement or any ADR(s), each Holder and Beneficial Owner agrees to comply with
requests from the Company pursuant to applicable law, the rules and requirements of the New York
Stock Exchange, and any other stock exchange on which the Shares or ADSs are, or will be,
registered, traded or listed or the Articles of Association of the Company, which are made to
provide information, inter alia, as to the capacity in which such Holder or Beneficial Owner owns
ADSs (and Shares as the case may be) and regarding the identity of any other person(s) interested
in such ADSs and the nature of such interest and various other matters, whether or not they are
Holders and/or Beneficial Owners at the time of such request. The Depositary agrees to use its
reasonable efforts to forward, upon the request of the Company and at the Company’s expense, any
such request from the Company to the Holders and to forward to the Company any such responses to
such requests received by the Depositary.

     Section 3.5 Ownership Restrictions. Notwithstanding any other provision in the
Deposit Agreement or any ADR, the Company may restrict transfers of the Shares where such transfer
might result in ownership of Shares exceeding limits imposed by applicable law or the Articles of
Association of the Company. The Company may also restrict, in such manner as it deems appropriate,
transfers of the ADSs where such transfer may result in the total number of Shares represented by
the ADSs owned by a single Holder or Beneficial Owner to exceed any such limits. The Company may,
in its sole discretion but subject to applicable law, instruct the Depositary to take action with
respect to the ownership interest of any Holder or Beneficial Owner in excess of the limits set
forth in the preceding sentence, including, but not limited to, the imposition of restrictions on
the transfer of ADSs, the removal or limitation of voting rights or mandatory sale or disposition
on behalf of a Holder or Beneficial Owner of the Shares represented by the ADSs held by such Holder
or Beneficial Owner in excess of such limitations, if and to the extent such disposition is
permitted by applicable law and the Articles of Association of the Company. Nothing herein shall
be interpreted as obligating the Depositary or the Company to ensure compliance with the ownership
restrictions described in this Section 3.5.

     Section 3.6 Reporting Obligations and Regulatory Approvals. Applicable laws and
regulations may require holders and beneficial owners of Shares, including the Holders and
Beneficial Owners of ADSs, to satisfy reporting requirements and obtain regulatory approvals in
certain circumstances. Holders and Beneficial Owners of ADSs are solely responsible for
determining and complying with such reporting requirements and obtaining such approvals. Each
Holder and each Beneficial Owner hereby agrees to make such determination, file such reports, and
obtain such approvals to the extent and in the form required by applicable laws and regulations as
in effect from time to time. Neither the Depositary, the Custodian, the Company or any of their
respective agents or affiliates shall be required to take any actions whatsoever on behalf of
Holders or Beneficial Owners to determine or satisfy such reporting requirements or obtain such
regulatory approvals under applicable laws and regulations.

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ARTICLE IV

THE DEPOSITED SECURITIES

     Section 4.1 Cash Distributions. Whenever the Company intends to make a distribution of a
cash dividend or other cash distribution, the Company shall give notice thereof to the Depositary
at least twenty (20) days (or such other number of days as the Depositary and the Company may from
time to time agree to) prior to the proposed distribution specifying, inter alia,
the record date applicable for determining the holders of Deposited Securities entitled to receive
such distribution. Upon the timely receipt of such notice, the Depositary shall establish an ADS
Record Date upon the terms described in Section 4.9. Upon receipt of confirmation from the
Custodian of the receipt of any cash dividend or other cash distribution on any Deposited
Securities, or upon receipt of proceeds from the sale of any Deposited Securities or any other
entitlements held in respect of Deposited Securities under the terms hereof, the Depositary will
(i) if at the time of receipt thereof any amounts received in a Foreign Currency can, in the
judgment of the Depositary (pursuant to Section 4.8), be converted on a practicable basis into
Dollars transferable to the United States, promptly convert or cause to be converted such cash
dividend, distribution or proceeds into Dollars (on the terms described in Section 4.8), (ii) if
applicable and unless previously established, establish the ADS Record Date upon the terms
described in Section 4.9, and (iii) distribute promptly the amount thus received (net of (a) the
applicable fees and charges of, and expenses incurred by, the Depositary and (b) taxes withheld) to
the Holders entitled thereto as of the ADS Record Date in proportion to the number of ADSs held as
of the ADS Record Date. The Depositary shall distribute only such amount, however, as can be
distributed without attributing to any Holder a fraction of one cent, and any balance not so
distributed shall be held by the Depositary (without liability for interest thereon) and shall be
added to and become part of the next sum received by the Depositary for distribution to Holders of
ADSs outstanding at the time of the next distribution. If the Company, the Custodian or the
Depositary is required to withhold and does withhold from any cash dividend or other cash
distribution in respect of any Deposited Securities an amount on account of taxes, duties or other
governmental charges, the amount distributed to Holders on the ADSs representing such Deposited
Securities shall be reduced accordingly. Such withheld amounts shall be forwarded by the Company,
the Custodian or the Depositary to the relevant governmental authority. Evidence of payment
thereof by the Company shall be forwarded by the Company to the Depositary upon request.

     Section 4.2 Distribution in Shares. Whenever the Company intends to make a distribution
that consists of a dividend in, or free distribution of, Shares, the Company shall give notice
thereof to the Depositary at least twenty (20) days (or such other number of days as the Depositary
and the Company may from time to time agree to) prior to the proposed distribution, specifying,
inter alia, the record date applicable to holders of Deposited Securities entitled
to receive such distribution. Upon the timely receipt of such notice from the Company, the
Depositary shall establish the ADS Record Date upon the terms described in Section 4.9. Upon
receipt of confirmation from the Custodian of the receipt of the Shares so distributed by the
Company, the Depositary shall either (i) subject to Section 5.9, distribute to the Holders as of
the ADS Record Date in proportion to the number of ADSs held as of the ADS Record Date, additional
ADSs, which represent in the aggregate the number of Shares received as such

20

 

dividend, or free distribution, subject to the other terms of the Deposit Agreement (including,
without limitation, (a) the applicable fees and charges of, and reasonable expenses incurred by,
the Depositary and (b) taxes), or (ii) if additional ADSs are not so distributed, take all actions
necessary so that each ADS issued and outstanding after the ADS Record Date shall, to the extent
permissible by law, thenceforth also represent rights and interests in the additional integral
number of Shares distributed upon the Deposited Securities represented thereby (net of (a) the
applicable fees and charges of, and expenses incurred by, the Depositary and (b) taxes). In lieu
of delivering fractional ADSs, the Depositary shall sell the number of Shares or ADSs, as the case
may be, represented by the aggregate of such fractions and distribute the net proceeds upon the
terms described in Section 4.1. In the event that the Depositary determines that any distribution
in property (including Shares) is subject to any tax or other governmental charges which the
Depositary is obligated to withhold, or, if the Company in the fulfillment of its obligation under
Section 5.7, has furnished an opinion of U.S. counsel determining that Shares must be registered
under the Securities Act or other laws in order to be distributed to Holders (and no such
registration statement has been declared effective), the Depositary may dispose of all or a portion
of such property (including Shares and rights to subscribe therefor) in such amounts and in such
manner, including by public or private sale, as the Depositary deems necessary and practicable, and
the Depositary shall distribute the net proceeds of any such sale (after deduction of (a) taxes and
(b) fees and charges of, and expenses incurred by, the Depositary) to Holders entitled thereto upon
the terms described in Section 4.1. The Depositary shall hold and/or distribute any unsold balance
of such property in accordance with the provisions of the Deposit Agreement.

     Section 4.3 Elective Distributions in Cash or Shares. Whenever the Company intends to make
a distribution payable at the election of the holders of Shares in cash or in additional Shares,
the Company shall give notice thereof to the Depositary at least forty five (45) days (or such
other number of days as the Depositary and the Company may from time to time agree to) prior to the
proposed distribution specifying, inter alia, the record date applicable to holders
of Deposited Securities entitled to receive such elective distribution and whether or not it wishes
such elective distribution to be made available to Holders of ADSs. Upon the timely receipt of a
notice indicating that the Company wishes such elective distribution to be made available to
Holders of ADSs, the Depositary shall consult with the Company to determine, and the Company shall
assist the Depositary in its determination, whether it is lawful and reasonably practicable to make
such elective distribution available to the Holders of ADSs. The Depositary shall make such
elective distribution available to Holders only if (i) the Company shall have timely requested that
the elective distribution be made available to Holders, (ii) the Depositary shall have determined
that such distribution is reasonably practicable and (iii) the Depositary shall have received
satisfactory documentation within the terms of Section 5.7. If the above conditions are not
satisfied, the Depositary shall establish an ADS Record Date on the terms described in Section 4.9
and, to the extent permitted by law, distribute to the Holders, on the basis of the same
determination as is made in the British Virgin Islands in respect of the Shares for which no
election is made, either (X) cash upon the terms described in Section 4.1 or (Y) additional ADSs
representing such additional Shares upon the terms described in Section 4.2. If the above
conditions are satisfied, the Depositary shall establish an ADS Record Date on the terms described
in Section 4.9 and establish procedures to enable Holders to elect the receipt of

21

 

the proposed distribution in cash or in additional ADSs. The Company shall assist the Depositary
in establishing such procedures to the extent necessary. If a Holder elects to receive the
proposed distribution (X) in cash, the distribution shall be made upon the terms described in
Section 4.1, or (Y) in ADSs, the distribution shall be made upon the terms described in Section
4.2. Nothing herein shall obligate the Depositary to make available to Holders a method to receive
the elective distribution in Shares (rather than ADSs). There can be no assurance that Holders
generally, or any Holder in particular, will be given the opportunity to receive elective
distributions on the same terms and conditions as the holders of Shares.

     Section 4.4 Distribution of Rights to Purchase Additional ADSs.

     (a) Distribution to ADS Holders. Whenever the Company intends to distribute to the
holders of the Deposited Securities rights to subscribe for additional Shares, the Company shall
give notice thereof to the Depositary at least forty five (45) days (or such other number of days
as the Depositary and the Company may from time to time agree to) prior to the proposed
distribution specifying, inter alia, the record date applicable to holders of
Deposited Securities entitled to receive such distribution and whether or not it wishes such rights
to be made available to Holders of ADSs. Upon the timely receipt of a notice indicating that the
Company wishes such rights to be made available to Holders of ADSs, the Depositary shall consult
with the Company to determine, and the Company shall assist the Depositary in its determination,
whether it is lawful and reasonably practicable to make such rights available to the Holders. The
Depositary shall make such rights available to Holders only if (i) the Company shall have timely
requested that such rights be made available to Holders, (ii) the Depositary shall have received
satisfactory documentation within the terms of Section 5.7, and (iii) the Depositary shall have
determined that such distribution of rights is reasonably practicable. In the event any of the
conditions set forth above are not satisfied or if the Company requests that the rights not be made
available to Holders of ADSs, the Depositary shall proceed with the sale of the rights as
contemplated in Section 4.4(b) below. In the event all conditions set forth above are satisfied,
the Depositary shall establish an ADS Record Date (upon the terms described in Section 4.9) and
establish procedures to (x) distribute rights to purchase additional ADSs (by means of warrants or
otherwise), (y) to enable the Holders to exercise such rights (upon payment of the subscription
price and of the applicable (a) fees and charges of, and reasonable expenses incurred by, the
Depositary and (b) taxes), and (z) to deliver ADSs upon the valid exercise of such rights. The
Company shall assist the Depositary to the extent necessary in establishing such procedures.
Nothing herein shall obligate the Depositary to make available to the Holders a method to exercise
rights to subscribe for Shares (rather than ADSs).

     (b) Sale of Rights. If (i) the Company does not timely request the Depositary to make
the rights available to Holders or requests that the rights not be made available to Holders, (ii)
the Depositary fails to receive satisfactory documentation within the terms of Section 5.7 or
determines it is not reasonably practicable to make the rights available to Holders, or (iii) any
rights made available are not exercised and appear to be about to lapse, the Depositary shall
determine whether it is lawful and reasonably practicable to sell such rights, in a riskless
principal capacity, at such place and upon such terms (including public or private sale) as it may
deem practicable. The Company shall assist the Depositary to the extent necessary to determine
such legality and practicability. The Depositary shall, upon such sale, convert and distribute

22

 

proceeds of such sale (net of applicable (a) fees and charges of, and reasonable expenses
incurred by, the Depositary and (b) taxes) upon the terms set forth in Section 4.1.

     (c) Lapse of Rights. If the Depositary is unable to make any rights available to
Holders upon the terms described in Section 4.4(a) or to arrange for the sale of the rights upon
the terms described in Section 4.4(b), the Depositary shall allow such rights to lapse.

     The Depositary shall not be responsible for (i) any failure to determine that it may be lawful
or practicable to make such rights available to Holders in general or any Holders in particular,
(ii) any foreign exchange exposure or loss incurred in connection with such sale, or exercise, or
(iii) the content of any materials forwarded to the Holders on behalf of the Company in connection
with the rights distribution.

     Notwithstanding anything to the contrary in this Section 4.4, if registration (under the
Securities Act or any other applicable law) of the rights or the securities to which any rights
relate may be required in order for the Company to offer such rights or such securities to Holders
and to sell the securities represented by such rights, the Depositary will not distribute such
rights to the Holders (i) unless and until a registration statement under the Securities Act (or
other applicable law) covering such offering is in effect or (ii) unless the Company furnishes the
Depositary opinion(s) of counsel for the Company in the United States and counsel to the Company in
any other applicable country in which rights would be distributed, in each case satisfactory to the
Depositary, to the effect that the offering and sale of such securities to Holders and Beneficial
Owners are exempt from, or do not require registration under, the provisions of the Securities Act
or any other applicable laws. A liquid market for rights may not exist, and this may adversely
affect (1) the ability of the Depositary to dispose of such rights or (2) the amount the Depositary
would realize upon disposal of rights.

     In the event that the Company, the Depositary or the Custodian shall be required to withhold
and does withhold from any distribution of property (including rights) an amount on account of
taxes or other governmental charges, the amount distributed to the Holders of ADSs representing
such Deposited Securities shall be reduced accordingly. In the event that the Depositary
determines that any distribution in property (including Shares and rights to subscribe therefor) is
subject to any tax or other governmental charges which the Depositary is obligated to withhold, the
Depositary may dispose of all or a portion of such property (including Shares and rights to
subscribe therefor) in such amounts and in such manner, including by public or private sale, as the
Depositary deems necessary and practicable to pay any such taxes or charges.

     There can be no assurance that Holders generally, or any Holder in particular, will be given
the opportunity to receive or exercise rights on the same terms and conditions as the holders of
Shares or be able to exercise such rights. Nothing herein shall obligate the Company to file any
registration statement in respect of any rights or Shares or other securities to be acquired upon
the exercise of such rights.

     Section 4.5 Distributions Other Than Cash, Shares or Rights to Purchase Shares.

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     (a) Whenever the Company intends to distribute to the holders of Deposited Securities property
other than cash, Shares or rights to purchase additional Shares, the Company shall give timely
notice thereof to the Depositary and shall indicate whether or not it wishes such distribution to
be made to Holders of ADSs. Upon receipt of a notice indicating that the Company wishes such
distribution be made to Holders of ADSs, the Depositary shall consult with the Company, and the
Company shall assist the Depositary, to determine whether such distribution to Holders is lawful
and reasonably practicable. The Depositary shall not make such distribution unless (i) the Company
shall have requested the Depositary to make such distribution to Holders, (ii) the Depositary shall
have received satisfactory documentation within the terms of Section 5.7, and (iii) the Depositary
shall have determined that such distribution is reasonably practicable.

     (b) Upon receipt of satisfactory documentation and the request of the Company to distribute
property to Holders of ADSs and after making the requisite determinations set forth in (a) above,
the Depositary shall distribute the property so received to the Holders of record, as of the ADS
Record Date, in proportion to the number of ADSs held by them respectively and in such manner as
the Depositary may deem practicable for accomplishing such distribution (i) upon receipt of payment
or net of the applicable fees and charges of, and reasonable expenses incurred by, the Depositary,
and (ii) net of any taxes withheld. The Depositary may dispose of all or a portion of the property
so distributed and deposited, in such amounts and in such manner (including public or private sale)
as the Depositary may deem practicable or necessary to satisfy any taxes (including applicable
interest and penalties) or other governmental charges applicable to the distribution.

     (c) If (i) the Company does not request the Depositary to make such distribution to Holders or
requests not to make such distribution to Holders, (ii) the Depositary does not receive
satisfactory documentation within the terms of Section 5.7, or (iii) the Depositary determines that
all or a portion of such distribution is not reasonably practicable, the Depositary shall sell or
cause such property to be sold in a public or private sale, at such place or places and upon such
terms as it may deem practicable and shall (i) cause the proceeds of such sale, if any, to be
converted into Dollars and (ii) distribute the proceeds of such conversion received by the
Depositary (net of applicable (a) fees and charges of, and reasonable expenses incurred by, the
Depositary and (b) taxes) to the Holders as of the ADS Record Date upon the terms of Section 4.1.
If the Depositary is unable to sell such property, the Depositary may dispose of such property for
the account of the Holders in any way it deems reasonably practicable under the circumstances.

     Section 4.6 Distributions with Respect to Deposited Securities in Bearer Form. Subject to
the terms of this Article IV, distributions in respect of Deposited Securities that are held by the
Depositary in bearer form shall be made to the Depositary for the account of the respective Holders
of ADS(s) with respect to which any such distribution is made upon due presentation by the
Depositary or the Custodian to the Company of any relevant coupons, talons, or certificates. The
Company shall promptly notify the Depositary of such distributions. The Depositary or the
Custodian shall promptly present such coupons, talons or certificates, as the case may be, in
connection with any such distribution.

24

 

     Section 4.7 Redemption. If the Company intends to exercise any right of redemption in
respect of any of the Deposited Securities, the Company shall give notice thereof to the Depositary
at least forty five (45) days (or such other number of days as the Depositary and the Company may
from time to time agree to) prior to the intended date of redemption which notice shall set forth
the particulars of the proposed redemption. Upon timely receipt of (i) such notice and (ii)
satisfactory documentation given by the Company to the Depositary within the terms of Section 5.7,
and only if the Depositary shall have determined that such proposed redemption is practicable, the
Depositary shall provide to each Holder a notice setting forth the intended exercise by the Company
of the redemption rights and any other particulars set forth in the Company’s notice to the
Depositary. The Depositary shall instruct the Custodian to present to the Company the Deposited
Securities in respect of which redemption rights are being exercised against payment of the
applicable redemption price. Upon receipt of confirmation from the Custodian that the redemption
has taken place and that funds representing the redemption price have been received, the Depositary
shall convert, transfer, and distribute the proceeds (net of applicable (a) fees and charges of,
and the expenses incurred by, the Depositary, and (b) taxes), retire ADSs and cancel ADRs, if
applicable, upon delivery of such ADSs by Holders thereof and the terms set forth in Sections 4.1
and 6.2. If less than all outstanding Deposited Securities are redeemed, the ADSs to be retired
will be selected by lot or on a pro rata basis, as may be determined by the Depositary. The
redemption price per ADS shall be the dollar equivalent of the per share amount received by the
Depositary (adjusted to reflect the ADS(s)-to-Share(s) ratio) upon the redemption of the Deposited
Securities represented by ADSs (subject to the terms of Section 4.8 and the applicable fees and
charges of, and reasonable expenses incurred by, the Depositary, and taxes) multiplied by the
number of Deposited Securities represented by each ADS redeemed.

     Section 4.8 Conversion of Foreign Currency. Whenever the Depositary or the Custodian shall
receive Foreign Currency, by way of dividends or other distributions or the net proceeds from the
sale of securities, property or rights, which in the judgment of the Depositary can at such time be
converted on a practicable basis, by sale or in any other manner that it may determine in
accordance with applicable law, into Dollars transferable to the United States and distributable to
the Holders entitled thereto, the Depositary shall convert or cause to be converted, by sale or in
any other manner that it may determine, such Foreign Currency into Dollars, and shall distribute
such Dollars (net of any applicable fees, any reasonable and customary expenses incurred in such
conversion and any expenses incurred on behalf of the Holders in complying with currency exchange
control or other governmental requirements) in accordance with the terms of the applicable sections
of the Deposit Agreement. If the Depositary shall have distributed warrants or other instruments
that entitle the holders thereof to such Dollars, the Depositary shall distribute such Dollars to
the holders of such warrants and/or instruments upon surrender thereof for cancellation, in either
case without liability for interest thereon. Such distribution may be made upon an averaged or
other practicable basis without regard to any distinctions among Holders on account of any
application of exchange restrictions or otherwise.

     If such conversion or distribution generally or with regard to a particular Holder can be
effected only with the approval or license of any government or agency thereof, the Depositary

25

 

shall have authority to file such application for approval or license, if any, as it may deem
desirable. In no event, however, shall the Depositary be obligated to make such a filing.

     If at any time the Depositary shall determine that in its judgment the conversion of any
Foreign Currency and the transfer and distribution of proceeds of such conversion received by the
Depositary is not practicable or lawful, or if any approval or license of any governmental
authority or agency thereof that is required for such conversion, transfer and distribution is
denied or, in the opinion of the Depositary, not obtainable at a reasonable cost or within a
reasonable period, the Depositary may, in its discretion, (i) make such conversion and distribution
in Dollars to the Holders for whom such conversion, transfer and distribution is lawful and
practicable, (ii) distribute the Foreign Currency (or an appropriate document evidencing the right
to receive such Foreign Currency) to Holders for whom this is lawful and practicable or (iii) hold
(or cause the Custodian to hold) such Foreign Currency (without liability for interest thereon) for
the respective accounts of the Holders entitled to receive the same.

     Section 4.9 Fixing of ADS Record Date. Whenever the Depositary shall receive notice of the
fixing of a record date by the Company for the determination of holders of Deposited Securities
entitled to receive any distribution (whether in cash, Shares, rights, or other distribution), or
whenever for any reason the Depositary causes a change in the number of Shares that are represented
by each ADS, or whenever the Depositary shall receive notice of any meeting of, or solicitation of
consents or proxies of, holders of Shares or other Deposited Securities, or whenever the Depositary
shall find it necessary or convenient in connection with the giving of any notice, solicitation of
any consent or any other matter, the Depositary shall fix a record date (the “ADS Record
Date”) for the determination of the Holders of ADS(s) who shall be entitled to receive such
distribution, to give instructions for the exercise of voting rights at any such meeting, to give
or withhold such consent, to receive such notice or solicitation or to otherwise take action, or to
exercise the rights of Holders with respect to such changed number of Shares represented by each
ADS. The Depositary shall make reasonable efforts to establish the ADS Record Date as closely as
possible to the applicable record date for the Deposited Securities (if any) set by the Company in
the British Virgin Islands. Subject to applicable law and the provisions of Section 4.1 through
4.8 and to the other terms and conditions of the Deposit Agreement, only the Holders of ADSs at the
close of business in New York on such ADS Record Date shall be entitled to receive such
distribution, to give such voting instructions, to receive such notice or solicitation, or
otherwise take action.

     Section 4.10 Voting of Deposited Securities. As soon as practicable after receipt of
notice of any meeting at which the holders of Deposited Securities are entitled to vote, or of
solicitation of consents or proxies from holders of Deposited Securities, the Depositary shall fix
the ADS Record Date in respect of such meeting or solicitation of consent or proxy in accordance
with Section 4.9. The Depositary shall, if requested by the Company in writing in a timely manner
(the Depositary having no obligation to take any further action if the request shall not have been
received by the Depositary at least thirty (30) days prior to the date of such vote or meeting), at
the Company’s expense and provided no U.S. legal prohibitions exist, distribute as soon as
practicable after receipt thereof to Holders as of the ADS Record Date: (a) such notice of meeting
or solicitation of consent or proxy, (b) a statement that the Holders at the close of business on
the ADS Record Date will be entitled, subject to any applicable law, the provisions

26

 

of the Deposit Agreement, the Articles of Association of the Company and the provisions of or
governing the Deposited Securities (which provisions, if any, shall be summarized in pertinent part
by the Company), to instruct the Depositary as to the exercise of the voting rights, if any,
pertaining to the Deposited Securities represented by such Holder’s ADSs, and (c) a brief statement
as to the manner in which such voting instructions may be given to the Depositary or in which
voting instructions may be deemed to have been given in accordance with this Section 4.10 if no
instructions are received prior to the deadline set for such purposes to the Depositary to give a
discretionary proxy to a person designated by the Company.

     Notwithstanding anything contained in the Deposit Agreement or any ADR, the Depositary may, to
the extent not prohibited by law or regulations, or by the requirements of the stock exchange on
which the ADSs are listed, in lieu of distribution of the materials provided to the Depositary in
connection with any meeting of, or solicitation of consents or proxies from, holders of Deposited
Securities, distribute to the Holders a notice that provides Holders with, or otherwise publicize
to Holders, instructions on how to retrieve such materials or receive such materials upon request
(i.e., by reference to a website containing the materials for retrieval or a contact for requesting
copies of the materials).

     The Depositary has been advised by the Company that under the British Virgin Islands law as in
effect as of the date of the Deposit Agreement, voting at any meeting of shareholders is by show of
hands unless a poll is demanded. The Depositary will not join in demanding a poll, whether or not
requested to do so by Holders of ADSs. Under the Articles of Association of the Company (as in
effect on the date of the Deposit Agreement) if the chairman has any doubt as to the outcome of the
vote on a proposed resolution, he shall cause a poll to be taken of all votes cast upon such
resolution and if the chairman fails to take a poll, then any shareholder present in person or by
proxy who disputes the announcement by the chairman of the result of any vote may immediately
following such announcement demand that a poll be taken and the chairman shall cause a poll to be
taken. If a poll is taken at any meeting, the result shall be announced to the meeting and recorded
in the minutes of the meeting.

     Voting instructions may be given only in respect of a number of ADSs representing an integral
number of Deposited Securities. Upon the timely receipt from a Holder of ADSs as of the ADS Record
Date of voting instructions in the manner specified by the Depositary, the Depositary shall
endeavor, insofar as practicable and permitted under applicable law, the provisions of the Deposit
Agreement, Articles of Association of the Company and the provisions of the Deposited Securities,
to vote, or cause the Custodian to vote, the Deposited Securities (in person or by proxy)
represented by such Holder’s ADSs as follows: (i) in the event voting takes place at a
shareholders’ meeting by show of hands, the Depositary will instruct the Custodian to vote all
Deposited Securities in accordance with the voting instructions received from a majority of Holders
of ADSs who provided voting instructions and (ii) in the event voting takes place at a
shareholders’ meeting by poll, the Depositary will instruct the Custodian to vote the Deposited
Securities in accordance with the voting instructions received from the Holders of ADSs. If the
Depositary does not receive instructions from a Holder as of the ADS Record Date on or before the
date established by the Depositary for such purpose and voting is by poll, such Holder shall be
deemed, and the Depositary shall (unless otherwise specified in the notice distributed to Holders)
deem such Holder, to have instructed the Depositary to give a discretionary proxy to a

27

 

person designated by the Company to vote the Deposited Securities; provided, however, that no such
discretionary proxy shall be given by the Depositary with respect to any matter to be voted upon as
to which the Company informs the Depositary that (A) the Company does not wish such proxy to be
given, (B) substantial opposition exists, or (C) the rights of holders of Deposited Securities may
be materially adversely affected.

     Neither the Depositary nor the Custodian shall under any circumstances exercise any discretion
as to voting and neither the Depositary nor the Custodian shall vote, attempt to exercise the right
to vote, or in any way make use of, for purposes of establishing a quorum or otherwise, the
Deposited Securities represented by ADSs, except pursuant to and in accordance with the voting
instructions timely received from Holders or as otherwise contemplated herein. If the Depositary
timely receives voting instructions from a Holder which fail to specify the manner in which the
Depositary is to vote the Deposited Securities represented by such Holder’s ADSs, the Depositary
will deem such Holder (unless otherwise specified in the notice distributed to Holders) to have
instructed the Depositary to vote in favor of the items set forth in such voting instructions.
Deposited Securities represented by ADSs for which no timely voting instructions are received by
the Depositary from the Holder shall not be voted (except (i) in the case voting at the
shareholders meeting is by show of hands, in which case the Depositary will instruct the Custodian
to vote all Deposited Securities in accordance with the voting instructions received from a
majority of Holders of ADSs who provided voting instructions and (ii) as contemplated in this
Section 4.10). Notwithstanding anything else contained herein, the Depositary shall, if so
requested in writing by the Company, represent all Deposited Securities (whether or not voting
instructions have been received in respect of such Deposited Securities from Holders as of the ADS
Record Date) for the sole purpose of establishing quorum at a meeting of shareholders.

     Notwithstanding anything else contained in the Deposit Agreement or any ADR, the Depositary
shall not have any obligation to take any action with respect to any meeting, or solicitation of
consents or proxies, of holders of Deposited Securities if the taking of such action would violate
U.S. laws. The Company agrees to take any and all actions reasonably necessary and as permitted by
British Virgin Islands law to enable Holders and Beneficial Owners to exercise the voting rights
accruing to the Deposited Securities and to deliver to the Depositary an opinion of U.S. counsel
addressing any actions requested to be taken if so requested by the Depositary.

     There can be no assurance that Holders generally or any Holder in particular will receive the
notice described above with sufficient time to enable the Holder to return voting instructions to
the Depositary in a timely manner.

     Section 4.11 Changes Affecting Deposited Securities. Upon any change in nominal or par
value, split-up, cancellation, consolidation or any other reclassification of Deposited Securities,
or upon any recapitalization, reorganization, merger, consolidation or sale of assets affecting the
Company or to which it is a party, any securities which shall be received by the Depositary or the
Custodian in exchange for, or in conversion of or replacement of or otherwise in respect of, such
Deposited Securities shall, to the extent permitted by law, be treated as new Deposited Securities
under the Deposit Agreement, and the ADRs shall, subject to the provisions of the Deposit Agreement
and applicable law, evidence ADSs representing the right to receive

28

 

such additional securities. In giving effect to such change, split-up, cancellation, consolidation
or other reclassification of Deposited Securities, recapitalization, reorganization, merger,
consolidation or sale of assets, the Depositary may, with the Company’s approval, and shall, if the
Company shall so request, subject to the terms of the Deposit Agreement and receipt of an opinion
of counsel to the Company satisfactory to the Depositary that such actions are not in violation of
any applicable laws or regulations, (i) issue and deliver additional ADSs as in the case of a stock
dividend on the Shares, (ii) amend the Deposit Agreement and the applicable ADRs, (iii) amend the
applicable Registration Statement(s) on Form F-6 as filed with the Commission in respect of the
ADSs, (iv) call for the surrender of outstanding ADRs to be exchanged for new ADRs, and (v) take
such other actions as are appropriate to reflect the transaction with respect to the ADSs. The
Company agrees to, jointly with the Depositary, amend the Registration Statement on Form F-6 as
filed with the Commission to permit the issuance of such new form of ADRs. Notwithstanding the
foregoing, in the event that any security so received may not be lawfully distributed to some or
all Holders, the Depositary may, with the Company’s approval, and shall, if the Company requests,
subject to receipt of an opinion of Company’s counsel satisfactory to the Depositary that such
action is not in violation of any applicable laws or regulations, sell such securities at public or
private sale, at such place or places and upon such terms as it may deem proper and may allocate
the net proceeds of such sales (net of (a) fees and charges of, and reasonable expenses incurred
by, the Depositary and (b) taxes) for the account of the Holders otherwise entitled to such
securities upon an averaged or other practicable basis without regard to any distinctions among
such Holders and distribute the net proceeds so allocated to the extent practicable as in the case
of a distribution received in cash pursuant to Section 4.1. The Depositary shall not be
responsible for (i) any failure to determine that it may be lawful or practicable to make such
securities available to Holders in general or to any Holder in particular, (ii) any foreign
exchange exposure or loss incurred in connection with such sale, or (iii) any liability to the
purchaser of such securities.

     Section 4.12 Available Information. The Company is subject to the periodic reporting
requirements of the Exchange Act and, accordingly, is required to file or submit certain reports
with the Commission. These reports can be retrieved from the Commission’s website (www.sec.gov)
and can be inspected and copied at the public reference facilities maintained by the Commission
located (as of the date of the Deposit Agreement) at 100 F Street, N.E., Washington D.C. 20549.

     Section 4.13 Reports. The Depositary shall make available for inspection by Holders at its
Principal Office any reports and communications, including any proxy soliciting materials, received
from the Company which are both (a) received by the Depositary, the Custodian, or the nominee of
either of them as the holder of the Deposited Securities and (b) made generally available to the
holders of such Deposited Securities by the Company. The Depositary shall also provide or make
available to Holders copies of such reports when furnished by the Company pursuant to Section 5.6.

     Section 4.14 List of Holders. Promptly upon written request by the Company, the Depositary
shall furnish to it a list, as of a recent date, of the names, addresses and holdings of ADSs of
all Holders.

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     Section 4.15 Taxation. The Depositary will, and will instruct the Custodian to, forward to
the Company or its agents such information from its records as the Company may reasonably request
to enable the Company or its agents to file the necessary tax reports with governmental authorities
or agencies. The Depositary, the Custodian or the Company and its agents may file such reports as
are necessary to reduce or eliminate applicable taxes on dividends and on other distributions in
respect of Deposited Securities under applicable tax treaties or laws for the Holders and
Beneficial Owners. In accordance with instructions from the Company and to the extent practicable,
the Depositary or the Custodian will take reasonable administrative actions to obtain tax refunds,
reduced withholding of tax at source on dividends and other benefits under applicable tax treaties
or laws with respect to dividends and other distributions on the Deposited Securities. As a
condition to receiving such benefits, Holders and Beneficial Owners of ADSs may be required from
time to time, and in a timely manner, to file such proof of taxpayer status, residence and
beneficial ownership (as applicable), to execute such certificates and to make such representations
and warranties, or to provide any other information or documents, as the Depositary or the
Custodian may deem necessary or proper to fulfill the Depositary’s or the Custodian’s obligations
under applicable law. The Holders and Beneficial Owners shall indemnify the Depositary, the
Company, the Custodian and any of their respective directors, employees, agents and Affiliates
against, and hold each of them harmless from, any claims by any governmental authority with respect
to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate
of withholding at source or other tax benefit obtained.

     If the Company (or any of its agents) withholds from any distribution any amount on account of
taxes or governmental charges, or pays any other tax in respect of such distribution (i.e., stamp
duty tax, capital gains or other similar tax), the Company shall (and shall cause such agent to)
remit promptly to the Depositary information about such taxes or governmental charges withheld or
paid, and, if so requested, the tax receipt (or other proof of payment to the applicable
governmental authority) therefor, in each case, in a form satisfactory to the Depositary. The
Depositary shall, to the extent required by U.S. law, report to Holders any taxes withheld by it or
the Custodian, and, if such information is provided to it by the Company, any taxes withheld by the
Company. The Depositary and the Custodian shall not be required to provide the Holders with any
evidence of the remittance by the Company (or its agents) of any taxes withheld, or of the payment
of taxes by the Company, except to the extent the evidence is provided by the Company to the
Depositary or the Custodian, as applicable. Neither the Depositary nor the Custodian shall be
liable for the failure by any Holder or Beneficial Owner to obtain the benefits of credits on the
basis of non-U.S. tax paid against such Holder’s or Beneficial Owner’s income tax liability.

     The Depositary is under no obligation to provide the Holders and Beneficial Owners with any
information about the tax status of the Company. The Depositary shall not incur any liability for
any tax consequences that may be incurred by Holders and Beneficial Owners on account of their
ownership of the ADSs, including without limitation, tax consequences resulting from the Company
(or any of its subsidiaries) being treated as a “Passive Foreign Investment Company” (in each case
as defined in the U.S. Internal Revenue Code and the regulations issued thereunder) or otherwise.

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ARTICLE V

THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY

     Section 5.1 Maintenance of Office and Transfer Books by the Registrar. Until termination
of the Deposit Agreement in accordance with its terms, the Registrar shall maintain in the Borough
of Manhattan, the City of New York, an office and facilities for the issuance and delivery of ADSs,
the acceptance for surrender of ADS(s) for the purpose of withdrawal of Deposited Securities, the
registration of issuances, cancellations, transfers, combinations and split-ups of ADS(s) and, if
applicable, to countersign ADRs evidencing the ADSs so issued, transferred, combined or split-up,
in each case in accordance with the provisions of the Deposit Agreement.

     The Registrar shall keep books for the registration of ADSs which at all reasonable times
shall be open for inspection by the Company and by the Holders of such ADSs, provided that such
inspection shall not be, to the Registrar’s knowledge, for the purpose of communicating with
Holders of such ADSs in the interest of a business or object other than the business of the Company
or other than a matter related to the Deposit Agreement or the ADSs.

     The Registrar may close the transfer books with respect to the ADSs, at any time or from time
to time, when deemed necessary or advisable by it in good faith in connection with the performance
of its duties hereunder, or at the reasonable written request of the Company subject, in all cases,
to Section 7.8.

     If any ADSs are listed on one or more stock exchanges or automated quotation systems in the
United States, the Depositary shall act as Registrar or appoint a Registrar or one or more
co-registrars for registration of issuances, cancellations, transfers, combinations and split-ups
of ADSs and, if applicable, to countersign ADRs evidencing the ADSs so issued, transferred,
combined or split-up, in accordance with any requirements of such exchanges or systems. Such
Registrar or co-registrars may be removed and a substitute or substitutes appointed by the
Depositary. The Depositary shall as promptly as practicable notify the Company of any such removal
or appointment.

     Section 5.2 Exoneration. Neither the Depositary nor the Company shall be obligated to do
or perform any act which is inconsistent with the provisions of the Deposit Agreement or incur any
liability (i) if the Depositary or the Company shall be prevented or forbidden from, or delayed in,
doing or performing any act or thing required by the terms of the Deposit Agreement, by reason of
any provision of any present or future law or regulation of the United States, the British Virgin
Islands or any other country, or of any other governmental authority or regulatory authority or
stock exchange, or on account of the possible criminal or civil penalties or restraint, or by
reason of any provision, present or future, of the Articles of Association of the Company or any
provision of or governing any Deposited Securities, or by reason of any act of God or war or other
circumstances beyond its control (including, without limitation, nationalization, expropriation,
currency restrictions, work stoppage, strikes, civil unrest, acts of terrorism, revolutions,
rebellions, explosions and computer failure), (ii) by reason of any exercise of, or failure to
exercise, any discretion provided for in the Deposit Agreement or in the Articles of

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Association of the Company or provisions of or governing Deposited Securities, (iii) for any action
or inaction in reliance upon the advice of or information from legal counsel, accountants, any
person presenting Shares for deposit, any Holder, any Beneficial Owner or authorized representative
thereof, or any other person believed by it in good faith to be competent to give such advice or
information, (iv) for the inability by a Holder or Beneficial Owner to benefit from any
distribution, offering, right or other benefit which is made available to holders of Deposited
Securities but is not, under the terms of the Deposit Agreement, made available to Holders of ADSs,
or (v) for any consequential or punitive damages for any breach of the terms of the Deposit
Agreement.

     The Depositary, its controlling persons, its agents, any Custodian and the Company, its
controlling persons and its agents may rely and shall be protected in acting upon any written
notice, request or other document believed by it to be genuine and to have been signed or presented
by the proper party or parties.

     No disclaimer of liability under the Securities Act is intended by any provision of the
Deposit Agreement.

     Section 5.3 Standard of Care. The Company and the Depositary assume no obligation and
shall not be subject to any liability under the Deposit Agreement or any ADRs to any Holder(s) or
Beneficial Owner(s), except that the Company and the Depositary agree to perform their respective
obligations specifically set forth in the Deposit Agreement or the applicable ADRs without
negligence or bad faith.

     Without limitation of the foregoing, neither the Depositary, nor the Company, nor any of their
respective controlling persons, or agents, shall be under any obligation to appear in, prosecute or
defend any action, suit or other proceeding in respect of any Deposited Securities or in respect of
the ADSs, which in its opinion may involve it in expense or liability, unless indemnity
satisfactory to it against all expense (including fees and disbursements of counsel) and liability
be furnished as often as may be required (and no Custodian shall be under any obligation whatsoever
with respect to such proceedings, the responsibility of the Custodian being solely to the
Depositary).

     The Depositary and its agents shall not be liable for any failure to carry out any
instructions to vote any of the Deposited Securities, or for the manner in which any vote is cast
or the effect of any vote, provided that any such action or omission is in good faith and in
accordance with the terms of the Deposit Agreement. The Depositary shall not incur any liability
for any failure to determine that any distribution or action may be lawful or reasonably
practicable, for the content of any information submitted to it by the Company for distribution to
the Holders or for any inaccuracy of any translation thereof, for any investment risk associated
with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited
Securities or for any tax consequences that may result from the ownership of ADSs, Shares or
Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to
lapse upon the terms of the Deposit Agreement, for the failure or timeliness of any notice from the
Company, or for any action of or failure to act by, or any information provided or not provided by,
DTC or any DTC Participant.

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     The Depositary shall not be liable for any acts or omissions made by a successor depositary
whether in connection with a previous act or omission of the Depositary or in connection with any
matter arising wholly after the removal or resignation of the Depositary, provided that in
connection with the issue out of which such potential liability arises the Depositary performed its
obligations without negligence or bad faith while it acted as Depositary.

     Section 5.4 Resignation and Removal of the Depositary; Appointment of Successor Depositary.
The Depositary may at any time resign as Depositary hereunder by written notice of resignation
delivered to the Company, such resignation to be effective on the earlier of (i) the 90th day after
delivery thereof to the Company (whereupon the Depositary shall be entitled to take the actions
contemplated in Section 6.2), or (ii) the appointment by the Company of a successor depositary and
its acceptance of such appointment as hereinafter provided.

     The Depositary may at any time be removed by the Company by written notice of such removal,
which removal shall be effective on the later of (i) the 90th day after delivery thereof to the
Depositary (whereupon the Depositary shall be entitled to take the actions contemplated in Section
6.2), or (ii) upon the appointment by the Company of a successor depositary and its acceptance of
such appointment as hereinafter provided.

     In case at any time the Depositary acting hereunder shall resign or be removed, the Company
shall use its best efforts to appoint a successor depositary, which shall be a bank or trust
company having an office in the Borough of Manhattan, the City of New York. Every successor
depositary shall be required by the Company to execute and deliver to its predecessor and to the
Company an instrument in writing accepting its appointment hereunder, and thereupon such successor
depositary, without any further act or deed (except as required by applicable law), shall become
fully vested with all the rights, powers, duties and obligations of its predecessor (other than as
contemplated in Sections 5.8 and 5.9). The predecessor depositary, upon payment of all sums due it
and on the written request of the Company shall, (i) execute and deliver an instrument transferring
to such successor all rights and powers of such predecessor hereunder (other than as contemplated
in Sections 5.8 and 5.9), (ii) duly assign, transfer and deliver all right, title and interest to
the Deposited Securities to such successor, and (iii) deliver to such successor a list of the
Holders of all outstanding ADSs and such other information relating to ADSs and Holders thereof as
the successor may reasonably request. Any such successor depositary shall promptly provide notice
of its appointment to such Holders.

     Any corporation into or with which the Depositary may be merged or consolidated shall be the
successor of the Depositary without the execution or filing of any document or any further act.

     Section 5.5 The Custodian. The Depositary has initially appointed Citibank, N.A. — Hong
Kong as Custodian for the purpose of the Deposit Agreement. The Custodian or its successors in
acting hereunder shall be subject at all times and in all respects to the direction of the
Depositary for the Deposited Securities for which the Custodian acts as custodian and shall be
responsible solely to it. If any Custodian resigns or is discharged from its duties hereunder

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with respect to any Deposited Securities and no other Custodian has previously been appointed
hereunder, the Depositary shall promptly appoint a substitute custodian. The Depositary shall
require such resigning or discharged Custodian to deliver the Deposited Securities held by it,
together with all such records maintained by it as Custodian with respect to such Deposited
Securities as the Depositary may request, to the Custodian designated by the Depositary. Whenever
the Depositary determines, in its discretion, that it is appropriate to do so, it may appoint an
additional custodian with respect to any Deposited Securities, or discharge the Custodian with
respect to any Deposited Securities and appoint a substitute custodian, which shall thereafter be
Custodian hereunder with respect to the Deposited Securities. Immediately upon any such change,
the Depositary shall give notice thereof in writing to all Holders of ADSs, each other Custodian
and the Company.

     Citibank, N.A. may at any time act as Custodian of the Deposited Securities pursuant to the
Deposit Agreement, in which case any reference to Custodian shall mean Citibank, N.A. solely in its
capacity as Custodian pursuant to the Deposit Agreement. Notwithstanding anything contained in the
Deposit Agreement or any ADR, the Depositary shall not be obligated to give notice to the Company,
any Holders of ADSs or any other Custodian of its acting as Custodian pursuant to the Deposit
Agreement.

     Upon the appointment of any successor depositary, any Custodian then acting hereunder shall,
unless otherwise instructed by the Depositary, continue to be the Custodian of the Deposited
Securities without any further act or writing, and shall be subject to the direction of the
successor depositary. The successor depositary so appointed shall, nevertheless, on the written
request of any Custodian, execute and deliver to such Custodian all such instruments as may be
proper to give to such Custodian full and complete power and authority to act on the direction of
such successor depositary.

     Section 5.6 Notices and Reports. On or before the first date on which the Company gives
notice, by publication or otherwise, of any meeting of holders of Shares or other Deposited
Securities, or of any adjourned meeting of such holders, or of the taking of any action by such
holders other than at a meeting, or of the taking of any action in respect of any cash or other
distributions or the offering of any rights in respect of Deposited Securities, the Company shall
transmit to the Depositary and the Custodian a copy of the notice thereof in the English language
but otherwise in the form given or to be given to holders of Shares or other Deposited Securities.
The Company shall also furnish to the Custodian and the Depositary a summary, in English, of any
applicable provisions or proposed provisions of the Articles of Association of the Company that may
be relevant or pertain to such notice of meeting or be the subject of a vote thereat.

     The Company will also transmit to the Depositary (a) an English language version of the other
notices, reports and communications which are made generally available by the Company to holders of
its Shares or other Deposited Securities and (b) the English-language versions of the Company’s
annual reports prepared in accordance with the applicable requirements of the Commission to the
extent such material is not available on the Company’s website or is not otherwise publically
available. The Depositary shall arrange, at the request of the Company and at the Company’s
expense, to provide copies thereof to all Holders or make such notices, reports and other
communications available to all Holders on a basis similar to that for holders of Shares

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or other Deposited Securities or on such other basis as the Company may advise the Depositary
or as may be required by any applicable law, regulation or stock exchange requirement. The Company
has delivered to the Depositary and the Custodian a copy of the Company’s Articles of Association
along with the provisions of or governing the Shares and any other Deposited Securities issued by
the Company in connection with such Shares, and promptly upon any amendment thereto or change
therein, the Company shall deliver to the Depositary and the Custodian written notice of such
amendment or change and, to the extent such amendment or change is not available on the Company’s
website or is not otherwise publicly available, shall deliver to the Depositary and the Custodian a
copy of such amendment thereto or change therein. The Depositary may rely upon such copy for all
purposes of the Deposit Agreement.

     The Depositary will, at the expense of the Company, make available a copy of any such notices,
reports or communications issued by the Company and delivered to the Depositary for inspection by
the Holders of the ADSs at the Depositary’s Principal Office, at the office of the Custodian and at
any other designated transfer office.

     Section 5.7 Issuance of Additional Shares, ADSs etc. The Company agrees that in the event
it or any of its Affiliates proposes (i) an issuance, sale or distribution of additional Shares,
(ii) an offering of rights to subscribe for Shares or other Deposited Securities, (iii) an issuance
or assumption of securities convertible into or exchangeable for Shares, (iv) an issuance of rights
to subscribe for securities convertible into or exchangeable for Shares, (v) an elective dividend
of cash or Shares, (vi) a redemption of Deposited Securities, (vii) a meeting of holders of
Deposited Securities, or solicitation of consents or proxies, relating to any reclassification of
securities, merger or consolidation or transfer of assets, (viii) any assumption, reclassification,
recapitalization, reorganization, merger, consolidation or sale of assets which affects the
Deposited Securities, or (ix) a distribution of securities other than Shares, it will obtain U.S.
legal advice and take all steps necessary to ensure that the proposed transaction does not violate
the registration provisions of the Securities Act, or any other applicable laws (including, without
limitation, the Investment Company Act of 1940, as amended, the Exchange Act and the securities
laws of the states of the U.S.). In support of the foregoing, the Company will furnish to the
Depositary (a) a written opinion of U.S. counsel (reasonably satisfactory to the Depositary)
stating whether such transaction (1) requires a registration statement under the Securities Act to
be in effect or (2) is exempt from the registration requirements of the Securities Act and (b) an
opinion of the British Virgin Islands counsel stating that (1) making the transaction available to
Holders and Beneficial Owners does not violate the laws or regulations of the British Virgin
Islands and (2) all requisite regulatory consents and approvals have been obtained in the British
Virgin Islands. If the filing of a registration statement is required, the Depositary shall not
have any obligation to proceed with the transaction unless it shall have received evidence
reasonably satisfactory to it that such registration statement has been declared effective. If,
being advised by counsel, the Company determines that a transaction is required to be registered
under the Securities Act, the Company will either (i) register such transaction to the extent
necessary, (ii) alter the terms of the transaction to avoid the registration requirements of the
Securities Act or (iii) direct the Depositary to take specific measures, in each case as
contemplated in the Deposit Agreement, to prevent such transaction from violating the registration
requirements of the Securities Act. The Company agrees with the Depositary that neither the
Company nor any of its Affiliates will at any time (i) deposit any Shares or other Deposited
Securities, either upon

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original issuance or upon a sale of Shares or other Deposited Securities previously issued and
reacquired by the Company or by any such Affiliate, or (ii) issue additional Shares, rights to
subscribe for such Shares, securities convertible into or exchangeable for Shares or rights to
subscribe for such securities or distribute securities other than Shares, unless such transaction
and the securities issuable in such transaction do not violate the registration provisions of the
Securities Act, or any other applicable laws (including, without limitation, the Investment Company
Act of 1940, as amended, the Exchange Act and the securities laws of the states of the U.S.).

     Notwithstanding anything else contained in the Deposit Agreement, nothing in the Deposit
Agreement shall be deemed to obligate the Company to file any registration statement in respect of
any proposed transaction.

     Section 5.8 Indemnification. The Depositary agrees to indemnify the Company and its
directors, officers, employees, agents and Affiliates against, and hold each of them harmless from,
any direct loss, liability, tax (other than taxes based on net income or similar taxes), charge or
expense of any kind whatsoever (including, but not limited to, the reasonable fees and expenses of
counsel) which may arise out of acts performed or omitted by the Depositary under the terms hereof
due to the negligence or bad faith of the Depositary.

     The Company agrees to indemnify the Depositary, the Custodian and any of their respective
directors, officers, employees, agents and Affiliates against, and hold each of them harmless from,
any direct loss, liability, tax, charge or expense of any kind whatsoever (including, but not
limited to, the reasonable fees and expenses of counsel) that may arise (a) out of or in connection
with any offer, issuance, sale, resale, transfer, deposit or withdrawal of ADRs, ADSs, the Shares,
or other Deposited Securities, as the case may be, (b) out of or as a result of any offering
documents in respect thereof or (c) out of acts performed or omitted, including, but not limited
to, any delivery by the Depositary on behalf of the Company of information regarding the Company in
connection with the Deposit Agreement, the ADRs, the ADSs, the Shares, or any Deposited Securities,
in any such case (i) by the Depositary, the Custodian or any of their respective directors,
officers, employees, agents and Affiliates, except to the extent such loss, liability, tax, charge
or expense is due to the negligence or bad faith of any of them, or (ii) by the Company or any of
its directors, officers, employees, agents and Affiliates. The Company shall not indemnify the
Depositary or the Custodian (for so long as the Custodian is a branch of Citibank, N.A.) against
any liability or expense arising out of information relating to the Depositary or such Custodian,
as the case may be, furnished in a signed writing to the Company, executed by the Depositary or
such Custodian expressly for use in any registration statement, prospectus or preliminary
prospectus relating to any Deposited Securities represented by the ADSs.

     The obligations set forth in this Section shall survive the termination of the Deposit
Agreement and the succession or substitution of any party hereto.

     Any person seeking indemnification hereunder (an “indemnified person”) shall notify the person
from whom it is seeking indemnification (the “indemnifying person”) of the commencement of any
indemnifiable action or claim promptly after such indemnified person

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becomes aware of such commencement (provided that the failure to make such notification shall
not affect such indemnified person’s rights to seek indemnification except to the extent the
indemnifying person is materially prejudiced by such failure) and shall consult in good faith with
the indemnifying person as to the conduct of the defense of such action or claim that may give rise
to an indemnity hereunder, which defense shall be reasonable in the circumstances. No indemnified
person shall compromise or settle any action or claim that may give rise to an indemnity hereunder
without the consent of the indemnifying person, which consent shall not be unreasonably withheld.

     Section 5.9 Fees and Charges of Depositary. The Company, the Holders, the Beneficial
Owners, and persons depositing Shares or surrendering ADSs for cancellation and withdrawal of
Deposited Securities shall be required to pay to the Depositary the Depositary’s fees and related
charges identified as payable by them respectively in the Fee Schedule attached hereto as
Exhibit B. All fees and charges so payable may, at any time and from time to time, be
changed by agreement between the Depositary and the Company, but, in the case of fees and charges
payable by Holders and Beneficial Owners, only in the manner contemplated in Section 6.1. The
Depositary shall provide, without charge, a copy of its latest fee schedule to anyone upon request.

     Depositary Fees payable upon (i) deposit of Shares against issuance of ADSs and (ii) surrender
of ADSs for cancellation and withdrawal of Deposited Securities will be charged by the Depositary
to the person to whom the ADSs so issued are delivered (in the case of ADS issuances) and to the
person who delivers the ADSs for cancellation to the Depositary (in the case of ADS cancellations).
In the case of ADSs issued by the Depositary into DTC or presented to the Depositary via DTC, the
ADS issuance and cancellation fees will be payable to the Depositary by the DTC Participant(s)
receiving the ADSs from the Depositary or the DTC Participant(s) surrendering the ADSs to the
Depositary for cancellation, as the case may be, on behalf of the Beneficial Owner(s) and will be
charged by the DTC Participant(s) to the account(s) of the applicable Beneficial Owner(s) in
accordance with the procedures and practices of the DTC participant(s) as in effect at the time.
Depositary fees in respect of distributions and the Depositary services fee are payable to the
Depositary by Holders as of the applicable ADS Record Date established by the Depositary. In the
case of distributions of cash, the amount of the applicable Depositary fees is deducted by the
Depositary from the funds being distributed. In the case of distributions other than cash and the
Depositary service fee, the Depositary will invoice the applicable Holders as of the ADS Record
Date established by the Depositary. For ADSs held through DTC, the Depositary fees for
distributions other than cash and the Depositary service fee are charged by the Depositary to the
DTC Participants in accordance with the procedures and practices prescribed by DTC from time to
time and the DTC Participants in turn charge the amount of such fees to the Beneficial Owners for
whom they hold ADSs.

     The Depositary may reimburse the Company for certain expenses incurred by the Company in
respect of the ADR program established pursuant to the Deposit Agreement, by making available a
portion of the Depositary fees charged in respect of the ADR program or otherwise, upon such terms
and conditions as the Company and the Depositary may agree from time to time. The Company shall
pay to the Depositary such fees and charges and reimburse the Depositary for such out-of-pocket
expenses as the Depositary and the Company may agree from

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time to time. Responsibility for payment of such charges and reimbursements may from time to
time be changed by agreement between the Company and the Depositary. Unless otherwise agreed, the
Depositary shall present its statement for such expenses and fees or charges to the Company once
every three months. The charges and expenses of the Custodian are for the sole account of the
Depositary.

     The right of the Depositary to receive payment of fees, charges and expenses as provided above
shall survive the termination of the Deposit Agreement. As to any Depositary, upon the resignation
or removal of such Depositary as described in Section 5.4, such right shall extend for those fees,
charges and expenses incurred prior to the effectiveness of such resignation or removal.

     Section 5.10 Pre-Release Transactions. Subject to the further terms and provisions of this
Section 5.10, the Depositary, its Affiliates and their agents, on their own behalf, may own and
deal in any class of securities of the Company and its Affiliates and in ADSs. In its capacity as
Depositary, the Depositary shall not lend Shares or ADSs; provided, however, that the Depositary
may (i) issue ADSs prior to the receipt of Shares pursuant to Section 2.3 and (ii) deliver Shares
prior to the receipt of ADSs for withdrawal of Deposited Securities pursuant to Section 2.7,
including ADSs which were issued under (i) above but for which Shares may not have been received
(each such transaction a “Pre-Release Transaction”). The Depositary may receive ADSs in
lieu of Shares under (i) above and receive Shares in lieu of ADSs under (ii) above. Each such
Pre-Release Transaction will be (a) subject to a written agreement whereby the person or entity
(the “Applicant”) to whom ADSs or Shares are to be delivered (w) represents that at the
time of the Pre-Release Transaction the Applicant or its customer owns the Shares or ADSs that are
to be delivered by the Applicant under such Pre-Release Transaction, (x) agrees to indicate the
Depositary as owner of such Shares or ADSs in its records and to hold such Shares or ADSs in trust
for the Depositary until such Shares or ADSs are delivered to the Depositary or the Custodian, (y)
unconditionally guarantees to deliver to the Depositary or the Custodian, as applicable, such
Shares or ADSs, and (z) agrees to any additional restrictions or requirements that the Depositary
deems appropriate, (b) at all times fully collateralized with cash, U.S. government securities or
such other collateral as the Depositary deems appropriate, (c) terminable by the Depositary on not
more than five (5) business days’ notice and (d) subject to such further indemnities and credit
regulations as the Depositary deems appropriate. The Depositary will normally limit the number of
ADSs and Shares involved in such Pre-Release Transactions at any one time to thirty percent (30%)
of the ADSs outstanding (without giving effect to ADSs outstanding under (i) above), provided,
however, that the Depositary reserves the right to change or disregard such limit from time to time
as it deems appropriate.

     The Depositary may also set limits with respect to the number of ADSs and Shares involved in
Pre-Release Transactions with any one person on a case-by-case basis as it deems appropriate. The
Depositary may retain for its own account any compensation received by it in conjunction with the
foregoing. Collateral provided pursuant to (b) above, but not the earnings thereon, shall be held
for the benefit of the Holders (other than the Applicant).

     Section 5.11 Restricted Securities Owners. The Company agrees to advise in writing each of
the persons or entities who, to the knowledge of the Company, holds Restricted

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Securities that such Restricted Securities are ineligible for deposit hereunder (except under the
circumstances contemplated in Section 2.14) and, to the extent practicable, shall require each of
such persons to represent in writing that such person will not deposit Restricted Securities
hereunder (except under the circumstances contemplated in Section 2.14).

ARTICLE VI

AMENDMENT AND TERMINATION

     Section 6.1 Amendment/Supplement. Subject to the terms and conditions of this Section 6.1
and applicable law, the ADRs outstanding at any time, the provisions of the Deposit Agreement and
the form of ADR attached hereto and to be issued under the terms hereof may at any time and from
time to time be amended or supplemented by written agreement between the Company and the Depositary
in any respect which they may deem necessary or desirable without the prior written consent of the
Holders or Beneficial Owners. Any amendment or supplement which shall impose or increase any fees
or charges (other than charges in connection with foreign exchange control regulations, and taxes
and other governmental charges, delivery and other such expenses), or which shall otherwise
materially prejudice any substantial existing right of Holders or Beneficial Owners, shall not,
however, become effective as to outstanding ADSs until the expiration of thirty (30) days after
notice of such amendment or supplement shall have been given to the Holders of outstanding ADSs.
Notice of any amendment to the Deposit Agreement or any ADR shall not need to describe in detail
the specific amendments effectuated thereby, and failure to describe the specific amendments in any
such notice shall not render such notice invalid, provided, however, that, in each
such case, the notice given to the Holders identifies a means for Holders and Beneficial Owners to
retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the
Depositary’s or the Company’s website or upon request from the Depositary). The parties hereto
agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the
Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the
Securities Act or (b) the ADSs to be settled solely in electronic book-entry form and (ii) do not
in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed
not to materially prejudice any substantial rights of Holders or Beneficial Owners. Every Holder
and Beneficial Owner at the time any amendment or supplement so becomes effective shall be deemed,
by continuing to hold such ADSs, to consent and agree to such amendment or supplement and to be
bound by the Deposit Agreement and the ADR, if applicable, as amended or supplemented thereby. In
no event shall any amendment or supplement impair the right of the Holder to surrender such ADS and
receive therefor the Deposited Securities represented thereby, except in order to comply with
mandatory provisions of applicable law. Notwithstanding the foregoing, if any governmental body
should adopt new laws, rules or regulations which would require an amendment of, or supplement to,
the Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or
supplement the Deposit Agreement and any ADRs at any time in accordance with such changed laws,
rules or regulations. Such amendment or supplement to the Deposit Agreement and any ADRs in such
circumstances may become effective before a notice of such amendment or supplement is given to
Holders or within any other period of time as required for compliance with such laws, rules or
regulations.

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     Section 6.2 Termination. The Depositary shall, at any time at the written direction of the
Company, terminate the Deposit Agreement by distributing notice of such termination to the Holders
of all ADSs then outstanding at least thirty (30) days prior to the date fixed in such notice for
such termination. If ninety (90) days shall have expired after (i) the Depositary shall have
delivered to the Company a written notice of its election to resign, or (ii) the Company shall have
delivered to the Depositary a written notice of the removal of the Depositary, and, in either case,
a successor depositary shall not have been appointed and accepted its appointment as provided in
Section 5.4 of the Deposit Agreement, the Depositary may terminate the Deposit Agreement by
distributing notice of such termination to the Holders of all ADSs then outstanding at least thirty
(30) days prior to the date fixed in such notice for such termination. The date so fixed for
termination of the Deposit Agreement in any termination notice so distributed by the Depositary to
the Holders of ADSs is referred to as the “Termination Date”. Until the Termination Date,
the Depositary shall continue to perform all of its obligations under the Deposit Agreement, and
the Holders and Beneficial Owners will be entitled to all of their rights under the Deposit
Agreement.

     If any ADSs shall remain outstanding after the Termination Date, the Registrar and the
Depositary shall not, after the Termination Date, have any obligation to perform any further acts
under the Deposit Agreement, except that the Depositary shall, subject, in each case, to the terms
and conditions of the Deposit Agreement, continue to (i) collect dividends and other distributions
pertaining to Deposited Securities, (ii) sell securities and other property received in respect of
Deposited Securities, (iii) deliver Deposited Securities, together with any dividends or other
distributions received with respect thereto and the net proceeds of the sale of any securities or
other property, in exchange for ADSs surrendered to the Depositary (after deducting, or charging,
as the case may be, in each case, the fees and charges of, and expenses incurred by, the
Depositary, and all applicable taxes or governmental charges for the account of the Holders and
Beneficial Owners, in each case upon the terms set forth in Section 5.9 of the Deposit Agreement),
and (iv) take such actions as may be required under applicable law in connection with its role as
Depositary under the Deposit Agreement.

     At any time after the Termination Date, the Depositary may sell the Deposited Securities then
held under the Deposit Agreement and shall after such sale hold un-invested the net proceeds of
such sale, together with any other cash then held by it under the Deposit Agreement, in an
un-segregated account and without liability for interest, for the pro - rata benefit of the Holders
whose ADSs have not theretofore been surrendered. After making such sale, the Depositary shall be
discharged from all obligations under the Deposit Agreement except (i) to account for such net
proceeds and other cash (after deducting, or charging, as the case may be, in each case, the fees
and charges of, and expenses incurred by, the Depositary, and all applicable taxes or governmental
charges for the account of the Holders and Beneficial Owners, in each case upon the terms set forth
in Section 5.9 of the Deposit Agreement), and (ii) as may be required at law in connection with the
termination of the Deposit Agreement. After the Termination Date, the Company shall be discharged
from all obligations under the Deposit Agreement, except for its obligations to the Depositary
under Sections 5.8, 5.9 and 7.6 of the Deposit Agreement. The obligations under the terms of the
Deposit Agreement of Holders and Beneficial Owners of ADSs outstanding as of the Termination Date
shall survive the

40

 

Termination Date and shall be discharged only when the applicable ADSs are presented by their
Holders to the Depositary for cancellation under the terms of the Deposit Agreement.

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Counterparts. The Deposit Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of such counterparts together shall
constitute one and the same agreement. Copies of the Deposit Agreement shall be maintained with
the Depositary and shall be open to inspection by any Holder during business hours.

     Section 7.2 No Third-Party Beneficiaries. The Deposit Agreement is for the exclusive
benefit of the parties hereto (and their successors) and shall not be deemed to give any legal or
equitable right, remedy or claim whatsoever to any other person, except to the extent specifically
set forth in the Deposit Agreement. Nothing in the Deposit Agreement shall be deemed to give rise
to a partnership or joint venture among the parties nor establish a fiduciary or similar
relationship among the parties. The parties hereto acknowledge and agree that (i) the Depositary
and its Affiliates may at any time have multiple banking relationships with the Company and its
Affiliates, (ii) the Depositary and its Affiliates may be engaged at any time in transactions in
which parties adverse to the Company or the Holders or Beneficial Owners may have interests and
(iii) nothing contained in the Deposit Agreement shall (a) preclude the Depositary or any of its
Affiliates from engaging in such transactions or establishing or maintaining such relationships,
and (b) obligate the Depositary or any of its Affiliates to disclose such transactions or
relationships or to account for any profit made or payment received in such transactions or
relationships.

     Section 7.3 Severability. In case any one or more of the provisions contained in the
Deposit Agreement or in the ADRs should be or become invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein or
therein shall in no way be affected, prejudiced or disturbed thereby.

     Section 7.4 Holders and Beneficial Owners as Parties; Binding Effect. The Holders and
Beneficial Owners from time to time of ADSs issued hereunder shall be parties to the Deposit
Agreement and shall be bound by all of the terms and conditions hereof and of any ADR evidencing
their ADSs by acceptance thereof or any beneficial interest therein.

     Section 7.5 Notices. Any and all notices to be given to the Company shall be deemed to
have been duly given if personally delivered or sent by mail, air courier or cable, telex or
facsimile transmission, confirmed by letter personally delivered or sent by mail or air courier,
addressed to Camelot Information Systems Inc., Beijing Publishing House, A6 North Third Ring Road,
Xicheng District, Beijing, the People’s Republic of China, Attention: Yiming Ma, or to any
other address which the Company may specify in writing to the Depositary.

41

 

     Any and all notices to be given to the Depositary shall be deemed to have been duly given if
personally delivered or sent by mail, air courier or cable, telex or facsimile transmission,
confirmed by letter personally delivered or sent by mail or air courier, addressed to Citibank,
N.A., 388 Greenwich Street, New York, New York 10013, U.S.A., Attention: Depositary
Receipts Department (facsimile number: 212-816-6865), or to any other address which the Depositary
may specify in writing to the Company.

     Any and all notices to be given to any Holder shall be deemed to have been duly given if (a)
personally delivered or sent by mail or cable, telex or facsimile transmission, confirmed by
letter, addressed to such Holder at the address of such Holder as it appears on the books of the
Depositary or, if such Holder shall have filed with the Depositary a request that notices intended
for such Holder be mailed to some other address, at the address specified in such request, or (b)
if a Holder shall have designated such means of notification as an acceptable means of notification
under the terms of the Deposit Agreement, by means of electronic messaging addressed for delivery
to the e-mail address designated by the Holder for such purpose. Notice to Holders shall be deemed
to be notice to Beneficial Owners for all purposes of the Deposit Agreement. Failure to notify a
Holder or any defect in the notification to a Holder shall not affect the sufficiency of
notification to other Holders or to the Beneficial Owners of ADSs held by such other Holders.

     Delivery of a notice sent by mail, air courier or cable, telex or facsimile transmission shall
be deemed to be effective at the time when a duly addressed letter containing the same (or a
confirmation thereof in the case of a cable, telex or facsimile transmission) is deposited, postage
prepaid, in a post-office letter box or delivered to an air courier service, without regard for the
actual receipt or time of actual receipt thereof by a Holder. The Depositary or the Company may,
however, act upon any cable, telex or facsimile transmission received by it from any Holder, the
Custodian, the Depositary, or the Company, notwithstanding that such cable, telex or facsimile
transmission shall not be subsequently confirmed by letter.

     Delivery of a notice by means of electronic messaging shall be deemed to be effective at the
time of the initiation of the transmission by the sender (as shown on the sender’s records),
notwithstanding that the intended recipient retrieves the message at a later date, fails to
retrieve such message, or fails to receive such notice on account of its failure to maintain the
designated e-mail address, its failure to designate a substitute e-mail address or for any other
reason.

     Section 7.6 Governing Law and Jurisdiction. The Deposit Agreement and the ADRs shall be
interpreted in accordance with, and all rights hereunder and thereunder and provisions hereof and
thereof shall be governed by, the laws of the State of New York applicable to contracts made and to
be wholly performed in that State. Notwithstanding anything contained in the Deposit Agreement,
any ADR or any present or future provisions of the laws of the State of New York, the rights of
holders of Shares and of any other Deposited Securities and the obligations and duties of the
Company in respect of the holders of Shares and other Deposited Securities, as such, shall be
governed by the laws of the British Virgin Islands (or, if applicable, such other laws as may
govern the Deposited Securities).

42

 

     Except as set forth in the following paragraph of this Section 7.6, the Company and the
Depositary agree that the federal or state courts in the City of New York shall have jurisdiction
to hear and determine any suit, action or proceeding and to settle any dispute between them that
may arise out of or in connection with the Deposit Agreement and, for such purposes, each
irrevocably submits to the non-exclusive jurisdiction of such courts. The Company hereby
irrevocably designates, appoints and empowers CT Corporation System (the “Agent”) now at
111 Eighth Avenue, 13th floor, New York, NY 10011 as its authorized agent to receive and
accept for and on its behalf, and on behalf of its properties, assets and revenues, service by mail
of any and all legal process, summons, notices and documents that may be served in any suit, action
or proceeding brought against the Company in any federal or state court as described in the
preceding sentence or in the next paragraph of this Section 7.6. If for any reason the Agent shall
cease to be available to act as such, the Company agrees to designate a new agent in New York on
the terms and for the purposes of this Section 7.6 reasonably satisfactory to the Depositary. The
Company further hereby irrevocably consents and agrees to the service of any and all legal process,
summons, notices and documents in any suit, action or proceeding against the Company, by service by
mail of a copy thereof upon the Agent (whether or not the appointment of such Agent shall for any
reason prove to be ineffective or such Agent shall fail to accept or acknowledge such service),
with a copy mailed to the Company by registered or certified air mail, postage prepaid, to its
address provided in Section 7.5. The Company agrees that the failure of the Agent to give any
notice of such service to it shall not impair or affect in any way the validity of such service or
any judgment rendered in any action or proceeding based thereon.

     Notwithstanding the foregoing, the Depositary and the Company unconditionally agree that in
the event that a Holder or Beneficial Owner brings a suit, action or proceeding against (a) the
Company, (b) the Depositary in its capacity as Depositary under the Deposit Agreement or (c)
against both the Company and the Depositary, in any such case, in any state or federal court of the
United States, and the Depositary or the Company have any claim, for indemnification or otherwise,
against each other arising out of the subject matter of such suit, action or proceeding, then the
Company and the Depositary may pursue such claim against each other in the state or federal court
in the United States in which such suit, action, or proceeding is pending and, for such purposes,
the Company and the Depositary irrevocably submit to the non-exclusive jurisdiction of such courts.
The Company agrees that service of process upon the Agent in the manner set forth in the preceding
paragraph shall be effective service upon it for any suit, action or proceeding brought against it
as described in this paragraph.

     The Company irrevocably and unconditionally waives, to the fullest extent permitted by law,
any objection that it may now or hereafter have to the laying of venue of any actions, suits or
proceedings brought in any court as provided in this Section 7.6, and hereby further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient forum.

     The Company irrevocably and unconditionally waives, to the fullest extent permitted by law,
and agrees not to plead or claim, any right of immunity from legal action, suit or proceeding, from
setoff or counterclaim, from the jurisdiction of any court, from service of

43

 

process, from attachment upon or prior to judgment, from attachment in aid of execution or
judgment, from execution of judgment, or from any other legal process or proceeding for the giving
of any relief or for the enforcement of any judgment, and consents to such relief and enforcement
against it, its assets and its revenues in any jurisdiction, in each case with respect to any
matter arising out of, or in connection with, the Deposit Agreement, any ADR or the Deposited
Securities.

     No disclaimer of liability under the Securities Act is intended by any provision of the
Deposit Agreement. The provisions of this Section 7.6 shall survive any termination of the Deposit
Agreement, in whole or in part.

     Section 7.7 Assignment. Subject to the provisions of Section 5.4, the Deposit Agreement
may not be assigned by either the Company or the Depositary.

     Section 7.8 Compliance with U.S. Securities Laws. Notwithstanding anything in the Deposit
Agreement to the contrary, the withdrawal or delivery of Deposited Securities will not be suspended
by the Company or the Depositary except as would be permitted by Instruction I.A.(1) of the General
Instructions to Form F-6 Registration Statement, as amended from time to time, under the Securities
Act.

     Section 7.9 British Virgin Islands Law References. Any summary of the laws and regulations
of the British Virgin Islands and of the terms of the Company’s Articles of Association set forth
in the Deposit Agreement have been provided by the Company solely for the convenience of Holders,
Beneficial Owners and the Depositary. While such summaries are believed by the Company to be
accurate as of the date of the Deposit Agreement, (i) they are summaries and as such may not
include all aspects of the materials summarized applicable to a Holder or Beneficial Owner, and
(ii) these laws and regulations and the Company’s Articles of Association may change after the date
of the Deposit Agreement. Neither the Depositary nor the Company has any obligation under the
terms of the Deposit Agreement to update any such summaries.

     Section 7.10 Titles and References.

     (a) Deposit Agreement. All references in the Deposit Agreement to exhibits, articles,
sections, subsections, and other subdivisions refer to the exhibits, articles, sections,
subsections and other subdivisions of the Deposit Agreement unless expressly provided otherwise.
The words “the Deposit Agreement”, “herein”, “hereof”, “hereby”, “hereunder”, and words of similar
import refer to the Deposit Agreement as a whole as in effect at the relevant time between the
Company, the Depositary and the Holders and Beneficial Owners of ADSs and not to any particular
subdivision unless expressly so limited. Pronouns in masculine, feminine and neuter gender shall
be construed to include any other gender, and words in the singular form shall be construed to
include the plural and vice versa unless the context otherwise requires. Titles to sections of the
Deposit Agreement are included for convenience only and shall be disregarded in construing the
language contained in the Deposit Agreement. References to “applicable laws and regulations” shall
refer to laws and regulations applicable to ADRs, ADSs

44

 

or Deposited Securities as in effect at the relevant time of determination, unless otherwise
required by law or regulation.

     (b) ADRs. All references in any ADR(s) to paragraphs, exhibits, articles, sections,
subsections, and other subdivisions refer to the paragraphs, exhibits, articles, sections,
subsections and other subdivisions of the ADR(s) in question unless expressly provided otherwise.
The words “the Receipt”, “the ADR”, “herein”, “hereof”, “hereby”, “hereunder”, and words of similar
import used in any ADR refer to the ADR as a whole and as in effect at the relevant time, and not
to any particular subdivision unless expressly so limited. Pronouns in masculine, feminine and
neuter gender in any ADR shall be construed to include any other gender, and words in the singular
form shall be construed to include the plural and vice versa unless the context otherwise requires.
Titles to paragraphs of any ADR are included for convenience only and shall be disregarded in
construing the language contained in the ADR. References to “applicable laws and regulations”
shall refer to laws and regulations applicable to ADRs, ADSs or Deposited Securities as in effect
at the relevant time of determination, unless otherwise required by law or regulation.

45

 

     IN WITNESS WHEREOF, CAMELOT INFORMATION SYSTEMS INC. and CITIBANK, N.A. have duly executed the
Deposit Agreement as of the day and year first above set forth and all Holders and Beneficial
Owners shall become parties hereto upon acceptance by them of ADSs issued in accordance with the
terms hereof, or upon acquisition of any beneficial interest therein.

	 	 	 	 	 
	 	CAMELOT INFORMATION SYSTEMS INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

1

 

EXHIBIT A

[FORM OF ADR]

	 	 	 	 	 
	Number
	 	CUSIP NUMBER:	 	 
	 	 	 	 	 

	 	 
	 	American Depositary Shares (each

American Depositary Share
representing the right to receive four
(4) ordinary shares of Camelot
Information Systems Inc.)

AMERICAN DEPOSITARY RECEIPT

FOR

AMERICAN DEPOSITARY SHARES

representing

DEPOSITED ORDINARY SHARES

of

CAMELOT INFORMATION SYSTEMS INC.

(Incorporated under the laws of the British Virgin Islands)

     CITIBANK, N.A., a national banking association organized and existing under the laws of the
United States of America, as depositary (the “Depositary”), hereby certifies that                     is
the owner of                      American Depositary Shares (hereinafter “ADS”), representing deposited
ordinary shares, including evidence of rights to receive such ordinary shares (the “Shares”), of
Camelot Information Systems Inc., a company incorporated under the laws of the British Virgin
Islands (the “Company”). As of the date of the Deposit Agreement (as hereinafter defined), each
ADS represents the right to receive four (4) Shares deposited under the Deposit Agreement with the
Custodian, which at the date of execution of the Deposit Agreement is Citibank, N.A. — Hong Kong
(the “Custodian”). The ADS(s)-to-Share(s) ratio is subject to amendment as provided in Articles IV
and VI of the Deposit Agreement. The Depositary’s Principal Office is located at 388 Greenwich
Street, New York, New York 10013, U.S.A.

A-1

 

     (1) The Deposit Agreement. This American Depositary Receipt is one of an issue of
American Depositary Receipts (“ADRs”), all issued and to be issued upon the terms and
conditions set forth in the Deposit Agreement, dated as of [DATE], 2010 (as amended and
supplemented from time to time, the “Deposit Agreement”), by and among the Company, the Depositary,
and all Holders and Beneficial Owners from time to time of ADSs issued thereunder. The Deposit
Agreement sets forth the rights and obligations of Holders and Beneficial Owners of ADSs and the
rights and duties of the Depositary in respect of the Shares deposited thereunder and any and all
other securities, property and cash from time to time received in respect of such Shares and held
thereunder (such Shares, securities, property and cash are herein called “Deposited Securities”).
Copies of the Deposit Agreement are on file at the Principal Office of the Depositary and with the
Custodian. Each Holder and each Beneficial Owner, upon acceptance of any ADSs (or any interest
therein) issued in accordance with the terms and conditions of the Deposit Agreement, shall be
deemed for all purposes to (a) be a party to and bound by the terms of the Deposit Agreement and
applicable ADR(s), and (b) appoint the Depositary its attorney-in-fact, with full power to
delegate, to act on its behalf and to take any and all actions contemplated in the Deposit
Agreement and the applicable ADR(s), to adopt any and all procedures necessary to comply with
applicable law and to take such action as the Depositary in its sole discretion may deem necessary
or appropriate to carry out the purposes of the Deposit Agreement and the applicable ADR(s), the
taking of such actions to be the conclusive determinant of the necessity and appropriateness
thereof.

     The statements made on the face and reverse of this ADR are summaries of certain provisions of
the Deposit Agreement and the Articles of Association of the Company (as in effect on the date of
the signing of the Deposit Agreement) and are qualified by and subject to the detailed provisions
of the Deposit Agreement and the Articles of Association, to which reference is hereby made. All
capitalized terms used herein which are not otherwise defined herein shall have the meanings
ascribed thereto in the Deposit Agreement. The Depositary makes no representation or warranty as
to the validity or worth of the Deposited Securities. The Depositary has made arrangements for the
acceptance of the ADSs into DTC. Each Beneficial Owner of ADSs held through DTC must rely on the
procedures of DTC and the DTC Participants to exercise and be entitled to any rights attributable
to such ADSs. The Depositary may issue Uncertificated ADSs subject, however, to the terms and
conditions of Section 2.13 of the Deposit Agreement.

     (2) Withdrawal of Deposited Securities. The Holder of this ADR (and of the ADSs
evidenced hereby) shall be entitled to Delivery (at the Custodian’s designated office) of the
Deposited Securities at the time represented by the ADSs evidenced hereby upon satisfaction of each
of the following conditions: (i) the Holder (or a duly authorized attorney of the Holder) has duly
Delivered to the Depositary at its Principal Office the ADSs evidenced hereby (and, if applicable,
this ADR) for the purpose of withdrawal of the Deposited Securities represented thereby, (ii) if
applicable and so required by the Depositary, this ADR Delivered to the Depositary for such purpose
has been properly endorsed in blank or is accompanied by proper instruments of transfer in blank
(including signature guarantees in accordance with standard securities industry practice), (iii) if
so required by the Depositary, the Holder of the ADSs has

A-2

 

executed and delivered to the Depositary
a written order directing the Depositary to cause the Deposited Securities being withdrawn to be
Delivered to or upon the written order of the person(s) designated in such order, and (iv) all
applicable fees and charges of, and expenses incurred by, the Depositary and all applicable taxes and governmental charges (as are set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement) have been paid, subject,
however, in each case, to the terms and conditions of this ADR evidencing the surrendered ADSs, of
the Deposit Agreement, of the Company’s Articles of Association, of any applicable laws and the
rules of the applicable book-entry settlement entity, and to any provisions of or governing the
Deposited Securities, in each case as in effect at the time thereof.

     Upon satisfaction of each of the conditions specified above, the Depositary (i) shall cancel
the ADSs Delivered to it (and, if applicable, the ADR(s) evidencing the ADSs so Delivered), (ii)
shall direct the Registrar to record the cancellation of the ADSs so Delivered on the books
maintained for such purpose, and (iii) shall direct the Custodian to Deliver, or cause the Delivery
of, in each case, without unreasonable delay, the Deposited Securities represented by the ADSs so
canceled together with any certificate or other document of title for the Deposited Securities, or
evidence of the electronic transfer thereof (if available), as the case may be, to or upon the
written order of the person(s) designated in the order delivered to the Depositary for such
purpose, subject however, in each case, to the terms and conditions of the Deposit Agreement, of
this ADR evidencing the ADS so cancelled, of the Articles of Association of the Company, of any
applicable laws and of the rules of the applicable book-entry settlement entity, and to the terms
and conditions of or governing the Deposited Securities, in each case as in effect at the time
thereof.

     The Depositary shall not accept for surrender ADSs representing less than one (1) Share. In
the case of Delivery to it of ADSs representing a number other than a whole number of Shares, the
Depositary shall cause ownership of the appropriate whole number of Shares to be Delivered in
accordance with the terms hereof, and shall, at the discretion of the Depositary, either (i) return
to the person surrendering such ADSs the number of ADSs representing any remaining fractional
Share, or (ii) sell or cause to be sold the fractional Share represented by the ADSs so surrendered
and remit the proceeds of such sale (net of (a) applicable fees and charges of, and expenses
incurred by, the Depositary and (b) taxes withheld) to the person surrendering the ADSs.
Notwithstanding anything else contained in this ADR or the Deposit Agreement, the Depositary may
make delivery at the Principal Office of the Depositary of (i) any cash dividends or cash
distributions, or (ii) any proceeds from the sale of any distributions of shares or rights, which
are at the time held by the Depositary in respect of the Deposited Securities represented by the
ADSs surrendered for cancellation and withdrawal. At the request, risk and expense of any Holder
so surrendering ADSs represented by this ADR, and for the account of such Holder, the Depositary
shall direct the Custodian to forward (to the extent permitted by law) any cash or other property
(other than securities) held by the Custodian in respect of the Deposited Securities represented by
such ADSs to the Depositary for delivery at the Principal Office of the Depositary. Such direction
shall be given by letter or, at the request, risk and expense of such Holder, by cable, telex or
facsimile transmission.

A-3

 

     (3) Transfer, Combination and Split-Up of ADRs. The Registrar shall register the
transfer of this ADR (and of the ADSs represented hereby) on the books maintained for such purpose
and the Depositary shall (x) cancel this ADR and execute new ADRs evidencing the same aggregate
number of ADSs as those evidenced by this ADR when canceled by the Depositary, (y) cause the
Registrar to countersign such new ADRs, and (z) Deliver such new ADRs to or upon the order of the person entitled thereto, if each of the following conditions
has been satisfied: (i) this ADR has been duly Delivered by the Holder (or by a duly authorized
attorney of the Holder) to the Depositary at its Principal Office for the purpose of effecting a
transfer thereof, (ii) this surrendered ADR has been properly endorsed or is accompanied by proper
instruments of transfer (including signature guarantees in accordance with standard securities
industry practice), (iii) this surrendered ADR has been duly stamped (if required by the laws of
the State of New York or of the United States), and (iv) all applicable fees and charges of, and
expenses incurred by, the Depositary and all applicable taxes and governmental charges (as are set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement) have been paid, subject,
however, in each case, to the terms and conditions of this ADR, of the Deposit Agreement and of
applicable law, in each case as in effect at the time thereof.

     The Registrar shall register the split-up or combination of this ADR (and of the ADSs
represented hereby) on the books maintained for such purpose and the Depositary shall (x) cancel
this ADR and execute new ADRs for the number of ADSs requested, but in the aggregate not exceeding
the number of ADSs evidenced by this ADR (canceled), (y) cause the Registrar to countersign such
new ADRs, and (z) Deliver such new ADRs to or upon the order of the Holder thereof, if each of the
following conditions has been satisfied: (i) this ADR has been duly Delivered by the Holder (or by
a duly authorized attorney of the Holder) to the Depositary at its Principal Office for the purpose
of effecting a split-up or combination hereof, and (ii) all applicable fees and charges of, and
expenses incurred by, the Depositary and all applicable taxes and government charges (as are set
forth in Section 5.9 of, and Exhibit B to, the Deposit Agreement) have been paid, subject,
however, in each case, to the terms and conditions of this ADR, of the Deposit Agreement and of
applicable law, in each case as in effect at the time thereof.

     (4) Pre-Conditions to Registration, Transfer, Etc. As a condition precedent to the
execution and delivery, the registration of issuance, transfer, split-up, combination or surrender,
of any ADR, the delivery of any distribution thereon, or the withdrawal of any Deposited
Securities, the Depositary or the Custodian may require (i) payment from the depositor of Shares or
presenter of ADSs or of an ADR of a sum sufficient to reimburse it for any tax or other
governmental charge and any stock transfer or registration fee with respect thereto (including any
such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any
applicable fees and charges of the Depositary as provided in Section 5.9 and Exhibit B to
the Deposit Agreement and in this ADR, (ii) the production of proof satisfactory to it as to the
identity and genuineness of any signature or any other matters contemplated in Section 3.1 of the
Deposit Agreement, and (iii) compliance with (A) any laws or governmental regulations relating to
the execution and delivery of ADRs or ADSs or to the withdrawal of Deposited Securities and (B)
such reasonable regulations as the Depositary and the Company

A-4

 

may establish consistent with the
provisions of this ADR, the Deposit Agreement and applicable law.

     The issuance of ADSs against deposits of Shares generally or against deposits of particular
Shares may be suspended, or the deposit of particular Shares may be refused, or the registration of
transfer of ADSs in particular instances may be refused, or the registration of transfer of ADSs generally may be suspended, during any period when the transfer books of the
Company, the Depositary, a Registrar or the Share Registrar are closed or if any such action is
deemed necessary or advisable by the Depositary (whereupon the Depositary shall notify the Company)
or the Company, in good faith, at any time or from time to time because of any requirement of law
or regulation, any government or governmental body or commission or any securities exchange on
which the Shares or ADSs are listed, or under any provision of the Deposit Agreement or this ADR,
or under any provision of, or governing, the Deposited Securities, or because of a meeting of
shareholders of the Company or for any other reason, subject, in all cases to paragraph (24) and
Section 7.8 of the Deposit Agreement. Notwithstanding any provision of the Deposit Agreement or
this ADR to the contrary, Holders are entitled to surrender outstanding ADSs to withdraw the
Deposited Securities associated therewith at any time subject only to (i) temporary delays caused
by closing the transfer books of the Depositary or the Company or the deposit of Shares in
connection with voting at a shareholders’ meeting or the payment of dividends, (ii) the payment of
fees, taxes and similar charges, (iii) compliance with any U.S. or foreign laws or governmental
regulations relating to the ADSs or the withdrawal of the Deposited Securities, and (iv) other
circumstances specifically contemplated by Instruction I.A.(l) of the General Instructions to Form
F-6 (as such General Instructions may be amended from time to time).

     (5) Compliance With Information Requests. Notwithstanding any other provision of the
Deposit Agreement or this ADR, each Holder and Beneficial Owner of the ADSs represented hereby
agrees to comply with requests from the Company pursuant to applicable law, the rules and
requirements of the New York Stock Exchange or any stock exchange on which Shares or ADSs are, or
will be, registered, traded or listed, or the Articles of Association of the Company, which are
made to provide information, inter alia, as to the capacity in which such Holder or Beneficial
Owner owns ADSs (and Shares, as the case may be) and regarding the identity of any other person(s)
interested in such ADSs and the nature of such interest and various other matters, whether or not
they are Holders and/or Beneficial Owners at the time of such request. The Depositary agrees to use
its reasonable efforts to forward, upon the request of the Company and at the Company’s expense,
any such request from the Company to the Holders and to forward to the Company any such responses
to such requests received by the Depositary.

     (6) Ownership Restrictions. Notwithstanding any provision of this ADR or of the
Deposit Agreement, the Company may restrict transfers of the Shares where such transfer might
result in ownership of Shares exceeding limits imposed by applicable law or the Articles of
Association of the Company. The Company may also restrict, in such manner as it deems appropriate,
transfers of the ADSs where such transfer may result in the total number of Shares represented by
the ADSs owned by a single Holder or Beneficial Owner to exceed any such

A-5

 

limits. The Company may,
in its sole discretion but subject to applicable law, instruct the Depositary to take action with
respect to the ownership interest of any Holder or Beneficial Owner in excess of the limits set
forth in the preceding sentence, including but not limited to, the imposition of restrictions on
the transfer of ADSs, the removal or limitation of voting rights or mandatory sale or disposition
on behalf of a Holder or Beneficial Owner of the Shares represented by the ADSs held by such Holder
or Beneficial Owner in excess of such limitations, if and to the extent such disposition is
permitted by applicable law and the Articles of Association of the Company. Nothing herein or in the Deposit Agreement shall be interpreted
as obligating the Depositary or the Company to ensure compliance with the ownership restrictions
described herein or in Section 3.5 of the Deposit Agreement.

Applicable laws and regulations may require holders and beneficial owners of Shares, including the
Holders and Beneficial Owners of ADSs, to satisfy reporting requirements and obtain regulatory
approvals in certain circumstances. Holders and Beneficial Owners of ADSs are solely responsible
for determining and complying with such reporting requirements, and for obtaining such approvals.
Each Holder and each Beneficial Owner hereby agrees to make such determination, file such reports,
and obtain such approvals to the extent and in the form required by applicable laws and regulations
as in effect from time to time. Neither the Depositary, the Custodian, the Company or any of their
respective agents or affiliates shall be required to take any actions whatsoever on behalf of
Holders or Beneficial Owners to determine and satisfy such reporting requirements or obtain such
regulatory approvals under applicable laws and regulations.

     (7) Liability of Holder for Taxes and Other Charges. Any tax or other governmental
charge payable with respect to any ADR or any Deposited Securities or ADSs shall be payable by the
Holders and Beneficial Owners to the Depositary. The Company, the Custodian and/or Depositary may
withhold or deduct from any distributions made in respect of Deposited Securities and may sell for
the account of a Holder and/or Beneficial Owner any or all of the Deposited Securities and apply
such distributions and sale proceeds in payment of such taxes (including applicable interest and
penalties) or charges, the Holder and the Beneficial Owner hereof remaining liable for any
deficiency. The Custodian may refuse the deposit of Shares and the Depositary may refuse to issue
ADSs, to deliver ADRs, register the transfer of ADSs, register the split-up or combination of ADRs
and (subject to paragraph (24) hereof and Section 7.8 of the Deposit Agreement) the withdrawal of
Deposited Securities until payment in full of such tax, charge, penalty or interest is received.
Every Holder and Beneficial Owner agrees to indemnify the Depositary, the Company, the Custodian,
and any of their agents, officers, employees and Affiliates for, and hold each of them harmless
from, any claims with respect to taxes (including applicable interest and penalties thereon)
arising from any tax benefit obtained for such Holder and/or Beneficial Owner.

     (8) Representations and Warranties of Depositors. Each person depositing Shares under
the Deposit Agreement shall be deemed thereby to represent and warrant that (i) such Shares and the
certificates therefor are duly authorized, validly issued, fully paid, non-assessable and legally
obtained by such person, (ii) all preemptive (and similar) rights, if any, with respect

A-6

 

to such
Shares have been validly waived or exercised, (iii) the person making such deposit is duly
authorized so to do, (iv) the Shares presented for deposit are free and clear of any lien,
encumbrance, security interest, charge, mortgage or adverse claim, and (v) the Shares presented for
deposit are not, and the ADSs issuable upon such deposit will not be, Restricted Securities (except
as contemplated in Section 2.14 of the Deposit Agreement), and (vi) the Shares presented for
deposit have not been stripped of any rights or entitlements. Such representations and warranties
shall survive the deposit and withdrawal of Shares, the issuance and cancellation of ADSs in
respect thereof and the transfer of such ADSs. If any such representations or warranties are false in any way, the Company and the Depositary shall be authorized, at the cost and
expense of the person depositing Shares, to take any and all actions necessary to correct the
consequences thereof.

     (9) Proofs, Certificates and Other Information. Any person presenting Shares for
deposit, and any Holder and any Beneficial Owner may be required, and every Holder and Beneficial
Owner agrees, from time to time to provide to the Depositary and the Custodian such proof of
citizenship or residence, taxpayer status, payment of all applicable taxes or other governmental
charges, exchange control approval, legal or beneficial ownership of ADSs and Deposited Securities,
compliance with applicable laws, the terms of the Deposit Agreement or the ADR(s) evidencing the
ADSs and the provisions of, or governing, the Deposited Securities, to execute such certifications
and to make such representations and warranties, and to provide such other information and
documentation (or, in the case of Shares in registered form presented for deposit, such information
relating to the registration on the books of the Company or of the Shares Registrar) as the
Depositary or the Custodian may deem necessary or proper or as the Company may reasonably require
by written request to the Depositary consistent with its obligations under the Deposit Agreement
and the applicable ADR(s). The Depositary and the Registrar, as applicable, may withhold the
execution or delivery or registration of transfer of any ADR or ADS or the distribution or sale of
any dividend or distribution of rights or of the proceeds thereof or, to the extent not limited by
paragraph (24) and Section 7.8 of the Deposit Agreement, the delivery of any Deposited Securities
until such proof or other information is filed or such certifications are executed, or such
representations are made or such other information or documentation are provided, in each case to
the Depositary’s, the Registrar’s and the Company’s satisfaction.

     (10) Charges of Depositary. The Depositary shall charge the following fees:

	 	(i)	 	Issuance Fee: to any person depositing Shares or to
whom ADSs are issued upon the deposit of Shares, a fee not in excess of U.S.
$5.00 per 100 ADSs (or fraction thereof) so issued under the terms of the
Deposit Agreement (excluding issuances as a result of distributions described
in paragraph (iv) below);
	 
	 	(ii)	 	Cancellation Fee: to any person surrendering ADSs for
cancellation and withdrawal of Deposited Securities, a fee not in excess of
U.S. $5.00 per 100 ADSs (or fraction thereof) surrendered;

A-7

 

	 	(iii)	 	Cash Distribution Fee: to any Holder of ADS(s), a fee
not in excess of U.S. $5.00 per 100 ADSs (or fraction thereof) held for the
distribution of cash dividends or other cash distributions (i.e., sale of
rights and other entitlements); and
	 
	 	(iv)	 	Stock Distribution/Rights Exercise Fee: to any Holder
of ADS(s), a fee not in excess of U.S. $5.00 per 100 ADSs (or fraction thereof)
held for (a) the distribution of stock dividends or other free stock distributions or
(b) the exercise of rights to purchase additional ADSs;
	 
	 	(v)	 	Other Distribution Fee: to any Holder of ADS(s), a fee
not in excess of U.S. $5.00 per 100 ADSs (or fraction thereof) held for the
distribution of securities other than ADSs or rights to purchase additional
ADSs; and
	 
	 	(vi)	 	Depositary Services Fee: to any Holder of ADS(s), a
fee not in excess of U.S. $5.00 per 100 ADSs (or fraction thereof) held on the
applicable record date(s) established by the Depositary.
	 
	 	(vii)	 	Transfer of ADRs: to any Holder of ADS(s), a fee of
U.S. $1.50 per certificate presented for transfer.

     In addition, Holders, Beneficial Owners, persons depositing Shares and persons surrendering
ADSs for cancellation and for the purpose of withdrawing Deposited Securities shall be responsible
for the following charges:

	 	(a)	 	taxes (including applicable interest and penalties) and other
governmental charges;
	 
	 	(b)	 	such registration fees as may from time to time be in effect
for the registration of Shares or other Deposited Securities on the share
register and applicable to transfers of Shares or other Deposited Securities to
or from the name of the Custodian, the Depositary or any nominees upon the
making of deposits and withdrawals, respectively;
	 
	 	(c)	 	such cable, telex and facsimile transmission and delivery
expenses as are expressly provided in the Deposit Agreement to be at the
expense of the person depositing or withdrawing Shares or Holders and
Beneficial Owners of ADSs;
	 
	 	(d)	 	the expenses and charges incurred by the Depositary in the
conversion of foreign currency;
	 
	 	(e)	 	such fees and expenses as are incurred by the Depositary in
connection with compliance with exchange control regulations and other
regulatory

A-8

 

	 	 	 	requirements applicable to Shares, Deposited Securities, ADSs and
ADRs; and
	 
	 	(f)	 	the fees and expenses incurred by the Depositary, the
Custodian, or any nominee in connection with the delivery or servicing of
Deposited Securities.

     All fees and charges may, at any time and from time to time, be changed by agreement between
the Depositary and Company but, in the case of fees and charges payable by Holders or Beneficial Owners, only in the manner contemplated by paragraph (22) of this ADR and as
contemplated in the Deposit Agreement. The Depositary will provide, without charge, a copy of its
latest fee schedule to anyone upon request.

     Depositary Fees payable upon (i) deposit of Shares against issuance of ADSs and (ii) surrender
of ADSs for cancellation and withdrawal of Deposited Securities will be charged by the Depositary
to the person to whom the ADSs so issued are delivered (in the case of ADS issuances) and to the
person who delivers the ADSs for cancellation to the Depositary (in the case of ADS cancellations).
In the case of ADSs issued by the Depositary into DTC or presented to the Depositary via DTC, the
ADS issuance and cancellation fees will be payable to the Depositary by the DTC Participant(s)
receiving the ADSs from the Depositary or the DTC Participant(s) surrendering the ADSs to the
Depositary for cancellation, as the case may be, on behalf of the Beneficial Owner(s) and will be
charged by the DTC Participant(s) to the account(s) of the applicable Beneficial Owner(s) in
accordance with the procedures and practices of the DTC participant(s) as in effect at the time.
Depositary fees in respect of distributions and the Depositary services fee are payable to the
Depositary by Holders as of the applicable ADS Record Date established by the Depositary. In the
case of distributions of cash, the amount of the applicable Depositary fees is deducted by the
Depositary from the funds being distributed. In the case of distributions other than cash and the
Depositary service fee, the Depositary will invoice the applicable Holders as of the ADS Record
Date established by the Depositary. For ADSs held through DTC, the Depositary fees for
distributions other than cash and the Depositary service fee are charged by the Depositary to the
DTC Participants in accordance with the procedures and practices prescribed by DTC from time to
time and the DTC Participants in turn charge the amount of such fees to the Beneficial Owners for
whom they hold ADSs.

     The Depositary may reimburse the Company for certain expenses incurred by the Company in
respect of the ADR program established pursuant to the Deposit Agreement, by making available a
portion of the Depositary fees charged in respect of the ADR program or otherwise, upon such terms
and conditions as the Company and the Depositary may agree from time to time. The Company shall
pay to the Depositary such fees and charges and reimburse the Depositary for such out-of-pocket
expenses as the Depositary and the Company may agree from time to time. Responsibility for payment
of such charges and reimbursements may from time to time be changed by agreement between the
Company and the Depositary. Unless otherwise agreed, the Depositary shall present its statement
for such expenses and fees or charges to the

A-9

 

Company once every three months. The charges and
expenses of the Custodian are for the sole account of the Depositary.

     The right of the Depositary to receive payment of fees, charges and expenses as provided above
shall survive the termination of the Deposit Agreement. As to any Depositary, upon the resignation
or removal of such Depositary as described in Section 5.4, such right shall extend for those fees,
charges and expenses incurred prior to the effectiveness of such resignation or removal.

     (11) Title to ADRs. It is a condition of this ADR, and every successive Holder of
this ADR by accepting or holding the same consents and agrees, that title to this ADR (and to each ADS evidenced hereby) shall be transferable upon the same terms as a certificated security
under the laws of the State of New York, provided that, in the case of Certificated ADSs, such ADR
has been properly endorsed or is accompanied by proper instruments of transfer. Notwithstanding
any notice to the contrary, the Depositary and the Company may deem and treat the Holder of this
ADR (that is, the person in whose name this ADR is registered on the books of the Depositary) as
the absolute owner thereof for all purposes. Neither the Depositary nor the Company shall have any
obligation nor be subject to any liability under the Deposit Agreement or this ADR to any holder of
this ADR or any Beneficial Owner unless, in the case of a holder of ADSs, such holder is the Holder
of this ADR registered on the books of the Depositary or, in the case of a Beneficial Owner, such
Beneficial Owner or the Beneficial Owner’s representative is the Holder registered on the books of
the Depositary.

     (12) Validity of ADR. The Holder(s) of this ADR (and the ADSs represented hereby)
shall not be entitled to any benefits under the Deposit Agreement or be valid or enforceable for
any purpose against the Depositary or the Company unless this ADR has been (i) dated, (ii) signed
by the manual or facsimile signature of a duly-authorized signatory of the Depositary, (iii)
countersigned by the manual or facsimile signature of a duly-authorized signatory of the Registrar,
and (iv) registered in the books maintained by the Registrar for the registration of issuances and
transfers of ADRs. An ADR bearing the facsimile signature of a duly-authorized signatory of the
Depositary or the Registrar, who at the time of signature was a duly authorized signatory of the
Depositary or the Registrar, as the case may be, shall bind the Depositary, notwithstanding the
fact that such signatory has ceased to be so authorized prior to the delivery of such ADR by the
Depositary.

     (13) Available Information; Reports; Inspection of Transfer Books. The Company is
subject to the periodic reporting requirements of the Exchange Act and, accordingly, is required to
file or submit certain reports with the Commission. These reports can be retrieved from the
Commission’s website (www.sec.gov) and can be inspected and copied at the public reference
facilities maintained by the Commission located (as of the date of the Deposit Agreement) at 100 F
Street, N.E., Washington D.C. 20549. The Depositary shall make available for inspection by Holders
at its Principal Office any reports and communications, including any proxy soliciting materials,
received from the Company which are both (a) received by the Depositary, the Custodian, or the
nominee of either of them as the holder of the Deposited

A-10

 

Securities and (b) made generally
available to the holders of such Deposited Securities by the Company. The Depositary shall also
provide or make available to Holders copies of such reports when furnished by the Company pursuant
to Section 5.6 of the Deposit Agreement. The Depositary shall also provide or make available to
Holders copies of such reports when furnished by the Company pursuant to Section 5.6 of the Deposit
Agreement.

     The Registrar shall keep books for the registration of ADSs which at all reasonable times
shall be open for inspection by the Company and by the Holders of such ADSs, provided that such
inspection shall not be, to the Registrar’s knowledge, for the purpose of communicating with
Holders of such ADSs in the interest of a business or object other than the business of the Company
or other than a matter related to the Deposit Agreement or the ADSs.

     The Registrar may close the transfer books with respect to the ADSs, at any time or from time
to time, when deemed necessary or advisable by it in good faith in connection with the performance
of its duties hereunder, or at the reasonable written request of the Company subject, in all cases,
to paragraph (24).

Dated:

	 	 	 	 	 
	CITIBANK, N.A.
Transfer Agent and Registrar	 	CITIBANK, N.A.
as Depositary
	 	 	 	 	 
	 	 	 	 	 
	By:  	 	 	By:  	 
	 	Authorized Signatory	 	 	Authorized Signatory

     The address of the Principal Office of the Depositary is 388 Greenwich Street, New York, New
York 10013, U.S.A.

A-11

 

[FORM OF REVERSE OF ADR]

SUMMARY OF CERTAIN ADDITIONAL PROVISIONS

OF THE DEPOSIT AGREEMENT

     (14) Dividends and Distributions in Cash, Shares, etc. Upon the timely receipt by the
Depositary of a notice from he Company that it intends to make a distribution of a cash dividend or
other cash distribution, the Depositary shall establish an ADS Record Date upon the terms described
in Section 4.9 of the Deposit Agreement . Upon receipt of confirmation from the Custodian of
receipt of any cash dividend or other cash distribution on any Deposited Securities, or upon
receipt of proceeds from the sale of any Deposited Securities or of any entitlements held in
respect of Deposited Securities under the terms of the Deposit Agreement, the Depositary will (i)
if at the time of receipt thereof any amounts received in a Foreign Currency can in the judgment of
the Depositary (upon the terms of Section 4.8 of the Deposit Agreement), be converted on a
practicable basis into Dollars transferable to the United States, promptly convert or cause to be
converted such cash dividend, distribution or proceeds into Dollars (upon the terms of Section 4.8
of the Deposit Agreement), (ii) if applicable and unless previously established, establish the ADS
Record Date upon the terms described in Section 4.9 of the Deposit Agreement, and (iii) distribute
promptly the amount thus received (net of (a) the fees and charges of the Depositary set forth in
paragraph 10, and reasonable expenses incurred by, the Depositary and (b) taxes withheld) to the
Holders entitled thereto as of the ADS Record Date in proportion to the number of ADSs held as of
the ADS Record Date. The Depositary shall distribute only such amount, however, as can be
distributed without attributing to any Holder a fraction of one cent, and any balance not so
distributed shall be held by the Depositary (without liability for interest thereon) and shall be
added to and become part of the next sum received by the Depositary for distribution to Holders of
ADSs outstanding at the time of the next distribution. If the Company, the Custodian or the
Depositary is required to withhold and does withhold from any cash dividend or other cash
distribution in respect of any Deposited Securities an amount on account of taxes, duties or other
governmental charges, the amount distributed to Holders on the ADSs representing such Deposited
Securities shall be reduced accordingly. Such withheld amounts shall be forwarded by the Company,
the Custodian or the Depositary to the relevant governmental authority. Evidence of payment
thereof by the Company shall be forwarded by the Company to the Depositary upon request.

     Upon the timely receipt by the Depositary of a notice from the Company that it intends to make
a distribution that consists of a dividend in, or free distribution of Shares, the Depositary shall
establish an ADS Record Date upon the terms described in Section 4.9 of the Deposit Agreement.
Upon receipt of confirmation from the Custodian of the receipt of the Shares so distributed by the
Company, the Depositary shall either (i) subject to Section 5.9 of the Deposit Agreement,
distribute to the Holders as of the ADS Record Date in proportion to the number of ADSs held as of
the ADS Record Date, additional ADSs, which represent in the aggregate the number of Shares
received as such dividend, or free distribution, subject to the other terms of the

A-12

 

Deposit
Agreement (including, without limitation, (a) the applicable fees and charges of, and
reasonable expenses incurred by, the Depositary and (b) taxes), or (ii) if additional ADSs are
not so distributed, take all actions necessary so that each ADS issued and outstanding after the
ADS Record Date shall, to the extent permissible by law, thenceforth also represent rights and
interest in the additional integral number of Shares distributed upon the Deposited Securities
represented thereby (net of (a) the fees and charges of the Depositary set forth in paragraph 10,
and reasonable expenses incurred by, the Depositary, and (b) taxes). In lieu of delivering
fractional ADSs, the Depositary shall sell the number of Shares or ADSs, as the case may be,
represented by the aggregate of such fractions and distribute the net proceeds upon the terms set
forth in Section 4.1 of the Deposit Agreement.

     In the event that the Depositary determines that any distribution in property (including
Shares) is subject to any tax or other governmental charges which the Depositary is obligated to
withhold, or, if the Company in the fulfillment of its obligations under Section 5.7 of the Deposit
Agreement, has furnished an opinion of U.S. counsel determining that Shares must be registered
under the Securities Act or other laws in order to be distributed to Holders (and no such
registration statement has been declared effective), the Depositary may dispose of all or a portion
of such property (including Shares and rights to subscribe therefor) in such amounts and in such
manner, including by public or private sale, as the Depositary deems necessary and practicable, and
the Depositary shall distribute the net proceeds of any such sale (after deduction of (a) taxes and
(b) the fees and charges of the Depositary set forth in paragraph 10, and the reasonable expenses
incurred by the Depositary) to Holders entitled thereto upon the terms of Section 4.1 of the
Deposit Agreement. The Depositary shall hold and/or distribute any unsold balance of such property
in accordance with the provisions of the Deposit Agreement.

     Upon the timely receipt of a notice indicating that the Company wishes an elective
distribution in cash or Shares to be made available to Holders of ADSs upon the terms described in
the Deposit Agreement, the Company and the Depositary shall determine whether such distribution is
lawful and reasonably practicable. If so, the Depositary shall, subject to the terms and
conditions of the Deposit Agreement, establish an ADS Record Date according to paragraph (16) and
establish procedures to enable the Holder hereof to elect to receive the proposed distribution in
cash or in additional ADSs. If a Holder elects to receive the distribution in cash, the
distribution shall be made as in the case of a distribution in cash. If the Holder hereof elects
to receive the distribution in additional ADSs, the distribution shall be made as in the case of a
distribution in Shares upon the terms described in the Deposit Agreement. If such elective
distribution is not reasonably practicable or if the Depositary did not receive satisfactory
documentation set forth in the Deposit Agreement, the Depositary shall establish an ADS Record Date
upon the terms of Section 4.9 of the Deposit Agreement and, to the extent permitted by law,
distribute to Holders, on the basis of the same determination as is made in the British Virgin
Islands in respect of the Shares for which no election is made, either (x) cash or (y) additional
ADSs representing such additional Shares, in each case, upon the terms described in the Deposit
Agreement. Nothing herein or in the Deposit Agreement shall obligate the Depositary to make
available to the Holder hereof a method to receive the elective distribution in Shares (rather than

A-13

 

ADSs). There can be no assurance that the Holder hereof will be given the opportunity to receive
elective distributions on the same terms and conditions as the holders of Shares.

     Upon the timely receipt by the Depositary of a notice indicating that the Company wishes
rights to subscribe for additional Shares to be made available to Holders of ADSs, the Depositary
upon consultation with the Company, shall determine, whether it is lawful and reasonably
practicable to make such rights available to the Holders. The Depositary shall make such rights
available to any Holders only if (i) the Company shall have timely requested that such rights be
made available to Holders, (ii) the Depositary shall have received the documentation contemplated
in the Deposit Agreement, and (iii) the Depositary shall have determined that such distribution of
rights is reasonably practicable. If such conditions are not satisfied, the Depositary shall sell
the rights as described below. In the event all conditions set forth above are satisfied, the
Depositary shall establish an ADS Record Date (upon the terms described in Section 4.9 of the
Deposit Agreement) and establish procedures (x) to distribute rights to purchase additional ADSs
(by means of warrants or otherwise), (y) to enable the Holders to exercise such rights (upon
payment of the subscription price and of the applicable (a) fees and charges of the Depositary set
forth in paragraph 10 and expenses incurred by, the Depositary and (b) taxes), and (z) to deliver
ADSs upon the valid exercise of such rights. Nothing herein or in the Deposit Agreement shall
obligate the Depositary to make available to the Holders a method to exercise rights to subscribe
for Shares (rather than ADSs). If (i) the Company does not timely request the Depositary to make
the rights available to Holders or requests that the rights not be made available to Holders, (ii)
the Depositary fails to receive satisfactory documentation within the terms of Section 5,7 of the
Deposit Agreement or determines it is not reasonably practicable to make the rights available to
Holders, or (iii) any rights made available are not exercised and appear to be about to lapse, the
Depositary shall determine whether it is lawful and reasonably practicable to sell such rights, in
a riskless principal capacity, at such place and upon such terms (including public and private
sale) as it may deem practicable. The Depositary shall, upon such sale, convert and distribute
proceeds of such sale (net of applicable (a) the fees and charges of the Depositary set forth in
paragraph 10, and the reasonable expenses incurred by, the Depositary and (b) taxes) upon the terms
hereof and of Section 4.1 of the Deposit Agreement. If the Depositary is unable to make any rights
available to Holders upon the terms described in Section 4.4(a) of the Deposit Agreement or to
arrange for the sale of the rights upon the terms described in Section 4.4(b) of the Deposit
Agreement, the Depositary shall allow such rights to lapse. The Depositary shall not be
responsible for (i) any failure to determine that it may be lawful or practicable to make such
rights available to Holders in general or any Holders in particular, (ii) any foreign exchange
exposure or loss incurred in connection with such sale or exercise, or (iii) the content of any
materials forwarded to the ADS Holders on behalf of the Company in connection with the rights
distribution.

     Notwithstanding anything herein or in the Deposit Agreement to the contrary, if registration
(under the Securities Act or any other applicable law) of the rights or the securities to which any
rights relate may be required in order for the Company to offer such rights or such securities to
Holders and to sell the securities represented by such rights, the Depositary will not distribute
such rights to the Holders (i) unless and until a registration statement under the

A-14

 

Securities Act
(or other applicable law) covering such offering is in effect or (ii) unless the Company furnishes
the Depositary opinion(s) of counsel for the Company in the United States and counsel to the
Company in any other applicable country in which rights would be distributed, in each case
satisfactory to the Depositary, to the effect that the offering and sale of such securities to Holders and Beneficial Owners are exempt from, or do not require
registration under, the provisions of the Securities Act or any other applicable laws. A liquid
market for rights may not exist, and this may adversely affect (1) the ability of the Depositary to
dispose of such rights or (2) the amount the Depositary would realize upon disposal of rights. In
the event that the Company, the Depositary or the Custodian shall be required to withhold and does
withhold from any distribution of property (including rights) an amount on account of taxes or
other governmental charges, the amount distributed to the Holders of ADSs representing such
Deposited Securities shall be reduced accordingly. In the event that the Depositary determines
that any distribution in property (including Shares and rights to subscribe therefor) is subject to
any tax or other governmental charges which the Depositary is obligated to withhold, the Depositary
may dispose of all or a portion of such property (including Shares and rights to subscribe
therefor) in such amounts and in such manner, including by public or private sale, as the
Depositary deems necessary and practicable to pay any such taxes or charges.

     There can be no assurance that Holders generally, or any Holder in particular, will be given
the opportunity to exercise rights on the same terms and conditions as the holders of Shares or be
able to exercise such rights. Nothing herein or in the Deposit Agreement shall obligate the
Company to file any registration statement in respect of any rights or Shares or other securities
to be acquired upon the exercise of such rights.

     Upon receipt of a notice indicating that the Company wishes property other than cash, Shares
or rights to purchase additional Shares, to be made to Holders of ADSs, the Depositary shall
determine whether such distribution to Holders is lawful and reasonably practicable. The
Depositary shall not make such distribution unless (i) the Company shall have requested the
Depositary to make such distribution to Holders, (ii) the Depositary shall have received the
documentation contemplated in the Deposit Agreement, and (iii) the Depositary shall have determined
that such distribution is reasonably practicable. Upon satisfaction of such conditions, the
Depositary shall distribute the property so received to the Holders of record, as of the ADS Record
Date, in proportion to the number of ADSs held by them respectively and in such manner as the
Depositary may deem practicable for accomplishing such distribution (i) upon receipt of payment or
net of the fees and charges of the Depositary set forth in paragraph 10, and reasonable expenses
incurred by, the Depositary, and (ii) net of any taxes withheld. The Depositary may dispose of all
or a portion of the property so distributed and deposited, in such amounts and in such manner
(including public or private sale) as the Depositary may deem practicable or necessary to satisfy
any taxes (including applicable interest and penalties) or other governmental charges applicable to
the distribution.

     If the conditions above are not satisfied, the Depositary shall sell or cause such property to
be sold in a public or private sale, at such place or places and upon such terms as it may deem
practicable and shall (i) cause the proceeds of such sale, if any, to be converted into Dollars and

A-15

 

(ii) distribute the proceeds of such conversion received by the Depositary (net of applicable (a)
fees and charges of the Depositary set forth in paragraph 10, and reasonable expenses incurred by,
the Depositary and (b) taxes) to the Holders as of the ADS Record Date upon the terms hereof and of
the Deposit Agreement. If the Depositary is unable to sell such property, the Depositary may dispose of such property for the account of the Holders in any way it deems
reasonably practicable under the circumstances.

     (15) Redemption. Upon timely receipt of (i) a notice from the Company that it intends
to exercise a right of redemption in respect of the Deposited Securities and (ii) satisfactory
documentation given by the Company to the Depositary within the terms of Section 5.7 of the Deposit
Agreement, and only if the Depositary shall have determined that such proposed redemption is
practicable, the Depositary shall provide to each Holder a notice setting forth the Company’s
intention to exercise the redemption rights and any other particulars set forth in the Company’s
notice to the Depositary. Upon receipt of confirmation that the redemption has taken place and
that funds representing the redemption price have been received, the Depositary shall convert,
transfer, distribute the proceeds (net of applicable (a) fees and charges of the Depositary set
forth in paragraph 10, and reasonable expenses incurred by, the Depositary, and (b) taxes), retire
ADSs and cancel ADRs, if applicable, upon delivery of such ADSs by Holders thereof upon the terms
set forth in Sections 4.1 and 6.2 of the Deposit Agreement. If less than all outstanding Deposited
Securities are redeemed, the ADSs to be retired will be selected by lot or on a pro rata basis, as
may be determined by the Depositary. The redemption price per ADS shall be the dollar equivalent
of the per share amount received by the Depositary (adjusted to reflect the ADS(s)-to-Share(s)
ratio) upon the redemption of the Deposited Securities represented by ADSs (subject to the terms of
Section 4.8 of the Deposit Agreement and the applicable fees and charges of, and expenses incurred
by, the Depositary, and taxes) multiplied by the number of Deposited Securities represented by each
ADS redeemed.

     (16) Fixing of ADS Record Date. Whenever the Depositary shall receive notice of the
fixing of a record date by the Company for the determination of holders of Deposited Securities
entitled to receive any distribution (whether in cash, Shares, rights or other distribution), or
whenever for any reason the Depositary causes a change in the number of Shares that are represented
by each ADS, or whenever the Depositary shall receive notice of any meeting of, or solicitation of
consents or proxies of, holders of Shares or other Deposited Securities, or whenever the Depositary
shall find it necessary or convenient in connection with the giving of any notice, solicitation of
any consent or any other matter, the Depositary shall fix a record date (“ADS Record Date”)
for the determination of the Holders of ADSs who shall be entitled to receive such distribution, to
give instructions for the exercise of voting rights at any such meeting, to give or withhold such
consent, to receive such notice or solicitation or to otherwise take action, or to exercise the
rights of Holders with respect to such changed number of Shares represented by each ADS. The
Depositary shall make reasonable efforts to establish the ADS Record Date as closely as possible to
the applicable record date for the Deposited Securities (if any) set by the Company. Subject to
applicable law and the terms and conditions of this ADR and Sections 4.1 through 4.8 of the Deposit
Agreement, only the Holders of ADSs at the close of business in New York on such ADS Record Date
shall be entitled to receive such

A-16

 

distributions, to give such instructions, to receive such notice
or solicitation, or otherwise take action.

     (17) Voting of Deposited Securities. As soon as practicable after receipt of notice
of any meeting at which the holders of Deposited Securities are entitled to vote, or of
solicitation of consents or proxies from holders of Deposited Securities, the Depositary shall fix the ADS
Record Date in respect of such meeting or solicitation of consent or proxy in accordance with
Section 4.9 of the Deposit Agreement. The Depositary shall, if requested by the Company in writing
in a timely manner (the Depositary having no obligation to take any further action if the request
shall not have been received by the Depositary at least thirty (30) days prior to the date of such
vote or meeting), at the Company’s expense and provided no U.S. legal prohibitions exist,
distribute as soon as practicable after receipt thereof to Holders as of the ADS Record Date: (a)
such notice of meeting or solicitation of consent or proxy, (b) a statement that the Holders at the
close of business on the ADS Record Date will be entitled, subject to any applicable law, the
provisions of the Deposit Agreement, the Articles of Association of the Company and the provisions
of or governing the Deposited Securities (which provisions, if any, shall be summarized in
pertinent part by the Company), to instruct the Depositary as to the exercise of the voting rights,
if any, pertaining to the Deposited Securities represented by such Holder’s ADSs, and (c) a brief
statement as to the manner in which such voting instructions may be given to the Depositary in
which voting instructions may be deemed to have been given in accordance with this Section 4.10 if
no instructions are received prior to the deadline set for such purposes to the Depositary to give
a discretionary proxy to a person designated by the Company.

Notwithstanding anything contained in the Deposit Agreement or any ADR, the Depositary may, to the
extent not prohibited by law or regulations, or by the requirements of the stock exchange on which
the ADSs are listed, in lieu of distribution of the materials provided to the Depositary in
connection with any meeting of, or solicitation of consents or proxies from, holders of Deposited
Securities, distribute to the Holders a notice that provides Holders with, or otherwise publicize
to Holders, instructions on how to retrieve such materials or receive such materials upon request
(i.e., by reference to a website containing the materials for retrieval or a contact for requesting
copies of the materials).

The Depositary has been advised by the Company that under the British Virgin Islands law as in
effect as of the date of the Deposit Agreement, voting at any meeting of shareholders is by show of
hands unless a poll is demanded. The Depositary will not join in demanding a poll, whether or not
requested to do so by Holders of ADSs. Under the Articles of Association of the Company (as in
effect on the date of the Deposit Agreement) if the chairman has any doubt as to the outcome of the
vote on a proposed resolution, he shall cause a poll to be taken of all votes cast upon such
resolution and if the chairman fails to take a poll, then any shareholder present in person or by
proxy who disputes the announcement by the chairman of the result of any vote may immediately
following such announcement demand that a poll be taken and the chairman shall cause a poll to be
taken. If a poll is taken at any meeting, the result shall be announced to the meeting and recorded
in the minutes of the meeting.

A-17

 

     Voting instructions may be given only in respect of a number of ADSs representing an integral
number of Deposited Securities. Upon the timely receipt from a Holder of ADSs as of the ADS Record
Date of voting instructions in the manner specified by the Depositary, the Depositary shall
endeavor, insofar as practicable and permitted under applicable law, the provisions of the Deposit
Agreement, Articles of Association of the Company and the provisions of the Deposited Securities,
to vote, or cause the Custodian to vote, the Deposited Securities (in person or by proxy)
represented by such Holder’s ADSs as follows: In the event voting takes place at a shareholders’ meeting by show of hands, the Depositary will instruct the Custodian
to vote all Deposited Securities in accordance with the voting instructions received from a
majority of Holders of ADSs who provided voting instructions. In the event voting takes place at a
shareholders’ meeting by poll, the Depositary will instruct the Custodian to vote the Deposited
Securities in accordance with the voting instructions received from the Holders of ADSs. If the
Depositary does not receive instructions from a Holder as of the ADS Record Date on or before the
date established by the Depositary for such purpose and voting is by poll, such Holder shall be
deemed, and the Depositary shall (unless otherwise specified in the notice distributed to Holders)
deem such Holder, to have instructed the Depositary to give a discretionary proxy to a person
designated by the Company to vote the Deposited Securities; provided, however, that no such
discretionary proxy shall be given by the Depositary with respect to any matter to be voted upon as
to which the Company informs the Depositary that (A) the Company does not wish such proxy to be
given, (B) substantial opposition exists, or (C) the rights of holders of Deposited Securities may
be materially adversely affected.

     Neither the Depositary nor the Custodian shall under any circumstances exercise any discretion
as to voting and neither the Depositary nor the Custodian shall vote, attempt to exercise the right
to vote, or in any way make use of, for purposes of establishing a quorum or otherwise, the
Deposited Securities represented by ADSs, except pursuant to and in accordance with the voting
instructions timely received from Holders or as otherwise contemplated herein. If the Depositary
timely receives voting instructions from a Holder which fail to specify the manner in which the
Depositary is to vote the Deposited Securities represented by such Holder’s ADSs, the Depositary
will deem such Holder (unless otherwise specified in the notice distributed to Holders) to have
instructed the Depositary to vote in favor of the items set forth in such voting instructions.
Deposited Securities represented by ADSs for which no timely voting instructions are received by
the Depositary from the Holder shall not be voted (except (i) in the case voting at the
shareholders’ meeting is by show of hands, in which case the Depositary will instruct the Custodian
to vote all Deposited Securities in accordance with the voting instructions received from a
majority of Holders of ADSs who provided voting instructions and (ii) as contemplated in this
Section 4.10). Notwithstanding anything else contained herein or in the Deposit Agreement, the
Depositary shall, if so requested in writing by the Company, represent all Deposited Securities
(whether or not voting instructions have been received in respect of such Deposited Securities from
Holders as of the ADS Record Date) for the sole purpose of establishing quorum at a meeting of
shareholders.

     Notwithstanding anything else contained in the Deposit Agreement or any ADR, the Depositary
shall not have any obligation to take any action with respect to any meeting, or

A-18

 

solicitation of
consents or proxies, of holders of Deposited Securities if the taking of such action would violate
U.S. laws. The Company agrees to take any and all actions reasonably necessary to enable Holders
and Beneficial Owners to exercise the voting rights accruing to the Deposited Securities and to
deliver to the Depositary an opinion of U.S. counsel addressing any actions requested to be taken
if so requested by the Depositary. There can be no assurance that Holders generally or any Holder
in particular will receive the notice described above with sufficient time to enable the Holder to
return voting instructions to the Depositary in a timely manner.

     (18) Changes Affecting Deposited Securities. Upon any change in nominal or par value,
split-up, cancellation, consolidation or any other reclassification of Deposited Securities, or
upon any recapitalization, reorganization, merger, consolidation or sale of assets affecting the
Company or to which it is a party, any securities which shall be received by the Depositary or the
Custodian in exchange for, or in conversion of or replacement of or otherwise in respect of, such
Deposited Securities shall, to the extent permitted by law, be treated as new Deposited Securities
under the Deposit Agreement, and the ADRs shall, subject to the provisions of the Deposit Agreement
and applicable law, evidence ADSs representing the right to receive such additional or replacement
securities. In giving effect to such change, split-up, cancellation, consolidation or other
reclassification of Deposited Securities, recapitalization, reorganization, merger, consolidation
or sale of assets, the Depositary may, with the Company’s approval, and shall, if the Company shall
so request, subject to the terms of the Deposit Agreement and receipt of an opinion of counsel to
the Company satisfactory to the Depositary that such actions are not in violation of any applicable
laws or regulations, (i) issue and deliver additional ADSs as in the case of a stock dividend on
the Shares, (ii) amend the Deposit Agreement and the applicable ADRs, (iii) amend the applicable
Registration Statement(s) on Form F-6 as filed with the Commission in respect of the ADSs, (iv)
call for the surrender of outstanding ADRs to be exchanged for new ADRs, and (v) take such other
actions as are appropriate to reflect the transaction with respect to the ADSs. Notwithstanding
the foregoing, in the event that any security so received may not be lawfully distributed to some
or all Holders, the Depositary may, with the Company’s approval, and shall, if the Company
requests, subject to receipt of an opinion of Company’s counsel satisfactory to the Depositary that
such action is not in violation of any applicable laws or regulations, sell such securities at
public or private sale, at such place or places and upon such terms as it may deem proper and may
allocate the net proceeds of such sales (net of (a) the fees and charges of the Depositary set
forth in paragraph 10, and reasonable expenses incurred by, the Depositary and (b) taxes) for the
account of the Holders otherwise entitled to such securities upon an averaged or other practicable
basis without regard to any distinctions among such Holders and distribute the net proceeds so
allocated to the extent practicable as in the case of a distribution received in cash pursuant to
Section 4.1 of the Deposit Agreement. The Depositary shall not be responsible for (i) any failure
to determine that it may be lawful or practicable to make such securities available to Holders in
general or any Holder in particular, (ii) any foreign exchange exposure or loss incurred in
connection with such sale, or (iii) any liability to the purchaser of such securities.

A-19

 

     (19) Exoneration. Neither the Depositary nor the Company shall be obligated to do or
perform any act which is inconsistent with the provisions of the Deposit Agreement or incur any
liability (i) if the Depositary or the Company shall be prevented or forbidden from, or subjected
to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any
act or thing required by the terms of the Deposit Agreement and this ADR, by reason of any
provision of any present or future law or regulation of the United States, the British Virgin
Islands or any other country, or of any other governmental authority or regulatory authority or
stock exchange, or on account of the possible criminal or civil penalties or restraint, or by
reason of any provision, present or future, of the Articles of Association of the Company or any
provision of or governing any Deposited Securities, or by reason of any act of God or war or other circumstances beyond its control (including, without limitation, nationalization,
expropriation, currency restrictions, work stoppage, strikes, civil unrest, acts of terrorism,
revolutions, rebellions, explosions and computer failure), (ii) by reason of any exercise of, or
failure to exercise, any discretion provided for in the Deposit Agreement or in the Articles of
Association of the Company or provisions of or governing Deposited Securities, (iii) for any action
or inaction in reliance upon the advice of or information from legal counsel, accountants, any
person presenting Shares for deposit, any Holder, any Beneficial Owner or authorized representative
thereof, or any other person believed by it in good faith to be competent to give such advice or
information, (iv) for the inability by a Holder or Beneficial Owner to benefit from any
distribution, offering, right or other benefit which is made available to holders of Deposited
Securities but is not, under the terms of the Deposit Agreement, made available to Holders of ADSs
or (v) for any consequential or punitive damages for any breach of the terms of the Deposit
Agreement. The Depositary, its controlling persons, its agents, any Custodian and the Company, its
controlling persons and its agents may rely and shall be protected in acting upon any written
notice, request or other document believed by it to be genuine and to have been signed or presented
by the proper party or parties. No disclaimer of liability under the Securities Act is intended by
any provision of the Deposit Agreement or this ADR.

     (20) Standard of Care. The Company and the Depositary assume no obligation and shall
not be subject to any liability under the Deposit Agreement or this ADR to any Holder(s) or
Beneficial Owner(s), except that the Company and Depositary agree to perform their respective
obligations specifically set forth in the Deposit Agreement and this ADR without negligence or bad
faith. Without limitation of the foregoing, neither the Depositary, nor the Company, nor any of
their respective controlling persons, or agents, shall be under any obligation to appear in,
prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or
in respect of the ADSs, which in its opinion may involve it in expense or liability, unless
indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and
liability be furnished as often as may be required (and no Custodian shall be under any obligation
whatsoever with respect to such proceedings, the responsibility of the Custodian being solely to
the Depositary).The Depositary and its agents shall not be liable for any failure to carry out any
instructions to vote any of the Deposited Securities, or for the manner in which any vote is cast
or the effect of any vote, provided that any such action or omission is in good faith and in
accordance with the terms of the Deposit Agreement. The Depositary shall not incur any liability
for any failure to determine that any distribution or action may be lawful or reasonably

A-20

 

practicable, for the content of any information submitted to it by the Company for distribution to
the Holders or for any inaccuracy of any translation thereof, for any investment risk associated
with acquiring an interest in the Deposited Securities, for the validity or worth of the Deposited
Securities or for any tax consequences that may result from the ownership of ADSs, Shares or
Deposited Securities, for the credit-worthiness of any third party, for allowing any rights to
lapse upon the terms of the Deposit Agreement, for the failure or timeliness of any notice from the
Company, or for any action or failure to act by, or any information provided or not provided by,
DTC or any DTC participant.

     The Depositary shall not be liable for any acts or omissions made by a successor depositary
whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary,
provided that in connection with the issue out of which such potential liability arises the
Depositary performed its obligations without negligence or bad faith while it acted as Depositary.

     (21) Resignation and Removal of the Depositary; Appointment of Successor Depositary.
The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice
of resignation delivered to the Company, such resignation to be effective on the earlier of (i) the
90th day after delivery thereof to the Company (whereupon the Depositary shall be entitled to take
the actions contemplated in Section 6.2 of the Deposit Agreement), or (ii) upon the appointment by
the Company of a successor depositary and its acceptance of such appointment as provided in the
Deposit Agreement. The Depositary may at any time be removed by the Company by written notice of
such removal, which removal shall be effective on the later of (i) the 90th day after delivery
thereof to the Depositary (whereupon the Depositary shall be entitled to take the actions
contemplated in Section 6.2 of the Deposit Agreement), or (ii) upon the appointment by the Company
of a successor depositary and its acceptance of such appointment as provided in the Deposit
Agreement. In case at any time the Depositary acting hereunder shall resign or be removed, the
Company shall use its best efforts to appoint a successor depositary, which shall be a bank or
trust company having an office in the Borough of Manhattan, the City of New York. Every successor
depositary shall be required by the Company to execute and deliver to its predecessor and to the
Company an instrument in writing accepting its appointment hereunder, and thereupon such successor
depositary, without any further act or deed (except as required by applicable law), shall become
fully vested with all the rights, powers, duties and obligations of its predecessor (other than as
contemplated in Sections 5.8 and 5.9 of the Deposit Agreement). The predecessor depositary, upon
payment of all sums due it and on the written request of the Company, shall (i) execute and deliver
an instrument transferring to such successor all rights and powers of such predecessor hereunder
(other than as contemplated in Sections 5.8 and 5.9 of the Deposit Agreement), (ii) duly assign,
transfer and deliver all right, title and interest to the Deposited Securities to such successor,
and (iii) deliver to such successor a list of the Holders of all outstanding ADSs and such other
information relating to ADSs and Holders thereof as the successor may reasonably request. Any such
successor depositary shall promptly provide notice of its appointment to such Holders. Any
corporation into or with which

A-21

 

the Depositary may be merged or consolidated shall be the successor
of the Depositary without the execution or filing of any document or any further act.

     (22) Amendment/Supplement. Subject to the terms and conditions of this paragraph 22,
the Deposit Agreement and applicable law, this ADR and any provisions of the Deposit Agreement may
at any time and from time to time be amended or supplemented by written agreement between the
Company and the Depositary in any respect which they may deem necessary or desirable without the
prior written consent of the Holders or Beneficial Owners. Any amendment or supplement which shall
impose or increase any fees or charges (other than charges in connection with foreign exchange
control regulations, and taxes and other governmental charges, delivery and other such expenses),
or which shall otherwise materially prejudice any substantial existing right of Holders or
Beneficial Owners, shall not, however, become effective as to outstanding ADSs until the expiration
of thirty (30) days after notice of such amendment or supplement shall have been given to the Holders of outstanding ADSs. Notice
of any amendment to the Deposit Agreement or any ADR shall not need to describe in detail the
specific amendments effectuated thereby, and failure to describe the specific amendments in any
such notice shall not render such notice invalid, provided, however, that, in each
such case, the notice given to the Holders identifies a means for Holders and Beneficial Owners to
retrieve or receive the text of such amendment (i.e., upon retrieval from the Commission’s, the
Depositary’s or the Company’s website or upon request from the Depositary). The parties hereto
agree that any amendments or supplements which (i) are reasonably necessary (as agreed by the
Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the
Securities Act or (b) the ADSs to be settled solely in electronic book-entry form and (ii) do not
in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed
not to materially prejudice any substantial rights of Holders or Beneficial Owners. Every Holder
and Beneficial Owner at the time any amendment or supplement so becomes effective shall be deemed,
by continuing to hold such ADSs, to consent and agree to such amendment or supplement and to be
bound by the Deposit Agreement and this ADR, if applicable, as amended or supplemented thereby. In
no event shall any amendment or supplement impair the right of the Holder to surrender such ADS and
receive therefor the Deposited Securities represented thereby, except in order to comply with
mandatory provisions of applicable law. Notwithstanding the foregoing, if any governmental body
should adopt new laws, rules or regulations which would require an amendment of, or supplement to,
the Deposit Agreement to ensure compliance therewith, the Company and the Depositary may amend or
supplement the Deposit Agreement and this ADR at any time in accordance with such changed laws,
rules or regulations. Such amendment or supplement to the Deposit Agreement and this ADR in such
circumstances may become effective before a notice of such amendment or supplement is given to
Holders or within any other period of time as required for compliance with such laws, rules or
regulations.

     (23) Termination. The Depositary shall, at any time at the written direction of the
Company, terminate the Deposit Agreement by distributing notice of such termination to the Holders
of all ADSs then outstanding at least thirty (30) days prior to the date fixed in such notice for
such termination. If ninety (90) days shall have expired after (i) the Depositary shall

A-22

 

have delivered to the Company a written notice of its election to resign, or (ii) the Company shall have
delivered to the Depositary a written notice of the removal of the Depositary, and, in either case,
a successor depositary shall not have been appointed and accepted its appointment as provided in
Section 5.4 of the Deposit Agreement, the Depositary may terminate the Deposit Agreement by
distributing notice of such termination to the Holders of all ADSs then outstanding at least thirty
(30) days prior to the date fixed in such notice for such termination. The date so fixed for
termination of the Deposit Agreement in any termination notice so distributed by the Depositary to
the Holders of ADSs is referred to as the “Termination Date”. Until the Termination Date,
the Depositary shall continue to perform all of its obligations under the Deposit Agreement, and
the Holders and Beneficial Owners will be entitled to all of their rights under the Deposit
Agreement. If any ADSs shall remain outstanding after the Termination Date, the Registrar and the
Depositary shall not, after the Termination Date, have any obligation to perform any further acts
under the Deposit Agreement, except that the Depositary shall, subject, in each case, to the terms
and conditions of the Deposit Agreement, continue to (i) collect dividends and other distributions pertaining to Deposited Securities, (ii) sell
securities and other property received in respect of Deposited Securities, (iii) deliver Deposited
Securities, together with any dividends or other distributions received with respect thereto and
the net proceeds of the sale of any securities or other property, in exchange for ADSs surrendered
to the Depositary (after deducting, or charging, as the case may be, in each case, the fees and
charges of, and expenses incurred by, the Depositary, and all applicable taxes or governmental
charges for the account of the Holders and Beneficial Owners, in each case upon the terms set forth
in Section 5.9 of the Deposit Agreement), and (iv) take such actions as may be required under
applicable law in connection with its role as Depositary under the Deposit Agreement. At any time
after the Termination Date, the Depositary may sell the Deposited Securities then held under the
Deposit Agreement and shall after such sale hold un-invested the net proceeds of such sale,
together with any other cash then held by it under the Deposit Agreement, in an un-segregated
account and without liability for interest, for the pro - rata benefit of the Holders whose ADSs
have not theretofore been surrendered. After making such sale, the Depositary shall be discharged
from all obligations under the Deposit Agreement except (i) to account for such net proceeds and
other cash (after deducting, or charging, as the case may be, in each case, the fees and charges
of, and expenses incurred by, the Depositary, and all applicable taxes or governmental charges for
the account of the Holders and Beneficial Owners, in each case upon the terms set forth in Section
5.9 of the Deposit Agreement), and (ii) as may be required at law in connection with the
termination of the Deposit Agreement. After the Termination Date, the Company shall be discharged
from all obligations under the Deposit Agreement, except for its obligations to the Depositary
under Sections 5.8, 5.9 and 7.6 of the Deposit Agreement. The obligations under the terms of the
Deposit Agreement of Holders and Beneficial Owners of ADSs outstanding as of the Termination Date
shall survive the Termination Date and shall be discharged only when the applicable ADSs are
presented by their Holders to the Depositary for cancellation under the terms of the Deposit
Agreement.

     (24) Compliance with U.S. Securities Laws. Notwithstanding any provisions in this ADR
or the Deposit Agreement to the contrary, the withdrawal or delivery of Deposited Securities will
not be suspended by the Company or the Depositary except as would be permitted

A-23

 

by Instruction
I.A.(1) of the General Instructions to the Form F-6 Registration Statement, as amended from time to
time, under the Securities Act.

     (25) Certain Rights of the Depositary; Limitations. Subject to the further terms and
provisions of this paragraph (25) and Section 5.10 of the Deposit Agreement, the Depositary, its
Affiliates and their agents, on their own behalf, may own and deal in any class of securities of
the Company and its Affiliates and in ADSs. The Depositary may issue ADSs against evidence of
rights to receive Shares from the Company, any agent of the Company or any custodian, registrar,
transfer agent, clearing agency or other entity involved in ownership or transaction records in
respect of the Shares. Such evidence of rights shall consist of written blanket or specific
guarantees of ownership of Shares. In its capacity as Depositary, the Depositary shall not lend
Shares or ADSs; provided, however, that the Depositary may (i) issue ADSs prior to
the receipt of Shares pursuant to Section 2.3 of the Deposit Agreement and (ii) deliver Shares
prior to the receipt of ADSs for withdrawal of Deposited Securities pursuant to Section 2.7 of the
Deposit Agreement, including ADSs which were issued under (i) above but for which Shares may not have been received (each such transaction a “Pre-Release Transaction”). The
Depositary may receive ADSs in lieu of Shares under (i) above and receive Shares in lieu of ADSs
under (ii) above. Each such Pre-Release Transaction will be (a) subject to a written agreement
whereby the person or entity (the “Applicant”) to whom ADSs or Shares are to be delivered
(w) represents that at the time of the Pre-Release Transaction the Applicant or its customer owns
the Shares or ADSs that are to be delivered by the Applicant under such Pre-Release Transaction,
(x) agrees to indicate the Depositary as owner of such Shares or ADSs in its records and to hold
such Shares or ADSs in trust for the Depositary until such Shares or ADSs are delivered to the
Depositary or the Custodian, (y) unconditionally guarantees to deliver to the Depositary or the
Custodian, as applicable, such Shares or ADSs and (z) agrees to any additional restrictions or
requirements that the Depositary deems appropriate, (b) at all times fully collateralized with
cash, U.S. government securities or such other collateral as the Depositary deems appropriate, (c)
terminable by the Depositary on not more than five (5) business days’ notice and (d) subject to
such further indemnities and credit regulations as the Depositary deems appropriate. The
Depositary will normally limit the number of ADSs and Shares involved in such Pre-Release
Transactions at any one time to thirty percent (30%) of the ADSs outstanding (without giving effect
to ADSs outstanding under (i) above), provided, however, that the Depositary
reserves the right to change or disregard such limit from time to time as it deems appropriate.
The Depositary may also set limits with respect to the number of ADSs and Shares involved in
Pre-Release Transactions with any one person on a case by case basis as it deems appropriate. The
Depositary may retain for its own account any compensation received by it in conjunction with the
foregoing. Collateral provided pursuant to (b) above, but not earnings thereon, shall be held for
the benefit of the Holders (other than the Applicant).

A-24

 

(ASSIGNMENT AND TRANSFER SIGNATURE LINES)

     FOR VALUE RECEIVED, the undersigned Holder hereby sell(s), assign(s) and transfer(s) unto
           
           
           
           
           
      whose taxpayer identification number is
            
            
            
     and whose
address including postal zip code is
           
           
           
       , the within ADS and all rights thereunder,
hereby irrevocably constituting and appointing
           
           
           
        attorney-in-fact to
transfer said ADS on the books of the Depositary with full power of substitution in the premises.

	 	 	 	 	 
	Dated:	 	Name:  	 	 
	 	 	 	     By:	 
	 	 	 	     Title:	 
	 	 	 	 	 
	 	 	
NOTICE: The signature of the Holder to this
assignment must correspond with the name as written
upon the face of the within instrument in every
particular, without alteration or enlargement or any
change whatsoever.
	 	 	 	 	 
	 	 	
If the endorsement be executed by an attorney,
executor, administrator, trustee or guardian, the
person executing the endorsement must give his/her
full title in such capacity and proper evidence of
authority to act in such capacity, if not on file
with the Depositary, must be forwarded with this ADR.
	 	 	 	 	 
	SIGNATURE GUARANTEED	 	 	 	 
	 	 	
All endorsements or assignments of ADRs must be
guaranteed by a member of a Medallion Signature
Program approved by the Securities Transfer
Association, Inc.

Legends

[The ADRs issued in respect of Partial Entitlement American Depositary Shares shall bear the
following legend on the face of the ADR: “This ADR evidences ADSs representing ‘partial
entitlement’ Ordinary Shares of CAMELOT INFORMATION SYSTEMS INC. and as such do not entitle
the holders thereof to the same per-share entitlement as other Ordinary Shares (which are
‘full entitlement’ Ordinary Shares) issued and outstanding at such time. The ADSs
represented by this ADR shall entitle holders to distributions and entitlements identical to
other ADSs when the Ordinary Shares represented by such ADSs become ‘full entitlement’
Ordinary Shares.”]

A-25

 

EXHIBIT B

FEE SCHEDULE

DEPOSITARY FEES AND RELATED CHARGES

All capitalized terms used but not otherwise defined herein shall have the meaning given to such
terms in the Deposit Agreement.

			
	I.	 	Depositary Fees

     The Company, the Holders, the Beneficial Owners and the persons depositing Shares or
surrendering ADSs for cancellation agree to pay the following fees of the Depositary:

	 	 	 	 	 	 	 
	Service	 	Rate	 	By Whom Paid
	(1)

	 	Issuance of ADSs upon
deposit of Shares
(excluding issuances as a
result of distributions
described in paragraph (4)
below).
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
issued.
	 	Person depositing
Shares or person
receiving ADSs.
	(2)

	 	Delivery of Deposited
Securities against
surrender of ADSs.
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
surrendered.
	 	Person surrendering
ADSs for the
purpose of
withdrawal of
Deposited
Securities or
person to whom
Deposited
Securities are
delivered.
	(3)

	 	Distribution of cash
dividends or other cash
distributions (i.e., sale
of rights and other
entitlements).
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
held.
	 	Person to whom
distribution is
made.
	(4)

	 	Distribution of ADSs
pursuant to (i) stock
dividends or other free
stock distributions, or
(ii) exercise of rights to
purchase additional ADSs.
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
held.
	 	Person to whom
distribution is
made.
	(5)

	 	Distribution of
securities other than ADSs
or rights to purchase
additional ADSs (i.e.,
spin-off shares).
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
held.
	 	Person to whom
distribution is
made.

B-1

 

	 	 	 	 	 	 	 
	Service	 	Rate	 	By Whom Paid
	(6)

	 	Depositary Services.
	 	Up to U.S. $5.00
per 100 ADSs (or
fraction thereof)
held on the
applicable record
date(s) established
by the Depositary.
	 	Person holding ADSs
on the applicable
record date(s)
established by the
Depositary.
	(7)

	 	Transfer of ADRs
	 	U.S. $1.50 per
certificate
presented for
transfer.
	 	Person presenting
the ADR for
transfer.

			
	II.	 	Charges

     Holders, Beneficial Owners, persons depositing Shares and persons surrendering ADSs for
cancellation and for the purpose of withdrawing Deposited Securities shall be responsible for the
following charges:

	(i)	 	taxes (including applicable interest and penalties) and other governmental charges;
	 
	(ii)	 	such registration fees as may from time to time be in effect for the registration of Shares
or other Deposited Securities on the share register and applicable to transfers of Shares or
other Deposited Securities to or from the name of the Custodian, the Depositary or any
nominees upon the making of deposits and withdrawals, respectively;
	 
	(iii)	 	such cable, telex and facsimile transmission and delivery expenses as are expressly provided
in the Deposit Agreement to be at the expense of the person depositing or withdrawing Shares
or Holders and Beneficial Owners of ADSs;
	 
	(iv)	 	the expenses and charges incurred by the Depositary in the conversion of foreign currency;
	 
	(v)	 	such fees and expenses as are incurred by the Depositary in connection with compliance with
exchange control regulations and other regulatory requirements applicable to Shares, Deposited
Securities, ADSs and ADRs; and
	 
	(vi)	 	the fees and expenses incurred by the Depositary, the Custodian, or any nominee in connection
with the servicing or delivery of Deposited Securities.

B-2

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