Document:

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                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

      This Employment Agreement ("AGREEMENT"), dated as of April 1, 2005
("EFFECTIVE DATE"), is between Medical Discoveries, Inc., a Utah corporation
("MDI"), and Judy M. Robinett, an individual ("EXECUTIVE").

1. EMPLOYMENT RELATIONSHIP / POSITION / DUTIES.

      1.1 EMPLOYMENT RELATIONSHIP. Executive shall continue to be employed by
MDI as President and Chief Executive Officer. Executive and MDI acknowledge that
either party may terminate this Agreement and the employment relationship at any
time and for any or no reason, upon six months' written notice to the other,
subject to the obligations of MDI specified in Section 5 of this Agreement.

      1.2 POSITION. Executive will serve MDI as its President and Chief
Executive Officer.

      1.3 DUTIES. Executive will, during the term of this Agreement, faithfully
and diligently perform all such acts and duties, and furnish such services, as
the Board of Directors of MDI (the "Board") shall reasonably direct and are
consistent with the duties normally associated with the position of President
and Chief Executive Officer. Executive will devote such time, energy, and skill
to the business of MDI as shall reasonably be required for performance of her
duties. Executive shall not be prevented by this Section 1.3 from engaging in
any civic, charitable or humanitarian pursuits that do not interfere or conflict
with the performance of her duties hereunder.

2. TERM OF EMPLOYMENT. Unless sooner terminated in accordance with this
Agreement, the term of employment will be for the period commencing on the
Effective Date and ending on the third anniversary of the Effective Date (the
"TERM"); provided, however, that in the event of a Change of Control (as defined
in Section 5.4(c)) during said three-year period, the Term shall extend to the
later of (i) said three-year period or (ii) 24 months following a Change of
Control as defined in Section 5.4 below.

3. SALARY AND ANNUAL BONUS. MDI will pay Executive (i) an annual salary of
$350,000, plus (ii) annual bonus payments. The Board shall adopt a formal annual
bonus plan (the "Plan") no later than one month following the Effective Date
that will provide for the payment of an annual cash bonus to be paid to
Executive during the Term, based upon the achievement of financial, operational
and managerial goals mutually agreed to by Executive and the Board (the
"Bonus"). Such objectives will be weighted according to their importance.
Objectives and weightings may be revised by mutual consent of Executive and the
Board during the Term if warranted by changes in economic conditions, accounting
regulations or other unforeseen circumstances. Upon successful achievement of
the agreed upon goals, the Bonus will equal a defined percentage of Executive's
then-current salary. Initially, the Plan shall consist of the

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                                                                    EXHIBIT 10.4

objectives and weightings set forth in Exhibit A, which is attached hereto and
incorporated by reference herein.

      The level of Executive's performance will be measured by the Board based
on a thorough review of Executive's performance vis-a-vis the established
objectives, taking into consideration extraordinary events that may have either
positively or negatively impacted on the Executive's ability to achieve such
objectives. The Bonus will be paid no later than 30 days following each
anniversary of the Effective Date during the Term.

4. OTHER BENEFITS.

      4.1 EMPLOYEE BENEFIT PROGRAMS. Executive will be eligible to participate
in all employee benefit programs established by MDI that are applicable to
management personnel such as medical, pension, 401(k), disability and life
insurance plans on the same basis as other employees of MDI from time to time,
but nothing herein shall require the adoption or maintenance by MDI of any
specific plans.

      4.2 VACATIONS AND HOLIDAYS. Executive will be provided such holidays, sick
leave and vacation as MDI makes available to its management level employees
generally; provided, however, that Executive shall be entitled to not less than
four weeks' paid vacation in each twelve-month period during the Term.

      4.3 EXPENSES. MDI will reimburse Executive in accordance with company
policies and procedures for reasonable expenses (including travel expenses,
including business class for all business-related international travel)
necessarily incurred in the performance of duties hereunder against appropriate
receipts and vouchers indicating the specific business purpose for each such
expenditure. In addition, upon request by Executive, MDI shall provide Executive
with a credit card, cellular phone and a monthly calling plan of Executive's
choosing.

      4.4 VEHICLE. Upon request by Executive when MDI's operating budget
permits, MDI shall provide Executive with the use of a company-owned vehicle
that will be replaced every two years during the Term.

      4.5 MISCELLANEOUS ADDITIONAL BENEFITS. MDI will provide Executive with the
following additional benefits during the Term:

            (a) reimbursement for professional association membership
(initiation and annual) fees; conference attendance and licensing fees related
to the maintenance of Executive's professional status;

            (b) membership in two airline clubs;

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                                                                    EXHIBIT 10.4

            (c) reimbursement for financial counseling and annual income tax
preparation, not to exceed $2,500 per year; and

            (d) payments of legal fees associated with the drafting and
negotiation of this Agreement, not to exceed $8,500.

5. COMPENSATION UPON TERMINATION.

      5.1 TERMINATION WITHOUT CAUSE. In the event of a Termination of
Executive's Employment (as defined in Section 5.4(a)) at any time during or upon
the expiration and non-renewal of the Term for any reason other than Cause (as
defined in Section 5.4(b)), death, or Disability (as defined in Section 5.4(d)),
including but not limited to Executive's resignation for Good Reason, and
contingent upon Executive's execution of the Release of Claims (as defined in
Section 5.3) and compliance with Section 10, Executive shall be entitled to
receive as severance pay an amount in cash equal to Executive's annual salary in
effect immediately prior to the date of termination for a period equal to the
longer of two years or the unexpired portion of the Term (the "Severance Pay").
MDI shall pay Executive the Severance Pay in a single payment after employment
has ended and eight days have passed following execution of the Release of
Claims without revocation. This severance pay shall be in lieu of any other
compensation for periods after the date of termination. MDI also shall pay
Executive her base salary and a pro rata portion of the Bonus through the date
of termination. MDI shall notify Executive of the termination of Executive's
employment as required by Section 1.1, provided that MDI may elect to pay
Executive her then-current annual salary and pro rata Bonus and provide benefits
in lieu of all or any portion of such six-month notice period.

      5.2 TERMINATION FOR CAUSE, DEATH, OR DISABILITY. Upon Termination of
Executive's Employment at any time during the Term for Cause, death, or
Disability, Executive will be paid her compensation and a pro rata portion of
the Bonus through the date of termination and will have no rights to payments
after the termination date.

      5.3 RELEASE OF CLAIMS. In consideration for and as a condition precedent
to receiving the severance benefits outlined in Section 5.1 and elsewhere in
this Agreement, Executive agrees to execute a comprehensive release of
claims/non-disparagement agreement in a form acceptable to MDI ("RELEASE OF
CLAIMS"). Executive promises to execute and deliver the Release of Claims to MDI
within the later of (i) 45 days from the date Executive receives the Release of
Claims or (ii) the last day of Executive's active employment.

      5.4 DEFINITIONS.

            (a) Termination of Executive's Employment. Termination of
Executive's Employment means that MDI has terminated Executive's employment with
MDI (including any subsidiary of MDI) from those currently held or assigned.
Termination of Executive's Employment also shall include termination by
resignation of Executive for any reason, within 12

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                                                                    EXHIBIT 10.4

months of a Change of Control as defined in Section 5.4(c) below or for "Good
Reason" which for purposes of this Agreement shall mean:

                  (i) the assignment to Executive of a different title, job or
      responsibilities that results in a decrease in the level of responsibility
      of Executive;

                  (ii) a reduction in Executive's annual salary or Bonus
      potential under the Plan;

                  (iii) a significant reduction in total benefits available to
      Executive under cash incentive, stock incentive and other employee benefit
      plans; or

                  (iv) a requirement that Executive be based more than 50 miles
      from where Executive's office is currently located, except for required
      travel on company business.

            (b) Cause. Termination of Executive's Employment for "Cause" shall
mean termination upon (i) the willful and continued failure by Executive to
perform substantially Executive's reasonably assigned duties with MDI (other
than any such failure resulting from Executive's incapacity due to physical or
mental illness) which failure is not corrected within 30 days after a written
demand for substantial performance is delivered to Executive by the Board, which
demand specifically identifies the manner in which the Board believes that
Executive has not substantially performed Executive's duties and the actions it
wants her to take to correct such failure; (ii) the conviction of Executive for
a felony or misdemeanor involving moral turpitude or financial wrongdoing which
has or reasonably could have a negative effect on the business of MDI or on its
reputation in the business community; or (iii) the willful engaging by Executive
of illegal or fraudulent conduct that is materially and demonstrably injurious
to MDI. No act, or failure to act, on Executive's part shall be considered
"willful" unless done, or omitted to be done, by Executive without Executive's
reasonable belief that her action or omission was in, or not opposed to, the
best interests of MDI. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or based upon the advice of
counsel for MDI shall be conclusively presumed to be done, or omitted to be
done, by Executive in the best interests of MDI.

            (c) Change of Control. A Change of Control shall mean that one of
the following events has taken place:

                  (i) The consummation of a merger or consolidation of MDI with
      or into another entity or any other corporate reorganization, if more than
      50% of the combined voting power of the continuing or surviving entity's
      securities outstanding immediately after such merger, consolidation or
      other reorganization is owned by persons who were not stockholders of MDI
      immediately prior to such merger, consolidation or other reorganization;
      or

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                                                                    EXHIBIT 10.4

                  (ii) the sale, transfer or other disposition of all or
      substantially all of MDI's assets; or

                  (iii) A change in the composition of the Board, as a result of
      which fewer than one-half of the incumbent directors are directors who
      either:

                        (1) Had been directors of MDI 24 months prior to such
            change; or

                        (2) Were elected, or nominated for election, to the
            Board with the affirmative votes of at least a majority of the
            directors who had been directors of MDI 24 months prior to such
            change and who were still in office at the time of the election or
            nomination.

A transaction shall not constitute a Change of Control if its sole purpose is to
change the state of MDI's incorporation or to create a holding company that will
be owned in substantially the same proportions by the persons who held MDI's
securities immediately before such transaction. In addition, notwithstanding
anything in the foregoing to the contrary, no Change of Control shall be deemed
to have occurred for purposes of this Agreement by virtue of any transaction
which results in Executive's, or a group of persons which includes Executive,
acquiring, directly or indirectly, securities representing 20% or more of the
voting power of outstanding securities of MDI.

            (d) Disability. Disability shall mean Executive's inability to
perform the primary duties of her position with MDI for a period of 90
consecutive days in any rolling 12-month period during the Term as a result of
Executive's incapacity due to physical or mental illness.

      5.5 SUSPENSION PENDING INVESTIGATION. MDI may suspend Executive with pay
and benefits (not including Bonus) in the event Executive is charged by a law
enforcement authority with a felony or misdemeanor involving moral turpitude or
financial wrongdoing. In the event of Executive's conviction, MDI may terminate
Executive for Cause pursuant to Section 5.4(b)(ii) The effective date of such
termination for Cause shall be the date of Executive's suspension, and Executive
shall repay MDI an amount equal to the salary she was paid during her
suspension. In the event Executive is not convicted, MDI shall immediately
reinstate Executive and pay her a pro rata portion of any Bonus and any other
payment or benefit to which she would have been entitled had it not been for her
suspension. Alternatively, Executive may elect to resign in lieu of accepting
reinstatement, in which case her resignation will be considered for Good Reason
(as defined in Section 5.4(a)), and she shall be eligible for Severance Pay (as
defined in Section 5.1),

      5.6 GROSS-UP PAYMENT. Notwithstanding anything in this Agreement to the
contrary, if any payment pursuant to this Agreement (each a "PAYMENT") is
subject to the excise tax imposed on "excess parachute payments" by Section 4999
of the Internal Revenue Code of 1986, as amended (the "CODE") (such excise tax,
together with any interest or penalties thereon, is

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                                                                    EXHIBIT 10.4

herein referred to as an "EXCISE TAX"), Executive shall be entitled to an
additional payment (a "GROSS-UP PAYMENT") such that the net amount retained by
the Executive, after deduction of any Excise Tax on the Payment and any federal,
state and local income tax and Excise Tax upon the Gross-Up Payment, shall be
equal to the Payment. No Gross-Up Payment shall be payable under this Section
5.6 if the Payment is not subject to an Excise Tax.

6. CONFIDENTIAL INFORMATION.

      6.1 Executive recognizes that MDI's business and continued success depend
upon the use and protection of confidential and proprietary business information
concerning MDI and its business (all such information being "CONFIDENTIAL
INFORMATION"). For purposes of this Agreement, the phrase "Confidential
Information" includes, for MDI and its current or future subsidiaries and
affiliates, without limitation, and whether or not specifically designated as
confidential or proprietary: all business plans and marketing strategies;
information concerning existing and prospective markets and customers; financial
information; information concerning the development of new products and
services; and technical and non-technical data related to designs,
specifications, compilations, inventions, improvements, methods, processes,
procedures and techniques; provided, however, that the phrase does not include
information that (a) was lawfully in Executive's possession prior to disclosure
of such information by MDI; (b) was, or at any time becomes, available in the
public domain other than through a violation by Executive or Executive's agent
of this Agreement; (c) is documented by Executive as having been developed by
Executive outside the scope of Executive's employment and independently; or (d)
is furnished to Executive by a third party not under an obligation of
confidentiality to MDI.

      6.2 Executive agrees that Executive will use Confidential Information only
for the benefit of MDI and will not directly or indirectly use or divulge, or
permit others to use or divulge, any Confidential Information for any reason,
except in the performance of her duties or as authorized by MDI. Executive's
obligation under this Agreement is in addition to any obligations Executive has
under state or federal law. Executive agrees to deliver to MDI immediately upon
termination of Executive's employment, or at any time MDI requests, all tangible
items containing any Confidential Information (including, without limitation,
all memoranda, computer storage devices, photographs, records, reports, manuals,
drawings, blueprints, prototypes, notes taken by or provided to Executive, and
any other documents or items of a confidential nature belonging to MDI),
together with all copies of such material in Executive's possession or control.
Executive agrees that in the course of Executive's employment with MDI,
Executive will not violate in any way the rights that any entity has with regard
to trade secrets or proprietary or confidential information. Executive's
obligations under this Section 6 are indefinite in term and shall survive the
termination of this Agreement.

7. WORK PRODUCT AND TRADEMARKS, TRADENAMES AND COPYRIGHTS. Executive agrees that
all right, title and interest in and to all trademarks, tradenames and
copyrights, registered or unregistered, used by MDI in its business (the
"BUSINESS") are the property of MDI, and Executive will not during the Term or
thereafter use or, to the extent of her ability to do so,

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                                                                    EXHIBIT 10.4

permit others to use, such trademarks, tradenames and copyrights except as
permitted by MDI. Further, Executive agrees that all right, title and interest
in and to the materials resulting from the performance of Executive's duties to
MDI and all copies thereof, including works in progress, in whatever media (the
"WORK"), will be and remain in MDI upon their creation. Executive will mark all
Work with MDI's copyright or other proprietary notice as directed by MDI.
Executive further agrees:

      7.1 To the extent that any portion of the Work constitutes a work
protectable under the copyright laws of the United States (the "COPYRIGHT LAW"),
that all such Work will be considered a "work made for hire" as such term is
used and defined in the Copyright Law and that MDI will be considered the
"author" of such portion of the Work and the sole and exclusive owner throughout
the world of copyright therein; and

      7.2 If any portion of the Work does not qualify as a "work made for hire"
as such term is used and defined in the Copyright Law, that Executive hereby
assigns and agrees to assign to MDI, without further consideration, all right,
title and interest in and to such Work or in any such portion thereof and any
copyright therein and further agrees to execute and deliver to MDI, upon
request, appropriate assignments of such Work and copyright therein and such
other documents and instruments as MDI may request to fully and completely
assign such Work and copyright therein to MDI, its successors or nominees, and
that Executive hereby appoints MDI as attorney-in-fact to execute and deliver
any such documents on Executive's behalf in the event Executive should fail or
refuse to do so within a reasonable period following MDI's request.

8. INVENTIONS AND PATENTS. For purposes of this Agreement, "Inventions"
includes, without limitation, information, inventions, contributions,
improvements, ideas, or discoveries, regardless of whether patentable, or
conceived or made during work hours. Executive agrees that all Inventions
conceived or made by Executive during the period of employment with MDI belong
to MDI, provided they grow out of Executive's work with MDI or are related to
the Business, including, without limitation, research and product development,
and projected business of MDI. Accordingly, Executive will:

      8.1 Make adequate written records of such Inventions, which records will
be MDI's property;

      8.2 Assign to MDI, at its request, any rights Executive may have to such
Inventions for the U.S. and all foreign countries;

      8.3 Waive and agree not to assert any moral rights Executive may have or
acquire in any Inventions and agree to provide written waivers from time to time
as requested by MDI; and

      8.4 Assist MDI (at MDI's expense) in obtaining and maintaining patents or
copyright registrations with respect to such Inventions.

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                                                                    EXHIBIT 10.4

      Executive understands and agrees that MDI or its designee will determine,
in its sole and absolute discretion, whether an application for patent will be
filed on any Invention that is the exclusive property of MDI, as set forth
above, and whether such an application will be abandoned prior to issuance of a
patent. MDI will pay to Executive, either during or after the term of this
Agreement, the following amounts if Executive is sole inventor, or Executive's
proportionate share if Executive is joint inventor: $750 upon filing of the
initial application for patent on such Invention; and $1,500 upon issuance of a
patent resulting from such initial patent application, provided Executive is
named as an inventor in the patent.

      Executive further agrees that Executive will promptly disclose in writing
to MDI during the Term and for six months thereafter, all Inventions developed
during the Term or within six months following Executive's termination of
employment (whether or not MDI has rights in such Inventions) so that
Executive's rights and MDI's rights in such Inventions can be determined.
Executive represents and warrants that Executive has no Inventions, software,
writings or other works of authorship useful to MDI in the normal course of the
Business, which were conceived, made or written prior to the date of this
Agreement and which are excluded from the operation of this Agreement

9. REMEDIES. Notwithstanding other provisions of this Agreement regarding
dispute resolution, Executive agrees that Executive's violation of any of
Sections 6, 7, or 8 of this Agreement would cause MDI irreparable harm which
would not be adequately compensated by monetary damages and that an injunction
may be granted by any court or courts having jurisdiction, restraining Executive
from violation of the terms of this Agreement, upon any breach or threatened
breach of Executive of the obligations set forth in any of Sections 6, 7, or 8.
The preceding sentence shall not be construed to limit MDI from any other relief
or damages to which it may be entitled as a result of Executive's breach of any
provision of this Agreement, including Sections 6, 7, or 8.

10. RESIGNATION OF CORPORATE OFFICES. Executive will resign Executive's office,
if any, as a director, officer or trustee of MDI, its subsidiaries or affiliates
and of any other corporation or trust of which Executive serves as such at the
request of MDI, effective as of the date of Termination of Executive's
Employment.

11. DISPUTE RESOLUTION. Except for the right of MDI and Executive to seek
injunctive relief in court, any controversy, claim or dispute of any type
arising out of or relating to Executive's employment or the provisions of this
Agreement shall be resolved in accordance with this Section 11, which will be
the sole and exclusive procedure for the resolution of any disputes. Matters
subject to these provisions include, without limitation, claims or disputes
based on statute, contract, common law and tort and will include, for example,
matters pertaining to termination, discrimination, harassment, compensation and
benefits. Matters to be resolved under these procedures also include claims and
disputes arising out of statutes such as Title VII of the Civil Rights Act and
the Age Discrimination in Employment Act. Nothing in this

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                                                                    EXHIBIT 10.4

provision is intended to restrict Executive from submitting any matter to an
administrative agency with jurisdiction over such matter.

      11.1 COMPLIANCE WITH MDI POLICY. Executive and MDI will make a good faith
attempt to resolve all disputes in accordance with any dispute resolution policy
adopted by MDI before resorting to any other dispute resolution procedure.

      11.2 MEDIATION. MDI and Executive will make a good faith attempt to
resolve any and all claims and disputes not resolved in accordance with Section
11.1 by submitting them to mediation in Salt Lake City, Utah before resorting to
arbitration or any other dispute resolution procedure. The mediation of any
claim or dispute must be conducted in accordance with the then-current American
Arbitration Association ("AAA") national rules for the resolution of employment
disputes by mediation, by a mediator who has had both training and experience as
a mediator of general employment and commercial matters. If the parties to this
Agreement cannot agree on a mediator, then the mediator will be selected by the
AAA in accordance with the criteria described in this provision. Within 30 days
after the selection of the mediator, MDI and Executive and their respective
attorneys will meet with the mediator for one mediation session of at least four
hours. If the claim or dispute cannot be settled during such mediation session
or mutually agreed continuation of the session, either MDI or Executive may give
the mediator and the other party to the claim or dispute written notice
declaring the end of the mediation process. All discussions connected with this
mediation provision will be confidential and treated as compromise and
settlement discussions. Nothing disclosed in such discussions, which is not
independently discoverable, may be used for any purpose in any later proceeding.
The mediator's fees will be paid by MDI.

      11.3 ARBITRATION. If any claim or dispute has not been resolved in
accordance with Section 11.1 or Section 11.2, then the claim or dispute will be
determined by arbitration in Salt Lake City, Utah, in accordance with the
then-current AAA national rules for the resolution of employment disputes by
arbitration, except as modified herein. The arbitration will be conducted by a
sole neutral arbitrator who has had both training and experience as an
arbitrator of general employment and commercial matters and who is and for at
least ten years has been, a partner, a shareholder, or a member in a law firm.
If MDI and Executive cannot mutually agree on an arbitrator, then the arbitrator
will be selected by the AAA applying the criteria in this provision. No person
who has served as a mediator under the mediation provision, however, may be
selected as the arbitrator for the same claim or dispute. Reasonable discovery
will be permitted and the arbitrator may decide any issue as to discovery. The
arbitrator may decide any issue as to whether or the extent to which, any
dispute is subject to the dispute resolution provisions in Section 11 and the
arbitrator may award any relief permitted by law. The arbitrator must base the
arbitration award on the provisions of Section 11 and applicable law and must
render the award in writing, including an explanation of the reasons for the
award. Judgment upon the award may be entered by any court having jurisdiction
of the matter, and the decision of the arbitrator will be final and binding. The
statute of limitations applicable to the commencement of a lawsuit will

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                                                                    EXHIBIT 10.4

apply to the commencement of arbitration. The arbitrator's fees will be split
evenly by MDI and Executive.

12. FEES. Unless otherwise agreed, the prevailing party will be entitled to its
costs and attorneys' fees incurred in any litigation relating to the
interpretation or enforcement of this Agreement.

13. DISCLOSURE. Executive agrees to reveal the terms of this Agreement to any
future employer or potential employer of Executive and authorizes MDI, to make
such disclosure in the event she does not.

14. REPRESENTATION OF EXECUTIVE. Executive represents and warrants to MDI that
Executive is free to enter into this Agreement and has no commitment,
arrangement or understanding to or with any party that restrains or is in
conflict with Executive's performance of the covenants, services and duties
provided for in this Agreement. Executive agrees to indemnify MDI and to hold it
harmless against any and all liabilities or claims arising out of any
unauthorized act or acts by Executive that, the foregoing representation and
warranty to the contrary notwithstanding, are in violation, or constitute a
breach, of any such commitment, arrangement or understanding.

15. ASSIGNABILITY. This Agreement may not be assigned by either party without
the written consent of the other; provided, however, that MDI may assign its
rights and obligations under this Agreement without Executive's consent to a
successor by reorganization, sale, merger or liquidation, if such successor
carries on the Business substantially in the form in which it is being conducted
at the time of the reorganization, sale, merger or liquidation. This Agreement
is binding upon Executive, Executive's heirs, personal representatives and
permitted assigns and on MDI, its successors and assigns, and MDI agrees to
require any successor or assign to assume this Agreement and all of MDI's
obligations hereunder.

16. NOTICES. Any notice required or permitted to be given hereunder is
sufficient if in writing and delivered by hand, by facsimile or by registered or
certified mail, to Executive at 1338 S. Foothill Dr., #266, Salt Lake City, UT
84108 or to MDI at 30103 W. Gwinn Rd., Prosser, WA 99350, Attn: David R. Walker.
Either Executive or MDI may change the place to which notice is to be given by
providing notice thereof to the other party.

17. SEVERABILITY. If any provision of this Agreement or compliance by either of
the parties with any provision of this Agreement constitutes a violation of any
law, or is or becomes unenforceable or void, then such provision, to the extent
only that it is in violation of law, unenforceable or void, shall be deemed
modified to the extent necessary so that it is no longer in violation of law,
unenforceable or void, and such provision will be enforced to the fullest extent
permitted by law. If such modification is not possible, said provision, to the
extent that it is in violation of law, unenforceable or void, shall be deemed
severable from the remaining provisions of this Agreement, which provisions will
remain binding on the parties.

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                                                                    EXHIBIT 10.4

18. WAIVERS. No failure on the part of either party to exercise, and no delay in
exercising, any right or remedy hereunder will operate as a waiver thereof; nor
will any single or partial waiver of a breach of any provision of this Agreement
operate or be construe as a waiver of any subsequent breach; nor will any single
or partial exercise of any right or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right or remedy granted
hereby or by law.

19. GOVERNING LAW. The validity, construction and performance of this Agreement
shall be governed by the laws of the State of Utah without regard to the
conflict of laws provisions of any other jurisdiction. Any lawsuit, claim or
other legal proceeding involving this Agreement must be brought exclusively in
the federal or state courts servicing Salt Lake County, Utah, and MDI and
Executive hereby submit to personal jurisdiction in the State of Utah and to
venue in such courts.

20. ENTIRE AGREEMENT. This instrument contains the entire agreement of the
parties with respect to the relationship between Executive and MDI and
supersedes all prior agreements and understandings, and there are no other
representations or agreements other than as stated in this Agreement related to
the terms and conditions of Executive's employment. This Agreement may be
changed only by an agreement in writing signed by the party against whom
enforcement of any waiver, change, modification, extension or discharge is
sought.

      IN WITNESS WHEREOF, the parties have duly signed and delivered this
Agreement as of the day and year first above written.

MEDICAL DISCOVERIES, INC.

By: /s/ David R. Walker                                /s/ Judy M. Robinett
    ---------------------------------------            ------------------------
Name:  David R. Walker                                 Judy M. Robinett
Title:  Chairman of the Board of Directors

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                                                                    EXHIBIT 10.4

                                    EXHIBIT A
                                   BONUS PLAN

<TABLE>
<CAPTION>
                                                              Bonus (as percentage of Executive's salary as
                        Objective                                        of the date of payment)
-----------------------------------------------------------   ---------------------------------------------
<S>                                                           <C>
Enter Phase I clinical trials on MDI-P or any other drug      15% per indication
that MDI acquires (such as SaveCream) in any indication

Enter Phase II clinical trials on MDI-P or any other drug     15% per indication
that MDI acquires (such as SaveCream) in any indication

Enter Phase III clinical trials on MDI-P or any other drug    15% per indication
that MDI acquires (such as SaveCream) in any indication

File an IND with the FDA on MDI-P for HIV                     15%

File an IND with the FDA on MDI-P or any other drug that      15% per indication
MDI acquires (such as SaveCream) in any indication

Complete an acquisition of another company or technology      15% per acquisition
for an aggregate purchase price in excess of $1 million

Launch and appropriately capitalize (with no less than $1     15% per subsidiary
million) an operating subsidiary of MDI intended to exploit
specific opportunities identified by the company from
time-to-time (e.g. Animal Health GmbH)

Commercialize an asset of MDI in a transaction that           15% per qualifying transaction
generates cash paid to MDI of $1 million or more in the
aggregate
</TABLE>

                                       12exv10w1

 

Exhibit 10.1

Execution Copy

 

 

EGL, Inc.

 

$100,000,000 Floating Rate Senior Secured Notes due October 12, 2012

 

 

Note Purchase Agreement

 

 

Dated as of October 12, 2005

 

 

 

 

TABLE OF CONTENTS

(Not a part of the Agreement)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 1.     Authorization of Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Authorization of Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.2
	 	Provisions Relating to the Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2.     Sale and Purchase of Notes; Guaranty Agreement; Security	 	 	2	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Sale and Purchase of Notes	 	 	2	 
	 
	 	 	 	 	 	 
	Section 2.2
	 	Guaranty Agreement	 	 	2	 
	 
	 	 	 	 	 	 
	Section 2.3
	 	Security for the Notes	 	 	2	 
	 
	 	 	 	 	 	 
	Section 3.     Closing	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.     Conditions to Closing	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Representations and Warranties	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.2
	 	Performance; No Default	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.3
	 	Compliance Certificates	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.4
	 	Guaranty Agreement	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.5
	 	Security Documents	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.6
	 	Intercreditor Agreement	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.7
	 	Opinions of Counsel	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.8
	 	Purchase Permitted by Applicable Law, Etc	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.9
	 	Sale of Other Notes	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.10
	 	Payment of Special Counsel Fees	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.11
	 	Private Placement Number	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.12
	 	Changes in Corporate Structure	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.13
	 	Funding Instructions	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.14
	 	Proceedings and Documents	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.     Representations and Warranties of the Company	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Organization; Power and Authority	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.2
	 	Authorization, Etc	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.3
	 	Disclosure	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.4
	 	Organization and Ownership of Shares of Subsidiaries; Affiliates	 	 	7	 

-i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 5.5
	 	Financial Statements; Material Liabilities	 	 	8	 
	 
	 	 	 	 	 	 
	Section 5.6
	 	Compliance with Laws, Other Instruments, Etc	 	 	8	 
	 
	 	 	 	 	 	 
	Section 5.7
	 	Governmental Authorizations, Etc	 	 	8	 
	 
	 	 	 	 	 	 
	Section 5.8
	 	Litigation; Observance of Agreements, Statutes and Orders	 	 	8	 
	 
	 	 	 	 	 	 
	Section 5.9
	 	Taxes	 	 	9	 
	 
	 	 	 	 	 	 
	Section 5.10
	 	Title to Property; Leases	 	 	9	 
	 
	 	 	 	 	 	 
	Section 5.11
	 	Licenses, Permits, Etc	 	 	9	 
	 
	 	 	 	 	 	 
	Section 5.12
	 	Compliance with ERISA	 	 	10	 
	 
	 	 	 	 	 	 
	Section 5.13
	 	Private Offering by the Company	 	 	10	 
	 
	 	 	 	 	 	 
	Section 5.14
	 	Use of Proceeds; Margin Regulations	 	 	11	 
	 
	 	 	 	 	 	 
	Section 5.15
	 	Existing Debt; Existing Investments; Future Liens	 	 	11	 
	 
	 	 	 	 	 	 
	Section 5.16
	 	Foreign Assets Control Regulations, Etc	 	 	12	 
	 
	 	 	 	 	 	 
	Section 5.17
	 	Status under Certain Statutes	 	 	13	 
	 
	 	 	 	 	 	 
	Section 5.18
	 	Environmental Matters	 	 	13	 
	 
	 	 	 	 	 	 
	Section 5.19
	 	Security Documents	 	 	13	 
	 
	 	 	 	 	 	 
	Section 5.20
	 	Notes Rank Pari Passu	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.     Representations of the Purchasers	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Purchase for Investment	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.2
	 	Accredited Investor	 	 	14	 
	 
	 	 	 	 	 	 
	Section 6.3
	 	Source of Funds	 	 	14	 
	 
	 	 	 	 	 	 
	Section 7.     Information as to the Company	 	 	16	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Financial and Business Information	 	 	16	 
	 
	 	 	 	 	 	 
	Section 7.2
	 	Officer's Certificate	 	 	19	 
	 
	 	 	 	 	 	 
	Section 7.3
	 	Visitation	 	 	19	 
	 
	 	 	 	 	 	 
	Section 8.     Payment and Prepayment of the Notes	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Maturity	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.2
	 	Optional Prepayments	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.3
	 	Allocation of Partial Prepayments	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.4
	 	Maturity; Surrender, Etc	 	 	20	 
	 
	 	 	 	 	 	 
	Section 8.5
	 	Purchase of Notes	 	 	21	 
	 
	 	 	 	 	 	 
	Section 8.6
	 	Offer to Prepay Upon Sale of Assets.	 	 	21	 

-ii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 8.7
	 	Offer to Prepay Notes in the Event of a Change in Control	 	 	22	 
	 
	 	 	 	 	 	 
	Section 9.     Affirmative Covenants	 	 	25	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Compliance with Law	 	 	25	 
	 
	 	 	 	 	 	 
	Section 9.2
	 	Insurance	 	 	25	 
	 
	 	 	 	 	 	 
	Section 9.3
	 	Maintenance of Properties	 	 	25	 
	 
	 	 	 	 	 	 
	Section 9.4
	 	Payment of Taxes and Claims	 	 	26	 
	 
	 	 	 	 	 	 
	Section 9.5
	 	Corporate Existence, Etc	 	 	26	 
	 
	 	 	 	 	 	 
	Section 9.6
	 	Designation of Subsidiaries	 	 	26	 
	 
	 	 	 	 	 	 
	Section 9.7
	 	Notes to Rank Pari Passu	 	 	27	 
	 
	 	 	 	 	 	 
	Section 9.8
	 	Books and Records	 	 	27	 
	 
	 	 	 	 	 	 
	Section 9.9
	 	Additional Subsidiary Guarantors	 	 	27	 
	 
	 	 	 	 	 	 
	Section 9.10
	 	Future Liens	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.     Negative Covenants	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	Consolidated Net Debt to EBITDA Ratio	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.2
	 	Interest Coverage Ratio	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.3
	 	Asset Coverage Ratio	 	 	28	 
	 
	 	 	 	 	 	 
	Section 10.4
	 	Priority Debt	 	 	29	 
	 
	 	 	 	 	 	 
	Section 10.5
	 	Limitation on Liens	 	 	29	 
	 
	 	 	 	 	 	 
	Section 10.6
	 	Restricted Investments	 	 	30	 
	 
	 	 	 	 	 	 
	Section 10.7
	 	Restricted Payments	 	 	31	 
	 
	 	 	 	 	 	 
	Section 10.8
	 	Sales of Assets	 	 	31	 
	 
	 	 	 	 	 	 
	Section 10.9
	 	Merger and Consolidation	 	 	32	 
	 
	 	 	 	 	 	 
	Section 10.10
	 	Transactions with Affiliates	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.11
	 	Line of Business	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.12
	 	Terrorism Sanctions Regulations	 	 	33	 
	 
	 	 	 	 	 	 
	Section 10.13
	 	Limitation on Restrictive Agreements	 	 	33	 
	 
	 	 	 	 	 	 
	Section 11.     Events of Default	 	 	34	 
	 
	 	 	 	 	 	 
	Section 12.     Remedies on Default, Etc	 	 	36	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Acceleration	 	 	36	 
	 
	 	 	 	 	 	 
	Section 12.2
	 	Other Remedies	 	 	37	 
	 
	 	 	 	 	 	 
	Section 12.3
	 	Rescission	 	 	37	 

-iii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 12.4
	 	No Waivers or Election of Remedies, Expenses, Etc	 	 	37	 
	 
	 	 	 	 	 	 
	Section 13.     Registration; Exchange; Substitution of Notes	 	 	38	 
	 
	 	 	 	 	 	 
	Section 13.1
	 	Registration of Notes	 	 	38	 
	 
	 	 	 	 	 	 
	Section 13.2
	 	Transfer and Exchange of Notes	 	 	38	 
	 
	 	 	 	 	 	 
	Section 13.3
	 	Replacement of Notes	 	 	38	 
	 
	 	 	 	 	 	 
	Section 14.     Payments on Notes	 	 	39	 
	 
	 	 	 	 	 	 
	Section 14.1
	 	Place of Payment	 	 	39	 
	 
	 	 	 	 	 	 
	Section 14.2
	 	Home Office Payment	 	 	39	 
	 
	 	 	 	 	 	 
	Section 15.     Expenses, Etc	 	 	39	 
	 
	 	 	 	 	 	 
	Section 15.1
	 	Transaction Expenses	 	 	39	 
	 
	 	 	 	 	 	 
	Section 15.2
	 	Survival	 	 	40	 
	 
	 	 	 	 	 	 
	Section 16.     Survival of Representations and Warranties; Entire Agreement	 	 	40	 
	 
	 	 	 	 	 	 
	Section 17.     Amendment and Waiver	 	 	40	 
	 
	 	 	 	 	 	 
	Section 17.1
	 	Requirements	 	 	40	 
	 
	 	 	 	 	 	 
	Section 17.2
	 	Solicitation of Holders of Notes	 	 	41	 
	 
	 	 	 	 	 	 
	Section 17.3
	 	Binding Effect, Etc	 	 	41	 
	 
	 	 	 	 	 	 
	Section 17.4
	 	Notes Held by the Company, Etc	 	 	42	 
	 
	 	 	 	 	 	 
	Section 18.     Notices	 	 	42	 
	 
	 	 	 	 	 	 
	Section 19.     Reproduction of Documents	 	 	42	 
	 
	 	 	 	 	 	 
	Section 20.     Confidential Information	 	 	43	 
	 
	 	 	 	 	 	 
	Section 21.     Substitution of Purchaser	 	 	44	 
	 
	 	 	 	 	 	 
	Section 22.     Limitation on Interest	 	 	44	 
	 
	 	 	 	 	 	 
	Section 23.     Miscellaneous	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.1
	 	Successors and Assigns	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.2
	 	Payments Due on Non-Business Days	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.3
	 	Accounting Terms	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.4
	 	Severability	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.5
	 	Construction, Etc	 	 	45	 
	 
	 	 	 	 	 	 
	Section 23.6
	 	Counterparts	 	 	46	 
	 
	 	 	 	 	 	 
	Section 23.7
	 	Governing Law	 	 	46	 
	 
	 	 	 	 	 	 
	Section 23.8
	 	Jurisdiction and Process; Waiver of Jury Trial	 	 	46	 

-iv-

 

 

Attachments to Note Purchase Agreement:

	 	 	 	 	 
	Schedule A

	 	—
	 	Information Relating to Purchasers
	 
	 	 	 	 
	Schedule B

	 	—
	 	Defined Terms
	 
	 	 	 	 
	Schedule 5.4

	 	—
	 	Subsidiaries of the Company, Ownership of Subsidiary
Stock and Affiliates
	 
	 	 	 	 
	Schedule 5.5

	 	—
	 	Financial Statements
	 
	 	 	 	 
	Schedule 5.15

	 	—
	 	Existing Debt; Existing Investments; Future Liens
	 
	 	 	 	 
	Schedule 10.5

	 	—
	 	Existing Liens
	 
	 	 	 	 
	Schedule 10.6

	 	—
	 	Proposed Joint Venture
	 
	 	 	 	 
	Schedule 10.8

	 	—
	 	Permitted Disposition
	 
	 	 	 	 
	Exhibit 1

	 	—
	 	Form of Floating Rate Senior Note due October 12, 2012
	 
	 	 	 	 
	Exhibit 2

	 	—
	 	Form of Subsidiary Guaranty Agreement
	 
	 	 	 	 
	Exhibit 3

	 	—
	 	Form of Intercreditor and Collateral Agency Agreement
	 
	 	 	 	 
	Exhibit 4.7(a)

	 	—
	 	Form of Opinion of Special Counsel for the Company and the
Subsidiary Guarantors
	 
	 	 	 	 
	Exhibit 4.7(b)

	 	—
	 	Form of Opinion of the Associate General Counsel to the
Company and the Subsidiary Guarantors
	 
	 	 	 	 
	Exhibit 4.7(c)

	 	—
	 	Form of Opinion of Special Counsel for the Purchasers

-i-

 

 

EGL, Inc.

15350 Vickery Drive

Houston, Texas 77032

Floating Rate Senior Secured Notes due October 12, 2012

Dated as of October 12, 2005

To the Purchasers listed in

the attached Schedule A:

Ladies and Gentlemen:

     EGL,
Inc., a Texas corporation (the “Company”), agrees with the purchasers listed in
the attached Schedule A (each, a “Purchaser”
and, collectively, the “Purchasers”) as follows:

SECTION 1. Authorization of Notes.

     Section 1.1 Authorization of Notes. The Company will authorize the issue and sale of
$100,000,000 aggregate principal amount of its Floating Rate Senior Secured Notes due
October 12, 2012 (the “Notes”). As used herein, the term “Notes” shall mean all notes originally
delivered pursuant to this Agreement and any such notes issued in substitution therefor pursuant to
Section 13 of this Agreement. The Notes shall be substantially in the form set out in Exhibit 1
with such changes therefrom, if any, as may be approved by the Purchasers and the Company. Certain
capitalized terms used in this Agreement are defined in Schedule B; and references to a “Schedule”
or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.

     Section 1.2 Provisions Relating to the Notes.

     (a) The Notes shall bear interest (computed on the basis of a 360-day year and the
actual number of days elapsed and, as to each Interest Period or other period during which
interest accrues, from and including the first day thereof to but excluding the last day
thereof) on the unpaid principal thereof from the date of issuance at a floating rate equal
to the Adjusted LIBOR Rate for the Interest Period in effect from time to time, payable
quarterly in arrears on each Interest Payment Date and, to the extent permitted by
applicable law, interest on any overdue payment of interest and, during the continuance of
an Event of Default, on the unpaid principal thereof and on any overdue payment of
Prepayment Premium and on any overdue payment of Breakage Amount at the Default Rate, until
such overdue amounts shall have been paid or such Event of Default shall no longer exist.

     (b) The Adjusted LIBOR Rate shall be determined by the Company, and notice thereof
shall be given to the holders of Notes, within five Business Days after the beginning of
each Interest Period, together with a copy of the relevant screen used for the determination
of LIBOR, a calculation of the Adjusted LIBOR Rate for such Interest

 

 

Period, the number of days in such Interest Period, the Interest Payment Date for such
Interest Period and the amount of interest to be paid to each holder of Notes on such
Interest Payment Date. In the event that the Required Holders do not concur with such
determination by the Company, as evidenced by a single written notice to the Company given
by the Required Holders within 10 Business Days after receipt by such holders of the notice
delivered by the Company pursuant to the immediately preceding sentence, the determination
of the Adjusted LIBOR Rate shall be made by the Required Holders, and any such determination
made in accordance with the provisions of this Agreement, shall be conclusive and binding
absent manifest error.

SECTION 2. Sale and Purchase of Notes; Guaranty Agreement; Security.

     Section 2.1 Sale and Purchase of Notes. Subject to the terms and conditions of this
Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from
the Company, at the Closing provided for in Section 3, Notes in the principal amount specified
opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount
thereof. Each Purchaser’s obligations hereunder are several and not joint and no Purchaser shall
have any liability to any Person for the performance or non-performance of any obligation by any
other Purchaser hereunder.

     Section 2.2 Guaranty Agreement. The obligations of the Company hereunder, under the Notes and
under each Security Document to which it is a party are absolutely, unconditionally and irrevocably
guaranteed by each Subsidiary party to the Subsidiary Guaranty Agreement and each other Subsidiary
from time to time required to guaranty such obligations pursuant to Section 9.9 (each, a
“Subsidiary Guarantor” and, collectively, the
“Subsidiary Guarantors”), pursuant to that certain
Subsidiary Guaranty Agreement dated as of even date herewith (as the same may be amended,
supplemented, restated or otherwise modified from time to time, the
“Subsidiary Guaranty
Agreement”) substantially in the form of Exhibit 2.

     Section 2.3 Security for the Notes. To secure the full and complete payment and performance
of the obligations of the Company hereunder and under the Notes and of each Subsidiary Guarantor
under the Subsidiary Guaranty Agreement, the Company and the Subsidiary Guarantors will enter into
the Security Documents.

SECTION 3. Closing.

     The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the
offices of Schiff Hardin LLP, 623 Fifth Avenue, 28th Floor, New York, New York 10022, at 11:00
a.m., New York, New York time, at a closing (the
“Closing”) on October 12, 2005 or on such other
Business Day thereafter on or prior to October 19, 2005 as may be agreed upon by the Company and
the Purchasers. At the Closing, the Company will deliver to each Purchaser the Notes to be
purchased by such Purchaser in the form of a single Note (or such greater number of Notes in
denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing and
registered in such Purchaser’s name (or in the name of its nominee), against delivery by such
Purchaser to the Company or its order of immediately available funds in the amount of the purchase
price therefor by wire transfer of immediately available funds for the account of the Company. If
at the Closing the Company shall fail to tender such Notes to any Purchaser as

-2-

 

provided above in this Section 3, or any of the conditions specified in Section 4 shall not
have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be
relieved of all further obligations under this Agreement, without thereby waiving any rights such
Purchaser may have by reason of such failure or such nonfulfillment.

SECTION 4. Conditions to Closing.

     Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at
the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the
Closing, of the following conditions:

     Section 4.1 Representations and Warranties.

     (a) Representations and Warranties of the Company. The representations and warranties
of the Company in this Agreement and in each Security Document to which it is a party shall
be correct when made and at the time of the Closing.

     (b) Representations and Warranties of the Subsidiary Guarantors. The representations
and warranties of each Subsidiary Guarantor in the Subsidiary Guaranty Agreement and in each
Security Document to which such Subsidiary Guarantor is a party shall be correct when made
and at the time of the Closing.

     Section 4.2 Performance; No Default. The Company and each Subsidiary Guarantor shall have
performed and complied with all agreements and conditions contained in this Agreement (in the case
of the Company), the Subsidiary Guaranty Agreement (in the case of the Subsidiary Guarantors), and
each Security Document to which such Person is a party required to be performed or complied with by
such Person prior to or at the Closing, and after giving effect to the issue and sale of the Notes
(and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event
of Default shall have occurred and be continuing. Neither the Company nor any Subsidiary shall
have entered into any transaction since the date of the Memorandum that would have been prohibited
by Section 10 had such Section applied since such date.

     Section 4.3 Compliance Certificates.

     (a) Officer’s Certificate of the Company. The Company shall have delivered to such
Purchaser an Officer’s Certificate of the Company, dated the date of the Closing, certifying
that the conditions specified in Sections 4.1, 4.2 and 4.12 have been fulfilled.

     (b) Officer’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor
shall have delivered to such Purchaser an Officer’s Certificate of such Subsidiary
Guarantor, dated the date of the Closing, certifying that the conditions specified in
Sections 4.1(b), 4.2 and 4.12 have been fulfilled.

     (c) Secretary’s Certificate of the Company. The Company shall have delivered to such
Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of the
Closing, certifying as to the resolutions attached thereto and other corporate

-3-

 

proceedings relating to the authorization, execution and delivery of this Agreement,
the Notes and each Security Document to which it is a party.

     (d) Secretary’s Certificate of the Subsidiary Guarantors. Each Subsidiary Guarantor
shall have delivered to such Purchaser a certificate of its Secretary or an Assistant
Secretary, dated the date of the Closing, certifying as to the resolutions attached thereto
and other corporate, limited partnership or limited liability company proceedings relating
to the authorization, execution and delivery of the Subsidiary Guaranty Agreement and each
Security Document to which such Subsidiary Guarantor is a party.

     Section 4.4 Guaranty Agreement. The Subsidiary Guaranty Agreement shall have been duly
authorized, executed and delivered by each Subsidiary Guarantor and shall be in full force and
effect and such Purchaser shall have received a duly executed copy thereof.

     Section 4.5 Security Documents. Each Security Document shall have been duly authorized,
executed and delivered by the parties thereto and shall be in full force and effect and such
Purchaser shall have received a duly executed copy thereof. The Company and the Subsidiary
Guarantors shall have delivered the certificates representing the issued and outstanding stock,
equity, partnership interests or other investment securities pledged under the Security Documents
and instruments of assignment executed in blank to the Collateral Agent.

     Section 4.6 Intercreditor Agreement. Each Bank Lender, Banc of America Mezzanine Capital LLC,
as bridge lender, and the Collateral Agent shall have executed and delivered, and the Company and
the Subsidiary Guarantors shall have acknowledged, that certain Intercreditor and Collateral Agency
Agreement dated as of September 30, 2005 (as the same may be amended, supplemented, replaced,
restated or otherwise modified from time to time, the “Intercreditor Agreement”) substantially in
the form of Exhibit 3 and each Purchaser shall have executed an ICAA Supplement (as defined in the
Intercreditor Agreement).

     Section 4.7 Opinions of Counsel. Such Purchaser shall have received opinions in form and
substance satisfactory to such Purchaser, dated the date of the Closing (a) from Baker Botts
L.L.P., special counsel for the Company and the Subsidiary Guarantors, covering the matters set
forth in Exhibit 4.7(a) and covering such other matters incident to the transactions contemplated
hereby as such Purchaser or special counsel to the Purchasers may reasonably request (and the
Company hereby instruct its counsel to deliver such opinion to such Purchaser), (b) from Marta H.
Johnson, Associate General Counsel to the Company and the Subsidiary Guarantors, covering the
matters set forth in Exhibit 4.7(b) and covering such other matters incident to the transactions
contemplated hereby as such Purchaser or special counsel to the Purchasers may reasonably request
and (c) from Schiff Hardin LLP, special counsel to the Purchasers in connection with such
transactions, substantially in the form set forth in Exhibit 4.7(c) and covering such other matters
incident to such transactions as such Purchaser may reasonably request.

     Section 4.8 Purchase Permitted by Applicable Law, Etc. On the date of the Closing, such
Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions (such as Section
1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies
without restriction as to the character of the particular investment, (b) not violate any

-4-

 

applicable law or regulation (including, without limitation, Regulation T, U or X of the Board
of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty
or liability under or pursuant to any applicable law or regulation. If requested by any Purchaser,
such Purchaser shall have received an Officer’s Certificate from the Company certifying as to such
matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine
whether such purchase is so permitted.

     Section 4.9 Sale of Other Notes. Contemporaneously with the Closing, the Company shall sell
to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at
the Closing as specified in Schedule A.

     Section 4.10 Payment of Special Counsel Fees. Without limiting the provisions of Section
15.1, the Company shall have paid on or before the Closing the reasonable fees, reasonable charges
and reasonable disbursements of special counsel to the Purchasers referred to in Section 4.7(c) to
the extent reflected in a statement of such counsel rendered to the Company at least one Business
Day prior to the Closing.

     Section 4.11 Private Placement Number. A Private Placement Number issued by Standard & Poor’s
CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

     Section 4.12 Changes in Corporate Structure. Neither the Company nor any Subsidiary Guarantor
shall have changed its jurisdiction of organization or been a party to any merger or consolidation
or succeeded to all or any substantial part of the liabilities of any other entity, at any time
following the date of the most recent financial statements referred to in Schedule 5.5.

     Section 4.13 Funding Instructions. At least three Business Days prior to the date of the
Closing, each Purchaser shall have received written instructions signed by a Responsible Officer of
the Company on letterhead of the Company directing the manner of the payment of funds and setting
forth (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number, (c)
the account name and number into which the purchase price for the Notes is to be deposited and (d)
the name and telephone number of the account representative responsible for verifying receipt of
such funds.

     Section 4.14 Proceedings and Documents. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and instruments incident to
such transactions shall be satisfactory to such Purchaser and special counsel to the Purchasers,
and such Purchaser and special counsel to the Purchasers shall have received all such counterpart
originals or certified or other copies of such documents as such Purchaser or special counsel to
the Purchasers may reasonably request.

SECTION 5. Representations and Warranties of the Company.

     The Company represents and warrants to each Purchaser that:

     Section 5.1 Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of

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incorporation, and is duly qualified as a foreign corporation and is in good standing in each
jurisdiction in which such qualification is required by law, other than those jurisdictions as to
which the failure to be so qualified or in good standing would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate
power and corporate authority to own or hold under lease the properties it purports to own or hold
under lease, to transact the business it transacts and proposes to transact, to execute and deliver
this Agreement, the Notes and each Security Document to which it is a party and to perform the
provisions hereof and thereof.

     Section 5.2 Authorization, Etc.

     (a) This Agreement, the Notes and each Security Document to which the Company is a
party have been duly authorized by all necessary corporate action on the part of the
Company, and this Agreement and each Security Document to which the Company is a party
constitute, and upon execution and delivery thereof the Notes will constitute, the legal,
valid and binding obligations of the Company enforceable against the Company in accordance
with their respective terms, except as such enforceability may be limited by (a) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (b) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

     (b) The Subsidiary Guaranty Agreement and each Security Document to which a Subsidiary
Guarantor is a party have been duly authorized by all necessary corporate, limited
partnership or limited liability company action on the part of each Subsidiary Guarantor
party thereto and the Subsidiary Guaranty Agreement and each Security Document to which a
Subsidiary Guarantor is a party constitute the legal, valid and binding obligations of each
Subsidiary Guarantor party thereto enforceable against each such Subsidiary Guarantor in
accordance with their respective terms, except as such enforceability may be limited by (1)
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (2) general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law).

     Section 5.3 Disclosure. The Company, through its agent, Banc of America Securities LLC, has
delivered to each Purchaser a copy of a Private Placement Memorandum, dated September 2005 (the
“Memorandum”), relating to the transactions contemplated hereby. The Memorandum fairly describes,
in all material respects, the general nature of the business and principal properties of the
Company and its Subsidiaries. This Agreement, the Subsidiary Guaranty Agreement, the Security
Documents, the Memorandum, the documents, certificates or other writings, other than financial
projections, and the financial statements listed in Schedule 5.5, in each case, delivered to the
Purchasers prior to September 22, 2005 by or on behalf of the Company (this Agreement, the
Subsidiary Guaranty Agreement, the Security Documents, the Memorandum and such documents,
certificates or other writings and such financial statements being referred to, collectively, as
the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein not misleading in
light of the circumstances under which they were made. All

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financial projections concerning the Company and its Subsidiaries that have been made
available to the Purchasers by or on behalf of the Company have been prepared in good faith based
upon assumptions believed by the preparer to be reasonable at the time made. Except as disclosed
in the Disclosure Documents, since December 31, 2004, there has been no change in the financial
condition, operations, business or properties of the Company or any Restricted Subsidiary except
changes that, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect. There is no fact known to the Company that would reasonably be expected to have a
Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.

     Section 5.4 Organization and Ownership of Shares of Subsidiaries; Affiliates.

     (a) Schedule 5.4 contains (except as noted therein) complete and correct lists (1) of
the Company’s Restricted and Unrestricted Subsidiaries, showing, as to each Subsidiary, the
correct name thereof, the jurisdiction of its organization, and the percentage of shares of
each class of its capital stock or similar equity interests outstanding owned by the Company
and each other Subsidiary, (2) of the Company’s Affiliates, other than Subsidiaries and (3)
of the Company’s and each Subsidiary Guarantor’s directors and senior officers.

     (b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 as being owned by the Company or any Subsidiary have been
validly issued, are fully paid and nonassessable and are owned by the Company or such
Subsidiary free and clear of any Lien (except for the Liens contemplated by the Security
Documents and as otherwise disclosed in Schedule 5.4).

     (c) Each Subsidiary identified in Schedule 5.4 is a corporation, limited partnership or
limited liability company duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign corporation,
foreign limited partnership or foreign limited liability company and is in good standing in
each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
Each such Subsidiary has the corporate, limited partnership or limited liability company
power and authority to own or hold under lease the properties it purports to own or hold
under lease and to transact the business it transacts and proposes to transact and, in the
case of each Subsidiary Guarantor, to execute and deliver the Subsidiary Guaranty Agreement
and each Security Document to which it is a party and to perform the provisions thereof.

     (d) No Restricted Subsidiary is a party to, or otherwise subject to any legal,
regulatory, contractual or other restriction (other than this Agreement, the Bank Credit
Agreement, the Security Documents, the agreements listed on Schedule 5.4 and customary
limitations imposed by corporate law or similar statutes) restricting the ability of such
Restricted Subsidiary to pay dividends out of profits or make any other similar
distributions of profits to the Company or any Subsidiary that owns outstanding shares of
capital stock or similar equity interests of such Restricted Subsidiary.

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     Section 5.5 Financial Statements; Material Liabilities. The Company has delivered to each
Purchaser copies of the consolidated financial statements of the Company listed on Schedule 5.5.
All of said financial statements (including in each case the related schedules and notes) fairly
present, in all material respects, the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and have been prepared in
accordance with GAAP consistently applied throughout the periods involved except as set forth in
the notes thereto (subject, in the case of any interim financial statements, to normal year-end
adjustments). The Company and its Restricted Subsidiaries do not have any Material liabilities
that are not disclosed on such financial statements or otherwise disclosed in the Disclosure
Documents.

     Section 5.6 Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company of this Agreement, the Notes and the Security Documents to which it is a
party and the execution, delivery and performance by each Subsidiary Guarantor of the Subsidiary
Guaranty Agreement and the Security Documents to which it is a party will not (a) contravene,
result in any breach of, or constitute a default under, or result in the creation of any Lien
(other than the Liens contemplated by the Security Documents) in respect of any property of the
Company or any Restricted Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase
or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to
which the Company or any Restricted Subsidiary is bound or by which the Company or any Restricted
Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or
ruling of any court, arbitrator or Governmental Authority applicable to the Company or any
Restricted Subsidiary or (c) violate any provision of any statute or other rule or regulation of
any Governmental Authority applicable to the Company or any Restricted Subsidiary.

     Section 5.7 Governmental Authorizations, Etc. No consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is required in connection with
the execution, delivery or performance by (a) the Company of this Agreement, the Notes or any
Security Document to which it is a party or (b) any Subsidiary Guarantor of the Subsidiary Guaranty
Agreement or any Security Document to which it is a party.

     Section 5.8 Litigation; Observance of Agreements, Statutes and Orders.

     (a) There are no actions, suits, investigations or proceedings pending or, to the
knowledge of the Company, threatened against or affecting the Company or any Restricted
Subsidiary or any property of the Company or any Restricted Subsidiary in any court or
before any arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, would reasonably be expected to have a Material Adverse
Effect.

     (b) Neither the Company nor any Restricted Subsidiary is in default under any term of
any agreement or instrument to which it is a party or by which it is bound, or any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in
violation of any applicable law, ordinance, rule or regulation (including, without

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limitation, Environmental Laws or the USA Patriot Act) of any Governmental Authority,
which default or violation, individually or in the aggregate, would reasonably be expected
to have a Material Adverse Effect.

     Section 5.9 Taxes. The Company and its Subsidiaries have filed all tax returns that are
required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent, except for any taxes and assessments (a) the amount of
which is not, individually or in the aggregate, Material or (b) the amount, applicability or
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves
in accordance with GAAP. The Company does not know of any basis for any other tax or assessment
that would reasonably be expected to have a Material Adverse Effect. The charges, accruals and
reserves on the books of the Company and its Subsidiaries in respect of federal, state or other
taxes for all fiscal periods are adequate. The federal income tax liabilities of the Company and
its Subsidiaries have been finally determined (whether by reason of completed audits or the statute
of limitations having run) for all fiscal years up to and including the fiscal year ended December
31, 1999.

     Section 5.10 Title to Property; Leases. The Company and its Restricted Subsidiaries have good
and sufficient title to their respective properties that, individually or in the aggregate, are
Material, including all such properties reflected in the most recent audited balance sheet referred
to in Section 5.5 or purported to have been acquired by the Company or any Restricted Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course of business), in
each case free and clear of Liens prohibited by this Agreement or the Security Documents. All
leases that, individually or in the aggregate, are Material are valid and subsisting and are in
full force and effect in all material respects.

     Section 5.11 Licenses, Permits, Etc.

     (a) The Company and its Restricted Subsidiaries own or possess all licenses, permits,
franchises, authorizations, patents, copyrights, proprietary software, service marks,
trademarks, trade names and domain names or rights thereto, that, individually or in the
aggregate, are Material, without known conflict with the rights of others.

     (b) To the best knowledge of the Company, no product of the Company or any Restricted
Subsidiary infringes in any material respect any license, permit, franchise, authorization,
patent, copyright, proprietary software, service mark, trademark, trade name, domain name or
other right owned by any other Person.

     (c) To the best knowledge of the Company, there is no Material violation by any Person
of any right of the Company or any Restricted Subsidiary with respect to any patent,
copyright, proprietary software, service mark, trademark, trade name, domain name or other
right owned or used by the Company or any Restricted Subsidiary.

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     Section 5.12 Compliance with ERISA.

     (a) The Company and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance as have not
resulted in and would not reasonably be expected to result in a Material Adverse Effect.
Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I
or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in Section 3 of ERISA), and no event, transaction or condition has
occurred or exists that would reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of
the rights, properties or assets of the Company or any ERISA Affiliate, in either case
pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section
401(a)(29) or 412 of the Code or Section 4068 of ERISA, other than such liabilities or Liens
as would not be, individually or in the aggregate, Material.

     (b) The present value of the aggregate benefit liabilities under each of the Pension
Plans (other than Multi-employer Plans), determined as of the end of such Pension Plan’s
most recently ended plan year on the basis of the actuarial assumptions specified for
funding purposes in such Pension Plan’s most recent actuarial valuation report, did not
exceed the aggregate current value of the assets of such Pension Plan allocable to such
benefit liabilities. The term “benefit liabilities” has the meaning specified in Section
4001 of ERISA and the terms “current value” and “present value” have the meanings specified
in Section 3 of ERISA.

     (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and
are not subject to contingent withdrawal liabilities) under Section 4201 or 4204 of ERISA in
respect of Multi-employer Plans that, individually or in the aggregate, are Material.

     (d) The expected postretirement benefit obligation (determined as of the last day of
the Company’s most recently ended fiscal year in accordance with Financial Accounting
Standards Board Statement No. 106, without regard to liabilities attributable to
continuation coverage mandated by Section 4980B of the Code) of the Company and its
Subsidiaries is not Material.

     (e) The execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions of Section
406 of ERISA or in connection with which a tax could be imposed pursuant to Section
4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the
first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy
of such Purchaser’s representation in Section 6.3 as to the sources of the funds used to pay
the purchase price of the Notes to be purchased by such Purchaser.

     Section 5.13 Private Offering by the Company. Neither the Company nor anyone acting on its
behalf has offered the Notes, the Subsidiary Guaranty Agreement or any similar securities for sale
to, or solicited any offer to buy any of the same from, or otherwise approached

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or negotiated in respect thereof with, any Person other than the Purchasers and not more than
58 other Institutional Investors of the type described in clause (c) of the definition thereof,
each of which has been offered the Notes and the Subsidiary Guaranty Agreement at a private sale
for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Notes or the execution and delivery of the
Subsidiary Guaranty Agreement to the registration requirements of Section 5 of the Securities Act
or to the registration requirements of any securities or blue sky laws of any applicable
jurisdiction. When the Notes and the Subsidiary Guaranty Agreement are issued and delivered
pursuant to or in connection with this Agreement, neither the Notes nor the Subsidiary Guaranty
Agreement will be of the same class (within the meaning of Rule 144A under the Securities Act) as
securities which are listed on a national securities exchange registered under Section 6 of the
Exchange Act or quoted in a U.S. automated inter-dealer quotation system. Neither the Company nor
any Subsidiary nor any Person acting on its or their behalf has offered or sold the Notes or the
Subsidiary Guaranty Agreement by means of any general solicitation or general advertising within
the meaning of Rule 502(c) under the Securities Act. Within the preceding six months, neither the
Company nor any Subsidiary nor any Person acting on its or their behalf has offered or sold to any
Person any Notes or the Subsidiary Guaranty Agreement, or any securities of the Company or any
Subsidiary of the same or a similar class as the Notes or the Subsidiary Guaranty Agreement, other
than the Notes offered or sold to the Purchasers hereunder and the Subsidiary Guaranty Agreement in
connection herewith, and the Company and each Subsidiary will take reasonable precautions designed
to insure that any offer or sale, direct or indirect, of any substantially similar security issued
by the Company or any Subsidiary, within six months subsequent to the date on which the issuance
and sale of the Notes and the Subsidiary Guaranty Agreement has been completed, is made under
restrictions and other circumstances reasonably designed not to affect the status of the offer and
sale of the Notes and Subsidiary Guaranty Agreement contemplated by this Agreement as transactions
exempt from the registration provisions of the Securities Act.

     Section 5.14 Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the
sale of the Notes to repay Debt outstanding under that certain Bridge Term Loan Credit Agreement
dated as of September 30, 2005 by and between the Company and Banc of America Mezzanine Capital,
LLC. No part of the proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for the purpose of buying or carrying or trading in any securities under such
circumstances as to involve any Purchaser in a violation of Regulation U of the Board of Governors
of the Federal Reserve System (12 CFR 221) or Regulation X of said Board (12 CFR 224) or to involve
any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does
not constitute more than 25% of the value of the consolidated assets of the Company and its
Subsidiaries and the Company has no present intention that margin stock will constitute more than
25% of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of
buying or carrying” shall have the meanings assigned to them in said Regulation U.

Section 5.15 Existing Debt; Existing Investments; Future Liens.

     (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list
of all outstanding Debt of the Company and its Restricted Subsidiaries as of August 31, 2005
(including a description of the obligors and obligees, principal amount

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outstanding and collateral therefor, if any, and Guaranty thereof, if any), since which
date there has been no Material change in the amounts, interest rates, sinking funds,
installment payments or maturities of the Debt of the Company or any Restricted Subsidiary.
Neither the Company nor any Restricted Subsidiary is in default and no waiver of default is
currently in effect, in the payment of any principal or interest on any Debt of the Company
or any Restricted Subsidiary and no event or condition exists with respect to any Debt of
the Company or any Restricted Subsidiary that would permit (or that with notice or the lapse
of time, or both, would permit) one or more Persons to cause such Debt to become due and
payable before its stated maturity or before its regularly scheduled dates of payment.

     (b) Schedule 5.15 sets forth a complete and correct list of all outstanding Investments
of the Company and the Restricted Subsidiaries as of August 31, 2005 since which date there
has been no Material change in the market value of such Investments.

     (c) Except as disclosed in Schedule 5.15, neither the Company nor any Restricted
Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a
contingency or otherwise) any of its property, whether now owned or hereafter acquired, to
be subject to a Lien not permitted by Section 10.4.

     (d) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Debt of the Company or such Subsidiary,
any agreement relating thereto or any other agreement (including, but not limited to, its
charter or other organizational document) which limits the amount of, or otherwise imposes
restrictions on the incurring of, Debt of the Company or any Subsidiary Guarantor, except as
specifically indicated in Schedule 5.15.

     Section 5.16 Foreign Assets Control Regulations, Etc.

     (a) Neither the sale of the Notes by the Company hereunder nor its use of the proceeds
thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign
assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating thereto.

     (b) Neither the Company nor any Subsidiary (1) is a Person described or designated in
the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets
Control or in Section 1 of the Anti-Terrorism Order or (2) to the best of the Company’s
knowledge after reasonable investigation, engages in any dealings or transactions with any
such Person. The Company and its Subsidiaries are in compliance, in all material respects,
with the USA Patriot Act.

     (c) No part of the proceeds from the sale of the Notes hereunder will be used, directly
or indirectly, for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any

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improper advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended, assuming in all cases that such Act applies to the Company.

     Section 5.17 Status under Certain Statutes. Neither the Company nor any Restricted Subsidiary
is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility
Holding Company Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended.

     Section 5.18 Environmental Matters.

     (a) Neither the Company nor any Restricted Subsidiary has knowledge of any claim or has
received any notice of any claim, and no proceeding has been instituted raising any claim
against the Company or any Restricted Subsidiary or any of their respective real properties
now or formerly owned, leased or operated by any of them or other assets, alleging any
damage to the environment or violation of any Environmental Laws, except, in each case, such
as would not reasonably be expected to result in a Material Adverse Effect.

     (b) Neither the Company nor any Restricted Subsidiary has knowledge of any facts which
would give rise to any claim, public or private, of violation of Environmental Laws or
damage to the environment emanating from, occurring on or in any way related to real
properties now or formerly owned, leased or operated by any of them or to other assets or
their use, except, in each case, such as would not reasonably be expected to result in a
Material Adverse Effect.

     (c) Neither the Company nor any Restricted Subsidiary has stored any Hazardous
Materials on real properties now or formerly owned, leased or operated by any of them or has
disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each
case in any manner that would reasonably be expected to result in a Material Adverse Effect.

     (d) All buildings on all real properties now owned, leased or operated by the Company
or any Restricted Subsidiary are in compliance with applicable Environmental Laws, except
where failure to comply would not reasonably be expected to result in a Material Adverse
Effect.

     Section 5.19 Security Documents. The Security Documents are effective to create in favor of
the Collateral Agent, for the benefit of the Creditors (as defined in the Intercreditor Agreement),
a legal, valid and enforceable Lien on and in the Collateral, and such Liens constitute fully
perfected Liens on and in all right, title and interest of the grantors thereunder in such
Collateral, in each case prior and superior in right to any other Person, as security for payment
of the Senior Secured Obligations.

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     Section 5.20 Notes Rank Pari Passu.

     (a) The obligations of the Company under this Agreement and the Notes rank at least
pari passu in right of payment with all obligations (actual or contingent) of the Company
under the Bank Credit Agreement.

     (b) The obligations of each Subsidiary Guarantor under the Subsidiary Guaranty
Agreement rank at least pari passu in right of payment will all obligations (actual or
contingent) of the Subsidiary Guarantors under their guaranties in respect of the Bank
Credit Agreement.

SECTION
6. Representations of the Purchasers.

     Section 6.1 Purchase for Investment.

     (a) Each Purchaser severally represents that it is purchasing the Notes for its own
account or for one or more separate accounts maintained by such Purchaser or for the account
of one or more pension or trust funds and not with a view to the distribution thereof, other
than any Notes purchased by Banc of America Securities LLC on the date of the Closing which
are intended to be resold to a Qualified Institutional Buyer pursuant to Rule 144A under the
Securities Act (such Notes, the “144A Notes”), provided that the disposition of such
Purchaser’s or such pension’s or trust fund’s property shall at all times be within such
Purchaser’s or such pension’s or trust fund’s control. Each Purchaser understands that the
Notes have not been registered under the Securities Act and may be resold only if registered
pursuant to the provisions of the Securities Act or if an exemption from registration is
available, except under circumstances where neither such registration nor such an exemption
is required by law, and that the Company is not required to register the Notes.

     (b) Banc of America Securities LLC represents and warrants to, and agrees with, the
Company that it will offer and sell the 144A Notes only to Persons that it reasonably
believes are Qualified Institutional Buyers in transactions meeting the requirements of Rule
144A under the Securities Act and that it will not offer or sell the 144A Notes by any form
of general solicitation or general advertising, including, without limitation, the methods
described in Rule 502(c) under the Securities Act.

     Section 6.2 Accredited Investor. Each Purchaser represents that it is an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act
acting for its own account (and not for the account of others) or as a fiduciary or agent for
others (which others are also “accredited investors”). Each Purchaser further represents that such
Purchaser has had the opportunity to ask questions of the Company and received answers concerning
the terms and conditions of the sale of the Notes.

     Section 6.3 Source of Funds. Each Purchaser severally represents that at least one of the
following statements is an accurate representation as to each source
of funds (a “Source”) to be
used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser
hereunder:

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     (a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in
respect of which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the NAIC (the “NAIC Annual
Statement”)) for the general
account contract(s) held by or on behalf of any employee benefit plan together with the
amount of the reserves and liabilities for the general account contract(s) held by or on
behalf of any other employee benefit plans maintained by the same employer (or affiliate
thereof as defined in PTE 95-60) or by the same employee organization in the general account
do not exceed 10% of the total reserves and liabilities of the general account (exclusive of
separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed
with such Purchaser’s state of domicile; or

     (b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or

     (c) the Source is either (1) an insurance company pooled separate account, within the
meaning of PTE 90-1 or (2) a bank collective investment fund, within the meaning of PTE
91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or
employee organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or

     (d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s
assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, neither the QPAM nor a Person controlling or controlled by the QPAM (applying the
definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in
the Company and (1) the identity of such QPAM and (2) the names of all employee benefit
plans whose assets are included in such investment fund have been disclosed to the Company
in writing pursuant to this paragraph (d); or

     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a Person controlling or controlled
by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption)
owns a 5% or more interest in the Company

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and (1) the identity of such INHAM and (2) the name(s) of the employee benefit plan(s)
whose assets constitute the Source have been disclosed to the Company in writing pursuant to
this clause (e); or

     (f) the Source is a governmental plan; or

     (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this paragraph (g); or

     (h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.

     As used in this Section 6.3, the terms “employee benefit plan,” “governmental plan” and
“separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA.

SECTION 7. Information as to the Company.

     Section 7.1 Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

     (a) Quarterly Statements — within 45 days after the end of each quarterly fiscal
period in each fiscal year of the Company (other than the last quarterly fiscal period of
each such fiscal year), duplicate copies of,

     (1) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such quarter, and

     (2) consolidated statements of income or operations, changes in shareholders’
equity and cash flows of the Company and its Subsidiaries for such quarter and (in
the case of the second and third quarters) for the portion of the fiscal year ending
with such quarter,

setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer of the Company as fairly presenting, in all material respects, the financial
position of the companies being reported on and their results of operations and cash flows,
subject to changes resulting from year-end adjustments, provided that delivery within the
time period specified above of copies of the Company’s Form 10-Q prepared in compliance with
the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements
of this Section 7.1(a), provided, further, that the Company shall be deemed to have made
such delivery of such Form 10-Q if it shall have timely made such Form 10-Q available on
“EDGAR” and on the Company’s home page on the worldwide web (at the date of this Agreement
located at: http//www.eaglegl.com) and shall have given each holder of Notes prior notice
of such availability on EDGAR and on its home page in

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connection with each delivery (such availability and notice thereof being referred to as
“Electronic Delivery”);

     (b) Annual Statements — within 120 days after the end of each fiscal year of the
Company, duplicate copies of,

     (1) a consolidated balance sheet of the Company and its Subsidiaries, as at the
end of such year, and

     (2) consolidated statements of income or operations, changes in shareholders’
equity and cash flows of the Company and its Subsidiaries, for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent certified public accountants of recognized national standing,
which opinion shall state that such financial statements present fairly, in all
material respects, the financial position of the companies being reported upon and
their results of operations and cash flows and have been prepared in conformity with
GAAP, and that the examination of such accountants in connection with such financial
statements has been made in accordance with the standards of the Public Companies
Oversight Board (United States), and that such audit provides a reasonable basis for
such opinion in the circumstances, provided that the delivery within the time period
specified above of the Company’s Form 10-K for such fiscal year (together with the
Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under
the Exchange Act) prepared in accordance with the requirements therefor and filed with
the SEC shall be deemed to satisfy the requirements of this Section 7.1(b), provided,
further, that the Company shall be deemed to have made such delivery of such Form 10-K
if it shall have timely made Electronic Delivery thereof;

     (c) SEC and Other Reports — promptly upon their becoming available, one copy of (1)
each financial statement, report, notice or proxy statement sent by the Company or any
Subsidiary to its principal lending banks as a whole (excluding information sent to such
banks in the ordinary course of administration of a bank facility, such as information
relating to pricing and borrowing availability) or to its public securities holders
generally and (2) each regular or periodic report, each registration statement (without
exhibits except as expressly requested by such holder), and each prospectus and all
amendments thereto filed by the Company or any Subsidiary with the SEC and of all press
releases and other statements made available generally by the Company or any Subsidiary to
the public concerning developments that are Material, provided that the Company shall be
deemed to have made such delivery of any such information if it shall have timely made
Electronic Delivery thereof;

     (d) Notice of Default or Event of Default — promptly, and in any event within five
Business Days after a Responsible Officer of the Company becoming aware of the existence of
any Default or Event of Default or that any Person has given any notice or taken any action
with respect to a claimed default hereunder or that any Person has given

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any notice or taken any action with respect to a claimed default of the type referred
to in Section 11(f), a written notice specifying the nature and period of existence thereof
and what action the Company is taking or proposes to take with respect thereto;

     (e) ERISA Matters — promptly, and in any event within five Business Days after a
Responsible Officer of the Company becoming aware of any of the following, a written notice
setting forth the nature thereof and the action, if any, that the Company or any ERISA
Affiliate proposes to take with respect thereto:

     (1) with respect to any Plan, any reportable event, as defined in Section
4043(c) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date of the Closing; or

     (2) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan, or
the receipt by the Company or any ERISA Affiliate of a notice from a Multi-employer
Plan that such action has been taken by the PBGC with respect to such Multi-employer
Plan; or

     (3) any event, transaction or condition that would result in the incurrence of
any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties or
assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
such penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, would reasonably be expected
to have a Material Adverse Effect;

     (f) Notices from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or
state Governmental Authority relating to any order, ruling, statute or other law or
regulation that would reasonably be expected to have a Material Adverse Effect; and

     (g) Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or
properties of the Company or any Subsidiary or relating to the ability of the Company to
perform its obligations hereunder, under the Notes or under any Security Document to which
it is a party, or of any Subsidiary Guaranty or to perform its obligations under the
Subsidiary Guaranty Agreement or any Security Document to which it is a party as from time
to time may be reasonably requested by any such holder of Notes.

     Notwithstanding the foregoing, in the event that one or more Unrestricted Subsidiaries and/or
GAAP Only Consolidated Entities shall either (i) own more than 10% of the total consolidated assets
of the Company and its Subsidiaries and GAAP Only Consolidated Entities

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or (ii) account for more than 10% of the consolidated gross revenues of the Company and its
Subsidiaries and GAAP Only Consolidated Entities, determined in each case in accordance with GAAP,
then, within the respective periods provided in Sections 7.1(a) and (b) above, the Company shall
deliver to each holder of Notes that is an Institutional Investor, unaudited financial statements
of the character and for the dates and periods as in said Sections 7.1(a) and (b) covering such
group of Unrestricted Subsidiaries and/or GAAP Only Consolidated Entities (on a consolidated
basis), together with a consolidating statement reflecting eliminations or adjustments required to
reconcile the financial statements of such group of Unrestricted Subsidiaries and/or GAAP Only
Consolidated Entities to the financial statements delivered pursuant to Sections 7.1(a) and (b).

     Section 7.2 Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a
Senior Financial Officer of the Company setting forth (which, in the case of Electronic Delivery of
any such financial statements, shall be by separate concurrent delivery of such certificate to each
holder of Notes):

     (a) Covenant Compliance — the information (including detailed calculations) required
in order to establish whether the Company was in compliance with the requirements of Section
10.1 through Section 10.8, inclusive, during the quarterly or annual period covered by the
statements then being furnished (including with respect to each such Section, where
applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the
case may be, permissible under the terms of such Sections, and the calculation of the
amount, ratio or percentage then in existence); and

     (b) Event of Default — a statement that such Senior Financial Officer has reviewed the
relevant terms hereof and has made, or caused to be made, under his or her supervision, a
review of the transactions and conditions of the Company and its Subsidiaries from the
beginning of the quarterly or annual period covered by the statements then being furnished
to the date of the certificate and that such review shall not have disclosed the existence
during such period of any condition or event that constitutes a Default or an Event of
Default or, if any such condition or event existed or exists (including, without limitation,
any such event or condition resulting from the failure of the Company or any Restricted
Subsidiary to comply with any Environmental Law), specifying the nature and period of
existence thereof and what action the Company shall have taken or proposes to take with
respect thereto.

     Section 7.3 Visitation. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

     (a) No Default — if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company, which
consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each

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Restricted Subsidiary, all at such reasonable times and as often as may be reasonably
requested in writing; and

     (b) Default — if a Default or Event of Default then exists, at the expense of the
Company to visit and inspect any of the offices or properties of the Company or any of its
Subsidiaries, to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective officers and independent public accountants (and
by this provision the Company authorizes said accountants to discuss the affairs, finances
and accounts of the Company and its Subsidiaries), all at such times and as often as may be
requested.

SECTION 8. Payment and Prepayment of the Notes.

     Section 8.1 Maturity. As provided therein, the entire unpaid principal balance of the Notes
shall be due and payable on the stated maturity date thereof.

     Section 8.2 Optional Prepayments. The Company may, at its option, upon notice as provided
below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less
than $2,000,000 in aggregate principal amount of the Notes then outstanding in the case of a
partial prepayment, at 100% of the principal amount so prepaid, plus accrued and unpaid interest,
plus the Prepayment Premium, if any, determined for the prepayment date with respect to such
principal amount and, if such prepayment occurs on any date other than an Interest Payment Date,
the Breakage Amount, if any. The Company will give each holder of Notes written notice of each
optional prepayment under this Section 8.2 not less than 30 days and not more than 60 days prior to
the date fixed for such prepayment. Each such notice shall specify such date, the aggregate
principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by
such holder to be prepaid (determined in accordance with Section 8.3), and the interest and
Prepayment Premium, if any, to be paid on the prepayment date with respect to such principal amount
being prepaid.

     Section 8.3 Allocation of Partial Prepayments. In the case of each partial prepayment of the
Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated
among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the
respective unpaid principal amounts thereof not theretofore called for prepayment. All partial
prepayment of the Notes pursuant to Section 8.6 or Section 8.7 shall be applied only to the Notes
of the holders who have elected to participate in such prepayment.

     Section 8.4 Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment (which shall be a Business Day), together with
interest on such principal amount accrued to such date and the Prepayment Premium, if any, and, if
such prepayment occurs on any date other than an Interest Payment Date, the Breakage Amount, if
any. From and after such date, unless the Company shall fail to pay such principal amount when so
due and payable, together with the interest and Prepayment Premium, if any, and the Breakage
Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note
paid or prepaid in full shall be surrendered to the

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Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any
prepaid principal amount of any Note.

     Section 8.5 Purchase of Notes. The Company will not, and will not permit any Affiliate to,
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
except (a) upon the payment or prepayment of the Notes in accordance with the terms of this
Agreement and the Notes or (b) pursuant to a written offer to purchase any outstanding Notes made
by the Company or any Affiliate pro rata to each holder of Notes at the time outstanding upon the
same terms and conditions. Any such offer shall provide each holder with sufficient information to
enable it to make an informed decision with respect to such offer and shall remain open for at
least 20 Business Days. If the holders of more than 25% of the outstanding principal amount of the
Notes accept such offer, the Company shall promptly notify the remaining holders of such fact and
the expiration date for the acceptance by such holders of such offer shall be extended by the
number of days necessary to give each such remaining holder at least 10 Business Days from its
receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired
by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any
provision of this Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

     Section 8.6 Offer to Prepay Upon Sale of Assets.

     (a) Notice and Offer. In the event of a Disposition of any assets of the Company or
any Restricted Subsidiary where the Company is required to or has elected to apply the net
proceeds of such Disposition pursuant to clause (ii) of the second paragraph of Section
10.8, the Company shall, no later than (1) the 5th Business Day following the date of the
Disposition of the Select Carrier Group and (2) the 245th day following the date of any
other such Disposition, give written notice of such event (a “Sale of Assets Prepayment
Event”) to each holder of Notes. Such notice shall contain, and shall constitute, an
irrevocable offer to prepay a Ratable Portion of the Notes held by such holder on the date
specified in such notice (the “Sale of Assets Prepayment Date”) which date shall be the next
Interest Payment Date unless such date shall be less than 30 days prior to the next Interest
Payment Date in which case such Sale of Assets Prepayment Date shall be the next succeeding
Interest Payment Date.

     (b) Acceptance and Payment. A holder of Notes may accept or reject the offer to prepay
pursuant to this Section 8.6 by causing a notice of such acceptance or rejection to be
delivered to the Company at least 10 days prior to the Sale of Assets Prepayment Date. A
failure by a holder of the Notes to respond to an offer to prepay made pursuant to this
Section 8.6 shall be deemed to constitute a rejection of such offer by such holder. If so
accepted, such offered prepayment in respect of the Ratable Portion of the Notes of each
holder that has accepted such offer shall be due and payable on the Sale of Assets
Prepayment Date. Such offered prepayment shall be made at 100% of the aggregate Ratable
Portion of the Notes of each holder that has accepted such offer, together with interest on
that portion of the Notes then being prepaid accrued to the Sale of Assets Prepayment Date
but, in any case, without any Prepayment Premium.

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     (c) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.6
shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company
and dated the date of such offer, specifying: (1) the Sale of Assets Prepayment Date; (2)
that such offer is being made pursuant to this Section 8.6 and that the failure by a holder
to respond to such offer by the deadline established in Section 8.6(b) shall result in such
offer to such holder being deemed rejected; (3) the Ratable Portion of each such Note
offered to be prepaid; (4) the interest that would be due on the Ratable Portion of each
such Note offered to be prepaid, accrued to the Sale of Assets Prepayment Date; (5) that the
conditions of this Section 8.6 have been satisfied and (6) in reasonable detail, a
description of the nature and date of the Sale of Assets Prepayment Event giving rise to
such offer of prepayment.

     Section 8.7 Offer to Prepay Notes in the Event of a Change in Control.

     (a) Notice of Change in Control or Control Event. The Company will, within 10 Business
Days after any Responsible Officer of the Company has knowledge of the occurrence of any
Change in Control or Control Event, give written notice of such Change in Control or Control
Event to each holder of Notes unless notice in respect of such Change in Control (or the
Change in Control contemplated by such Control Event) shall have been given pursuant to
Section 8.7(b). If a Change in Control has occurred, such notice shall contain and
constitute an offer to prepay Notes as described in Section 8.7(c) and shall be accompanied
by the certificate described in Section 8.7(g).

     (b) Condition to Company Action. The Company will not take any action that consummates
or finalizes a Change in Control unless (1) at least 20 days prior to such action it shall
have given to each holder of Notes written notice containing and constituting an offer to
prepay Notes as described in Section 8.7(c), accompanied by the certificate described in
Section 8.7(g), and (2) contemporaneously with such action, the Company prepays all Notes
required to be prepaid in accordance with this Section 8.7. Notwithstanding the foregoing,
the Company shall not be required to give any notice pursuant to this Section 8.7(b) or to
forbear taking any action that consummates or finalizes a Change in Control unless the
information regarding such Change in Control to be contained in such notice shall have been
disclosed to the public generally (and in such event the Company shall instead give the
notice specified in Section 8.7(a) in respect of such Change in Control). In addition, the
Company shall not be prohibited from taking any action to consummate or finalize the results
of an election of new directors in the event of a Change in Control pursuant to Section
8.7(h)(2).

     (c) Offer to Prepay Notes. The offer to prepay Notes contemplated by Sections 8.7(a)
and (b) shall be an offer to prepay, in accordance with and subject to this Section 8.7,
all, but not less than all, Notes held by each holder (in this case only, “holder” in
respect of any Note registered in the name of a nominee for a disclosed beneficial owner
shall mean such beneficial owner) on a date specified in such offer (the “Change in Control
Proposed Prepayment Date”). If such Change in Control Proposed Prepayment Date is in
connection with an offer contemplated by Section 8.7(a), such date shall be a Business Day
not less than 30 days and not more than 60 days after the date of such offer (if the Change
in Control Proposed Prepayment Date shall not be specified in

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such offer, the Change in Control Proposed Prepayment Date shall be the Business Day
nearest to the 30th day after the date of such offer).

      (d) Rejection; Acceptance. A holder of Notes may accept or reject the offer to prepay
made pursuant to this Section 8.7 by causing a notice of such acceptance or rejection to be
delivered to the Company at least five Business Days prior to the Change in Control Proposed
Prepayment Date. A failure by a holder of Notes to so respond to an offer to prepay made
pursuant to this Section 8.7 shall be deemed to constitute a rejection of such offer by such
holder.

      (e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.7
shall be at 100% of the principal amount of such Notes, together with accrued and unpaid
interest on such Notes accrued to the date of prepayment and, if such prepayment occurs on a
date that is not an Interest Payment Date, the Breakage Amount, if any, but without any
Prepayment Premium. The prepayment shall be made on the Change in Control Proposed
Prepayment Date, except as provided by Section 8.7(f).

      (f) Deferral Pending Change in Control. The obligation of the Company to prepay Notes
pursuant to the offers required by Section 8.7(c) and accepted in accordance with Section
8.7(d) is subject to the occurrence of the Change in Control in respect of which such offers
and acceptances shall have been made. In the event that such Change in Control does not
occur on the Change in Control Proposed Prepayment Date in respect thereof, the prepayment
shall be deferred until, and shall be made on the date on which, such Change in Control
occurs. The Company shall keep each holder of Notes reasonably and timely informed of (1)
any such deferral of the date of prepayment, (2) the date on which such Change in Control
and the prepayment are expected to occur and (3) any determination by the Company that
efforts to effect such Change in Control have ceased or been abandoned (in which case the
offers and acceptances made pursuant to this Section 8.7 in respect of such Change in
Control automatically shall be deemed rescinded without penalty or other liability).

      (g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7
shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company
and dated the date of such offer, specifying (1) the Change in Control Proposed Prepayment
Date, (2) that such offer is made pursuant to this Section 8.7, (3) the principal amount of
each Note offered to be prepaid, (4) the interest that would be due on each Note offered to
be prepaid, accrued to the Change in Control Proposed Prepayment Date, (5) that the
conditions of this Section 8.7 have been fulfilled and (6) in reasonable detail, the nature
and date of the Change in Control.

      (h) “Change in Control” shall mean an event or series of events by which:

     (1) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act, but excluding (i) any employee benefit plan of such person or
its Subsidiaries, and any Person acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan and (ii) any Crane Family Member)
becomes the “beneficial owner” (as defined in Rules 13d-3 and

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13d-5 under the Exchange Act, except that a person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the
right to acquire (such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 25% or
more of the equity interests of the Company entitled to vote for members of the
board of directors or equivalent governing body of the Company on a fully-diluted
basis (and taking into account all such equity interests that such person or group
has the right to acquire pursuant to any option right); or

     (2) during any period of 12 consecutive months, a majority of the members of
the board of directors or other equivalent governing body of the Company cease to be
composed of individuals (i) who were members of that board or equivalent governing
body on the first day of such period, (ii) whose election or nomination to that
board or equivalent governing body was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting at the time of
such election or nomination at least a majority of that board or equivalent
governing body (excluding, in the case of both clause (ii) and clause (iii), any
individual whose initial nomination for, or assumption of office as, a member of
that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of one or
more directors by any person or group other than a solicitation for the election of
one or more directors by or on behalf of the board of directors); or

     (3) except as allowed by the last paragraph of Section 10.8, any Subsidiary
Guarantor shall cease to be a Wholly-Owned Restricted Subsidiary; or

     (4) any “Change in Control” as defined in any agreement or instrument
evidencing Debt of the Company or any of its Restricted Subsidiaries shall occur.

     (i) A “Control Event” shall have occurred upon (1) (i) the execution by the Company or
any of its Affiliates of any agreement or letter of intent with respect to any proposed
transaction or event or series of transactions or events which, individually or in the
aggregate, may reasonably be expected to result in a Change in Control, (ii) the execution
of any written agreement which, when fully performed by the parties thereto, would result in
a Change in Control or (iii) the making of any written offer by any “person” or “group” (as
such terms are used in Section 13(d) and Section 14(d) of the Exchange Act) to the holders
of equity interests of the Company or of any of its Affiliates, which offer, if accepted by
the requisite number of holders, would result in a Change in Control and (2) the event
described in clause (i), (ii) or (iii) above having been disclosed to the public generally.

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     (j) “Crane Family Member” shall mean, collectively, (1) James R. Crane, (2) the estate,
spouse and lineal descendants of James R. Crane, (3) the James R. Crane foundation, (4)
legal representatives of any of the foregoing and (5) the trustee of any bona fide trust of
which one or more of the foregoing are the sole beneficiaries or the grantors thereof.

     (k) Tender Offer Rules. The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws or
regulations in connection with the repurchase of Notes pursuant to this Section 8.7. To the
extent that compliance with the provisions of any applicable securities laws or regulations
would result in the inability of the Company to comply with the time periods contained in
this Section 8.7, (1) the Company shall comply with the time periods contained in applicable
securities laws and regulations, (2) the time periods contained in this Section 8.7 will be
deemed modified to permit the Company to comply with the applicable securities laws and
regulations and (3) the Company shall not be deemed to have breached its obligations under
this Section 8.7 by virtue thereof.

SECTION 9. Affirmative Covenants.

     The Company covenants that so long as any of the Notes are outstanding:

     Section 9.1 Compliance with Law. Without limiting Section 10.11, the Company will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot
Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the ownership of their
respective properties or to the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     Section 9.2 Insurance. The Company will, and will cause each of its Restricted Subsidiaries
to, maintain, with financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies, of such types, on
such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly situated. In
addition to the foregoing, the Company will, and will cause each of its Restricted Subsidiaries to,
maintain insurance with respect to the Collateral in accordance with the terms of the Security
Documents.

     Section 9.3 Maintenance of Properties. The Company will, and will cause each of its
Restricted Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary wear and tear), so that
the business carried on in connection therewith may be properly conducted at all times, provided
that this Section shall not prevent the Company or any Restricted Subsidiary

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from discontinuing the operation and the maintenance of any of its properties if such
discontinuance is desirable in the conduct of its business and the Company or such Restricted
Subsidiary has concluded that such discontinuance would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. In addition to the foregoing, the
Company will, and will cause each of its Restricted Subsidiaries to, maintain and keep, or cause to
be maintained and kept, the Collateral in accordance with the terms and provisions of the Security
Documents.

     Section 9.4 Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,
governmental charges or levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes, assessments, governmental charges or levies have become due
and payable and before they have become delinquent and all claims for which sums have become due
and payable that have or might become a Lien on properties or assets of the Company or any
Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment,
governmental charge, levy or claim if (1) the amount, applicability or validity thereof is
contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate
proceedings, and the Company or such Subsidiary has established adequate reserves therefor in
accordance with GAAP on the books of the Company or such Subsidiary or (2) the nonpayment of all
such taxes, assessments, governmental charges, levies and claims in the aggregate would not
reasonably be expected to have a Material Adverse Effect.

     Section 9.5 Corporate Existence, Etc. Subject to Section 10.9, the Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to Sections 10.8 and
10.9, the Company will at all times preserve and keep in full force and effect the corporate,
limited partnership or limited liability company existence of each of its Restricted Subsidiaries
and all rights and franchises of the Company and its Restricted Subsidiaries unless, in the good
faith judgment of the Company, the termination of or failure to preserve and keep in full force and
effect such corporate existence, right or franchise would not, individually or in the aggregate,
have a Material Adverse Effect.

     Section 9.6 Designation of Subsidiaries. The Company may from time to time cause any
Restricted Subsidiary to be designated as an Unrestricted Subsidiary or any Unrestricted Subsidiary
to be designated as a Restricted Subsidiary; provided, however, that at the time of such
designation and immediately after giving effect thereto, (a) no Default or Event of Default would
exist under the terms of this Agreement and (b) the Company and its Subsidiaries or Restricted
Subsidiaries, as the case may be, would be in compliance with all of the covenants set forth in
Section 10.1 through 10.8, inclusive, if tested on the date of such action (whether or not required
by the terms thereof to be tested on such date) and provided, further, that once a Subsidiary has
been designated an Unrestricted Subsidiary or a Restricted Subsidiary pursuant to this Section 9.6,
it shall not thereafter be redesignated as a Restricted Subsidiary or an Unrestricted Subsidiary on
more than one occasion. Within 10 days following any designation described above, the Company will
deliver to each holder of Notes a notice of such designation accompanied by a certificate signed by
a Senior Financial Officer of the Company certifying compliance with all requirements of this
Section 9.6 and setting forth all information required in order to establish such compliance.

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     Section 9.7 Notes to Rank Pari Passu.

     (a) The Notes and all other obligations of the Company under this Agreement shall at
all times rank at least pari passu in right of payment with all obligations (actual or
contingent) of the Company under the Bank Credit Agreement.

     (b) The obligations of the Subsidiary Guarantors under the Subsidiary Guaranty
Agreement shall at all times rank at least pari passu in right of payment with all
obligations (actual or contingent) of the Subsidiary Guarantors under their Guaranties in
respect of the Bank Credit Agreement.

     Section 9.8 Books and Records. The Company will, and will cause each of its Restricted
Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all
applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over
the Company or such Restricted Subsidiary, as the case may be.

     Section 9.9 Additional Subsidiary Guarantors. The Company will cause any Subsidiary which
becomes a co-obligor or guarantor in respect of Debt under the Bank Credit Agreement to become a
party to the Subsidiary Guaranty Agreement and deliver to each of the holders of Notes
(concurrently with becoming a co-obligor or guarantor in respect of Debt under the Bank Credit
Agreement) the following items:

     (a) a supplement to the Subsidiary Guaranty in the form of Exhibit A to the Subsidiary
Guaranty (a “Supplement”);

     (b) a certificate signed by an authorized Responsible Officer of such Subsidiary making
representations and warranties to the effect of those contained in Section 5 (other than
those contained in Sections 5.3, 5.5, 5.13 and 5.14), with respect to such Subsidiary, the
Subsidiary Guaranty Agreement and each Security Document to which it is or will become a
party; and

     (c) an opinion of counsel (who may be in-house counsel for the Company) addressed to
each of the holders of Notes satisfactory to the Required Holders, to the effect that the
Supplement entered into by such Person has been duly authorized, executed and delivered and
that the Subsidiary Guaranty Agreement and each Security Document to which such Subsidiary
is a party constitute the legal, valid and binding obligations of such Person enforceable
against such Person in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles.

     The holders of Notes agree to discharge and release any Subsidiary Guarantor from the
Subsidiary Guaranty Agreement, and, to the extent provided for in the Security Documents, to direct
the Collateral Agent on behalf of the holders of Notes to discharge and release all assets of such
Subsidiary Guarantor from Liens arising under the Security Documents, in each case upon the written
request of the Company, provided that (1) such Subsidiary Guarantor shall have been released and
discharged (or will be released and discharged concurrently with the release of such Subsidiary
Guarantor under the Subsidiary Guaranty Agreement) as an obligor and guarantor

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under and in respect of the Bank Credit Agreement and the Company so certifies to the holders of
Notes in a certificate of a Responsible Officer of the Company, (2) at the time of such release,
the Consolidated Net Debt to EBITDA Ratio shall be less than 2:00 to 1:00, (3) at the time of such
release and discharge, the Company shall have delivered a certificate of a Responsible Officer of
the Company to the holders of Notes evidencing compliance with the requirement of the immediately
preceding clause (2) and stating that no Default or Event of Default exists or will result from
such release and discharge and (4) if any fee or other form of consideration is given to any party
to the Bank Credit Agreement expressly for the purpose of its release of such Subsidiary Guarantor,
the holders of Notes shall receive equivalent consideration.

     Section 9.10 Future Liens. Within (a) 10 days after the time that (1) any Person becomes a
Domestic Restricted Subsidiary as a result of the creation or Acquisition of such Subsidiary or
otherwise or (2) any Domestic Unrestricted Subsidiary grants any security to support the
obligations of the Company under the Bank Credit Agreement or of any Subsidiary under any guaranty
agreement related thereto, then, unless such Subsidiary is merged into the Company or a Subsidiary
Guarantor (with the Company or such Subsidiary Guarantor being the surviving Person) prior to the
expiration of such 10 day period, the Company shall (i) cause such Subsidiary to execute and
deliver to the Collateral Agent a Security Agreement and any related Security Documents required by
the holders of Notes or the Collateral Agreement to secure the obligations of the Company hereunder
and under the Notes and of each Subsidiary Guarantor under the Subsidiary Guaranty Agreement and
each of the other Senior Secured Obligations, (ii) cause 100% of the equity interests of such
Subsidiary so acquired to be pledged as security for such obligations and (iii) provide the holders
of Notes such board resolutions, officer’s certificates, corporate and other documents and opinions
of counsel as the Required Holders or the Collateral Agent shall reasonably request in connection
with the actions described in the immediately preceding clauses (i) and (ii), and (b) 20 days after
the time that any Person becomes a Material Foreign Subsidiary as a result of the creation or
acquisition of such Subsidiary or otherwise, the Company shall (1) cause 65% of such Subsidiary’s
equity interests to be pledged to secure the obligations of the Company hereunder and under the
Notes and of each Subsidiary Guarantor under the Subsidiary Guaranty Agreement and each of the
other Senior Secured Obligations and (2) provide the holders of Notes such board resolutions,
officers’ certificates, corporate and other documents and opinions of counsel as the Required
Holders or the Collateral Agent shall reasonably request in connection with the actions described
in the immediately preceding clause (1).

SECTION 10. Negative Covenants.

     Section 10.1 Consolidated Net Debt to EBITDA Ratio. The Company will not, at any time, permit
the Consolidated Net Debt to EBITDA Ratio to be greater than 3.50 to 1.00.

     Section 10.2 Interest Coverage Ratio. The Company will not, at any time, permit the ratio of
(a) Consolidated EBIT for the period of four consecutive fiscal quarters ending on, or most
recently ended prior to, such time to (b) Consolidated Interest Expense for such period to be less
than 2.50 to 1.00.

     Section 10.3 Asset Coverage Ratio. The Company will not, at any time, permit the Asset
Coverage Ratio to be less than 1.10 to 1.00.

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     Section 10.4 Priority Debt. The Company will not, at any time, permit the aggregate amount of
all Priority Debt to exceed an amount equal to 10% of Consolidated Net Worth determined as of the
end of the then most recently ended fiscal quarter of the Company.

     Section 10.5 Limitation on Liens. The Company will not, and will not permit any Restricted
Subsidiary to, directly or indirectly create, incur, assume or permit to exist (upon the happening
of a contingency or otherwise) any Lien on or with respect to any property or asset (including,
without limitation, any document or instrument in respect of goods or accounts receivable) of the
Company or any Restricted Subsidiary, whether now owned or held or hereafter acquired, or any
income or profits therefrom, or assign or otherwise convey any right to receive income or profits),
except:

     (a) Liens for taxes, assessments or other governmental charges that are not yet due and
payable or the payment of which is not at the time required by Section 9.4;

     (b) Liens incidental to the conduct of business or the ownership of properties and
assets (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other
similar Liens) and Liens to secure the performance of bids, tenders, leases or trade
contracts or to secure statutory obligations (including obligations under workers
compensation, unemployment insurance and other social security legislation), surety or
appeal bonds, Liens in favor of depository banks or securities intermediaries or other
Liens, in each case, incurred in the ordinary course of business and not in connection with
the borrowing of money;

     (c) leases or subleases granted to others, easements, rights-of-way, restrictions and
other similar charges or encumbrances, in each case incidental to the ownership of property
or assets or the ordinary conduct of the business of the Company or any Restricted
Subsidiary, and Liens incidental to minor survey exceptions, zoning restrictions and the
like, provided that such Liens do not, in the aggregate, materially detract from the value
of such property;

     (d) any attachment or judgment Lien, unless the judgment it secures shall not, within
60 days after the entry thereof, have been satisfied, discharged or execution thereof stayed
pending appeal, or shall not have been satisfied or discharged within 60 days after the
expiration of any such stay;

     (e) Liens securing Debt of the Company or a Restricted Subsidiary to the Company or to
a Wholly-Owned Restricted Subsidiary;

     (f) Liens existing on the date of the Closing and reflected in Schedule 10.5;

     (g) Liens incurred after the date of the Closing given to secure the payment of the
purchase price incurred in connection with the acquisition, construction or improvement of
fixed or capital assets useful and intended to be used in carrying on the business of the
Company or a Restricted Subsidiary, including Liens existing on such fixed or capital assets
at the time of acquisition or construction thereof or improvement thereon or Liens incurred
within 365 days of such acquisition or completion of such construction or improvement;
provided that (1) the Lien shall attach solely to the fixed or

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capital assets acquired, purchased, constructed or improved, (2) at the time of
acquisition, construction or improvement of such fixed or capital assets (or, in the case of
any Lien incurred within 365 days of such acquisition or completion of such construction or
improvement, at the time of the incurrence of the Debt secured by such Lien), the aggregate
amount remaining unpaid on all Debt secured by Liens on such fixed or capital assets,
whether or not assumed by the Company or a Restricted Subsidiary, shall not exceed the
lesser of (i) the cost of such acquisition, construction or improvement or (ii) the fair
market value at the time such fixed or capital assets is acquired or constructed or
improvement of such fixed or capital assets is completed, as the case may be, (as determined
in good faith by one or more officers of the Company or such Restricted Subsidiary to whom
authority to enter into the transaction has been delegated by the board of directors of the
Company or such Restricted Subsidiary) and (3) at the time of such incurrence and after
giving effect thereto, no Default or Event of Default shall have occurred and be continuing;

     (h) any Lien existing on fixed or capital assets of a Person immediately prior to its
being consolidated with or merged into the Company or a Restricted Subsidiary or its
becoming a Subsidiary, or any Lien existing on any fixed or capital assets acquired by the
Company or any Restricted Subsidiary at the time such fixed or capital assets are so
acquired (whether or not the Debt secured thereby shall have been assumed); provided that
(1) no such Lien shall have been created or assumed in contemplation of such consolidation
or merger or such Person’s becoming a Subsidiary or such acquisition of fixed or capital
assets, (2) each such Lien shall extend solely to the item or items of fixed or capital
assets so acquired and, if required by the terms of the instrument originally creating such
Lien, other property which is an improvement to or is acquired for specific use in
connection with such acquired fixed or capital assets and (3) at the time of such incurrence
and after giving effect thereto, no Default or Event of Default shall have occurred and be
continuing;

     (i) any extensions, renewals, refundings or replacements of any Lien permitted by the
preceding paragraphs (f), (g) and (h) of this Section 10.5; provided that (1) no additional
property shall be encumbered by such Liens, (2) the unpaid principal amount of the Debt or
other obligations secured thereby shall not be increased or the maturity thereof reduced and
(3) at such time and immediately after giving effect thereto, no Default or Event of Default
shall have occurred and be continuing;

     (j) other Liens not otherwise permitted by paragraphs (a) through (i), inclusive, of
this Section 10.5 securing Debt; provided that, at the time of such incurrence and after
giving effect thereto, (1) the aggregate principal amount of all Debt secured by such Liens
shall be permitted by the limitation set forth in Section 10.4 and (2) no Default or Event
of Default shall have occurred or be continuing; and

     (k) Liens created pursuant to the Security Documents.

     Section 10.6 Restricted Investments. The Company will not, and will not permit any Restricted
Subsidiary to, make any Investments, except Restricted Investments.

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     Notwithstanding anything in this Section 10.6 or elsewhere in this Agreement to the contrary,
in no event shall aggregate Investments made after the date of the Closing in all Subsidiaries that
are not Subsidiary Guarantors, including Investments as a result of Acquisitions and loans and
advances, exceed 15% of Consolidated Net Worth.

     Section 10.7 Restricted Payments. The Company will not, and will not permit any Restricted
Subsidiary to, declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that, so long as no Default shall have
occurred and be continuing at the time of any action described below or would result therefrom:

     (a) each Restricted Subsidiary may make Restricted Payments to the Company, a
Subsidiary Guarantor and any other Person that owns an equity interest in such Subsidiary,
ratably according to their respective holdings of the type of equity interest in respect of
which such Restricted Payment is being made;

     (b) the Company and each Restricted Subsidiary may declare and make dividend payments
or other distributions payable solely in the common stock or other common equity interests
of such Person;

     (c) the Company and each Restricted Subsidiary may purchase, redeem or otherwise
acquire equity interests issued by it with the proceeds received from the substantially
concurrent issue of new shares of its common stock or other common equity interests;

     (d) the Company and each Subsidiary may make payments and prepayments of principal and
interest on Debt;

     (e) the Company may make Equity Interest Repurchases in an amount equal to $250,000,000
minus the aggregate amount paid by the Company on October 4, 2005 to consummate the Tender
Offer; and

     (f) the Company may pay Dividends and make Equity Interest Repurchases, provided that,
the aggregate amount of Dividends declared and paid and Equity Interest Repurchases made
during any fiscal year of the Company shall not exceed the Available Dividend Amount unless
at the time of the payment of any Dividend or the making of any Equity Interest Repurchase,
the Consolidated Net Debt to EBITDA Ratio, as disclosed in each Officer’s Certificate
delivered by the Company pursuant to Section 7.2(a) during such fiscal year (and after
giving effect to any proposed Dividend or Equity Interest Repurchase during such fiscal year
on a pro forma basis), is less than 2.00 to 1.00.

     Section 10.8 Sales of Assets. Except as permitted by Section 10.9, the Company will not, and
will not permit any Restricted Subsidiary to, sell, lease, transfer or otherwise dispose of,
including by way of merger (collectively, a “Disposition”), any property, including equity
interests of Subsidiaries, in one or more transactions, to any Person, other than (a) Dispositions
in the ordinary course of business, (b) Dispositions by the Company or a Restricted Subsidiary to
the Company or to a Restricted Subsidiary, (c) the Disposition described on Schedule 10.8, (d) the
Disposition of the outstanding equity interests of The Select Carrier Group L.P., a

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Delaware limited partnership, and its general partner Select Carrier Group LLC, a Delaware
limited liability company (collectively, the “Select Carrier Group”), provided that in the case of
the Disposition of the Select Carrier Group, and irrespective of whether or not all or any portion
of such Disposition would be permitted pursuant to clause (e) of this paragraph, the Company shall
apply 100% of the net proceeds thereof in excess of $10,000,000 to the payment or prepayment of
outstanding Debt in the manner set forth in clause (ii) of the following paragraph or (e) other
Dispositions not otherwise permitted by this Section 10.8, provided that (1) after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing and (2) the aggregate
net book value of all property so disposed of in any fiscal year pursuant to this Section 10.8(e)
would not exceed 10% of Consolidated Total Assets as of the end of the immediately preceding fiscal
year.

     Notwithstanding the foregoing, the Company may, or may permit any Restricted Subsidiary to,
make a Disposition of property acquired or constructed by the Company or any Restricted Subsidiary
and such property shall not be subject to or included in the foregoing limitation and computation
contained in Section 10.8(e) of the preceding paragraph to the extent, and from the date, that the
net proceeds from such Disposition are, within 365 days of such Disposition, either (i) reinvested
in productive assets by the Company or a Restricted Subsidiary to be used in the principal business
of the Company or such Restricted Subsidiary and, if required by Section 9.10 or the Security
Documents, such productive assets are concurrently subjected to the Lien of the Security Documents
or (ii) applied to the payment or prepayment of any outstanding Debt of the Company or its
Restricted Subsidiaries other than outstanding Subordinated Debt, provided that in the course of
making such application the Company shall offer to prepay each outstanding Note in accordance with
Section 8.6 in a principal amount which equals the Ratable Portion for such Note. If any holder of
a Note fails to accept such offer of prepayment, then the Company shall prepay or pay or cause to
prepay or pay additional Debt of the Company or the Restricted Subsidiaries, other than
Subordinated Debt, in an amount equal to the Ratable Portion for such Note.

     Section 10.9 Merger and Consolidation. The Company will not, and will not permit any
Restricted Subsidiary to, consolidate with or merge with any other Person or convey, transfer or
lease all or substantially all of its assets in a single transaction or series of transactions to
any Person; provided that:

     (a) any Restricted Subsidiary may (1) consolidate with or merge with, or convey,
transfer or lease all or substantially all of its assets in a single transaction or series
of transactions to, (i) the Company or another Restricted Subsidiary so long as in any
merger or consolidation involving (A) the Company, the Company shall be the surviving or
continuing entity and (B) one or more Subsidiary Guarantors, a Subsidiary Guarantor shall be
the surviving or continuing entity or (ii) any other Person so long as the surviving or
continuing entity is the Restricted Subsidiary or (2) convey, transfer or lease all or
substantially all of its assets in compliance with the provisions of Section 10.8; and

     (b) the Company may consolidate or merge with, or convey, transfer or lease all or
substantially all of the assets of the Company in a single transaction or series of
transactions to, any Person so long as:

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     (1) the successor formed by such consolidation or the survivor of such merger
or the Person that acquires by conveyance, transfer or lease all or substantially
all of the assets of the Company as an entirety, as the case may be (the “Successor
Entity”), shall be a solvent entity organized and existing under the laws of the
United States of America, any State thereof or the District of Columbia;

     (2) if the Successor Entity is not the Company, (i) such Successor Entity shall
have executed and delivered to each holder of Notes its assumption of the due and
punctual performance and observance of each covenant and condition of this
Agreement, the Notes and the Security Documents to which the Company is a party
(pursuant to such agreements and instruments as shall be reasonably satisfactory to
the Required Holders), (ii) the Successor Entity shall have caused to be delivered
to each holder of Notes an opinion of independent counsel reasonably acceptable to
the Required Holders, to the effect that all agreements or instruments effecting
such assumption are enforceable in accordance with their terms and comply with the
terms hereof and (iii) each Subsidiary Guarantor shall have reaffirmed in writing
its obligations under the Subsidiary Guaranty Agreement and each Security Document
to which it is a party; and

     (3) immediately after giving effect to such transaction no Default or Event of
Default would exist.

     Section 10.10 Transactions with Affiliates. The Company will not, and will not permit any
Restricted Subsidiary to, enter into, directly or indirectly, any material transaction or material
group of related transactions (including, without limitation, the purchase, lease, sale or exchange
of properties of any kind or the rendering of any service) with any Affiliate (other than the
Company or another Restricted Subsidiary), except in the ordinary course and pursuant to the
reasonable requirements of the Company’s or such Restricted Subsidiary’s business and upon fair and
reasonable terms no less favorable to the Company or such Restricted Subsidiary than would be
obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.

     Section 10.11 Line of Business. The Company will not, and will not permit any Restricted
Subsidiary to, engage in any business if, as a result, the general nature of the business in which
the Company and its Restricted Subsidiaries, taken as a whole, would then be engaged would be
substantially changed from the general nature of the business in which the Company and its
Restricted Subsidiaries, taken as a whole, are engaged on the date of the Closing as described in
the Memorandum.

     Section 10.12 Terrorism Sanctions Regulations. The Company will not, and will not permit any
Subsidiary to, (a) become a Person described or designated in the Specially Designated Nationals
and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the
Anti-Terrorism Order or (b) to the best of the Company’s knowledge after reasonable investigation,
engage in any dealings or transactions with any such Person.

     Section 10.13 Limitation on Restrictive Agreements. The Company will not, and will not permit
any of its Subsidiaries or Affiliates to, enter into any agreement or instrument that

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expressly prohibits the Company from entering into any amendment, supplement, restatement or
other modification to this Agreement.

SECTION 11. Events of Default.

     An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

     (a) the Company defaults in the payment of any principal, Prepayment Premium or
Breakage Amount on any Note when the same becomes due and payable, whether at maturity or at
a date fixed for prepayment or by declaration or otherwise; or

     (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

     (c) the Company defaults in the performance of or compliance with any term contained in
Section 7.1(d) or Section 10; or

     (d) the Company defaults in the performance of or compliance with any term contained
herein (other than those referred to in Sections 11(a), (b) and (c)) and such default is not
remedied within 30 days after the earlier of (1) a Responsible Officer of the Company
obtaining actual knowledge of such default and (2) the Company receiving written notice of
such default from any holder of a Note (any such written notice to be identified as a
“notice of default” and to refer specifically to this Section 11(d)); or

     (e) any representation or warranty made in writing by or on behalf of the Company or by
any officer of the Company or by any Subsidiary Guarantor or any officer of a Subsidiary
Guarantor in this Agreement, the Subsidiary Guaranty Agreement or any Security Document, or
in any writing furnished in connection with the transactions contemplated hereby or thereby,
proves to have been false or incorrect in any material respect on the date as of which made;
or

     (f) (1) the Company or any Restricted Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or make-whole
amount or interest (in the payment amount of at least $100,000) on any Debt that is
outstanding in an aggregate principal amount of at least $10,000,000 beyond any period of
grace provided with respect thereto, (2) the Company or any Restricted Subsidiary is in
default in the performance of or compliance with any term (other than any term that
constitutes a Change in Control for which clause (3) of this paragraph shall apply) of any
evidence of any Debt in an aggregate outstanding principal amount of at least $10,000,000 or
of any mortgage, indenture or other agreement relating thereto or any other condition
exists, and as a consequence of such default or condition such Debt has become, or has been
declared (or one or more Persons are entitled to declare such Debt to be), due and payable
before its stated maturity or before its regularly scheduled dates of payment, (3) the
Company or any Restricted Subsidiary is in default of Section 8.01(k) of the Bank Credit
Agreement or any comparable provision in any other evidence of Debt in an aggregate
principal amount of at least $10,000,000 or of any mortgage, indenture or other agreement
relating thereto and as a consequence of such default such

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Debt has become, or has been declared, due and payable before its stated maturity or
before its regularly scheduled dates of payment or (4) as a consequence of the occurrence or
continuation of any event or condition (other than the passage of time or the right of the
holder of Debt to convert such Debt into equity interests), (i) the Company or any
Restricted Subsidiary has become obligated to purchase or repay Debt before its regular
maturity or before its regularly scheduled dates of payment in an aggregate outstanding
principal amount of at least $10,000,000 or (ii) one or more Persons have the right to
require the Company or any Restricted Subsidiary so to purchase or repay such Debt; or

     (g) the Company, any Subsidiary Guarantor or any Material Subsidiary (1) is generally
not paying, or admits in writing its inability to pay, its debts as they become due, (2)
files, or consents by answer or otherwise to the filing against it of, a petition for relief
or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar
law of any jurisdiction, (3) makes an assignment for the benefit of its creditors, (4)
consents to the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its property, (5) is
adjudicated as insolvent or to be liquidated or (6) takes corporate action for the purpose
of any of the foregoing; or

     (h) a court or Governmental Authority of competent jurisdiction enters an order
appointing, without consent by the Company, any Subsidiary Guarantor or any Material
Subsidiary, a custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its property, or constituting an order for
relief or approving a petition for relief or reorganization or any other petition in
bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of
any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company, any
Subsidiary Guarantor or any Material Subsidiary, or any such petition shall be filed against
the Company, any Subsidiary Guarantor or any Material Subsidiary and such petition shall not
be dismissed within 60 days; or

     (i) a final judgment or judgments for the payment of money aggregating in excess of
$10,000,000 (to the extent not covered by independent third-party insurance as to which the
insurer does not dispute coverage) are rendered against one or more of the Company and the
Restricted Subsidiaries and which judgments are not, within 60 days after entry thereof,
bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the
expiration of such stay; or

     (j) if (1) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under Section 412 of the Code, (2) a notice of
intent to terminate any Pension Plan shall have been or is reasonably expected to be filed
with the PBGC or the PBGC shall have instituted proceedings under ERISA Section 4042 to
terminate or appoint a trustee to administer any Pension Plan or the PBGC shall have
notified the Company or any ERISA Affiliate that a Pension Plan may become a subject of any
such proceedings, (3) the aggregate “amount of unfunded benefit liabilities” (within the
meaning of Section 4001(a)(18) of ERISA) under all

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Pension Plans, determined in accordance with Title IV of ERISA, shall exceed
$10,000,000, (4) the Company or any ERISA Affiliate shall have incurred or is reasonably
expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise
tax provisions of the Code relating to employee benefit plans, (5) the Company or any ERISA
Affiliate withdraws from any Multi-employer Plan or (6) the Company or any Subsidiary
establishes or amends any employee welfare benefit plan that provides post-employment
welfare benefits in a manner that would increase the liability of the Company or any
Subsidiary thereunder; and any such event or events described in clauses (1) through (6)
above, either individually or together with any other such event or events, would reasonably
be expected to have a Material Adverse Effect; or

     (k) the Company or any Subsidiary Guarantor defaults in the performance of or
compliance with any term contained in any Security Document to which it is a party and such
default is not remedied within the period of grace, if any, allowed with respect thereto or
any Security Document shall cease to be in full force and effect for any reason whatsoever
or any Security Document shall fail or cease to create a valid and perfected first priority
Lien on or in any Collateral purported to be covered thereby or the Company or any
Subsidiary Guarantor shall contest or deny in writing the validity or enforceability of any
Lien granted under any Security Document or any of its obligations thereunder; or

     (l) any Subsidiary Guarantor defaults in the performance of or compliance with any term
contained in the Subsidiary Guaranty Agreement and such default is not remedied within the
period of grace, if any, allowed with respect thereto or the Subsidiary Guaranty Agreement
shall cease to be in full force and effect for any reason whatsoever, or any Subsidiary
Guarantor shall contest or deny in writing the validity or enforceability of the Subsidiary
Guaranty Agreement or any of its obligations thereunder.

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in Section 3 of ERISA.

SECTION 12.Remedies on Default, Etc.

     Section 12.1 Acceleration.

     (a) If an Event of Default with respect to the Company described in Section 11(g) or
(h) (other than an Event of Default described in clause (1) of Section 11(g) or described in
clause (6) of Section 11(g) by virtue of the fact that such clause encompasses clause (1) of
Section 11(g)) has occurred, all the Notes then outstanding shall automatically become
immediately due and payable.

     (b) If any other Event of Default has occurred and is continuing, the Required Holders
may at any time at their option, by notice or notices to the Company, declare all the Notes
then outstanding to be immediately due and payable.

     (c) If any Event of Default described in Section 11(a) or (b) has occurred and is
continuing, any holder or holders of Notes at the time outstanding affected by such Event of
Default may at any time, at its or their option, by notice or notices to the Company,
declare all the Notes held by it or them to be immediately due and payable.

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     Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes,
plus (1) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate), (2) the Prepayment Premium, if any, determined in respect of such
principal amount (to the full extent permitted by applicable law) and (3) the Breakage Amount, if
any, shall all be immediately due and payable, in each and every case without presentment, demand,
protest or further notice, all of which are hereby waived. The Company acknowledges, and the
parties hereto agree, that each holder of a Note has the right to maintain its investment in the
Notes free from repayment by the Company (except as herein specifically provided for), and that the
provision for payment of the Prepayment Premium, if any, by the Company in the event that the Notes
are prepaid or are accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

     Section 12.2 Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or otherwise.

     Section 12.3 Rescission. At any time after any Notes have been declared due and payable
pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company, may
rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue
interest on the Notes, all principal of, Prepayment Premium, if any, and Breakage Amount, if any,
on any Notes that are due and payable and are unpaid other than by reason of such declaration, and
all interest on such overdue principal, Prepayment Premium, if any, and Breakage Amount, if any,
and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at
the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which
have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other
than non-payment of amounts that have become due solely by reason of such declaration, have been
cured or have been waived pursuant to Section 17 and (d) no judgment or decree has been entered for
the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under
this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any
right consequent thereon.

     Section 12.4 No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement, by any Note, by the Subsidiary Guaranty Agreement or
by any Security Document upon any holder of Notes shall be exclusive of any other right, power or
remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or
otherwise. Without limiting the obligations of the Company under Section 15, the Company will pay
to the holder of each Note on demand such further amount as shall be sufficient to cover all costs
and expenses of such holder incurred in any enforcement or

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collection under this Section 12, including, without limitation, reasonable attorneys’ fees,
expenses and disbursements.

SECTION 13. Registration; Exchange; Substitution of Notes.

     Section 13.1 Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered holders of Notes.

     Section 13.2 Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the
address and to the attention of the designated officer (all as specified in Section 18(3)), for
registration of transfer or exchange (and in the case of a surrender for registration of transfer
accompanied by a written instrument of transfer duly executed by the registered holder of such Note
or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address
and other information for notices of each transferee of such Note or part thereof), within 10
Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except
as provided below), one or more new Notes (as requested by the holder thereof) in exchange
therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered
Note. Each such new Note shall be payable to such Person as such holder may request and shall be
substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from
the date to which interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. The Company may require payment of a
sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such
transfer of Notes. Notes shall not be transferred in denominations of less than $2,000,000,
provided that if necessary to enable the registration of transfer by a holder of its entire holding
of Notes, one Note may be in a denomination of less than $2,000,000. Any transferee, by its
acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have
made the representation set forth in Section 6.3.

     The Notes have not been registered under the Securities Act or under the securities laws of
any state and may not be transferred or resold unless registered under the Securities Act and all
applicable state securities laws or unless an exemption from the requirement for such registration
is available.

     Section 13.3 Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(3)) of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

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     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $50,000,000 or that is a
Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be
deemed to be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have
been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
destroyed or mutilated Note if no interest shall have been paid thereon.

SECTION 14. Payments on Notes.

     Section 14.1 Place of Payment. Subject to Section 14.2, payments of principal, Prepayment
Premium, if any, Breakage Amount, if any, and interest becoming due and payable on the Notes shall
be made in New York, New York at the principal office of Bank of America, N.A., in such
jurisdiction. The Company may at any time, by notice to each holder of a Note, change the place of
payment of the Notes so long as such place of payment shall be either the principal office of the
Company in such jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

     Section 14.2 Home Office Payment. So long as any Purchaser or its nominee shall be the holder
of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for principal, Prepayment
Premium, if any, Breakage Amount, if any, and interest by the method and at the address specified
for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such
other address as such Purchaser shall have from time to time specified to the Company in writing
for such purpose, without the presentation or surrender of such Note or the making of any notation
thereon, except that upon written request of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note
for cancellation, reasonably promptly after any such request, to the Company at its principal
executive office or at the place of payment most recently designated by the Company pursuant to
Section 14.1. Prior to any sale or other disposition of any Note held by any Purchaser or its
nominee such Purchaser will, at its election, either endorse thereon the amount of principal paid
thereon and the last date to which interest has been paid thereon or surrender such Note to the
Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the
benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect
transferee of any Note purchased by a Purchaser under this Agreement and that has made the same
agreement relating to such Note as the Purchasers have made in this Section 14.2.

SECTION 15. Expenses, Etc.

     Section 15.1 Transaction Expenses. Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable

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attorneys’ fees of a special counsel and, if reasonably required by the Required Holders,
local or other counsel) incurred by the Purchasers and each other holder of a Note in connection
with such transactions and in connection with any amendments, waivers or consents under or in
respect of this Agreement, the Notes, the Subsidiary Guaranty Agreement or any Security Document
(whether or not such amendment, waiver or consent becomes effective), including, without
limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether
or how to enforce or defend) any rights under this Agreement, the Notes, the Subsidiary Guaranty
Agreement or any Security Document or in responding to any subpoena or other legal process or
informal investigative demand issued in connection with this Agreement, the Notes, the Subsidiary
Guaranty Agreement or any Security Document or by reason of being a holder of any Note, (b) the
costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency
or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring
of the transactions contemplated hereby, by the Subsidiary Guaranty Agreement or by any Security
Document. The Company will pay, and will save each Purchaser and each other holder of a Note
harmless from, all claims in respect of any fees, costs or expenses, if any, of brokers and finders
(other than those, if any, retained by a Purchaser or other holder in connection with its purchase
of the Notes).

     Section 15.2 Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement, the Notes, the Subsidiary Guarantor Agreement or any Security Document and the
termination of this Agreement, the Notes, the Subsidiary Guaranty Agreement or any Security
Document.

SECTION 16. Survival of Representations and Warranties; Entire Agreement.

     All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent
holder of a Note, regardless of any investigation made at any time by or on behalf of such
Purchaser or any other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed
representations and warranties of the Company under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and understanding between each
Purchaser and the Company and supersede all prior agreements and understandings relating to the
subject matter hereof.

SECTION 17. Amendment and Waiver.

     Section 17.1 Requirements. This Agreement and the Notes may be amended, and the observance of
any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and
only with) the written consent of the Company and the Required Holders, except that (a) no
amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any
defined term (as it is used therein), will be effective as to any holder of a Note unless consented
to by such holder in writing and (b) no such amendment or waiver may, without the written consent
of the holder of each Note at the time outstanding affected thereby, (1) subject to the provisions
of Section 12 relating to acceleration or rescission, change the

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amount or time of any prepayment or payment of principal of, or reduce the rate or change the
time of payment or method of computation of interest or of the Prepayment Premium or Breakage
Amount on, the Notes, (2) change the percentage of the principal amount of the Notes the holders of
which are required to consent to any such amendment or waiver, (3) amend any of Sections 8, 11(a),
11(b), 12, 17 or 20, (4) except as otherwise provided herein, release any Subsidiary Guarantor of
its obligations under the Subsidiary Guaranty Agreement or (5) except as otherwise provided in the
Security Documents, release any Collateral from the Lien of the Security Documents.

Section 17.2 Solicitation of Holders of Notes.

     (a) Solicitation. The Company will provide each holder of Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance
of the date a decision is required, to enable such holder to make an informed and considered
decision with respect to any proposed amendment, waiver or consent in respect of any of the
provisions hereof or of the Notes. The Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions of this
Section 17 to each holder of outstanding Notes promptly following the date on which it is
executed and delivered by, or receives the consent or approval of, the requisite holders of
Notes.

     (b) Payment. The Company will not, directly or indirectly, pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or
grant any security or provide other credit support, to any holder of Notes as consideration
for or as an inducement to the entering into by any holder of Notes of any waiver or
amendment of any of the terms and provisions hereof unless such remuneration is concurrently
paid, or security is concurrently granted or other credit support concurrently provided, on
the same terms, ratably to each holder of Notes then outstanding even if such holder did not
consent to such waiver or amendment.

     (c) Consent in Contemplation of Transfer. Any consent made pursuant to this Section 17
by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company
or any Affiliate and has provided or has agreed to provide such written consent as a
condition to such transfer shall be void and of no force or effect except solely as to such
holder, and any amendments effected or waivers granted or to be effected or granted that
would not have been or would not be so effected or granted but for such consent (and the
consents of all other holders of Notes that were acquired under the same or similar
conditions) shall be void and of no force or effect except solely as to such holder.

     Section 17.3 Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note nor any delay in exercising any rights hereunder, under any Note,

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under the Subsidiary Guaranty Agreement or under any Security Document shall operate as a
waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

     Section 17.4 Notes Held by the Company, Etc. Solely for the purpose of determining whether
the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any Affiliate shall be
deemed not to be outstanding.

SECTION 18. Notices.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), (b) by registered or certified mail with return
receipt requested (postage prepaid) or (c) by a recognized overnight delivery service (charges
prepaid). Any such notice must be sent:

     (1) if to any Purchaser or its nominee, to such Purchaser or nominee at the
address specified for such communications in Schedule A, or at such other address as
such Purchaser or its nominee shall have specified to the Company in writing,

     (2) if to any other holder of any Note, to such holder at such address as such
other holder shall have specified to the Company in writing, or

     (3) if to the Company, to the Company at the address set forth at the beginning
hereof to the attention of its Chief Financial Officer, or at such other address as
the Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

SECTION 19. Reproduction of Documents.

     This Agreement and all documents relating hereto, including, without limitation, (a) consents,
waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser
at the Closing (except the Notes themselves) and (c) financial statements, certificates and other
information previously or hereafter furnished to any holder of Notes, may be reproduced by such
holder by any photographic, photostatic, electronic, digital or other similar process and such
holder may destroy any original document so reproduced. The Company agrees and stipulates that, to
the extent permitted by applicable law, any such reproduction shall be admissible in evidence as
the original itself in any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by such holder of the Notes in the regular
course of business) and any enlargement, facsimile or further reproduction of such reproduction
shall likewise be admissible in evidence.

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This Section 19 shall not prohibit the Company or any other holder of Notes from contesting
any such reproduction to the same extent that it could contest the original, or from introducing
evidence to demonstrate the inaccuracy of any such reproduction.

SECTION 20. Confidential Information.

     For the purposes of this Section 20, “Confidential Information” shall mean information
delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the
transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature
and that was clearly marked or labeled or otherwise adequately identified when received by such
Purchaser as being confidential information of the Company or such Subsidiary, provided that such
term does not include information that (a) was publicly known or otherwise known to such Purchaser
prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or
omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes
known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d)
constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise
publicly available. Each Purchaser will maintain the confidentiality of such Confidential
Information in accordance with procedures adopted by such Purchaser in good faith to protect
confidential information of third parties delivered to such Purchaser, provided that such Purchaser
may deliver or disclose Confidential Information to (1) its directors, trustees, officers,
employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to
the administration of the investment represented by its Notes), (2) its financial advisors and
other professional advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 20, (3) any other holder of any Note,
(4) any Institutional Investor to which such Purchaser sells or offers to sell such Note or any
part thereof or any participation therein (if such Person has agreed in writing prior to its
receipt of such Confidential Information to be bound by the provisions of this Section 20), (5) any
Person from which such Purchaser offers to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be bound by the
provisions of this Section 20), (6) any federal or state regulatory authority having jurisdiction
over such Purchaser, (7) the NAIC or the SVO or, in each case, any similar organization, or any
nationally recognized rating agency that requires access to information about such Purchaser’s
investment portfolio or (8) any other Person to which such delivery or disclosure may be necessary
or appropriate (i) to effect compliance with any law, rule, regulation or order applicable to such
Purchaser, (ii) in response to any subpoena or other legal process, (iii) in connection with any
litigation to which such Purchaser is a party or (iv) if an Event of Default has occurred and is
continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to
be necessary or appropriate in the enforcement or for the protection of the rights and remedies
under such Purchaser’s Notes, this Agreement, the Subsidiary Guaranty Agreement or any Security
Document. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be
bound by and to be entitled to the benefits of this Section 20 as though it were a party to this
Agreement. On reasonable request by the Company in connection with the delivery to any holder of a
Note of information required to be delivered to such holder under this Agreement or requested by
such holder (other than a holder that is a party to this Agreement or its nominee), such holder
will enter into an agreement with the Company embodying the provisions of this Section 20.

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SECTION 21. Substitution of Purchaser.

     Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser
of the Notes that such Purchaser has agreed to purchase hereunder, by written notice to the
Company, which notice shall be signed by both such Purchaser and such Affiliate, shall contain such
Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such
Affiliate of the accuracy with respect to it of the representations set forth in Section 6. Upon
receipt of such notice, any reference to such Purchaser in this Agreement (other than in this
Section 21), shall be deemed to refer to such Affiliate in lieu of such original Purchaser. In the
event that such Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter
transfers to such original Purchaser all of the Notes then held by such Affiliate, upon receipt by
the Company of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this
Agreement (other than in this Section 21), shall no longer be deemed to refer to such Affiliate,
but shall refer to such original Purchaser, and such original Purchaser shall again have all the
rights of an original holder of the Notes under this Agreement.

SECTION 22. Limitation on Interest.

     It is the intent of the Company and each holder of Notes to comply strictly with applicable
usury laws, and the Company and each holder of Notes stipulate and agree that none of the terms and
provisions contained in this Agreement or the Notes shall ever be construed to create a contract to
pay, for the use, forbearance or detention of money, interest in excess of the maximum amount of
interest permitted to be charged by applicable law from time to time in effect. If any excess of
interest in such respect is hereby or in the Notes provided for or shall be adjudicated to be so
provided in this Agreement or the Notes, the provisions of this Section 22 shall govern and
prevail, and neither the Company nor any present or future guarantors, endorsers, or other Persons
hereafter becoming liable for payment of the Notes shall ever be obligated to pay the excess amount
of such interest. The provisions of this Section 22 shall control over all other provisions of
this Agreement, the Notes, the Subsidiary Guaranty Agreement and the Security Documents that may be
in conflict or apparent conflict herewith. Each holder of Notes expressly disavows any intention
to charge, collect or contract for excessive unearned interest or finance charges in the event the
maturity of the Notes is accelerated. If the maturity of any Note is accelerated for any reason,
any amounts held to constitute interest which are then unearned and have theretofore been collected
by any holder of Notes shall be applied as of the date of receipt thereof to reduce the principal
balance of its Notes then outstanding and if the principal of such Notes has been paid in full, any
remaining excess shall be forthwith paid to the Company. If any holder of Notes shall receive,
collect or apply monies which are deemed to constitute interest which would otherwise increase the
interest on its Notes to an amount in excess of that permitted to be charged by applicable law then
in effect, all such sums deemed to constitute interest in excess of such legal limit shall be
applied to reduce the principal balance of its Notes then outstanding or immediately returned to
the Company or the other payor thereof upon such determination. All sums paid or agreed to be paid
to any holder of Notes for the use, forbearance or detention of sums due hereunder or under the
Notes shall, to the extent permitted by applicable law, be amortized, prorated, allocated and
spread throughout the full term of the Debt evidenced by its Notes until payment in full so that
the rate or amount of interest on account of any Debt outstanding under its Notes does not exceed
the maximum amount allowed by such applicable law. If at any time and from time to time (a) the

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amount of interest payable to any holder of Notes on any date shall, pursuant to this Section
22, be limited and (b) in respect of any subsequent interest computation period, the amount of
interest otherwise payable to such holder would be less than the amount of interest payable to such
holder computed at the maximum lawful rate, then the amount of interest payable to such holder in
respect to such subsequent interest computation period shall continue to be computed at the maximum
lawful rate until the total amount of interest payable to such holder shall equal the total amount
of interest which would have been payable to such holder if the total amount of interest had been
computed without giving effect to this Section 22.

SECTION 23. Miscellaneous.

     Section 23.1 Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

     Section 23.2 Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice
of any optional prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or Prepayment Premium, if any, Breakage Amount, if any, or interest on any
Note that is due on a date other than a Business Day shall be made on the next succeeding Business
Day without including the additional days elapsed in the computation of the interest payable on
such next succeeding Business Day; provided that if such next succeeding Business Day would fall in
the next calendar month, such payment shall be made on the next preceding Business Day; provided,
further, that if the maturity date of any Note is a date other than a Business Day, the payment
otherwise due on such maturity date shall be made on the next succeeding Business Day and shall
include the additional days elapsed in the computation of interest payable on such next succeeding
Business Day.

     Section 23.3 Accounting Terms. All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (a) all computations made pursuant to this
Agreement shall be made in accordance with GAAP and (b) all financial statements shall be prepared
in accordance with GAAP.

     Section 23.4 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 23.5 Construction, Etc. Each covenant contained herein shall be construed (absent
express provision to the contrary) as being independent of each other covenant contained herein, so
that compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking,

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such provision shall be applicable whether such action is taken directly or indirectly by such
Person.

     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed a part hereof.

     Section 23.6 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

     Section 23.7 Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would require the application of
the laws of a jurisdiction other than such State.

     Section 23.8 Jurisdiction and Process; Waiver of Jury Trial.

     (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York
State or federal court sitting in the Borough of Manhattan, The City of New York, over any
suit, action or proceeding arising out of or relating to this Agreement or the Notes. To
the fullest extent permitted by applicable law, the Company irrevocably waives and agrees
not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject
to the jurisdiction of any such court, any objection that it may now or hereafter have to
the laying of the venue of any such suit, action or proceeding brought in any such court and
any claim that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum.

     (b) The Company consents to process being served by or on behalf of any holder of Notes
in any suit, action or proceeding of the nature referred to in Section 23.8(a) by mailing a
copy thereof by registered or certified mail (or any substantially similar form of mail),
postage prepaid, return receipt requested, to it at its address specified in Section 18 or
at such other address of which such holder shall then have been notified pursuant to said
Section. The Company agrees that such service upon receipt (1) shall be deemed in every
respect effective service of process upon it in any such suit, action or proceeding and (2)
shall, to the fullest extent permitted by applicable law, be taken and held to be valid
personal service upon and personal delivery to it. Notices hereunder shall be conclusively
presumed received as evidenced by a delivery receipt furnished by the United States Postal
Service or any reputable commercial delivery service.

     (c) Nothing in this Section 23.8 shall affect the right of any holder of a Note to
serve process in any manner permitted by law, or limit any right that the holders of any of
the Notes may have to bring proceedings against the Company in the courts of any appropriate
jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in
any other jurisdiction.

-46-

 

     (d) The parties hereto hereby waive trial by jury in any action brought on
or with respect to this Agreement, the Notes or any other document executed in connection
herewith or therewith.

* * * * *

-47-

 

     The execution hereof by the Purchasers shall constitute a contract among the Company and the
Purchasers for the uses and purposes hereinabove set forth.

	 	 	 	 	 	 	 
	 	 	EGL, Inc.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Elijio V. Serrano
	 	 	 	 	 
	 	 	 	 	Name: Elijio V. Serrano
	 	 	 	 	Title: Chief Financial Officer

-48-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	AIG Annuity Insurance Company
	 
	 	 	 	 	 	 
	 	 	SunAmerica Life Insurance Company
	 
	 	 	 	 	 	 
	 	 	By:	 	AIG Global Investment Corp.,

Investment Adviser
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Peter DeFazio
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Peter DeFazio
	 

	 	 	 	 	 	Title: Vice President

-49-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Massachusetts Mutual Life Insurance Company
	 
	 	 	 	 	 	 
	 	 	By:	 	Babson Capital Management LLC,

as Investment Adviser
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jeffrey A. Dominick
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Jeffrey A. Dominick
	 

	 	 	 	 	 	Title: Managing Director

-50-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	C.M. Life Insurance Company
	 
	 	 	 	 	 	 
	 	 	By:	 	Babson Capital Management LLC,

as Sub-Investment Adviser
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jeffrey A. Dominick
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Jeffrey A. Dominick
	 

	 	 	 	 	 	Title: Managing Director

-51-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Hakone Fund LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Babson Capital Management LLC,

as Investment Manager
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jeffrey A. Dominick
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Jeffrey A. Dominick
	 

	 	 	 	 	 	Title: Managing Director

-52-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MassMutual Asia Limited
	 
	 	 	 	 	 	 
	 	 	By:	 	Babson Capital Management LLC,

as Investment Adviser
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Jeffrey A. Dominick
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Jeffrey A. Dominick
	 

	 	 	 	 	 	Title: Managing Director

-53-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Connecticut General Life Insurance Company
	 
	 	 	 	 	 	 
	 	 	By:	 	CIGNA Investments, Inc.

(authorized agent)
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Leonard Mazlish
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Leonard Mazlish
	 

	 	 	 	 	 	Title: Managing Director

-54-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Principal Life Insurance Company
	 
	 	 	 	 	 	 
	 	 	By:	 	Principal Global Investors, LLC

a Delaware limited liability company,

its authorized signatory
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Colin Pennycooke
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Colin Pennycooke
	 

	 	 	 	 	 	Title: Counsel
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Elizabeth D. Swanson
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Elizabeth D. Swanson

Title: Counsel

-55-

 

	 	 	 	 	 	 	 
	This Agreement is hereby accepted

and agreed to as of the date thereof.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Banc of America Securities LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John J. DeCoursey
	 	 	 	 	 
	 	 	 	 	Name: John J. DeCoursey
	 	 	 	 	Title: Principal

-56-

 

Defined Terms

     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

     “Acquisition” shall mean the acquisition by any Person of (a) a majority of the equity
interests of another Person, (b) all or substantially all of the assets of another Person or (c)
all or substantially all of a line of business of another Person, in each case (1) whether or not
involving a merger or a consolidation with such other Person and (2) whether in one transaction or
a series of related transactions.

     “Acquisition Consideration” shall mean the consideration given by the Company or any
Restricted Subsidiary for an Acquisition, including but not limited to the sum of (without
duplication) (a) the fair market value of any cash, property (including equity interests) or
services given, plus (b) the amount of any indebtedness assumed, incurred or guaranteed (to the
extent not otherwise included) in connection with such Acquisition by the Company or any Restricted
Subsidiary.

     “Adjusted LIBOR Rate” shall mean, for any Interest Period, a rate per annum equal to 1.65%
plus LIBOR for such Interest Period.

     “Affiliate” shall mean, at any time, and with respect to any Person, any other Person that at
such time directly or indirectly through one or more intermediaries Controls, or is Controlled by,
or is under common Control with, such first Person, and, with respect to the Company, shall include
any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of
voting or equity interests of the Company or any of its Subsidiaries or any Person of which the
Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% or more of any class of voting or equity interests. As used in this definition, “Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise. Unless the context otherwise clearly requires, any reference to an
“Affiliate” is a reference to an Affiliate of the Company.

     “Anti-Terrorism Order” shall mean Executive Order No. 13,224 of September 24, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

     “Asset Coverage Ratio” shall mean, as of any date of determination, the ratio of (a) book
accounts receivable of the Company and its Restricted Subsidiaries as at such date as set forth on
the Company’s consolidated balance sheet prepared in accordance with GAAP to (b) Consolidated Net
Debt.

     “Available Acquisition Amount” shall mean, for any fiscal year of the Company, an amount equal
to 100% of Consolidated EBITDA for the immediately preceding fiscal year.

     “Available Dividend Amount” shall mean, for any fiscal year of the Company, an amount equal to
the sum of (a) $25,000,000, plus (b) the product of (1) .50, multiplied by (2) Consolidated Net
Income for the immediately preceding fiscal year.

Schedule B

(to Note Purchase Agreement)

 

 

     “Bank Credit Agreement” shall mean that certain First Amended and Restated Credit Agreement
dated as of September 30, 2005 among the Company, as Borrower, Bank of America, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer, Wachovia Bank, National Association, as
Syndication Agent, JPMorgan Chase Bank, N.A. and Harris N.A., as Co-Documentation Agents, and the
other Lenders party thereto, as the same may be amended, supplemented, replaced, restated or
otherwise modified from time to time.

     “Bank Lenders shall mean the lenders from time to time party to the Bank Credit Agreement.

     “Breakage Amount” shall mean any loss, cost or expense reasonably incurred by any holder of a
Note as a result of any payment or prepayment of any Note on a day other than a regularly scheduled
Interest Payment Date or at scheduled maturity thereof (whether voluntary, mandatory, automatic, by
reason of acceleration or otherwise), and any loss or expense arising from the liquidation or
reemployment of funds obtained by such holder or from fees payable to terminate the deposits from
which such funds were obtained; provided that any such loss, cost or expense shall be limited to
the time period from the date of such prepayment through the earlier of (a) the next Interest
Payment Date and (b) the maturity date of the Notes. Each holder shall determine the Breakage
Amount with respect to the principal amount of its Notes then being paid or prepaid (or required to
be paid or prepaid) by written notice to the Company setting forth such determination in reasonable
detail not less than two Business Days prior to the date of prepayment in the case of any
prepayment pursuant to Section 8.2 and not more than 10 Business Days after any payment required by
Section 12.1. Each such determination shall be conclusive absent manifest error.

     “Business Day” shall mean (a) for purposes of determining the Adjusted LIBOR Rate only, any
day other than a Saturday, a Sunday or a day on which dealings in Dollars are not carried on in the
London interbank market and (b) for the purposes of any other provision of this Agreement, any day
other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or
Houston, Texas are required or authorized to be closed.

     “Capital Lease” shall mean, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

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

     “Cash Equivalents” shall mean (a) Dollars; (b) securities issued or directly and fully
guaranteed or insured by the United States government or any agency or instrumentality thereof or
any state having maturities of not more than 180 days; (c) certificates of deposit, LIBOR time
deposits, bankers’ acceptances with maturities not exceeding 180 days and overnight bank deposits,
in each case with any Bank Lender or any domestic commercial bank or U.S. branch of a foreign
commercial bank having capital and surplus in excess of $250 million and a Thompson Bank Watch
Rating of “B” or better; (d) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (b) and (c) above entered

B-2

 

into with any financial institution meeting the qualifications specified in said clause (c);
(e) commercial paper having the highest rating obtainable from Moody’s Investors Service, Inc. or
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and in each case
maturing within 180 days after the date of acquisition or a fund which purchases such commercial
paper and (f) mutual funds that purchase the types of investments referred to in (a) through (e)
above.

     “Change in Control” is defined in Section 8.7(h).

     “Change in Control Proposed Prepayment Date” is defined in Section 8.7(c).

     “Closing” is defined in Section 3.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time.

     “Collateral” shall mean the property in which Liens have been granted pursuant to the Security
Documents whether such Liens are now existing or hereafter arise.

     “Collateral Agent” shall mean Bank of America, N.A., in its capacity as Collateral Agent under
the Intercreditor Agreement, together with its successors and permitted assigns in such capacity.

     “Company” is defined in the first paragraph of this Agreement and shall include any successor
that becomes such in the manner prescribed in Section 10.9.

     “Confidential Information” is defined in Section 20.

     “Consolidated Debt” shall mean, as of any date of determination, all Debt of the Company and
its Restricted Subsidiaries outstanding on such date, after eliminating all offsetting debits and
credits between the Company and its Restricted Subsidiaries and all other items required to be
eliminated in the course of the preparation of consolidated financial statements of the Company and
its Restricted Subsidiaries in accordance with GAAP.

     “Consolidated EBIT” shall mean, with respect to any period, the sum of (a) Consolidated Net
Income for such period plus, (b) to the extent deducted in determining such Consolidated Net Income
and without duplication, (1) Consolidated Interest Expense for such period, (2) income tax expense
of the Company and its Restricted Subsidiaries for such period and (3) other non-cash charges of
the Company and its Restricted Subsidiaries for such period and minus (c) to the extent added in
determining such Consolidated Net Income and without duplication, (1) income tax credits of the
Company and its Restricted Subsidiaries for each period and (2) all non-cash items included in
Consolidated Net Income for such period, all as determined in accordance with GAAP.

     “Consolidated EBITDA” shall mean, with respect to any period, the sum of (a) Consolidated EBIT
for such period plus, (b) to the extent deducted in determining the Consolidated Net Income
component of such Consolidated EBIT and without duplication, depreciation and amortization expense
of the Company and its Restricted Subsidiaries for such

B-3

 

period determined in accordance with GAAP. For purposes of calculating Consolidated EBITDA
for any period of four consecutive fiscal quarters, if during such period the Company or any
Restricted Subsidiary shall have acquired or disposed of any Person or acquired or disposed of all
or substantially all of the operating assets of any Person, Consolidated EBITDA for such period
shall be calculated after giving pro forma effect thereto as if such transaction occurred on the
first day of such period.

     “Consolidated Interest Expense” shall mean, for any period, the gross interest expense of the
Company and its Restricted Subsidiaries (including imputed interest on Capital Lease Obligations)
deducted in the calculation of Consolidated Net Income for such period after eliminating offsetting
debits and credits between the Company and its Restricted Subsidiaries and all other items required
to be eliminated in the course of the preparation of consolidated financial statements of the
Company and its Restricted Subsidiaries in accordance with GAAP.

     “Consolidated Net Debt” shall mean, as of any date of determination, an amount equal to the
result of (a) Consolidated Debt as of such date minus (b) the aggregate amount of unrestricted cash
of the Company and its Restricted Subsidiaries as of such date in excess of $50,000,000.

     “Consolidated Net Debt to EBITDA Ratio” shall mean, as of any time, the ratio of (a)
Consolidated Net Debt at such time to (b) Consolidated EBITDA for the period of four consecutive
fiscal quarters ending on, or ended most recently prior to, such time.

     “Consolidated Net Income” shall mean, with respect to any period, the net income (or loss),
before extraordinary items, of the Company and its Restricted Subsidiaries for such period (taken
as a cumulative whole), as determined in accordance with GAAP, after eliminating all offsetting
debits and credits between the Company and its Restricted Subsidiaries and all other items required
to be eliminated in the course of the preparation of consolidated financial statements of the
Company and its Restricted Subsidiaries in accordance with GAAP.

“Consolidated Net Worth” shall mean, as of the date of any determination thereof,

     (a) the total stockholders’ equity of the Company and its Restricted Subsidiaries that
would be shown as stockholders’ equity on a balance sheet of the Company and its Restricted
Subsidiaries prepared in accordance with GAAP at such time, minus

     (b) to the extent included in clause (a), all amounts properly attributable to minority
interests, if any, in the stock and surplus of Restricted Subsidiaries.

     “Consolidated Total Assets” shall mean, as of the date of any determination thereof, the total
assets of the Company and its Restricted Subsidiaries that would be shown as assets on a
consolidated balance sheet of the Company and its Restricted Subsidiaries as of such time prepared
in accordance with GAAP.

     “Control Event” is defined in Section 8.7(i).

     “Crane Family Member” is defined in Section 8.7(j).

B-4

 

     “Debt” shall mean, with respect to any Person, without duplication:

     (a) its liabilities for borrowed money;

     (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable and other accrued liabilities arising in the ordinary course of
business but including, without limitation, all liabilities created or arising under any
conditional sale or other title retention agreement with respect to any such property);

     (c) all its (1) Capital Lease Obligations and (2) liabilities which would appear on its
balance sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic
Leases were accounted for as Capital Leases;

     (d) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

     (e) all its liabilities in respect of letters of credit or instruments serving a
similar function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed money), surety bonds and
obligations in respect of customs duties;

     (f) Guaranties by such Person with respect to liabilities of a type described in any of
clauses (a) through (e) hereof; and

     (g) all Debt of the types referred to in clauses (a) through (f) above of any
partnership or joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a partner or joint venturer, unless such
Debt is expressly made non-recourse to such Person; provided, however, that Guaranties in
respect of (1) surety bonds and (2) custom duty obligations shall not be included in the
calculation of Debt unless and until a claim is made in respect thereof.

     Debt of any Person shall include all obligations of such Person of the character described in
clauses (a) through (g) to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is deemed to be extinguished under GAAP.

     “Default” shall mean an event or condition the occurrence or existence of which would, with
the lapse of time or the giving of notice or both, become an Event of Default.

     “Default Rate” as of any date shall mean that rate of interest that is 2.00% per annum above
the then applicable Adjusted LIBOR Rate.

     “Disclosure Documents” is defined in Section 5.3.

     “Disposition” is defined in Section 10.8.

B-5

 

     “Dividends” shall mean any dividend or other distribution (whether in cash, securities or
other property) with respect to any capital stock or other equity interest of the Company or any
Restricted Subsidiary.

     “Dollars” or “$” shall mean lawful money of the United States of America.

     “Domestic” when used in connection with any Subsidiary, shall mean a Subsidiary that is
organized under the laws of any political subdivision of the United States.

     “Electronic Delivery” is defined in Section 7.1(a).

     “Environmental Laws” shall mean any and all federal, state, local and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to Hazardous Materials.

     “Equity Interest Repurchase” shall mean any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any such capital stock or other equity
interest or on account of any return of capital to the Company’s stockholders, partners or members
(or the equivalent Person thereof).

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time
to time, and the rules and regulations promulgated thereunder from time to time in effect.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that is
treated as a single employer together with the Company under Section 414 of the Code.

     “Event of Default” is defined in Section 11.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time,
and the rules and regulations promulgated thereunder from time to time in effect.

     “GAAP” shall mean generally accepted accounting principles as in effect from time to time in
the United States of America.

     “GAAP Only Consolidated Entity” shall mean each Person, other than a Subsidiary, that is
required to be consolidated on the financial statements of the Company and its Subsidiaries in
accordance with GAAP.

     “Governmental Authority” shall mean

     (a) the government of

     (1) the United States of America or any State or other political subdivision
thereof, or

B-6

 

     (2) any other jurisdiction in which the Company or any Subsidiary conducts all
or any part of its business, or which asserts jurisdiction over any properties of
the Company or any Subsidiary, or

     (b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

     “Guaranty” shall mean, with respect to any Person, any obligation (except the endorsement in
the ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including, without limitation, obligations incurred
through an agreement, contingent or otherwise, by such Person:

     (a) to purchase such Debt or obligation or any property constituting security therefor;

     (b) to advance or supply funds (1) for the purchase or payment of such Debt or
obligation or (2) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such Debt or obligation;

     (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such Debt or obligation of the ability of any other Person to make
payment of the Debt or obligation; or

     (d) otherwise to assure the owner of such Debt or obligation against loss in respect
thereof.

     In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or
other obligations that are the subject of such Guaranty shall be assumed to be direct obligations
of such obligor.

     “Hazardous Material” shall mean any and all pollutants, toxic or hazardous wastes or other
substances that might pose a hazard to health and safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage, or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law including, but not
limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized
substances.

     “holder” shall mean, with respect to any Note, the Person in whose name such Note is
registered in the register maintained by the Company pursuant to Section 13.1.

     “INHAM Exemption” is defined in Section 6.3(e).

     “Institutional Investor” shall mean (a) any Purchaser of a Note, (b) any holder of a Note
holding (together with one or more of its affiliates) more than $2,000,000 in aggregate principal

B-7

 

amount of the Notes then outstanding, (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment company, any insurance
company, any broker or dealer, or any other similar financial institution or entity, regardless of
legal form and (d) any Related Fund of any holder of any Note.

     “Intercreditor Agreement” is defined in Section 4.6.

     “Interest Payment Date” shall mean the last day of each applicable Interest Period, provided
that if an Interest Payment Date shall fall on a day which is not a Business Day, such Interest
Payment Date shall be the next succeeding Business Day unless such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Payment Date shall be the next
preceding Business Day.

     “Interest Period” shall mean the period of three months commencing on the date of the Closing
and ending on the numerically corresponding day in the third succeeding month thereafter, and each
successive period of three months thereafter commencing on the last day of the immediately
preceding Interest Period, provided that in no event may any Interest Period end after the maturity
date of the Notes.

     “Investment” shall mean, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guaranty or
assumption of indebtedness of, or purchase or other acquisition of any other debt or equity
participation or interest in, another Person, including any partnership or joint venture interest
in such other Person and any arrangement pursuant to which the investor guarantees indebtedness of
such other Person or (c) the purchase or other acquisition (in one transaction or a series of
transactions) of assets of another Person that constitute a business unit. For purposes of
covenant compliance, the amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such investment.

     “LIBOR” shall mean, for any Interest Period, the rate per annum (rounded upwards, if
necessary, to the next higher one hundredth (1/100) of a percentage point) for deposits in Dollars
for a three-month period which appears on the Bloomberg Financial Markets Service Page BBAM-1 (or
if such page is not available, the Reuters Screen LIBO Page) as of 11:00 a.m. (London, England
time) on the date two Business Days before the commencement of such Interest Period (or three
Business Days prior to the beginning of the first Interest Period). “Reuters Screen LIBO Page”
means the display designated as the “LIBO” page on the Reuters Monitory Money Rates Service (or
such other page as may replace the LIBO page on that service or such other service as may be
nominated by the British Bankers’ Association as the information vendor for the purpose of
displaying British Bankers’ Association Interest Settlement Rates for Dollar deposits).

     “Lien” shall mean, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person

B-8

 

(including in the case of stock, stockholder agreements, voting trust agreements and all
similar arrangements).

     “Material” shall mean material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Restricted Subsidiaries, taken as a whole.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, affairs, financial condition, assets or properties of the Company and its Restricted
Subsidiaries, taken as a whole, (b) the ability of the Company to perform its obligations under
this Agreement, the Notes or any Security Document to which it is a party, (c) the ability of the
Subsidiary Guarantors to perform their obligations under the Subsidiary Guaranty Agreement or any
Security Document to which a Subsidiary Guarantor is a party or (d) the validity or enforceability
of this Agreement, the Notes, the Subsidiary Guaranty Agreement or any Security Document.

     “Material Foreign Subsidiary” shall mean each of EI Freight Holdings BV, a Netherlands
corporation, EGL Luxembourg, S.a.r.l., a Luxembourg corporation, and any other Foreign Subsidiary
whose equity interests are owned directly by the Company or a Domestic Subsidiary and with respect
to which such Subsidiary, together with its Subsidiaries, has assets in excess of $25,000,000
(determined as of the last day of the most recent fiscal quarter).

     “Material Subsidiary” shall mean, at any time, any Restricted Subsidiary of the Company which,
together with all other Restricted Subsidiaries of such Restricted Subsidiary, accounts for more
than (a) 5% of the Consolidated Total Assets or (b) 5% of consolidated gross revenue of the Company
and its Restricted Subsidiaries.

     “Memorandum” is defined in Section 5.3.

     “Multi-employer Plan” shall mean any Plan that is a “multiemployer plan” (as such term is
defined in Section 4001(a)(3) of ERISA).

     “NAIC” shall mean the National Association of Insurance Commissioners or any successor
thereto.

     “NAIC Annual Statement” is defined in Section 6.3(a).

     “Notes” is defined in Section 1.1.

     “Officer’s Certificate” of any Person shall mean a certificate of a Senior Financial Officer
or of any other officer of such Person whose responsibilities extend to the subject matter of such
certificate.

     “144A Notes” is defined in Section 6.1(a).

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA or
any successor thereto.

     “Pension Plan” shall mean a Plan that is subject to Title IV of ERISA.

B-9

 

     “Permitted Acquisition” shall mean any Acquisition that satisfies each of the following
requirements:

     (a) both before and after giving effect to such Acquisition, no Default exists or will
exist or would result therefrom;

     (b) such Acquisition shall not be opposed by the board of directors or governing body
of the Person or assets being acquired;

     (c) neither the Company nor any Subsidiary Guarantor shall, as a result of or in
connection with any such Acquisition, assume or incur any direct or contingent liabilities
(whether relating to environmental, tax, litigation, or other matters) that could reasonably
be expected, as of the date of such acquisition, to result in the existence or occurrence of
a Material Adverse Effect;

     (d) if such Acquisition results in (1) a Domestic Restricted Subsidiary, (i) such
Subsidiary shall execute a Security Agreement and (ii) 100% of the equity interests of such
Restricted Subsidiary shall be pledged to secure the obligations of the Company hereunder
and under the Notes and of each Subsidiary Guarantor under the Subsidiary Guaranty Agreement
and (iii) the holders of the Notes shall have received board resolutions, officer’s
certificates, opinions of counsel and organization documents with respect to such Domestic
Restricted Subsidiary as the Required Holders or the Collateral Agent shall reasonably
request in connection with such Security Agreement and pledge and (2) a Material Foreign
Subsidiary, (i) 65% of such Subsidiary’s equity interests shall be pledged to secure the
obligations of the Company hereunder and under the Notes and of each Subsidiary Guarantor
under the Subsidiary Guaranty Agreement and (ii) the holders of Notes shall have received
board resolutions, officer’s certificates, opinions of counsel and organization documents
with respect to such Material Foreign Subsidiary as the Required Holders or the Collateral
Agent shall reasonably request with respect to such pledge; and

     (e) the Person or assets subject to such Acquisition is or are (1) in the same or
related line of business as that conducted by the Company and its Restricted Subsidiaries on
the date of the Closing or (2) in a business that is ancillary and in furtherance of the
line of business as that conducted by the Company and its Restricted Subsidiaries on the
date of the Closing.

     “Person” shall mean an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, business entity or Governmental Authority.

     “Plan” shall mean an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to
Title I of ERISA that is or, within the preceding five years, has been established or maintained,
or to which contributions are or, within the preceding five years, have been made or required to be
made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA
Affiliate may have any liability.

B-10

 

     “Prepayment Premium” shall mean, in connection with any optional prepayment of the Notes
pursuant to Section 8.2 or acceleration of the Notes pursuant to Section 12.1, an amount equal to
the applicable percentage of the principal amount of the Notes so prepaid or accelerated as
follows:

	 	 	 
	Period	Applicable Percentage
	 	 	 
	For the period from the date of Closing until

October 12, 2006
	 	1%
	Thereafter
	 	0%

     “Priority Debt” shall mean (without duplication), as of the date of any determination thereof,
the sum of (a) all unsecured Debt of Restricted Subsidiaries but excluding (1) unsecured Debt owing
to the Company or any Restricted Subsidiary, (2) unsecured Debt evidenced by (i) the Subsidiary
Guaranty Agreement and (ii) any Guaranty of the Bank Credit Agreement by a Restricted Subsidiary
party to the Intercreditor Agreement and (3) unsecured Debt outstanding at the time such Person
became a Restricted Subsidiary (other than an Unrestricted Subsidiary which is designated or
redesignated as a Restricted Subsidiary pursuant to Section 9.6), provided that such Debt shall
have not been incurred in contemplation of such Person becoming a Restricted Subsidiary; and (b)
all Debt of the Company and its Restricted Subsidiaries secured by Liens other than Debt secured by
Liens permitted by paragraphs (a) through (i), inclusive, and paragraph (k) of Section 10.5.

     “property” or “properties” shall mean, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Proposed Joint Venture” shall mean the proposed joint venture described in Schedule 10.6.

     “PTE” is defined in Section 6.3(a).

     “Purchaser” or “Purchasers” is defined in the first paragraph of this Agreement.

     “QPAM Exemption” is defined in Section 6.3(d).

     “Qualified Institutional Buyer” shall mean any Person who is a “qualified institutional buyer”
within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

     “Ratable Portion” for any Note shall mean an amount equal to the product of (a) the net
proceeds from a Disposition being applied to the payment or prepayment of Debt pursuant to clause
(ii) of the second paragraph of Section 10.8 multiplied by (b) a fraction, the numerator of which
is the aggregate outstanding principal amount of such Note and the denominator of which is the
aggregate outstanding principal amount of all Debt of the Company and its Restricted Subsidiaries
other than Subordinated Debt.

     “Related Fund” shall mean, with respect to any holder of any Note, any fund or entity that (a)
invests in securities or bank loans and (b) is advised or managed by such holder, the

B-11

 

same investment advisor as such holder or by an affiliate of such holder or such investment
advisor.

     “Required Holders” shall mean, at any time, the holders of more than 50% in principal amount
of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any
Affiliate).

     “Responsible Officer” of any Person shall mean any Senior Financial Officer and any other
officer of such Person with responsibility for the administration of the relevant portion of this
Agreement.

     “Restricted Investment” shall mean any of the following: (a) acquisitions of equipment to be
used in the business of the Company or any Restricted Subsidiary so long as the acquisition costs
thereof constitute capital expenditures; (b) acquisitions of inventory in the ordinary course of
business of the Company or any Restricted Subsidiary; (c) acquisitions of other current assets
acquired in the ordinary course of business of the Company or any Restricted Subsidiary; (d) Cash
Equivalents; (e) Swap Contracts, provided that (1) obligations with respect to such Swap Contracts
are (or were) entered into by such Person in the ordinary course of business for the purpose of
directly mitigating risks associated with liabilities, commitments, investments, assets, or
property held or reasonably anticipated by such Person, or changes in the value of securities
issued by such Person, and not for purposes of speculation or taking a “market view” and (2) such
Swap Contracts do not contain any provision exonerating the non-defaulting party from its
obligation to make payments on outstanding transactions to the defaulting party; (f) investment in
mutual funds substantially all of the assets of which are comprised of securities of the types
described in clause (d) preceding; (g) Equity Interest Repurchases; (h) Permitted Acquisitions
(provided that the aggregate amount of Acquisition Consideration paid during any fiscal year of the
Company shall not exceed the Available Acquisition Amount, unless at the time of such Acquisition
the Consolidated Net Debt to EBITDA Ratio, as disclosed in each Officer’s Certificate delivered by
the Company pursuant to Section 7.2(a) during such fiscal year (and after giving effect to any
proposed Acquisition during such fiscal year on a pro forma basis), is less than 2.00 to 1.00); (i)
investments consisting of intercompany loans between the Company and any Subsidiary Guarantor or
between two Subsidiary Guarantors or investments in the equity interests of the Company or any
Subsidiary Guarantor by the Company or a Subsidiary Guarantor; (j) existing Investments listed on
the attached Schedule 5.15, (k) the Proposed Joint Venture and (l) other Investments not listed in
clause (a) through clause (k) preceding in an aggregate amount at any time not exceeding
$25,000,000.

     “Restricted Payment” shall mean (a) any Dividend, (b) any Equity Interest Repurchase, (c) any
payment or prepayment of principal, interest, premium or penalty in respect of any Debt (other than
Debt outstanding under the Bank Credit Agreement) or any defeasance, redemption, purchase,
repurchase or other acquisition or retirement for value, in whole or in part, of any Debt (other
than Debt outstanding under the Bank Credit Agreement) and (d) any voluntary prepayment of
principal, interest, premium or penalty in respect of any Debt outstanding under the Bank Credit
Agreement or any voluntary defeasance, redemption, purchase, repurchase or other acquisition or
retirement for value, in whole or in part, of any Debt outstanding under the Bank Credit Payment.

B-12

 

     “Restricted Subsidiary” shall mean (a) any Subsidiary that is a Subsidiary Guarantor and (b)
any other Subsidiary with respect to which (1) at least a majority of the voting equity interests
of such Subsidiary are owned by the Company and/or one or more Wholly-Owned Restricted Subsidiaries
and (2) the Company has not designated such Subsidiary as an Unrestricted Subsidiary on the date of
the Closing or by notice in writing given to the holders of Notes in accordance with the provisions
of Section 9.6.

     “Sale of Assets Prepayment Date” is defined in Section 8.6(a).

     “Sale of Assets Prepayment Event” is defined in Section 8.6(a).

     “SEC” shall mean the Securities and Exchange Commission of the United States, or any successor
thereto.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time, and the
rules and regulations promulgated thereunder from time to time in effect.

     “Security Agreement” shall mean a security agreement substantially in the form of the Security
Agreement entered into by the Company and Subsidiary Guarantors on the date of the Closing.

     “Security Documents” shall mean that certain Security Agreement dated as of September 30, 2005
by and between the Company, each of the Subsidiary Guarantors party thereto and the Collateral
Agent, each other document, instrument and agreement granting or perfecting any Lien to secure,
among other things, the Senior Secured Obligations and any other agreement executed, delivered or
performable by the Company or any Subsidiary Guarantor as security for, among other things, the
Senior Secured Obligations, in each case as the same may be amended, supplemented, replaced,
restated or otherwise modified from time to time.

     “Select Carrier Group” is defined in Section 10.8.

     “Senior Financial Officer” of any Person shall mean the chief financial officer, principal
accounting officer, treasurer or comptroller of such Person.

     “Senior Secured Obligations” shall have the meaning set forth in the Intercreditor Agreement.

     “Source” is defined in Section 6.3.

     “Subsidiary” shall mean, as to any Person, any other Person in which such first Person or one
or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns
sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence
of contingencies, to elect a majority of the directors (or Persons performing similar functions) of
such second Person, and any partnership or joint venture if more than a 50% interest in the profits
or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first
Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take
major business actions without the prior approval of such Person or one or more of its

B-13

 

Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary”
is a reference to a Subsidiary of the Company.

     For the avoidance of doubt, a GAAP Only Consolidated Entity shall not constitute a Subsidiary
for purposes of this Agreement.

     “Subordinated Debt” shall mean any Debt that is in any manner subordinated in right of payment
or security in any respect to Debt evidenced by the Notes or the Subsidiary Guaranty Agreement.

     “Subsidiary Guarantor” or “Subsidiary Guarantors” is defined in Section 2.2.

     “Subsidiary Guaranty Agreement” is defined in Section 2.2.

     “Successor Entity” is defined in Section 10.9(b)(1).

     “Supplement” is defined in Section 9.9(a).

     “SVO” shall mean the Securities Valuation Office of the NAIC or any successor to such Office.

     “Swap Contract” shall mean (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master
Agreement”), including any such
obligations or liabilities under any Master Agreement.

     “Synthetic Lease” shall mean, at any time, any lease (including leases that may be terminated
by the lessee at any time) of any property (a) that is accounted for as an operating lease under
GAAP and (b) in respect of which the lessee retains or obtains ownership of the property so leased
for U.S. federal income tax purposes, other than any such lease under which such Person is the
lessor.

     “Tender Offer” shall mean the offer by the Company to purchase up to 9,615,000 shares of its
common capital stock for a price of not greater than $26 nor less than $22.50 per share, pursuant
to the terms of that certain Offer to Purchase, dated August 30, 2005.

B-14

 

     “Unrestricted Subsidiary” shall mean any Subsidiary so designated by the Company on the date
of the Closing or by notice in writing given to the holders of Notes in accordance with the
provisions of Section 9.6.

     “USA Patriot Act” shall mean United States Public Law 107-56, Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated
thereunder from time to time in effect.

     “Wholly-Owned Restricted Subsidiary” shall mean, at any time, any Restricted Subsidiary 100%
of all of the equity interests (except directors’ qualifying shares) and voting interests of which
are owned by any one or more of the Company and the Company’s other Wholly-Owned Restricted
Subsidiaries at such time.

B-15

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