Document:

<PAGE>

                                                                     EXHIBIT 4.4

                             FORM OF THIRD AMENDMENT
                                       TO
                   THE NATIONAL CITY CREDIT CARD MASTER TRUST
                         POOLING AND SERVICING AGREEMENT

            THIS THIRD AMENDMENT TO THE NATIONAL CITY CREDIT CARD MASTER TRUST
POOLING AND SERVICING AGREEMENT, dated as of [ ], 2006 (this "Amendment") is by
and between NATIONAL CITY BANK, a national banking association, as Seller and
Servicer, and THE BANK OF NEW YORK (Delaware), a Delaware banking corporation,
as Trustee.

            WHEREAS the Seller and Servicer and the Trustee have executed that
certain Pooling and Servicing Agreement, dated as of June 1, 1995, as amended
and restated as of July 1, 2000 (as amended and supplemented through the date
hereof and as the same may be further amended, supplemented or otherwise
modified and in effect from time to time, the "Pooling and Servicing
Agreement");

            WHEREAS the Seller and Servicer and the Trustee wish to amend the
Pooling and Servicing Agreement as provided herein;

            NOW THEREFORE, in consideration of the promises and the agreements
contained herein, the parties hereto agree to amend the provisions of the
Pooling and Servicing Agreement as follows:

            SECTION 1. Amendment of Section 1.01. Section 1.01 of the Pooling
and Servicing Agreement is hereby amended by adding the following definitions in
the appropriate alphabetical order:

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
      amended.

            "Regulation AB" shall mean Subpart 229.1100 - Asset Backed
      Securities (Regulation AB), 17 C.F.R. Sections 229.1100-229.1123, as such
      may be amended from time to time, and subject to such clarification and
      interpretation as have been provided by the Commission in the adopting
      release (Asset-Backed Securities, Securities Act Release No. 33-8518, 70
      Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to time.

            "Sarbanes Certification" shall have the meaning specified in Section
      14.04(iii).

            "Securities Act" shall mean the Securities Act of 1933, as amended.

<PAGE>

            "Securitization Transaction" shall mean any new issuance of Investor
      Certificates, pursuant to Section 6.03, or new notes issued by the
      National City Credit Card Master Note Trust, publicly offered or privately
      placed, rated or unrated.

            "Servicing Criteria" shall mean the "servicing criteria" set forth
      in Item 1122(d) of Regulation AB, as such may be amended from time to
      time.

            "Servicing Participant" shall mean the Servicer, any Subservicer or
      any Person that participates in any of the servicing functions specified
      in Item 1122(d) of Regulation AB with respect to the Receivables. For the
      avoidance of doubt, the term "Servicing Participant" shall not include the
      Trustee.

            "Servicing Party" shall have meaning specified in Section 14.06(a).

            "Subservicer" shall mean any Person that services the Receivables on
      behalf of the Servicer or any Subservicer and is responsible for the
      performance (whether directly or through Subservicers or Servicing
      Participants) of a substantial portion of the material servicing functions
      required to be performed by the Servicer under this Agreement or any
      Supplement that are identified in Item 1122(d) of Regulation AB. For the
      avoidance of doubt, the term "Subservicer" shall not include the Trustee.

            SECTION 2. Amendment of Section 3.05. Section 3.05 of the Pooling
and Servicing Agreement is hereby amended by deleting such Section in its
entirety and inserting in its place the following:

            Section 3.05 Annual Servicer's Certificate. On or before March 15 of
      each calendar year, commencing in 2007, the Servicer will deliver, as
      provided in Section 13.05, to the Trustee, each Rating Agency and each
      Series Enhancer entitled thereto pursuant to the relevant Supplement, the
      statement of compliance required under Item 1123 of Regulation AB with
      respect to the immediately preceding calendar year, which statement will
      be in the form of an Officer's Certificate of the Servicer to the effect
      that (a) a review of the activities of the Servicer during such preceding
      calendar year and of its performance under this Agreement was made under
      the supervision of the officer signing such certificate and (b) to the
      best of such officer's knowledge, based on such review, the Servicer has
      fulfilled all of its obligations under this Agreement throughout such
      preceding calendar year or, if there has been a failure to fulfill any
      such obligation in any material respect, specifying each such failure
      known to such officer and the nature and status thereof. A copy of such
      certificate may be obtained by any Investor Certificateholder or
      Certificate Owner by a request in writing to the Trustee addressed to the
      Corporate Trust Office.

            SECTION 3. Amendment of Section 3.06. Section 3.06 of the Pooling
and Servicing Agreement is hereby amended by deleting such Section in its
entirety and inserting in its place the following:

                                       2
<PAGE>

            Section 3.06 Annual Independent Accountants' Servicing Report. On or
      before March 15 of each calendar year, commencing in 2007, the Servicer,
      on behalf of the Trust, shall cause a firm of nationally recognized
      independent certified public accountants (who may also render other
      services to the Servicer or the Seller) to furnish, as provided in Section
      13.05, to the Trustee, any Series Enhancer and each Rating Agency
      attesting to the fairness of the assertion of the Servicer's management
      that its internal controls over the functions performed as Servicer of the
      Trust are effective, in all material respects, in providing reasonable
      assurance that Trust assets in the possession of or under the control of
      the Servicer are safeguarded against loss from unauthorized use or
      disposition, on the date of such report, and a report attesting to the
      fairness of the assertion of the Servicer's management that such servicing
      was conducted in conformity with the sections of this Agreement during
      such fiscal year, except for such exceptions or errors as such firm shall
      believe to be immaterial and such other exceptions as shall be set forth
      in such report. A copy of such report (or reports, as applicable) may be
      obtained by any Investor Certificateholder or Certificate Owner by a
      request in writing to the Trustee addressed to the Corporate Trust Office.

            SECTION 4. Amendment of Section 6.03. Section 6.03(b) of the Pooling
and Servicing Agreement is hereby amended by the insertion of the following
sentence before the penultimate sentence of such Section:

            In addition, the Seller agrees to provide notice of new issuances of
      Series of Investor Certificates as may be required by and in accordance
      with Item 1121(a)(14) of Regulation AB.

            SECTION 5. Amendment of Section 11.10. Section 11.10(a) of the
Pooling and Servicing Agreement is hereby amended by deleting the first sentence
thereof in its entirety and inserting in its place the following:

            Notwithstanding any other provisions of this Agreement, at any time,
      for the purpose of meeting any legal requirements of any jurisdiction in
      which any part of the Trust may at the time be located, the Trustee shall
      have the power and may execute and deliver all instruments, subject to the
      prior written consent of the Seller, to appoint one or more Persons to act
      as a co-trustee or co-trustees, or separate trustee or separate trustees,
      of all or any part of the Trust, and to vest in such Person or Persons, in
      such capacity and for the benefit of the Certificateholders, such title to
      the Trust, or any part thereof, and, subject to the other provisions of
      this Section 11.10, such powers, duties, obligations, rights and trusts as
      the Trustee may consider necessary or desirable; provided, however, that
      the Trustee shall exercise due care in the appointment of any co-trustee.

            SECTION 6. Addition of Article XIV. The Pooling and Servicing
Agreement is hereby amended by adding the following new Article XIV after
Article XIII of the Pooling and Servicing Agreement:

                                       3
<PAGE>
                                  ARTICLE XIV

                         COMPLIANCE WITH REGULATION AB

            Section 14.01. Intent of the Parties; Reasonableness. The Seller,
the Trustee and the Servicer acknowledge and agree that the purpose of this
Article XIV is to facilitate compliance by the Seller with the provisions of
Regulation AB and related rules and regulations of the Commission. The Seller
shall not exercise its right to request delivery of information or other
performance under these provisions other than in good faith, or for purposes
other than the Seller's compliance with the Securities Act, the Exchange Act and
the rules and regulations of the Commission thereunder (or the provision in a
private offering of disclosure comparable to that required under the Securities
Act). The Trustee agrees to cooperate in good faith with any reasonable request
by the Seller for information regarding the Trustee which is required in order
to enable the Seller to comply with the provisions of Items 1109(a), 1109(b),
1117, 1118, 1119 and 1122 of Regulation AB as it relates to the Trustee or to
the Trustee's obligations under this Agreement or any Supplement. The Servicer
agrees to cooperate in good faith with any reasonable request by the Seller for
information regarding the Servicer which is required in order to enable the
Seller to comply with the provisions of Items 1103(a)(1), 1105, 1108, 1117,
1118, 1119, 1121, 1122 and 1123 of Regulation AB as it relates to the Servicer
or to the Servicer's obligations under this Agreement or any Supplement.

            Section 14.02. Additional Representations and Warranties of the
Trustee. The Trustee shall be deemed to represent to the Seller, as of the date
on which information is provided to the Seller under Section 14.03 that, except
as disclosed in writing to the Seller prior to such date: (i) neither the
execution or the delivery by the Trustee of this Agreement or any Supplement,
the performance by the Trustee of its obligations under this Agreement or any
Supplement nor the consummation of any of the transactions by the Trustee
contemplated thereby, is in violation of any indenture, mortgage, bank credit
agreement, note or bond purchase agreement, long-term lease, license or other
agreement or instrument to which the Trustee is a party or by which it is bound,
which violation would have a material adverse effect on the Trustee's ability to
perform its obligations under this Agreement or any Supplement, or of any
judgment or order applicable to the Trustee; and (ii) there are no proceedings
pending or threatened against the Trustee in any court or before any
governmental authority, agency or arbitration board or tribunal which,
individually or in the aggregate, would have a material adverse effect on the
right, power and authority of the Trustee to enter into this Agreement or any
Supplement or to perform its obligations under this Agreement or any Supplement.

            Section 14.03. Information to Be Provided by the Trustee. The
Trustee shall (i) on or before the final Business Day of each month, provide to
the Seller, in writing, such information regarding the Trustee as is requested
for the purpose of compliance with Item 1117 of Regulation AB, and (ii) as
promptly as practicable following notice to or discovery by the Trustee of any
changes to such information, provide to the Seller, in writing, such updated
information.

                                       4
<PAGE>

            The Trustee shall (i) on or before the final Business Day of each
month, provide to the Seller such information regarding the Trustee as is
requested for the purpose of compliance with Items 1103(a)(1), 1109(a), 1109(b),
1118 and 1119 of Regulation AB, and (ii) as promptly as practicable following
notice to or discovery by the Trustee of any changes to such information,
provide to the Seller, in writing, such updated information. Such information
shall include, at a minimum:

            (A) the Trustee's name and form of organization;

            (B) a description of the extent to which the Trustee has had prior
      experience serving as a trustee for asset-backed securities transactions
      involving credit card receivables;

            (C) a description of any affiliation or relationship between the
      Trustee and any of the following parties to a Securitization Transaction,
      as such parties are identified to the Trustee by the Seller in writing in
      advance of such Securitization Transaction:

                  (1)   the sponsor;

                  (2)   any depositor;

                  (3)   the issuing entity;

                  (4)   any servicer;

                  (5)   any trustee;

                  (6)   any originator;

                  (7)   any significant obligor;

                  (8)   any enhancement or support provider; and

                  (9)   any other material transaction party.

            (D) in connection with the above-listed parties, a description of
      whether there is, and if so the general character of, any business
      relationship, agreement, arrangement, transaction or understanding that is
      entered into outside the ordinary course of business or is on terms other
      than would be obtained in an arm's length transaction with an unrelated
      third party, apart from the asset-backed securities transaction, that
      currently exists or that existed during the past two years and that is
      material to an investor's understanding of the asset-backed securities.

            Section 14.04. Report on Assessment of Compliance and Attestation.
On or before March 1 of each calendar year, commencing in 2007, the Trustee
shall:

            (i) deliver to the Seller and the Servicer a report regarding the
      Trustee's assessment of compliance with the Servicing Criteria during the
      immediately preceding calendar year, as required under Rules 13a-18 and
      15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such report
      shall be addressed to the Seller and the Servicer and signed by an
      authorized officer of the

                                       5
<PAGE>

      Trustee, and shall address each of the Servicing Criteria specified in
      Exhibit J hereto or such criteria as mutually agreed upon by the Seller
      and the Trustee;

            (ii) deliver to the Seller and the Servicer a report of a registered
      public accounting firm reasonably acceptable to the Seller that attests
      to, and reports on, the assessment of compliance made by the Trustee and
      delivered pursuant to the preceding paragraph. Such attestation shall be
      in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under
      the Securities Act and the Exchange Act; and

            (iii) deliver to the Seller, the Servicer and any other Person that
      will be responsible for signing the certification (a "Sarbanes
      Certification") required by Rules 13a-14(d) and 15d-14(d) under the
      Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)
      on behalf of the Trust, National City Credit Card Master Note Trust or the
      Seller with respect to a Securitization Transaction a certification
      substantially in the form attached hereto as Exhibit I or such form as
      mutually agreed upon by the Seller and the Trustee.

            The Trustee acknowledges that the parties identified in clause (iii)
above may rely on the certification provided by the Trustee pursuant to such
clause in signing a Sarbanes Certification and filing such with the Commission.

            Section 14.05. Additional Representations and Warranties of the
Servicer. The Servicer shall be deemed to represent to the Seller, as of the
date on which information is provided to the Seller under Section 14.06 that,
except as disclosed in writing to the Seller prior to such date to the best of
its knowledge: (i) the Servicer is not aware and has not received notice that
any default, early amortization or other performance triggering event has
occurred as to any other securitization due to any act or failure to act of the
Servicer; (ii) the Servicer has not been terminated as servicer in a
securitization involving credit card receivables, either due to a servicing
default or to application of a servicing performance test or trigger; (iii) no
material noncompliance with the applicable servicing criteria with respect to
other securitizations of credit card receivables involving the Servicer as
servicer has been disclosed or reported by the Servicer; (iv) no material
changes to the Servicer's policies or procedures with respect to the servicing
function it will perform under this Agreement and any Supplement have occurred
during the three-year period immediately preceding the related Securitization
Transaction; (v) there are no aspects of the Servicer's financial condition that
could have a material adverse effect on the performance by the Servicer of its
servicing obligations under this Agreement or any Supplement; and (vi) there are
no material legal or governmental proceedings pending (or known to be
contemplated) against the Servicer, any Subservicer or any unaffiliated
third-party originator of Receivables.

            Section 14.06. Information to Be Provided by the Servicer. In
connection with any Securitization Transaction, the Servicer shall (i) within
five (5) Business Days following request by the Seller, provide to the Seller,
in writing, the information specified in this Section, and (ii) as promptly as
practicable following notice to or discovery by the

                                       6
<PAGE>

Servicer of any changes to such information, provide to the Seller, in writing,
such updated information.

            (a) If so requested by the Seller, the Servicer shall provide to the
Seller such information regarding the Servicer and each Subservicer (each of the
Servicer and each Subservicer, for purposes of this paragraph, a "Servicing
Party"), as is requested for the purpose of compliance with Item 1108 of
Regulation AB. Such information shall include, at a minimum:

            (A) the Servicing Party's name and form of organization;

            (B) a description of how long the Servicing Party has been servicing
      credit card receivables; a general discussion of the Servicing Party's
      experience in servicing assets of any type as well as a more detailed
      discussion of the Servicing Party's experience in, and procedures for, the
      servicing function it will perform under this Agreement and any
      Supplement; information regarding the size, composition and growth of the
      Servicing Party's portfolio of credit card accounts of a type similar to
      the Accounts and information on factors related to the Servicing Party
      that may be material, in the good faith judgment of the Seller, to any
      analysis of the servicing of the Receivables or the related asset-backed
      securities, as applicable, including, without limitation:

                  (1) whether any prior securitizations of credit card
            receivables involving the Servicing Party defaulted or experienced
            an early amortization or other performance triggering event because
            of servicing during the three-year period immediately preceding the
            related Securitization Transaction;

                  (2) the extent of outsourcing the Servicing Party utilizes;

                  (3) whether there has been previous disclosure of material
            noncompliance with the applicable servicing criteria with respect to
            other securitizations of credit card receivables involving the
            Servicing Party as a servicer during the three-year period
            immediately preceding the related Securitization Transaction;

                  (4) whether the Servicing Party has been terminated as
            servicer in a securitization of credit card receivables, either due
            to a servicing default or to application of a servicing performance
            test or trigger; and

                  (5) such other information as the Seller may reasonably
            request for the purpose of compliance with Item 1108(b)(2) of
            Regulation AB;

            (C) a description of any material changes during the three-year
      period immediately preceding the related Securitization Transaction to the
      Servicing Party's policies or procedures with respect to the servicing
      function it will perform under this Agreement and any Supplement;

                                       7
<PAGE>

            (D) information regarding the Servicing Party's financial condition,
      to the extent that there is a material risk that an adverse financial
      event or circumstance involving the Servicing Party could have a material
      adverse effect on the performance by the Servicing Party of its servicing
      obligations under this Agreement or any Supplement;

            (E) a description of the Servicing Party's processes and procedures
      designed to address any special or unique factors involved in servicing;

            (F) a description of the Servicing Party's processes for handling
      delinquencies, losses, bankruptcies and recoveries, such as sale of
      defaulted receivables; and

            (G) information as to how the Servicing Party defines or determines
      delinquencies and charge-offs, including the effect of any grace period,
      re-aging, restructuring, partial payments considered current or other
      practices with respect to delinquency and loss experience.

            (b) As a condition to the succession to the Servicer or any
Subservicer as servicer or subservicer under this Agreement or any Supplement by
any Person (i) into which the Servicer or such Subservicer may be merged or
consolidated, or (ii) which may be appointed as a successor to the Servicer or
such Subservicer, the Servicer shall provide to the Seller at least fifteen (15)
calendar days prior to the effective date of such succession or appointment, (x)
written notice to the Seller of such succession or appointment and (y) in
writing and in form and substance reasonably satisfactory to the Seller, all
information reasonably requested by the Seller in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to any Series or
Class, or any notes issued by National City Credit Card Master Note Trust.

            (c) In addition to such information as the Servicer is obligated to
provide pursuant to other provisions of this Agreement and any Supplement, if so
requested by the Seller, the Servicer shall provide to the Seller such
information regarding the performance or servicing of the Receivables as is
reasonably required to facilitate preparation of distribution reports in
accordance with Item 1121 of Regulation AB. Such information shall be provided
concurrently with the distribution reports otherwise required to be delivered
monthly by the Servicer under this Agreement and any Supplement, commencing with
the first such report due not less than ten (10) Business Days following such
request.

            Section 14.07. Report on Assessment of Compliance and Attestation.

            (a) On or before March 1 of each calendar year, commencing in 2007,
the Servicer shall:

                  (i) deliver to the Seller a report regarding the Servicer's
            assessment of compliance with the Servicing Criteria during the

                                       8
<PAGE>

            immediately preceding calendar year, as required under Rules 13a-18
            and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such
            report shall be addressed to the Seller and signed by an authorized
            officer of the Servicer, and shall address each of the Servicing
            Criteria specified in Exhibit J or such criteria as mutually agreed
            upon by the Seller and the Servicer;

                  (ii) deliver to the Seller a report of a registered public
            accounting firm reasonably acceptable to the Seller that attests to,
            and reports on, the assessment of compliance made by the Servicer
            and delivered pursuant to the preceding paragraph. Such attestation
            shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
            Regulation S-X under the Securities Act and the Exchange Act;

                  (iii) cause each Servicing Participant to deliver to the
            Seller an assessment of compliance and accountants' attestation as
            and when provided in paragraphs (i) and (ii) of this Section; and

                  (iv) deliver to the Seller and any other Person that will be
            responsible for signing the Sarbanes Certification on behalf of the
            Trust, National City Credit Card Master Note Trust or the Seller
            with respect to a Securitization Transaction a certification in the
            form attached hereto as Exhibit I.

            The Servicer acknowledges that the parties identified in clause (iv)
above may rely on the certification provided by the Servicer pursuant to such
clause in signing a Sarbanes Certification and filing such with the Commission.

            (b) Each assessment of compliance provided by a Subservicer pursuant
to Section 14.07(a)(i) shall address each of the Servicing Criteria specified on
a certification substantially in the form of Exhibit J hereto delivered to the
Seller upon reasonable request of the Seller after the execution of this
Agreement or, in the case of a Subservicer subsequently appointed as such, on or
prior to the date of such appointment. An assessment of compliance provided by a
Servicing Participant (other than the Servicer or any Subservicer) pursuant to
Section 14.07(a)(iii) need not address any elements of the Servicing Criteria
other than those specified by the Servicer pursuant to Section 14.08.

            Section 14.08. Use of Subservicers and Servicing Participants. The
Servicer shall use its best efforts to hire or otherwise utilize only the
services of Subservicers that agree to comply with the provisions of paragraph
(a) of this Section. The Servicer shall use its best efforts to hire or
otherwise utilize only the services of Servicing Participants, and shall use its
best efforts to ensure that Subservicers hire or otherwise utilize only the
services of Servicing Participants, to fulfill any of the obligations of the
Servicer as servicer under this Agreement or any Supplement, if those Servicing
Participants agree to comply with the provisions of paragraph (b) of this
Section.

                                       9
<PAGE>

                  (a) Except as may otherwise be required pursuant to Section
      8.07, it shall not be necessary for the Servicer to seek the consent of
      the Seller to the utilization of any Subservicer. The Servicer shall use
      its best efforts to cause any Subservicer used by the Servicer (or by any
      Subservicer) for the benefit of the Seller to comply with the provisions
      of this Section and with Sections 3.05, 14.05, 14.06(c) and 14.07 of this
      Agreement to the same extent as if such Subservicer were the Servicer. The
      Servicer shall be responsible for obtaining from each Subservicer and
      delivering to the Seller any servicer compliance statement required to be
      delivered by such Subservicer under Section 3.05, any assessment of
      compliance and attestation required to be delivered by such Subservicer
      under Section 14.07 and any certification required to be delivered to the
      Person that will be responsible for signing the Sarbanes Certification
      under Section 14.07 as and when required to be delivered.

                  (b) Except as may otherwise be required pursuant to Section
      8.07, it shall not be necessary for the Servicer to seek the consent of
      the Seller to the utilization of any Servicing Participant. The Servicer
      shall promptly upon request provide to the Seller a written description
      (in form and substance satisfactory to the Seller) of the role and
      function of each Servicing Participant utilized by the Servicer or any
      Subservicer, specifying (i) the identity of each such Servicing
      Participant and (ii) which elements of the Servicing Criteria will be
      addressed in assessments of compliance provided by each Servicing
      Participant.

                  As a condition to the utilization of any Servicing
      Participant, the Servicer shall use its best efforts to cause any such
      Servicing Participant used by the Servicer (or by any Subservicer) for the
      benefit of the Seller to comply with the provisions of Sections 14.07 of
      this Agreement to the same extent as if such Servicing Participant were
      the Servicer. The Servicer shall be responsible for obtaining from each
      Servicing Participant and delivering to the Seller any assessment of
      compliance and attestation required to be delivered by such Servicing
      Participant under Section 14.07, in each case as and when required to be
      delivered.

            SECTION 7. Addition of Exhibits I and J to Pooling and Servicing
Agreement. The Pooling and Servicing Agreement is hereby amended by adding new
Exhibits I and J, in their respective forms attached hereto, after Exhibit H to
the Pooling and Servicing Agreement.

            SECTION 8. Effectiveness. The amendments provided for by this
Amendment shall become effective upon receipt by the Trustee of the following:

            (a) Notification in writing from each Rating Agency to the effect
that the terms of this Amendment will not result in a reduction or withdrawal of
the rating of any outstanding Series or Class of Investor Certificates to which
it is a Rating Agency.

            (b) An Officer's Certificate from the Seller delivered to the
Trustee to the effect that the Seller reasonably believes the terms of this
Amendment will not adversely affect in any material respect the interests of any
Investor Certificateholder.

                                       10
<PAGE>

            (c) Counterparts of this Amendment, duly executed by the parties
hereto.

            SECTION 9. Pooling and Servicing Agreement in Full Force and Effect
as Amended. Except as specifically amended or waived hereby, all of the terms
and conditions of the Pooling and Servicing Agreement shall remain in full force
and effect. All references to the Pooling and Servicing Agreement in any other
document or instrument shall be deemed to mean such Pooling and Servicing
Agreement as amended by this Amendment. This Amendment shall not constitute a
novation of the Pooling and Servicing Agreement, but shall constitute an
amendment thereof. The parties hereto agree to be bound by the terms and
obligations of the Pooling and Servicing Agreement, as amended by this
Amendment, as though the terms and obligations of the Pooling and Servicing
Agreement were set forth herein.

            SECTION 10. Counterparts. This Amendment may be executed in any
number of counterparts and by separate parties hereto on separate counterparts,
each of which when executed shall be deemed an original, but all such
counterparts taken together shall constitute one and the same instrument.

            SECTION 11. Governing Law; Submission to Jurisdiction; Agent for
Service of Process. This Amendment shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to principles
of conflict of laws. The parties hereto declare that it is their intention that
this Amendment shall be regarded as made under the laws of the State of Delaware
and that the laws of said State shall be applied in interpreting its provisions
in all cases where legal interpretation shall be required. Each of the parties
hereto agrees (a) that this Amendment involves at least $100,000.00, and (b)
that this Amendment has been entered into by the parties hereto in express
reliance upon 6 DEL. C. Section 2708. Each of the parties hereto hereby
irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of
the courts of the State of Delaware and of the federal courts sitting in the
State of Delaware, and (b)(1) to the extent such party is not otherwise subject
to service of process in the State of Delaware, to appoint and maintain an agent
in the State of Delaware as such party's agent for acceptance of legal process,
and (2) that, to the fullest extent permitted by applicable law, service of
process may also be made on such party by prepaid certified mail with a proof of
mailing receipt validated by the United States Postal Service constituting
evidence of valid service, and that service made pursuant to (b)(1) or (2) above
shall, to the fullest extent permitted by applicable law, have the same legal
force and effect as if served upon such party personally within the State of
Delaware.

            SECTION 12. Defined Terms and Section References. Capitalized terms
used herein and not otherwise defined shall have the meanings assigned to such
terms in the Pooling and Servicing Agreement. All Section or subsection
references herein shall mean Sections or subsections of the Pooling and
Servicing Agreement, except as otherwise provided herein.

                                       11
<PAGE>

            IN WITNESS WHEREOF, the Seller, the Servicer and the Trustee have
caused this Amendment to be duly executed by their respective officers as of the
day and year first above written.

                                     NATIONAL CITY BANK,
                                     as Seller and Servicer

                                     By:_______________________________
                                        Name:
                                        Title:

                                     THE BANK OF NEW YORK (DELAWARE),
                                       as Trustee

                                     By:_______________________________
                                        Name:
                                        Title:

<PAGE>

                                                                       EXHIBIT I

                          FORM OF ANNUAL CERTIFICATION

      Re:   The Pooling and Servicing Agreement dated as of June 1, 1995, as
            amended and restated as of July 1, 2000 (as amended, supplemented or
            otherwise modified from time to time, the "Agreement"), between
            National City Bank, a national banking association, as seller (the
            "Seller") and servicer, and The Bank of New York (Delaware), a
            Delaware banking corporation, as trustee.

      I, ________________________________, the _______________________ of [NAME
OF COMPANY] (the "Company"), certify to the Seller, the Servcer and their
respective officers, with the knowledge and intent that they will rely upon this
certification, that:

            (1) I have reviewed the report on assessment of the Company's
      compliance provided in accordance with Rules 13a-18 and 15d-18 under the
      Securities Exchange Act of 1934, as amended (the "Exchange Act") and Item
      1122 of Regulation AB (the "Company Information"), and the registered
      public accounting firm's attestation report provided in accordance with
      Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of
      Regulation AB that were delivered by the Company to the Seller and the
      Servicer pursuant to the Agreement;

            (2) To the best of my knowledge, the Company Information, taken as a
      whole, does not contain any untrue statement of a material fact or omit to
      state a material fact necessary to make the statements made, in the light
      of the circumstances under which such statements were made, not misleading
      with respect to the period of time covered by the Company Information;

            (3) To the best of my knowledge, all of the Company Information
      required to be provided by the Company under the Agreement has been
      provided to the Seller [and the Servicer]; and

            (4) To the best of my knowledge, except as disclosed in clause (1)
      above, the Company has fulfilled its obligations under the Agreement.

                                Date: ____________________________________

                                By: ______________________________________
                                Name:
                                Title:

<PAGE>

                                                                       EXHIBIT J

         SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      The assessment of compliance to be delivered by the [Servicer] [Trustee]
shall address, at a minimum, the criteria identified as below as "Applicable
Servicing Criteria":

<TABLE>
<CAPTION>
                                                                                                                      APPLICABLE
                                            SERVICING CRITERIA                                                    SERVICING CRITERIA
   REFERENCE                                      CRITERIA
----------------  --------------------------------------------------------------------------------------------    ------------------
<S>               <C>                                                                                             <C>
                             GENERAL SERVICING CONSIDERATIONS

                  Policies and procedures are instituted to monitor any performance or other triggers and
1122(d)(1)(i)     events of default in accordance with the transaction agreements.                                     Servicer

                  If any material servicing activities are outsourced to third parties, policies and
                  procedures are instituted to monitor the third party's performance and compliance with such
1122(d)(1)(ii)    servicing activities.                                                                                Servicer

                  Any requirements in the transaction agreements to maintain a back-up servicer for the credit
1122(d)(1)(iii)   card accounts or accounts are maintained.

                  A fidelity bond and errors and omissions policy is in effect on the party participating in
                  the servicing function throughout the reporting period in the amount of coverage required
1122(d)(1)(iv)    by and otherwise in accordance with the terms of the transaction agreements.                         Servicer

                                              CASH COLLECTION AND ADMINISTRATION

                  Payments on credit card accounts are deposited into the appropriate custodial bank accounts
                  and related bank clearing accounts no more than two business days following receipt, or
1122(d)(2)(i)     such other number of days specified in the transaction agreements.                              Servicer, Trustee

                  Disbursements made via wire transfer on behalf of an obligor or to an investor are made only         Trustee
1122(d)(2)(ii)    by authorized personnel.

                  Advances of funds or guarantees regarding collections, cash flows or distributions, and any
                  interest or other fees charged for such advances, are made, reviewed and approved as
1122(d)(2)(iii)   specified in the transaction agreements.

                  The related accounts for the transaction, such as cash reserve accounts or accounts
                  established as a form of overcollateralization, are separately maintained (e.g., with           Servicer, Trustee
1122(d)(2)(iv)    respect to commingling of cash) as set forth in the transaction agreements.

                  Each custodial account is maintained at a federally insured depository institution as set
                  forth in the transaction agreements. For purposes of this criterion, "federally insured
                  depository institution" with respect to a foreign financial institution means a foreign         Servicer, Trustee
                  financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities
1122(d)(2)(v)     Exchange Act.

1122(d)(2)(vi)    Unissued checks are safeguarded so as to prevent unauthorized access.

                  Reconciliations are prepared on a monthly basis for all asset-backed securities related
                  bank accounts, including custodial accounts and related bank clearing accounts. These
                  reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after
                  the bank statement cutoff date, or such other number of days specified in the transaction
                  agreements; (C) reviewed and approved by someone other than the person who prepared the
                  reconciliation; and (D) contain explanations for reconciling items. These reconciling items
                  are resolved within 90 calendar days of their original identification, or such other number
1122(d)(2)(vii)   of days specified in the transaction agreements.
</TABLE>

                                                   I-1
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                      APPLICABLE
                                            SERVICING CRITERIA                                                    SERVICING CRITERIA
   REFERENCE                                      CRITERIA
----------------  --------------------------------------------------------------------------------------------    ------------------
<S>               <C>                                                                                             <C>
                                    INVESTOR REMITTANCES AND REPORTING

                  Reports to investors, including those to be filed with the Commission, are maintained in
                  accordance with the transaction agreements and applicable Commission requirements.
                  Specifically, such reports (A) are prepared in accordance with timeframes and other terms
                  set forth in the transaction agreements; (B) provide information calculated in accordance
                  with the terms specified in the transaction agreements; (C) are filed with the Commission
                  as required by its rules and regulations; and (D) agree with investors' or the trustee's
                  records as to the total unpaid principal balance and number of credit card accounts serviced         Servicer
1122(d)(3)(i)     by the Servicer.

                  Amounts due to investors are allocated and remitted in accordance with timeframes,              Servicer, Trustee
1122(d)(3)(ii)    distribution priority and other terms set forth in the transaction agreements.

                  Disbursements made to an investor are posted within two business days to the Servicer's              Trustee
1122(d)(3)(iii)   investor records, or such other number of days specified in the transaction agreements.

                  Amounts remitted to investors per the investor reports agree with cancelled checks, or
1122(d)(3)(iv)    other form of payment, or custodial bank statements.                                            Servicer, Trustee

                                                   POOL ASSET ADMINISTRATION

                  Collateral or security on credit card accounts is maintained as required by the transaction
1122(d)(4)(i)     agreements or related asset pool documents.

1122(d)(4)(ii)    Account and related documents are safeguarded as required by the transaction agreements         Servicer, Trustee

                  Any additions, removals or substitutions to the asset pool are made, reviewed and approved
1122(d)(4)(iii)   in accordance with any conditions or requirements in the transaction agreements.                     Servicer

                  Payments on credit card accounts, including any payoffs, made in accordance with the related
                  credit card accounts documents are posted to the Servicer's obligor records maintained no
                  more than two business days after receipt, or such other number of days specified in the
                  transaction agreements, and allocated to principal, interest or other items (e.g., escrow)           Servicer
1122(d)(4)(iv)    in accordance with the related asset pool documents.

                  The Servicer's records regarding the accounts and the accounts agree with the Servicer's             Servicer
1122(d)(4)(v)     records with respect to an obligor's unpaid principal balance.

                  Changes with respect to the terms or status of an obligor's account  (e.g., loan
                  modifications or re-agings) are made, reviewed and approved by authorized personnel in
1122(d)(4)(vi)    accordance with the transaction agreements and related pool asset documents.                         Servicer

                  Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in
                  lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted
                  and concluded in accordance with the timeframes or other requirements established by the
1122(d)(4)(vii)   transaction agreements.                                                                              Servicer

                  Records documenting collection efforts are maintained during the period a Account is
                  delinquent in accordance with the transaction agreements.  Such records are maintained on at
                  least a monthly basis, or such other period specified in the transaction agreements, and
                  describe the entity's activities in monitoring delinquent Accounts including, for example,
                  phone calls, letters and payment rescheduling plans in cases where delinquency is deemed             Servicer
1122(d)(4)(viii)  temporary (e.g., illness or unemployment).

                  Adjustments to interest rates or rates of return for Accounts with variable rates are                Servicer
1122(d)(4)(ix)    computed based on the related Account documents.
</TABLE>

                                            I-2
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                      APPLICABLE
                                            SERVICING CRITERIA                                                    SERVICING CRITERIA
   REFERENCE                                      CRITERIA
----------------  --------------------------------------------------------------------------------------------    ------------------
<S>               <C>                                                                                             <C>
                  Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds
                  are analyzed, in accordance with the obligor's Account documents, on at least an annual
                  basis, or such other period specified in the transaction agreements; (B) interest on such
                  funds is paid, or credited, to obligors in accordance with applicable Account documents and
                  state laws; and (C) such funds are returned to the obligor within 30 calendar days of full
                  repayment of the related Accounts, or such other number of days specified in the
1122(d)(4)(x)     transaction agreements.

                  Payments made on behalf of an obligor (such as tax or insurance payments) are made on or
                  before the related penalty or expiration dates, as indicated on the appropriate bills or
                  notices for such payments, provided that such support has been received by the servicer at
                  least 30 calendar days prior to these dates, or such other number of days specified in the
1122(d)(4)(xi)    transaction agreements.

                  Any late payment penalties in connection with any payment to be made on behalf of an
                  obligor are paid from the servicer's funds and not charged to the obligor, unless the late
1122(d)(4)(xii)   payment was due to the obligor's error or omission.

                  Disbursements made on behalf of an obligor are posted within two business days to the
                  obligor's records maintained by the servicer, or such other number of days specified in the
1122(d)(4)(xiii)  transaction agreements.

                  Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in                 Servicer
1122(d)(4)(xiv)   accordance with the transaction agreements.

                  Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item         Servicer
1122(d)(4)(xv)    1115 of Regulation AB, is maintained as set forth in the transaction agreements.
</TABLE>

                                     [THE BANK OF NEW YORK (DELAWARE),
                                     as Trustee]

                                     [NATIONAL CITY BANK,
                                     as Servicer]

                                     Date: _____________________________

                                     By:   _______________________________
                                           Name:
                                           Title:

                                            I-3EX-10.1

 

Exhibit 10.1

 

 

Third Amended and Restated Credit Agreement

Dated as of November 20, 2006,

among

The Lamson & Sessions Co.,

The Guarantors from time to time parties hereto,

the Lenders from time to time parties hereto,

National City Bank and

JPMorgan Chase Bank, N.A.,

as Co-Syndication Agents,

LaSalle Bank National Association,

as Documentation Agent,

and

Bank of Montreal,

as Administrative Agent

 

 

BMO Capital Markets, as Sole and Lead Arranger and Sole Book Runner

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 1.
	 	The Credit Facilities	 	 	 1	 
	 
	 	 	 	 	 	 
	Section 1.1.
	 	Revolving Credit Commitments	 	 	1	 
	Section 1.2.
	 	Letters of Credit	 	 	2	 
	Section 1.3.
	 	Intentionally Omitted	 	 	6	 
	Section 1.4.
	 	Applicable Interest Rates	 	 	6	 
	Section 1.5.
	 	Minimum Borrowing Amounts	 	 	8	 
	Section 1.6.
	 	Manner of Borrowing Loans and Designating Applicable Interest Rates	 	 	8	 
	Section 1.7.
	 	Swing Loans	 	 	11	 
	Section 1.8.
	 	Interest Periods	 	 	12	 
	Section 1.9.
	 	Maturity of Loans	 	 	13	 
	Section 1.10.
	 	Prepayments	 	 	13	 
	Section 1.11.
	 	Default Rate	 	 	14	 
	Section 1.12.
	 	Evidence of Indebtedness	 	 	15	 
	Section 1.13.
	 	Funding Indemnity	 	 	15	 
	Section 1.14.
	 	Commitment Terminations	 	 	16	 
	Section 1.15.
	 	Substitution of Lenders	 	 	17	 
	Section 1.16.
	 	Increase in Commitments	 	 	17	 
	 
	 	 	 	 	 	 
	Section 2.
	 	Fees	 	 	18	 
	 
	 	 	 	 	 	 
	Section 2.1.
	 	Fees	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.
	 	Place and Application of Payments	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.1.
	 	Place and Application of Payments	 	 	19	 
	 
	 	 	 	 	 	 
	Section 4.
	 	The Collateral and Guaranties	 	 	20	 
	 
	 	 	 	 	 	 
	Section 4.1.
	 	Collateral	 	 	20	 
	Section 4.2.
	 	Deposit Account Agreements	 	 	21	 
	Section 4.3.
	 	Liens on Real Property	 	 	22	 
	Section 4.4.
	 	Guaranties	 	 	22	 
	Section 4.5.
	 	Further Assurances	 	 	22	 
	 
	 	 	 	 	 	 
	Section 5.
	 	Definitions; Interpretation	 	 	22	 
	 
	 	 	 	 	 	 
	Section 5.1.
	 	Definitions	 	 	22	 
	Section 5.2.
	 	Interpretation	 	 	37	 
	Section 5.3.
	 	Change in Accounting Principles	 	 	37	 
	 
	 	 	 	 	 	 
	 -i- 

 

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 6.
	 	Representations and Warranties	 	 	37	 
	 
	 	 	 	 	 	 
	Section 6.1.
	 	Organization and Qualification	 	 	37	 
	Section 6.2.
	 	Subsidiaries	 	 	37	 
	Section 6.3.
	 	Authority and Validity of Obligations	 	 	38	 
	Section 6.4.
	 	Use of Proceeds; Margin Stock	 	 	39	 
	Section 6.5.
	 	Financial Reports	 	 	39	 
	Section 6.6.
	 	No Material Adverse Change	 	 	39	 
	Section 6.7.
	 	Full Disclosure	 	 	39	 
	Section 6.8.
	 	Trademarks, Franchises, and Licenses	 	 	39	 
	Section 6.9.
	 	Governmental Authority and Licensing	 	 	40	 
	Section 6.10.
	 	Good Title	 	 	40	 
	Section 6.11.
	 	Litigation and Other Controversies	 	 	40	 
	Section 6.12.
	 	Taxes	 	 	40	 
	Section 6.13.
	 	Approvals	 	 	40	 
	Section 6.14.
	 	Affiliate Transactions	 	 	40	 
	Section 6.15.
	 	Investment Company	 	 	41	 
	Section 6.16.
	 	ERISA	 	 	41	 
	Section 6.17.
	 	Compliance with Laws	 	 	41	 
	Section 6.18.
	 	Other Agreements	 	 	42	 
	Section 6.19.
	 	Solvency	 	 	42	 
	Section 6.20.
	 	No Default	 	 	42	 
	 
	 	 	 	 	 	 
	Section 7.
	 	Conditions Precedent	 	 	42	 
	 
	 	 	 	 	 	 
	Section 7.1.
	 	All Credit Events	 	 	42	 
	Section 7.2.
	 	Effective Date	 	 	43	 
	 
	 	 	 	 	 	 
	Section 8.
	 	Covenants	 	 	44	 
	 
	 	 	 	 	 	 
	Section 8.1.
	 	Maintenance of Business	 	 	44	 
	Section 8.2.
	 	Maintenance of Properties	 	 	44	 
	Section 8.3.
	 	Taxes and Assessments	 	 	45	 
	Section 8.4.
	 	Insurance	 	 	45	 
	Section 8.5.
	 	Financial Reports	 	 	45	 
	Section 8.6.
	 	Inspection	 	 	47	 
	Section 8.7.
	 	Borrowings and Guaranties	 	 	47	 
	Section 8.8.
	 	Liens	 	 	48	 
	Section 8.9.
	 	Investments, Acquisitions, Loans, and Advances	 	 	49	 
	Section 8.10.
	 	Mergers, Consolidations and Sales	 	 	51	 
	Section 8.11.
	 	Maintenance of Subsidiaries	 	 	52	 
	Section 8.12.
	 	Dividends and Certain Other Restricted Payments	 	 	52	 
	Section 8.13.
	 	ERISA	 	 	52	 
	Section 8.14.
	 	Compliance with Laws	 	 	53	 
	Section 8.15.
	 	Burdensome Contracts With Affiliates	 	 	54	 
	Section 8.16.
	 	No Changes in Fiscal Year	 	 	54	 
	Section 8.17.
	 	Formation of Subsidiaries	 	 	54	 
	Section 8.18.
	 	Change in the Nature of Business	 	 	54	 
	 
	 	 	 	 	 	 
	 -ii- 

 

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 8.19.
	 	Use of Loan Proceeds	 	 	54	 
	Section 8.20.
	 	No Restrictions on Subsidiary Distributions	 	 	54	 
	Section 8.21.
	 	Financial Covenants	 	 	54	 
	 
	 	 	 	 	 	 
	Section 9.
	 	Events of Default and Remedies	 	 	55	 
	 
	 	 	 	 	 	 
	Section 9.1.
	 	Events of Default	 	 	55	 
	Section 9.2.
	 	Non-Bankruptcy Defaults	 	 	57	 
	Section 9.3.
	 	Bankruptcy Defaults	 	 	58	 
	Section 9.4.
	 	Collateral Account for Undrawn Letters of Credit and other Obligations	 	 	58	 
	Section 9.5.
	 	Additional Remedies in Bond Documents	 	 	59	 
	Section 9.6.
	 	Notice of Default	 	 	59	 
	Section 9.7.
	 	Expenses	 	 	59	 
	 
	 	 	 	 	 	 
	Section 10.
	 	Change in Circumstances	 	 	59	 
	 
	 	 	 	 	 	 
	Section 10.1.
	 	Change of Law	 	 	59	 
	Section 10.2.
	 	Unavailability of Deposits or
Inability to Ascertain, or Inadequacy of, LIBOR	 	 	60	 
	Section 10.3.
	 	Increased Cost and Reduced Return	 	 	60	 
	Section 10.4.
	 	Lending Offices	 	 	61	 
	Section 10.5.
	 	Discretion of Lender as to Manner of Funding	 	 	62	 
	 
	 	 	 	 	 	 
	Section 11.
	 	The Administrative Agent	 	 	62	 
	 
	 	 	 	 	 	 
	Section 11.1.
	 	Appointment and Administrative Authorization of Administration	 	 	 	 
	 
	 	Agent	 	 	62	 
	Section 11.2.
	 	Administrative Agent and its Affiliates	 	 	62	 
	Section 11.3.
	 	Action by Administrative Agent	 	 	62	 
	Section 11.4.
	 	Consultation with Experts	 	 	63	 
	Section 11.5.
	 	Liability of Administrative Agent; Credit Decision	 	 	63	 
	Section 11.6.
	 	Indemnity	 	 	64	 
	Section 11.7.
	 	Resignation of Administrative Agent and Successor Agent	 	 	64	 
	Section 11.8.
	 	L/C Issuers and Swing Line Lender.	 	 	65	 
	Section 11.9.
	 	Hedging Liability and Funds Transfer, Deposit Account, and	 	 	 	 
	 
	 	Credit/Purchasing Card Liability Arrangements	 	 	65	 
	Section 11.10.
	 	Designation of Additional Agents	 	 	65	 
	Section 11.11.
	 	Authorization to Release or Subordinate or Limit Liens	 	 	66	 
	Section 11.12.
	 	Authorization to Enter into, and Enforcement of, the Collateral	 	 	 	 
	 
	 	Documents	 	 	66	 
	 
	 	 	 	 	 	 
	Section 12.
	 	The Guarantees	 	 	66	 
	 
	 	 	 	 	 	 
	Section 12.1.
	 	The Guarantees	 	 	66	 
	Section 12.2.
	 	Guarantee Unconditional	 	 	67	 
	Section 12.3.
	 	Discharge Only upon Payment in Full; Reinstatement in Certain	 	 	 	 
	 
	 	Circumstances	 	 	68	 
	 
	 	 	 	 	 	 
	 -iii- 

 

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	 
	 	 	 	 	 	 
	Section 12.4.
	 	Subrogation	 	 	68	 
	Section 12.5.
	 	Waivers	 	 	69	 
	Section 12.6.
	 	Limit on Recovery	 	 	69	 
	Section 12.7.
	 	Stay of Acceleration	 	 	69	 
	Section 12.8.
	 	Benefit to Guarantors	 	 	69	 
	Section 12.9.
	 	Guarantor Covenants	 	 	69	 
	 
	 	 	 	 	 	 
	Section 13.
	 	Miscellaneous	 	 	69	 
	 
	 	 	 	 	 	 
	Section 13.1.
	 	Withholding Taxes	 	 	69	 
	Section 13.2.
	 	No Waiver, Cumulative Remedies	 	 	71	 
	Section 13.3.
	 	Non-Business Days	 	 	71	 
	Section 13.4.
	 	Documentary Taxes	 	 	71	 
	Section 13.5.
	 	Survival of Representations	 	 	71	 
	Section 13.6.
	 	Survival of Indemnities	 	 	71	 
	Section 13.7.
	 	Sharing of Set-Off	 	 	71	 
	Section 13.8.
	 	Notices	 	 	72	 
	Section 13.9.
	 	Counterparts	 	 	73	 
	Section 13.10.
	 	Successors and Assigns	 	 	73	 
	Section 13.11.
	 	Participants	 	 	73	 
	Section 13.12.
	 	Assignments	 	 	74	 
	Section 13.13.
	 	Confidential Information	 	 	76	 
	Section 13.14.
	 	Amendments	 	 	77	 
	Section 13.15.
	 	Headings	 	 	78	 
	Section 13.16.
	 	Costs and Expenses; Indemnification	 	 	78	 
	Section 13.17.
	 	Set-off	 	 	79	 
	Section 13.18.
	 	Entire Agreement	 	 	79	 
	Section 13.19.
	 	Governing Law	 	 	79	 
	Section 13.20.
	 	Severability of Provisions	 	 	80	 
	Section 13.21.
	 	Excess Interest	 	 	80	 
	Section 13.22.
	 	Construction	 	 	80	 
	Section 13.23.
	 	Lender’s Obligations Several	 	 	80	 
	Section 13.24.
	 	Submission to Jurisdiction; Waiver of Jury Trial	 	 	80	 
	Section 13.25.
	 	USA Patriot Act	 	 	81	 
	Section 13.26.
	 	Equalization of Loans and Commitments	 	 	81	 
	Section 13.27.
	 	Amendment and Restatement	 	 	81	 
	Section 13.28.
	 	Removal of Lender and Assignment of Interests	 	 	82	 
	 
	 	 	 	 	 	 
	 -iv- 

 

 

	 	 	 	 	 
	Exhibit A

	 	—
	 	Notice of Payment Request
	Exhibit B

	 	—
	 	Notice of Borrowing
	Exhibit C

	 	—
	 	Notice of Continuation/Conversion
	Exhibit D-1

	 	—
	 	Revolving Note
	Exhibit D-2

	 	—
	 	Swing Note
	Exhibit D-3

	 	—
	 	Term Note
	Exhibit E

	 	—
	 	Compliance Certificate
	Exhibit F

	 	—
	 	Additional Guarantor Supplement
	Exhibit G

	 	—
	 	Commitment Amount Increase Request
	Exhibit H

	 	—
	 	Assignment and Acceptance
	Schedule 1

	 	—
	 	Commitments
	Schedule 1.2

	 	—
	 	Existing Letters of Credit
	Schedule 6.2

	 	—
	 	Subsidiaries
	Schedule 6.8

	 	—
	 	Trademarks, Franchises, and Licenses
	Schedule 8.7/8.8

	 	—
	 	Permitted Indebtedness; Permitted Liens
	Schedule 8.9

	 	—
	 	Permitted Investments, Loans, and Advances in Foreign Subsidiaries

 -v- 

 

 

Third Amended and Restated Credit Agreement

     This Third Amended and Restated Credit Agreement is entered into as of November 20, 2006, by
and among The Lamson & Sessions Co., an Ohio corporation (the “Borrower”), the Subsidiaries from
time to time party to this Agreement, as Guarantors, the several financial institutions from time
to time party to this Agreement, as Lenders, National City Bank and JP Morgan Chase Bank, N.A., as
Co-Syndication Agents, LaSalle Bank National Association, as Documentation Agent, and Bank of
Montreal, Chicago branch, as Administrative Agent, as provided herein. All capitalized terms used
herein without definition shall have the same meanings herein as such terms are defined in Section
5.1 hereof.

Preliminary Statement

     A. Harris N.A. has given notice of its intention to resign as Agent and the parties have
agreed to substitute Bank of Montreal, Chicago branch, for Harris N.A. as Administrative
Agent and, in connection therewith, to replace Harris N.A. as a Lender with BMO Capital
Markets Financing, Inc. In addition, the Borrower and certain other parties set forth above
previously entered into a certain Second Amended and Restated Credit Agreement dated as of June 29,
2005, as amended (the “Prior Credit Agreement”). The Borrower has requested that the aggregate
commitments under the Prior Credit Agreement be extended and amended, and certain other amendments
be made to the Prior Credit Agreement and, for the sake of clarity and convenience, that the Prior
Credit Agreement be restated in its entirety as so amended, and the Lenders have agreed to such
requests on the terms and conditions of this Agreement.

     B. On the date hereof, Harris N.A. will assign all of its loans and commitments (in such
capacity, the “Departing Lender”) to the other Lenders hereunder, and certain other financial
institutions will join the Credit Agreement as Lenders.

     Now, Therefore, in consideration of the mutual agreements contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

Section 1. The Credit Facilities.

     Section 1.1. Revolving Credit Commitments. Subject to the terms and conditions hereof, each
Lender, by its acceptance hereof, severally agrees to make a loan or loans (individually a
“Revolving Loan” and collectively the “Revolving Loans”) in U.S. Dollars to the Borrower from time
to time on a revolving basis up to such Lender’s Revolving Credit Commitment, subject to any
reductions thereof pursuant to the terms hereof, before the Revolving Credit Termination Date. The
sum of the aggregate principal amount of Revolving Loans, Swing Loans, and L/C Obligations at any
time outstanding shall not exceed the Revolving Credit Commitments in effect at such time. Each
Borrowing of Revolving Loans shall be made ratably from the Lenders in proportion to their
respective Revolver Percentages. As provided in Section 1.6(a) hereof, the Borrower may elect that
each Borrowing of Revolving Loans be either Base Rate Loans or

 

 

Eurodollar Loans. Revolving Loans may be repaid and the principal amount thereof reborrowed before the Revolving
Credit Termination Date, subject to the terms and conditions hereof.

     Section 1.2. Letters of Credit. (a) General Terms. Subject to the terms and conditions
hereof, as part of the Revolving Credit, the relevant L/C Issuer shall issue commercial or standby
letters of credit (each a “Letter of Credit”) for the account of the Borrower or any of its
Subsidiaries in an aggregate undrawn face amount for all Letters of Credit issued by the L/C
Issuers up to the amount of the L/C Sublimit, provided that the aggregate L/C Obligations at any
time outstanding shall not exceed the difference between (i) the Revolving Credit Commitments in
effect at such time and (ii) the aggregate principal amount of Revolving Loans and Swing Loans then
outstanding. Each Letter of Credit shall be issued in U.S. Dollars and shall be issued by the
relevant L/C Issuer, but each Lender shall be obligated to reimburse the relevant L/C Issuer for
such Lender’s Revolver Percentage of the amount of each drawing thereunder and, accordingly, each
Letter of Credit shall constitute usage of the Revolving Credit Commitment of each Lender pro rata
in an amount equal to its Revolver Percentage of the L/C Obligations then outstanding. For
purposes of this Agreement and the other Loan Documents, the letters of credit listed on Schedule
1.2 hereof issued by Harris N.A. or its predecessor in interest Harris Trust and Saving Bank
(herein, the “Existing Letters of Credit”) shall from and after the date of this Agreement be
deemed Letters of Credit issued under and subject to the terms of this Agreement. The Borrower,
the Lenders, and Harris N.A. agree that from and after the date of this Agreement, the Borrower’s
obligations with respect to such Existing Letters of Credit, including all reimbursement
obligations arising under or relating to the relevant application therefor (which applications
shall each be deemed an Application as hereafter defined for all purposes of this Agreement and the
other Loan Documents), shall be deemed Obligations arising under this Agreement.

     (b) Applications. At any time before the Revolving Credit Termination Date, the relevant L/C
Issuer shall, at the request of the Borrower, issue one or more Letters of Credit in U.S. Dollars,
in a form satisfactory to such L/C Issuer, with expiration dates no later than the earlier of (i)
12 months from the date of issuance (or be cancelable not later than 12 months from the date of
issuance and each renewal) (or such later date agreed to by the relevant L/C Issuer and the
Administrative Agent) or, in the case of any Letter of Credit that is not a Bond Letter of Credit,
(ii) the Revolving Credit Termination Date, in an aggregate face amount as set forth above, upon
the receipt of an application duly executed by the Borrower and, in the case of any Letter of
Credit being issued for the account of a Subsidiary, such Subsidiary for the relevant Letter of
Credit in the form then customarily prescribed by the relevant L/C Issuer for the Letter of Credit
requested (each an “Application,” it being agreed that the Reimbursement Agreements entered into
with respect to the issuance of the Bond Letters of Credit shall each be deemed an Application for
purposes hereof). On the Revolving Credit Termination Date, the Borrower shall pay to the
Administrative Agent an amount equal to 105% of the aggregate undrawn amounts on all Letters of
Credit then outstanding to be held as cash collateral in the Collateral Account. Notwithstanding
anything contained in any Application to the contrary: (i) the Borrower shall pay fees in
connection with each Letter of Credit as set forth in Section 2.1 hereof, (ii) except as otherwise
provided in Section 1.10 hereof or in the relevant Reimbursement Agreement for a Bond Letter of
Credit, before the occurrence of an Event of Default, the relevant L/C Issuer will not call for the
funding by the Borrower of any amount under a Letter of Credit before being

- 2 -

 

presented with a drawing thereunder, and (iii) if a L/C Issuer is not timely reimbursed for the
amount of any drawing under a Letter of Credit on the date such drawing is paid, the obligation of
the Borrower to reimburse such L/C Issuer for the amount of such drawing shall bear interest (which
the Borrower hereby promises to pay) from and after the date such drawing is paid at a rate per
annum equal to the sum of 2% plus the Applicable Margin plus the Base Rate from time to time in
effect (computed on the basis of a year of 365 or 366 days, as the case may be, and the actual
number of days elapsed). If a L/C Issuer issues any Letter of Credit with an expiration date that
is automatically extended unless such L/C Issuer gives notice that the expiration date will not so
extend beyond its then scheduled expiration date, the relevant L/C Issuer will give such notice of
non-renewal before the time necessary to prevent such automatic extension if before such required
notice date: (i) the expiration date of such Letter of Credit (other than the Bond Letters of
Credit) if so extended would be after the Revolving Credit Termination Date, (ii) the Revolving
Credit Commitments have been terminated, or (iii) a Default or an Event of Default exists and the
Administrative Agent or the Required Lenders have given the relevant L/C Issuer instructions not to
so permit the extension of the expiration date of such Letter of Credit. Each L/C Issuer agrees to
issue amendments to the Letter(s) of Credit increasing the amount, or extending the expiration
date, thereof at the request of the Borrower subject to the conditions of Section 7 hereof and the
other terms of this Section 1.2 (provided that each L/C Issuer shall be entitled to assume that the
conditions precedent thereto have been satisfied unless notified to the contrary by the
Administrative Agent or the Required Lenders).

     (c) The Reimbursement Obligations. Subject to Section 1.2(b) hereof, the obligation of the
Borrower to reimburse the relevant L/C Issuer for all drawings under a Letter of Credit (a
“Reimbursement Obligation”) shall be governed by the Application related to such Letter of Credit,
except that reimbursement shall be made by no later than 12:00 Noon (Chicago time) on the date when
each drawing is paid if the Borrower has been informed of such drawing by the relevant L/C Issuer
on or before 11:30 a.m. (Chicago time) on the date when such drawing is paid or, if notice of such
drawing is given to the Borrower after 11:30 a.m. (Chicago time) on the date when such drawing is
paid, by the end of such day, in immediately available funds at the Administrative Agent’s
principal office in Chicago, Illinois or such other office as the Administrative Agent may
designate in writing to the Borrower. If the Borrower does not make any such reimbursement payment
on the date due and the Participating Lenders fund their participations therein in the manner set
forth in Section 1.2(d) below, then all payments thereafter received by the Administrative Agent in
discharge of any of the relevant Reimbursement Obligations shall be distributed in accordance with
Section 1.2(d) below.

     (d) The Participating Interests. Each Lender, by its acceptance hereof, severally agrees to
purchase from each L/C Issuer, and each L/C Issuer hereby agrees to sell to each such Lender (a
“Participating Lender”), an undivided percentage participating interest (a “Participating
Interest”), to the extent of its Revolver Percentage, in each Letter of Credit issued by, and each
Reimbursement Obligation owed to, such L/C Issuer. Upon any failure by the Borrower to pay any
Reimbursement Obligation at the time required on the date the related drawing is paid, as set forth
in Section 1.2(c) above, or if a L/C Issuer is required at any time to return to the Borrower or to
a trustee, receiver, liquidator, custodian, or other Person any portion of any payment of any
Reimbursement Obligation, each Participating Lender shall, not later than the Business Day it
receives a certificate in the form of Exhibit A hereto from the relevant L/C Issuer (with a copy to

- 3 -

 

the Administrative Agent) to such effect, if such certificate is received before 2:00 p.m. (Chicago
time), or not later than 2:00 p.m. (Chicago time) the following Business Day, if such certificate
is received after such time, pay to the Administrative Agent for the account of such L/C Issuer an
amount equal to such Participating Lender’s Revolver Percentage of such unpaid or recaptured
Reimbursement Obligation together with interest on such amount accrued from the date the related
payment was made by such L/C Issuer to the date of such payment by such Participating Lender at a
rate per annum equal to: (i) from the date the related payment was made by the relevant L/C Issuer
to the date 2 Business Days after payment by such Participating Lender is due hereunder, the
Federal Funds Rate for each such day, and (ii) from the date 2 Business Days after the date such
payment is due from such Participating Lender to the date such payment is made by such
Participating Lender, the Base Rate in effect for each such day. Each such Participating Lender
shall thereafter be entitled to receive its Revolver Percentage of each payment received in respect
of the relevant Reimbursement Obligation and of interest paid thereon.

     The several obligations of the Participating Lenders to the L/C Issuers under this Section 1.2
shall be absolute, irrevocable, and unconditional under any and all circumstances whatsoever and
shall not be subject to any set-off, counterclaim, or defense to payment which any Participating
Lender may have or have had against the Borrower, any L/C Issuer, the Administrative Agent, any
Lender, or any other Person whatsoever. Without limiting the generality of the foregoing, such
obligations shall not be affected by any Default or Event of Default or by any reduction or
termination of any Commitment of any Lender, and each payment by a Participating Lender under this
Section 1.2 shall be made without any offset, abatement, withholding, or reduction whatsoever.

     (e) Indemnification. The Participating Lenders shall, to the extent of their respective
Revolver Percentages, indemnify each L/C Issuer (to the extent not reimbursed by the Borrower)
against any cost, expense (including reasonable counsel fees and disbursements), claim, demand,
action, loss, or liability (except such as result from the L/C Issuer’s gross negligence or willful
misconduct) that such L/C Issuer may suffer or incur in connection with any Letter of Credit issued
by it. The obligations of the Participating Lenders under this Section 1.2(e) and all other parts
of this Section 1.2 shall survive termination of this Agreement and of all Applications, Letters of
Credit, and all drafts and other documents presented in connection with drawings thereunder.

     (f) Special Provisions regarding Bond Letters of Credit. (i) Notwithstanding anything to the
contrary contained herein, the Bond Letters of Credit have been issued under the Reimbursement
Agreements and are subject to the terms and conditions thereof.

     (ii) The Borrower and the Lenders acknowledge and agree that (a) each Bond Letter of Credit
provides for automatic reductions and reinstatements as set forth in the provisions of such Bond
Letter of Credit, and (b) each Bond Letter of Credit provides for the beneficiary thereof to reduce
from time to time the amounts available to be drawn thereon. Each Lender acknowledges that,
because the interest component of each Bond Letter of Credit may be reinstated at a time when the
Borrower has not reimbursed the Lenders in full for an interest drawing under the relevant Bond
Letter of Credit, the total L/C Obligations may exceed the L/C Sublimit and the

- 4 -

 

total Revolving Loans, Swing Loans, and L/C Obligations may exceed the Revolving Credit Commitments
as a result thereof (which the Borrower acknowledges is a default under this Agreement) and each
Lender agrees to pay the Administrative Agent its Revolver Percentage of any drawing under the
relevant Bond Letter of Credit notwithstanding that any such payment may result in the aggregate
principal amount owing such Lender hereunder exceeding the Revolving Credit Commitment of such
Lender.

     (iii) No L/C Issuer of a Bond Letter of Credit shall be deemed to have knowledge or notice of
the occurrence of any default under any Reimbursement Agreement or any Bond Document unless it
shall have received written notice stating that such default exists from the Borrower or any other
party to a Bond Document. The L/C Issuer of a Bond Letter of Credit shall take such action with
respect to such default under a Reimbursement Agreement or the relevant Bond Documents as shall be
required pursuant to Section 9 hereof; provided that unless and until such L/C Issuer shall have
received direction under Section 9, such L/C Issuer may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such default as it shall deem advisable
and in the best interest of the Lenders, except any action resulting in the acceleration or
redemption of any Bonds.

     (iv) None of the L/C Issuer of any Bond Letter of Credit, together with its Affiliates, and
the officers, directors, employees, agents, and attorneys-in-fact of such L/C Issuer and such
Affiliates (collectively, the “L/C Issuer-Related Person”) shall (a) be liable for any action taken
or omitted to be taken by any of them under or in connection with any Reimbursement Agreement or
any Bond Document (except for its own gross negligence or willful misconduct), or (b) be
responsible in any manner to any of the Lenders for any recital, statement, representation or
warranty made by the Borrower or any other Person contained in any Reimbursement Agreement or any
Bond Document, or in any certificate, report, statement or other document referred to or provided
for in, or received by such L/C Issuer under or in connection with, any Reimbursement Agreement or
any Bond Document, or for the validity, effectiveness, genuineness, enforceability or sufficiency
of any Reimbursement Agreement or any Bond Document, or for any failure of the Borrower or any
other party to any Bond Document to perform its obligations thereunder (other than for the gross
negligence or willful misconduct of the relevant L/C Issuer). No such L/C Issuer-Related Person
shall be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, any Reimbursement Agreement or
any Bond Document, or to inspect the properties, books or records of the Borrower, any guarantor or
any of their respective Affiliates.

     (v) The Lenders shall indemnify upon demand the L/C Issuer-Related Persons (to the extent not
reimbursed by or on behalf of the Borrower and without limiting the obligation of the Borrower to
do so), ratably according to their Revolver Percentages from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, and
disbursements of any kind whatsoever which may at any time (including at any time following the
termination of any Bond Letter of Credit) be imposed on, incurred by or asserted against any such
Person and which are in any way relating to or arising out of this Agreement, any Reimbursement
Agreement, any Bond Document or any document contemplated by or referred to herein or therein or
the transactions contemplated hereby or thereby or any action taken or

- 5 -

 

omitted by any such Person under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment to the L/C Issuer-Related Persons of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting solely from such Person’s gross negligence or willful misconduct. The
obligation of the Lenders in this Section shall survive the payment of all amounts owing by the
Borrower hereunder.

     (vi) The L/C Issuer of the relevant Bond Letter of Credit agrees to deliver to the Lenders
promptly upon receipt thereof copies of all documents and reports delivered to such L/C issuer
pursuant to any Reimbursement Agreement or any Bond Document (other than drawing requests made for
regularly scheduled payments of principal and interest on the Bonds).

     (vii) The L/C Issuer of the relevant Bond Letter of Credit may enter into any amendment or
modification of, or may waive compliance with the terms of any Bond Document (other than the
relevant indenture) without the consent of any other Lender; provided (a) that without the consent
of the Required Lenders, such L/C issuer shall not execute any instrument agreeing to any amendment
or modification of, or waiver of compliance with the relevant Reimbursement Agreement or any Bond
Document, which would waive any “Event of Default” arising under such Reimbursement Agreement or
Bond Document, and (b) without the consent of all of the Lenders, such L/C Issuer shall not execute
any instrument agreeing to any amendment or modification of, or waiver of compliance with the
relevant Reimbursement Agreement or any Bond Document, which would (A) reduce the principal of, or
interest on, any Reimbursement Obligation arising thereunder, (B) postpone the due date for any
payment of principal of, or interest on, any Reimbursement Obligation arising thereunder, (C)
extend the stated expiration date of any Bond Letter of Credit beyond the Revolving Credit
Termination Date, (D) increase in any material manner (in the reasonable opinion of such L/C
Issuer) the obligations of the Lenders, or (E) release or otherwise adversely affect the interests
of the Lenders in any collateral granted under the relevant Reimbursement Agreement or any Bond
Document.

     (g) Manner of Requesting a Letter of Credit. The Borrower shall provide at least five (5)
Business Days’ advance written notice to the Administrative Agent of each request for the issuance
of a Letter of Credit, such notice in each case to be accompanied by an Application for such Letter
of Credit properly completed and executed by the Borrower and, in the case of an extension or an
increase in the amount of a Letter of Credit, a written request therefor, in a form acceptable to
the Administrative Agent and the relevant L/C Issuer, in each case, together with the fees called
for by this Agreement (it being agreed that the relevant L/C Issuer shall be entitled to assume
that the conditions precedent to any such issuance or amendment have been satisfied unless notified
to the contrary by the Administrative Agent or the Required Lenders). The Administrative Agent
shall promptly notify the relevant L/C Issuer of the Administrative Agent’s receipt of each such
notice and the relevant L/C Issuer shall promptly notify the Administrative Agent and the Lenders
of the issuance of the Letter of Credit so requested.

     Section 1.3. Intentionally Omitted.

     Section 1.4. Applicable Interest Rates. (a) Base Rate Loans. Each Base Rate Loan made or
maintained by a Lender shall bear interest during each Interest Period it is outstanding

- 6 -

 

(computed on the basis of a year of 365 or 366 days, as the case may be, and the actual days elapsed) on the
unpaid principal amount thereof from the date such Loan is advanced, continued, or created by
conversion from a Eurodollar Loan until maturity (whether by acceleration or otherwise) at a rate
per annum equal to the sum of the Applicable Margin plus the Base Rate from time to time in effect,
payable on the last day of its Interest Period and at maturity (whether by acceleration or
otherwise).

     “Base Rate” means for any day the greater of: (i) the rate of interest announced or otherwise
established by the Administrative Agent from time to time as its prime commercial rate, or its
equivalent, for U.S. Dollar loans to borrowers located in the United States as in effect on such
day, with any change in the Base Rate resulting from a change in said prime commercial rate to be
effective as of the date of the relevant change in said prime commercial rate (it being
acknowledged and agreed that such rate may not be the Administrative Agent’s best or lowest rate);
and (ii) the sum of (x) the rate determined by the Administrative Agent to be the average (rounded
upward, if necessary, to the next higher 1/100 of 1%) of the rates per annum quoted to the
Administrative Agent at approximately 10:00 a.m. (Chicago time) (or as soon thereafter as is
practicable) on such day (or, if such day is not a Business Day, on the immediately preceding
Business Day) by two or more Federal funds brokers selected by the Administrative Agent for sale to
the Administrative Agent at face value of Federal funds in the secondary market in an amount equal
or comparable to the principal amount owed to the Administrative Agent for which such rate is being
determined, plus (y) 1/2 of 1%.

     (b) Eurodollar Loans. Each Eurodollar Loan made or maintained by a Lender shall bear interest
during each Interest Period it is outstanding (computed on the basis of a year of 360 days and
actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced,
continued, or created by conversion from a Base Rate Loan until maturity (whether by acceleration
or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the Adjusted LIBOR
applicable for such Interest Period, payable on the last day of the Interest Period and at maturity
(whether by acceleration or otherwise), and, if the applicable Interest Period is longer than three
months, on each day occurring every three months after the commencement of such Interest Period.

     “Adjusted LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum determined in
accordance with the following formula:

	 	 	 	 	 	 	 	 	 
	 

	 	Adjusted LIBOR
	 	=
	 	LIBOR
 

1 - Eurodollar Reserve Percentage
	 	 

     “Eurodollar Reserve Percentage” means, for any Borrowing of Eurodollar Loans, the daily
average for the applicable Interest Period of the maximum rate, expressed as a decimal, at which
reserves (including, without limitation, any supplemental, marginal, and emergency reserves) are
imposed during such Interest Period by the Board of Governors of the Federal Reserve System (or any
successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or in respect of
any other category of liabilities that includes deposits by reference
to which the interest rate on Eurodollar Loans is determined or any category of extensions of
credit or other assets that include loans by non-United States offices of any Lender to United

- 7 -

 

States residents), subject to any amendments of such reserve requirement by such Board or its
successor, taking into account any transitional adjustments thereto. For purposes of this
definition, the Eurodollar Loans shall be deemed to be “eurocurrency liabilities” as defined in
Regulation D without benefit or credit for any prorations, exemptions, or offsets under Regulation
D.

     “LIBOR” means, for an Interest Period for a Borrowing of Eurodollar Loans, (a) the LIBOR Index
Rate for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be
determined, the arithmetic average of the rates of interest per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) at which deposits in U.S. Dollars in immediately available
funds are offered to the Administrative Agent at 11:00 a.m. (London, England time) 2 Business Days
before the beginning of such Interest Period by 3 or more major banks in the interbank eurodollar
market selected by the Administrative Agent for delivery on the first day of and for a period equal
to such Interest Period and in an amount equal or comparable to the principal amount of the
Eurodollar Loans scheduled to be made as part of such Borrowing.

     “LIBOR Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if
necessary, to the next higher one hundred-thousandth of a percentage point) for deposits in U.S.
Dollars for a period equal to such Interest Period, which appears on the Telerate Page 3750 as of
11:00 a.m. (London, England time) on the day 2 Business Days before the commencement of such
Interest Period.

     “Telerate Page 3750” means the display designated as “Page 3750” on the Telerate Service (or
such other page as may replace Page 3750 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 U.S. Dollar deposits).

     (c) Swing Loans. Each Swing Loan shall bear interest as provided in Section 1.7(b) hereof.

     (d) Rate Determinations. The Administrative Agent shall determine each interest rate
applicable to the Loans and the Reimbursement Obligations hereunder, and its determination thereof
shall be conclusive and binding except in the case of manifest error.

     Section 1.5. Minimum Borrowing Amounts. Each Borrowing of Base Rate Loans advanced under a
Credit shall be in an amount not less than $1,000,000 or such greater amount which is an integral
multiple of $500,000. Each Borrowing of Eurodollar Loans advanced, continued, or converted under a
Credit shall be in an amount equal to $2,000,000 or such greater amount which is an integral
multiple of $500,000. Without the Administration Agent’s consent, there shall not be more than 12
Borrowings of Eurodollar Loans outstanding under the Credits at any one time.

     Section 1.6. Manner of Borrowing Loans and Designating Applicable Interest Rates. (a) Notice
to the Administrative Agent. The Borrower shall give notice to the Administrative Agent by no
later than 10:00 a.m. (Chicago time): (i) at least 3 Business Days before the date on

- 8 -

 

which the Borrower requests the Lenders to advance a Borrowing of Eurodollar Loans and (ii) on the date the
Borrower requests the Lenders to advance a Borrowing of Base Rate Loans. The Loans included in
each Borrowing shall bear interest initially at the type of rate specified in such notice of a new
Borrowing. Thereafter, the Borrower may from time to time elect to change or continue the type of
interest rate borne by each Borrowing or, subject to Section 1.5’s minimum amount requirement for
each outstanding Borrowing, a portion thereof, as follows: (i) if such Borrowing is of Eurodollar
Loans, on the last day of the Interest Period applicable thereto, the Borrower may continue part or
all of such Borrowing as Eurodollar Loans or convert part or all of such Borrowing into Base Rate
Loans, or (ii) if such Borrowing is of Base Rate Loans, on any Business Day, the Borrower may
request to convert all or part of such Borrowing into Eurodollar Loans for an Interest Period or
Interest Periods specified by the Borrower. The Borrower shall give all such notices requesting
the advance, continuation, or conversion of a Borrowing to the Administrative Agent by telephone or
telecopy (which notice shall be irrevocable once given and, if by telephone, shall be promptly
confirmed in writing), substantially in the form attached hereto as Exhibit B (Notice of Borrowing)
or Exhibit C (Notice of Continuation/Conversion), as applicable, or in such other form acceptable
to the Administrative Agent. Notices of the continuation of a Borrowing of Eurodollar Loans for an
additional Interest Period or of Base Rate Loans into Eurodollar Loans must be given by no later
than 10:00 a.m. (Chicago time) at least 3 Business Days before the date of the requested
continuation or conversion. All such notices concerning the advance, continuation, or conversion
of a Borrowing shall specify the date of the requested advance, continuation, or conversion of a
Borrowing (which shall be a Business Day), the amount of the requested Borrowing to be advanced,
continued, or converted, the type of Loans to comprise such new, continued, or converted Borrowing
and, if such Borrowing is to be comprised of Eurodollar Loans, the Interest Period applicable
thereto. The Borrower agrees that the Administrative Agent may rely on any such telephonic or
telecopy notice given by any person the Administrative Agent in good faith believes is an
Authorized Representative without the necessity of independent investigation, and in the event any
such notice by telephone conflicts with any written confirmation, such telephonic notice shall
govern if the Administrative Agent has acted in reliance thereon.

     (b) Notice to the Lenders. The Administrative Agent shall give prompt telephonic or telecopy
notice to each Lender of any notice from the Borrower received pursuant to Section 1.6(a) above
and, if such notice requests the Lenders to make Eurodollar Loans, the Administrative Agent shall
give notice to the Borrower and each Lender by like means of the interest rate applicable thereto
promptly after the Administrative Agent has made such determination.

     (c) Borrower’s Failure to Notify; Automatic Continuations and Conversions. Any outstanding
Borrowing of Base Rate Loans shall automatically be continued for an additional Interest Period on
the last day of its then current Interest Period unless the Borrower has notified the
Administrative Agent within the period required by Section 1.6(a) that the Borrower intends
to convert such Borrowing, subject to Section 7.1 hereof, into a Borrowing of Eurodollar Loans or
such Borrowing is prepaid in accordance with Section 1.10(a). If the Borrower fails to give notice
pursuant to Section 1.6(a) above of the continuation or conversion of any outstanding principal
amount of a Borrowing of Eurodollar Loans before the last day of its then current

- 9 -

 

Interest Period within the period required by Section 1.6(a) or, whether or not such notice has been given, one or
more of the conditions set forth in Section 7.1 for the continuation or conversion of a Borrowing
of Eurodollar Loans would not be satisfied, and such Borrowing is not prepaid in accordance with
Section 1.10(a), such Borrowing shall automatically be converted into a Borrowing of Base Rate
Loans. In the event the Borrower fails to give notice pursuant to Section 1.6(a) above of a
Borrowing equal to the amount of a Reimbursement Obligation and has not notified the Administrative
Agent by 11:00 a.m. (Chicago time) on the day such Reimbursement Obligation becomes due that it
intends to repay such Reimbursement Obligation through funds not borrowed under this Agreement, the
Borrower shall be deemed to have requested a Borrowing of Base Rate Loans under the Revolving
Credit (or, at the option of the Administrative Agent, under the Swing Line) on such day in the
amount of the Reimbursement Obligation then due, which Borrowing shall be applied to pay the
Reimbursement Obligation then due.

     (d) Disbursement of Loans. Not later than 12:00 Noon (Chicago time) on the date of any
requested advance of a new Borrowing, subject to Section 7 hereof, each Lender shall make available
its Loan comprising part of such Borrowing in funds immediately available at the principal office
of the Administrative Agent in Chicago, Illinois. The Administrative Agent shall make the proceeds
of each new Borrowing available to the Borrower at the Administrative Agent’s principal office in
Chicago, Illinois (or by wire transfer of funds pursuant to the Borrower’s written instructions to
the Administrative Agent).

     (e) Administrative Agent Reliance on Lender Funding. Unless the Administrative Agent shall
have been notified by a Lender prior to (or, in the case of a Borrowing of Base Rate Loans, by
12:00 Noon Chicago time on) the date on which such Lender is scheduled to make payment to the
Administrative Agent of the proceeds of a Loan (which notice shall be effective upon receipt) that
such Lender does not intend to make such payment, the Administrative Agent may assume that such
Lender has made such payment when due and the Administrative Agent may in reliance upon such
assumption (but shall not be required to) make available to the Borrower the proceeds of the Loan
to be made by such Lender and, if any Lender has not in fact made such payment to the
Administrative Agent, such Lender shall, on demand, pay to the Administrative Agent the amount made
available to the Borrower attributable to such Lender together with interest thereon in respect of
each day during the period commencing on the date such amount was made available to the Borrower
and ending on (but excluding) the date such Lender pays such amount to the Administrative Agent at
a rate per annum equal to (i) from the date the related advance was made by the Administrative
Agent to the date 2 Business Days after payment by such Lender is due hereunder, the Federal Funds
Rate for each such day, and (ii) from the date 2 Business Days after the date such payment is due
from such Lender to the date such payment is made by such Lender, the Base Rate in effect for each
such day. If such amount is not received from such Lender by the Administrative Agent immediately
upon demand, the Borrower will, on demand, repay to the Administrative Agent the proceeds of the
Loan attributable to such Lender with interest thereon at a rate per annum equal to the interest
rate applicable to the relevant Loan, but without such payment being considered a payment or
prepayment of a Loan under Section 1.13 hereof, so that the Borrower will have no liability under
such Section with respect to such payment.

- 10 -

 

     Section 1.7. Swing Loans. (a) Generally. Subject to all of the terms and conditions hereof,
the Swing Line Lender agrees to make loans to the Borrower under the Swing Line (individually a
“Swing Loan” and collectively the “Swing Loans”) which shall not in the aggregate at any time
outstanding exceed the lesser of (i) $15,000,000 (as the same may be reduced pursuant hereto, the
“Swing Line Sublimit”) or (ii) the difference between (x) the Revolving Credit Commitments in
effect at such time then in effect and (y) the aggregate amount of all Revolving Loans and L/C
Obligations outstanding at the time of computation. Subject to the terms and conditions hereof,
Swing Loans may be repaid and the principal amount thereof reborrowed before the Revolving Credit
Termination Date; provided that each Swing Loan must be repaid on the last day of the Interest
Period applicable thereto. Each Swing Loan shall be in a minimum amount of $250,000 or such
greater amount which is an integral multiple of $100,000.

     (b) Interest on Swing Loans. Each Swing Loan shall bear interest until maturity (whether by
acceleration or otherwise) at a rate per annum equal to (i) the sum of the Base Rate plus the
Applicable Margin for Base Rate Loans under the Revolving Credit as from time to time in effect
(computed on the basis of a year of 365 or 366 days, as the case may be, for the actual number of
days elapsed) or (ii) if accepted by the Borrower pursuant to Section 1.7(c) below, the Swing Line
Lender’s Quoted Rate (computed on the basis of a year of 360 days for the actual number of days
elapsed). Interest on each Swing Loan shall be due and payable on the last day of each Interest
Period applicable thereto.

     (c) Requests for Swing Loans. The Borrower shall give the Administrative Agent prior notice
(which may be written or oral) no later than 12:00 Noon (Chicago time) on the date upon which a
Borrower requests that any Swing Loan be made, of the amount and date of such Swing Loan, and the
Interest Period requested therefor. The Administrative Agent shall promptly advise the Swing Line
Lender of any such notice received from the Borrower. After receiving such notice, the Swing Line
Lender shall quote an interest rate to the Borrower at which the Swing Line Lender would be willing
to make such Swing Loan available to the Borrower for the Interest Period so requested (the rate so
quoted for a given Interest Period being herein referred to as “Swing Line Lender’s Quoted Rate”).
The Borrower acknowledges and agrees that the interest rate quote is given for immediate and
irrevocable acceptance, and if the Borrower does not so immediately accept the Swing Line Lender’s
Quoted Rate for the full amount requested by the Borrower for such Swing Loan, the Swing Line
Lender’s Quoted Rate shall be deemed immediately withdrawn and such Swing Loan shall bear interest
as provided in Section 1.7(b)(i) above. Subject to all of the terms and conditions hereof, the
proceeds of such Swing Loan shall be made available to the Borrower on the date so requested at the
offices of the Administrative Agent in Chicago, Illinois (or by wire transfer of funds pursuant to
the written instructions of the Borrower to the Administrative Agent and the Swing Line Lender).
Anything contained in the foregoing to the contrary notwithstanding (i) the obligation of the Swing
Line Lender to make Swing Loans shall be subject to all of the terms and conditions of this
Agreement (provided that the Swing Line Lender shall be entitled to assume that the conditions
precedent to the making of
a Swing Loan have been satisfied unless notified to the contrary by the Administrative Agent or the
Required Lenders) and (ii) the Swing Line Lender shall not be obligated to make more than one Swing
Loan during any one day.

- 11 -

 

     (d) Refunding Loans. In its sole and absolute discretion, the Swing Line Lender may at any
time, on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to act
on its behalf for such purpose) and with notice to the Borrower, request each Lender to make a
Revolving Loan in the form of a Base Rate Loan in an amount equal to such Lender’s Revolver
Percentage of the amount of the Swing Loans outstanding on the date such notice is given, provided
that the Borrower shall not be liable to the Swing Line Lender under Section 1.13 hereof as a
result of any such required refunding of Swing Loans that bear interest at the Swing Line Lender’s
Quoted Rate on a date other than the last day of the Interest Period relating thereto. Unless an
Event of Default described in Sections 9.1(i) or 9.1(j) exists with respect to the Borrower,
regardless of the existence of any other Event of Default, each Lender shall make the proceeds of
its requested Revolving Loan available to the Administrative Agent (for the account of the Swing
Line Lender), in immediately available funds, at the Administrative Agent’s office in Chicago,
Illinois, before 12:00 Noon (Chicago time) on the Business Day following the day such notice is
given. The Administrative Agent shall promptly remit the proceeds of such Borrowing to the Swing
Line Lender to repay the outstanding Swing Loans.

     (e) Participations. If any Lender refuses or otherwise fails to make a Revolving Loan when
requested by the Swing Line Lender pursuant to Section 1.7(d) above (because an Event of Default
described in Section 9.1(i) or 9.1(j) exists with respect to the Borrower or otherwise), such
Lender will, by the time and in the manner such Revolving Loan was to have been funded to the Swing
Line Lender, purchase from the Swing Line Lender an undivided participating interest in the
outstanding Swing Loans in an amount equal to its Revolver Percentage of the aggregate principal
amount of Swing Loans that were to have been repaid with such Revolving Loans. Each Lender that so
purchases a participation in a Swing Loan shall thereafter be entitled to receive its Revolver
Percentage of each payment of principal received on the Swing Loan and of interest received thereon
accruing from the date such Lender funded to the Swing Line Lender its participation in such Loan.
The several obligations of the Lenders under this Section 1.7(e) shall be absolute, irrevocable and
unconditional under any and all circumstances whatsoever and shall not be subject to any set-off,
counterclaim or defense to payment which any Lender may have or have had against the Borrower, the
Swing Line Lender, any other Lender or any other Person whatever. Without limiting the generality
of the foregoing, such obligations shall not be affected by any Default or Event of Default or by
any reduction or termination of the Commitments of any Lender, and each payment made by a Lender
under this Section 1.7(e) shall be made without any offset, abatement, withholding or reduction
whatsoever.

     Section 1.8. Interest Periods. As provided in Section 1.6(a) and 1.7(a) hereof, at the time
of each request to advance, continue, or create by conversion a Borrowing of Eurodollar Loans or
Swing Loans, the Borrower shall select an Interest Period applicable to such Loans from among the
available options. The term “Interest Period” means the period commencing on the date a Borrowing
of Loans is advanced, continued, or created by conversion and ending: (a) in the case of Base Rate
Loans, on the last day of the calendar month in which such Borrowing is advanced, continued, or
created by conversion (or on the last day of the following calendar month if such Loan is advanced, continued,
or created by conversion on the last day of a calendar month), (b) in the case of a Eurodollar
Loan, 1, 2, 3, or 6 months thereafter, and (c) in the case of a Swing Loan, on the date 1 to 7 days
thereafter as mutually agreed by the Borrower and the Swing Line Lender; provided, however, that:

- 12 -

 

     (a) no Interest Period with respect to any portion of the Revolving Loans or Swing
Loans shall extend beyond the Revolving Credit Termination Date;

     (b) whenever the last day of any Interest Period would otherwise be a day that is not a
Business Day, the last day of such Interest Period shall be extended to the next succeeding
Business Day, provided that, if such extension would cause the last day of an Interest
Period for a Borrowing of Eurodollar Loans to occur in the following calendar month, the
last day of such Interest Period shall be the immediately preceding Business Day; and

     (c) for purposes of determining an Interest Period for a Borrowing of Eurodollar Loans,
a month means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month; provided, however, that if there is no
numerically corresponding day in the month in which such an Interest Period is to end or if
such an Interest Period begins on the last Business Day of a calendar month, then such
Interest Period shall end on the last Business Day of the calendar month in which such
Interest Period is to end.

     Section 1.9. Maturity of Loans. (a) Revolving Loans. Each Revolving Loan shall mature and
become due and payable by the Borrower on the Revolving Credit Termination Date.

     (b) Swing Loans. Each Swing Loan shall mature and become due and payable by the Borrower on
the last day of the Interest Period applicable thereto.

     Section 1.10. Prepayments. (a) Optional. The Borrower shall have the privilege of prepaying
Loans in whole or in part (but, if in part, then: (i) in an amount not less than $1,000,000, and
(ii) in an amount such that the minimum amount required for a Borrowing pursuant to Section 1.5 and
1.7 hereof remains outstanding) any Borrowing of Eurodollar Loans at any time upon 3 (three)
Business Days prior notice by the Borrower to the Administrative Agent or, in the case of a
Borrowing of Base Rate Loans, upon notice delivered to the Administrative Agent by the Borrower no
later than 10:00 a.m. (Chicago time) on the date of prepayment, such prepayment to be made by the
payment of the principal amount to be prepaid and, in the case of any Eurodollar Loan or any Swing
Loans bearing interest at the Swing Line Lender’s Quoted Rate, accrued interest thereon to the date
of prepayment plus any amounts due under Section 1.13 hereof.

     (b) Mandatory. (i) The Borrower shall, on each date the Revolving Credit Commitments are
reduced pursuant to Section 1.14 hereof, prepay the Revolving Loans and Swing Loans and, if
necessary, prefund the L/C Obligations by the amount, if any, necessary to
reduce the sum of the aggregate principal amount of Revolving Loans, Swing Loans, and L/C
Obligations then outstanding to the amount to which the Revolving Credit Commitments have been so
reduced with each such prepayment first to be applied to the Swing Loans until payment in full
thereof, then to the Revolving Loans until payment in full thereof, with any remaining balance to
be held by the Administrative Agent as collateral security for the L/C Obligations.

- 13 -

 

     (ii) Unless the Borrower otherwise directs, prepayments of Loans under this Section 1.10(b)
shall be applied first to Borrowings of Base Rate Loans until payment in full thereof, then to
Borrowings of Eurodollar Loans in the order in which their Interest Periods expire. Each
prepayment of Loans under this Section 1.10(b) shall be made by the payment of the principal amount
to be prepaid and, in the case of any Eurodollar Loans or Swing Loans, accrued interest thereon to
the date of prepayment together with any amounts due the Lenders under Section 1.13 hereof. Each
prefunding of L/C Obligations shall be made in accordance with Section 9.4 hereof. Notwithstanding
the foregoing, unless an Event of Default has occurred and is continuing in the event that the
making of any prepayment required by this Section 1.10 of any Eurodollar Loans would result in an
obligation on the part of the Borrower to make a breakage payment in respect thereof pursuant to
Section 1.13 hereof, the Borrower may, upon notice to the Administrative Agent, pledge and deposit
with the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, cash in
the amount of the required prepayment pursuant to documentation satisfactory to Administrative
Agent. The cash shall be maintained in the Collateral Account maintained by the Administrative
Agent referred to in Section 9.4 hereof. Such cash shall be applied to the outstanding Eurodollar
Loans in the order in which their Interest Periods expire. The Borrower hereby grants to the
Administrative Agent for the benefit of the Administrative Agent and the Lenders a security
interest in all such cash balances.

     (c) The Administrative Agent will promptly advise each Lender of any notice of prepayment it
receives from the Borrower. Any amount of Revolving Loans and Swing Loans paid or prepaid before
the Revolving Credit Termination Date may, subject to the terms and conditions of this Agreement,
be borrowed, repaid, and borrowed again.

     Section 1.11. Default Rate. Notwithstanding anything to the contrary contained in Section 1.4
hereof, while any Event of Default exists or after acceleration, the Borrower shall pay interest
(after as well as before entry of judgment thereon to the extent permitted by law) on the principal
amount of all Loans and Reimbursement Obligations, and letter of credit fees at a rate per annum
equal to:

     (a) for any Base Rate Loan or any Swing Loan bearing interest based on the Base Rate,
the sum of 2% plus the Applicable Margin plus the Base Rate from time to time in effect
(computed on the basis of a year of 365 or 366 days, as the case may be, for the actual
number of days elapsed);

     (b) for any Eurodollar Loan or any Swing Loan bearing interest at the Swing Line
Lender’s Quoted Rate, the sum of 2% plus the rate of interest in effect thereon at the time
of such default until the end of the Interest Period applicable thereto (computed on the
basis of a year of 360 days for the actual number of days elapsed) and, thereafter, at a
rate per annum equal to the sum of 2% plus the Applicable Margin for Base Rate Loans plus
the Base Rate from time to time in effect (computed on the basis of a year of 365 or 366
days, as the case may be, for the actual number of days elapsed);

     (c) for any Reimbursement Obligation, the sum of 2% plus the amounts due under Section
1.2 with respect to such Reimbursement Obligation; and

- 14 -

 

     (d) for any Letter of Credit, the sum of 2% plus the letter of credit fee due under
Section 2.1 with respect to such Letter of Credit;

provided, however, that in the absence of acceleration, any adjustments pursuant to this Section
shall be made at the election of the Administrative Agent, acting at the request or with the
consent of the Required Lenders, with written notice to the Borrower. While any Event of Default
exists or after acceleration, interest and fees shall continue to be due and payable as otherwise
provided in this Agreement and, in addition, such interest and fees shall also be paid on demand of
the Administrative Agent acting at the request or with the consent of the Required Lenders.

     Section 1.12. Evidence of Indebtedness. (a) Each Lender shall maintain in accordance with its
usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder.

     (b) The Administrative Agent shall also maintain accounts in which it will record (i) the
amount of each Loan made hereunder, the type thereof and the Interest Period with respect thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower and each Lender’s share thereof.

     (c) The entries maintained in the accounts maintained pursuant to paragraphs (a) and (b) above
shall be prima facie evidence of the existence and amounts of the Obligations therein recorded;
provided, however, that the failure of the Administrative Agent or any Lender to maintain such
accounts or any error therein shall not in any manner affect the obligation of the Borrower to
repay the Obligations in accordance with their terms.

     (d) Any Lender may request that its Loans be evidenced by a promissory note or notes in the
forms of Exhibit D-1 (in the case of its Revolving Loans and referred to herein as a “Revolving
Note”), or D-2 (in the case of its Swing Loans and referred to herein as a “Swing Note”), as
applicable (the Revolving Notes and Swing Note being hereinafter referred to collectively as the
“Notes” and individually as a “Note”). In such event, the Borrower shall prepare, execute and
deliver to such Lender a Note payable to the order of such Lender in the amount of the relevant
Commitment or Swing Line Sublimit, as applicable. Thereafter, the Loans evidenced by such Note or
Notes and interest thereon shall at all times (including after any assignment pursuant to Section
13.12) be represented by one or more Notes payable to the order of the payee named therein or any
assignee pursuant to Section 13.12, except to the extent that
any such Lender or assignee subsequently returns any such Note for cancellation and requests that
such Loans once again be evidenced as described in subsections (a) and (b) above.

     Section 1.13. Funding Indemnity. If any Lender shall incur any loss, cost, or expense
(including, without limitation, any loss of profit, and any loss, cost, or expense incurred by
reason of the liquidation or re-employment of deposits or other funds acquired by such Lender to
fund or maintain any Eurodollar Loan or Swing Loan bearing interest at the Administrative

- 15 -

 

Agent’s
Quoted Rate or the relending or reinvesting of such deposits or amounts paid or prepaid to such
Lender) as a result of:

     (a) any payment, prepayment or conversion of a Eurodollar Loan or Swing Loan on a date
other than the last day of its Interest Period,

     (b) any failure (because of a failure to meet the conditions of Section 7 or otherwise)
by the Borrower to borrow or continue a Eurodollar Loan or Swing Loan, or to convert a Base
Rate Loan into a Eurodollar Loan or Swing Loan, on the date specified in a notice given
pursuant to Section 1.6(a) or 1.7(c),

     (c) any failure by the Borrower to make any payment of principal on any Eurodollar Loan
or Swing Loan when due (whether by acceleration or otherwise), or

     (d) any acceleration of the maturity of a Eurodollar Loan or Swing Loan as a result of
the occurrence of any Event of Default hereunder,

then, upon the demand of such Lender, the Borrower shall pay to such Lender within 15 days after
demand by such Lender (which demand shall be accompanied by the certificate referred to below) such
amount as will reimburse such Lender for such loss, cost, or expense. If any Lender makes such a
claim for compensation, it shall provide to the Borrower, with a copy to the Administrative Agent,
a certificate setting forth the amount of such loss, cost, or expense in reasonable detail and the
amounts shown on such certificate shall be conclusive if reasonably determined.

     Section 1.14. Commitment Terminations. (a) Optional Revolving Credit Terminations. The
Borrower shall have the right at any time and from time to time, upon 5 Business Days’ prior
written notice to the Administrative Agent (or such shorter period of time agreed to by the
Administrative Agent), to terminate the Revolving Credit Commitments without premium or penalty and
in whole or in part, any partial termination to be (i) in an amount not less than $5,000,000, and
(ii) allocated ratably among the Lenders in proportion to their respective Revolver Percentages.
Any termination of the Revolving Credit Commitments below the L/C Sublimit or the Swing Line
Sublimit shall reduce the L/C Sublimit and the Swing Line Sublimit, as applicable, by a like
amount. The Administrative Agent shall give prompt notice to each Lender of any such reduction or
termination of the Revolving Credit Commitments.

     (b) Mandatory Terminations. After the occurrence of a Change of Control, the Required Lenders
may, by written notice to the Borrower at any time on or before the date
occurring 90 days after the date the Borrower notifies the Lenders of such Change of Control,
terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date
stated in such notice (which may be any date that is not less than 30 days following the date of
such notice). On the date the Commitments are so terminated, all outstanding Obligations
(including, without limitation, all principal of and accrued interest on the Loans) shall forthwith
be due and payable without further demand, presentment, protest, or notice of any kind and the
Borrower shall immediately pay to the Lenders the full amount then available for drawing under each
Letter of Credit, such amount to be held in the Collateral Account (the Borrower agreeing

- 16 -

 

to immediately make such payment on the date the Commitments are so terminated and acknowledging and
agreeing that the Lenders would not have an adequate remedy at law for the failure by the Borrower
to honor any such demand and that the Lenders, and the Administrative Agent on their behalf, shall
have the right to require the Borrower to specifically perform such undertaking whether or not any
drawings or other demands for payment have been made under any of the Letters of Credit).

     (c) Any termination of the Commitments pursuant to this Section 1.14 may not be reinstated.

     Section 1.15. Substitution of Lenders. Upon the receipt by the Borrower of (a) a claim from
any Lender for compensation under Section 10.3 or 13.1 hereof, (b) notice by any Lender to the
Borrower of any illegality pursuant to Section 10.1 hereof, or (c) in the event any Lender is in
default in any material respect (including, without limitation, such Lender’s failure to fund when
required to do so hereunder) with respect to its obligations under the Loan Documents (any such
Lender referred to in clause (a), (b), or (c) above being hereinafter referred to as an “Affected
Lender”), the Borrower may, in addition to any other rights the Borrower may have hereunder or
under applicable law, require, at its expense, any such Affected Lender to assign, at par plus
accrued interest and fees, without recourse, all of its interest, rights and obligations hereunder
(including all of its Commitments and the Loans and participation interests in Letters of Credit
and other amounts at any time owing to it hereunder and the other Loan Documents) to a bank or
other institutional lender specified by the Borrower, provided that (i) such assignment shall not
conflict with or violate any law, rule, or regulation or order of any court or other governmental
authority, (ii) the Borrower shall have received the written
consent of the Administrative Agent,
which consent shall not be unreasonably withheld, to such assignment, (iii) the Borrower shall have
paid to the Affected Lender all monies (together with amounts due such Affected Lender under
Section 1.13 hereof as if the Loans owing to it were prepaid rather than assigned) other than such
principal owing to it hereunder, and (iv) the assignment is entered into in accordance with the
other requirements of Section 13.12 hereof (provided any assignment fees and reimbursable expenses
due thereunder shall be paid by the Borrower).

     Section 1.16. Increase in Commitments. The Borrower may, on any Business Day prior to the
Revolving Credit Termination Date, increase the aggregate amount of the Revolving Credit
Commitments by delivering to the Administrative Agent a Commitment Amount Increase Request in the
form attached hereto as Exhibit G at least five (5) Business Days prior to the desired effective
date of such increase (the “Commitment Amount Increase”) identifying an additional Lender (or
additional Commitments
for existing Lender(s)) and the amount of its Commitment (or additional amount of its
Commitment(s)); provided, however, that (i) any increase of the aggregate amount of the Revolving
Credit Commitments to an amount in excess of $300,000,000 shall require the prior written consent
of the Required Lenders, (ii) any increase of the aggregate amount of the Commitments shall be in
an amount not less than $25,000,000, (iii) no Default or Event of Default shall have occurred and
be continuing at the time of the request or the effective date of the Commitment Amount Increase,
and (iv) all representations and warranties contained in Section 6 hereof shall be true and correct
at the time of such request and on the effective date of such Commitment Account Increase. The
effective date of the Commitment Amount Increase shall be agreed upon by the Borrower and the
Administrative

- 17 -

 

Agent. Upon the effectiveness thereof, Schedule 1 shall be deemed amended to
reflect the Commitment Amount Increase and the new Lender(s) (or, if applicable, existing
Lender(s)) shall advance Revolving Loans in an amount sufficient such that after giving effect to
its Revolving Loans each Lender shall have outstanding its pro rata share of all Revolving Loans
based on its Revolver Percentage. It shall be a condition to such effectiveness that (i) if there
are any Eurodollar Loans outstanding under the Revolving Credit on the date of such effectiveness,
unless otherwise agreed to by the Administrative Agent, such Eurodollar Loans shall be prepaid and
the Borrower shall have paid all amounts required to be paid under Section 1.13 hereof and (ii) the
Borrower shall not have terminated any portion of the Revolving Credit Commitments pursuant of
Section 1.14(a) hereof. The Borrower agrees to pay any reasonable expenses of the Administrative
Agent relating to any Commitment Amount Increase. Notwithstanding anything herein to the contrary,
no Lender shall have any obligation to increase its Revolving Credit Commitment and no Lender’s
Revolving Credit Commitment shall be increased without its consent thereto, and each Lender may at
its option, unconditionally and without cause, decline to increase its Revolving Credit Commitment.

Section 2. Fees.

     Section 2.1. Fees. (a) Revolving Credit Commitment Fee. The Borrower shall pay to the
Administrative Agent for the ratable account of the Lenders in accordance with their Revolver
Percentages a commitment fee at the rate per annum equal to the Applicable Margin (computed on the
basis of a year of 365 or 366 days, as the case may be, and the actual number of days elapsed) on
the average daily Unused Revolving Credit Commitments. Such commitment fee shall be payable
quarterly in arrears on the last day of each March, June, September, and December in each year
(commencing on the first such date occurring after the date hereof) and on the Revolving Credit
Termination Date, unless the Revolving Credit Commitments are terminated in whole on an earlier
date, in which event the commitment fee for the period to the date of such termination in whole
shall be paid on the date of such termination.

     (b) Letter of Credit Fees. On the date of issuance or extension, or increase in the amount,
of any standby Letter of Credit pursuant to Section 1.2 hereof, the Borrower shall pay to the
relevant L/C Issuer a fronting fee equal to .125% per annum of the face amount of (or of the
increase in the face amount of) such Letter of Credit. Quarterly in arrears, on the last day of
each March, June, September, and December in each year (commencing on the first such date occurring
after the date hereof), the Borrower shall pay to the Administrative Agent, for the
ratable benefit of the Lenders in accordance with their Revolver Percentages, a letter of credit
fee at a rate per annum equal to the Applicable Margin (computed on the basis of a year of 360 days
and the actual number of days elapsed) in effect during each day of such quarter applied to the
daily average face amount of the Letters of Credit outstanding during such quarter. In addition,
the Borrower shall pay to the L/C Issuer for its own account the L/C Issuer’s standard issuance,
drawing, negotiation, amendment, assignment, and other administrative fees for each Letter of
Credit. Such standard fees referred to in the preceding sentence may be established by the L/C
Issuer from time to time.

     (c) Administrative Agent Fees and Upfront Fees. The Borrower shall pay to the Administrative
Agent for its own use and benefit, the fees agreed to between the Administrative

- 18 -

 

Agent and the
Borrower in a fee letter dated of even date herewith, or as otherwise thereafter agreed to in
writing between them.

Section 3. Place and Application of Payments.

     Section 3.1. Place and Application of Payments. All payments of principal of and interest on
the Loans and the Reimbursement Obligations, and of all other Obligations payable by the Borrower
under this Agreement and the other Loan Documents, shall be made by the Borrower to the
Administrative Agent by no later than 12:00 Noon (Chicago time) on the due date thereof at the
office of the Administrative Agent in Chicago, Illinois (or such other location as the
Administrative Agent may designate to the Borrower) for the benefit of the Lender or Lenders
entitled thereto. Any payments received after such time shall be deemed to have been received by
the Administrative Agent on the next Business Day. All such payments shall be made in U.S.
Dollars, in immediately available funds at the place of payment, in each case without set-off or
counterclaim. The Administrative Agent will promptly thereafter cause to be distributed like funds
relating to the payment of principal or interest on Loans and on Reimbursement Obligations in which
the Lenders have purchased Participating Interests ratably to the Lenders and like funds relating
to the payment of any other amount payable to any Lender to such Lender, in each case to be applied
in accordance with the terms of this Agreement. If the Administrative Agent causes amounts to be
distributed to the Lenders in reliance upon the assumption that the Borrower will make a scheduled
payment and such scheduled payment is not so made, each Lender shall, on demand, repay to the
Administrative Agent the amount distributed to such Lender together with interest thereon in
respect of each day during the period commencing on the date such amount was distributed to such
Lender and ending on (but excluding) the date such Lender repays such amount to the Administrative
Agent, at a rate per annum equal to: (i) from the date the distribution was made to the date two
Business Days after payment by such Lender is due hereunder, the Federal Funds Rate for each such
day and (ii) from the date two Business Days after the date such payment is due from such Lender to
the date such payment is made by such Lender, the Base Rate in effect for each such day.

     Anything contained herein to the contrary notwithstanding (including, without limitation,
Section 1.10(b) hereof), after acceleration or the final maturity of the Obligations or termination
of the Commitments as a result of an Event of Default, all payments and collections received in
respect of the Obligations and all proceeds of the Collateral received, in each instance, by
the Administrative Agent or any of the Lenders shall be remitted to the Administrative Agent and,
unless the Administrative Agent and the Required Lenders shall determine otherwise, be distributed
as follows:

     (a) first, to the payment of any outstanding costs and expenses incurred by the
Administrative Agent, and any security trustee therefor, in monitoring, verifying,
protecting, preserving or enforcing the Liens on the Collateral, in protecting, preserving
or enforcing rights under the Loan Documents, and in any event including all costs and
expenses of a character which the Borrower has agreed to pay the Administrative Agent under
Section 13.16 hereof (such funds to be retained by the Administrative Agent for its own
account unless it has previously been reimbursed for such costs and expenses by the

- 19 -

 

Lenders,
in which event such amounts shall be remitted to the Lenders to reimburse them for payments
theretofore made to the Administrative Agent);

     (b) second, to the payment of principal and interest on the Swing Loans;

     (c) third, to the payment of any outstanding interest and fees due under the Loan
Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to
each holder thereof;

     (d) fourth, to the payment of principal on the Loans (other than Swing Loans covered in
(b) above), unpaid Reimbursement Obligations, together with amounts to be held by the
Administrative Agent as collateral security for any outstanding L/C Obligations pursuant to
Section 9.4 hereof (until the Administrative Agent is holding an amount of cash equal to the
then outstanding amount of all such L/C Obligations), and Hedging Liability, the aggregate
amount paid to, or held as collateral security for, the Lenders and, in the case of Hedging
Liability, their Affiliates to be allocated pro rata in accordance with the aggregate unpaid
amounts owing to each holder thereof;

     (e) fifth, to the payment of all other unpaid Obligations and all other indebtedness,
obligations, and liabilities of the Borrower and its Subsidiaries secured by the Loan
Documents (including, without limitation, Funds Transfer, Deposit Account, and
Credit/Purchasing Card Liability) to be allocated pro rata in accordance with the aggregate
unpaid amounts owing to each holder thereof; and

     (f) finally, to the Borrower or whoever else may be lawfully entitled thereto.

Section 4. The Collateral and Guaranties.

     Section 4.1. Collateral. The Obligations shall be secured by (a) valid, perfected and
enforceable Liens on all right, title, and interest of the Borrower and each Subsidiary in all
capital stock and other equity interests held by the Borrower or such Subsidiary in each of its
Subsidiaries whether now owned or hereafter formed or acquired, and all proceeds thereof, and (b)
valid, perfected (subject to the proviso appearing at
the end of this sentence) and enforceable Liens on all right, title and interest of the Borrower
and each Subsidiary in all accounts and accounts receivable, notes and notes receivable, contract
rights, instruments, documents, chattel paper, general intangibles (including, without limitation,
patents, trademarks, tradenames, copyrights, and other intellectual property rights), investment
property, inventory, machinery, equipment, deposit accounts, and real estate, and all other
personal property and real property, whether now owned or hereafter acquired or arising, and all
proceeds thereof; provided, however, that: (i) the Lien of the Administrative Agent on Property
subject to a Capital Lease or conditional sale agreement or subject to a purchase money lien in
each instance permitted hereby shall be subject to the rights of the lessor or lender thereunder,
(ii) the Administrative Agent’s Lien on deposit accounts shall not include payroll accounts of the
Borrower or any Subsidiary (provided the Borrower and its Subsidiaries party hereto agree that the
total amount on deposit at any time in such payroll accounts shall not exceed the then current
amount of their payroll obligations), and, until otherwise required by the Administrative Agent
(acting at the request or

- 20 -

 

with the consent of the Required Lenders), Liens on deposit accounts
maintained by the Borrower or any Subsidiary in proximity to its operations need not be perfected
provided that the total amount on deposit at any one time not so perfected shall not exceed
$1,000,000 in the aggregate, (iii) until otherwise required by the Administrative Agent (acting at
the request or with the consent of the Required Lenders), Liens on titled vehicles need not be
perfected provided that the total value of such property at any one time not so perfected shall not
exceed $1,000,000 in the aggregate, (iv) unless otherwise required by the Administrative Agent
(acting at the request or with the consent of the Required Lenders) during the existence of any
Event of Default, Liens on the capital stock or other equity interests of a Foreign Subsidiary
which, if granted, would cause an adverse effect on the Borrower’s present or future federal income
tax liability shall be limited to 65% of the total outstanding Voting Stock of such Foreign
Subsidiary, (v) Liens need not be granted on the assets of a Foreign Subsidiary which, if granted,
would cause an adverse effect on the Borrower’s present or future federal income tax liability and
(vi) unless otherwise required by the Administrative Agent (acting at the request or with the
consent of the Required Lenders) during the existence of any Event of Default, Liens need not be
granted on the Borrower’s real property located in Tennille, Georgia (however Liens shall continue
to be granted on all of the Borrower’s personal property at such location), provided that during
the term of this Agreement there shall not be any consensual Liens upon such real property. The
Borrower acknowledges and agrees that the Liens on the Collateral shall be granted to the
Administrative Agent for the benefit of itself and the Lenders and shall be valid and perfected
first priority Liens subject, however, to the proviso appearing at the end of the immediately
preceding sentence and Liens permitted by Section 8.8 hereof, in each case pursuant to one or more
Collateral Documents from such Persons, each in form and substance reasonably satisfactory to the
Administrative Agent.

     Section 4.2. Deposit Account Agreements. Except as otherwise permitted by clause (ii) of
Section 4.1 above, and subject to the limitations described in clause (v) of Section 4.1 above, the
Borrower shall cause each financial institution maintaining one or more deposit accounts for the
Borrower or any Subsidiary to enter into an agreement with the Administrative Agent pursuant to
which such financial institution acknowledges and agrees to the Administrative Agent’s Lien on such
deposit accounts and all funds therein, to waive any right of offset or bankers’ lien with respect
to such deposit accounts (other than charges for account maintenance fees and returned items), and,
during the existence of any Event of Default, to remit all collected balances in such deposit
accounts to the Administrative Agent. The Borrower and, by becoming a Guarantor hereto, each
Subsidiary hereby acknowledge and agree that the Administrative Agent has (and is hereby granted) a
Lien on all such deposit accounts and all funds contained therein to secure the Obligations. The
Lenders agree with the Borrower that if and so long as no Event of Default has occurred and is
continuing, amounts on deposit in the deposit accounts maintained with the Administrative Agent or
any Lender will (subject to the rules and regulations of the Administrative Agent or the relevant
Lender as from time to time in effect applicable to demand deposit accounts) be made available to
the Borrower or the relevant Subsidiary for use in the conduct of its business. Upon the
occurrence and during the continuation of any Event of Default, the Administrative Agent may apply
the funds on deposit in all such deposit accounts to the Obligations. The Borrower has heretofore
disclosed to the Administrative Agent in writing all of the deposit accounts which require an
agreement pursuant

- 21 -

 

to this Section and the Borrower shall advise the Administrative Agent of any
such deposit accounts which are hereafter opened or closed.

     Section 4.3. Liens on Real Property. Subject to the limitation imposed by clause (v) of
Section 4.1 hereof, in the event that the Borrower or any Subsidiary owns or hereafter acquires any
owned real property with a fair market value greater than or equal to $1,000,000 (or, during the
existence of any Event of Default, any owned real property, regardless of its value, at the request
of the Administrative Agent), the Borrower shall execute and deliver, and shall cause the relevant
Subsidiary to execute and deliver, to the Administrative Agent (or a security trustee therefor) a
mortgage or deed of trust reasonably acceptable in form and substance to the Administrative Agent
for the purpose of granting to the Administrative Agent for the benefit of itself and the Lenders a
Lien on such real property to secure the Obligations, shall pay all taxes and all reasonable costs
and expenses incurred by the Administrative Agent in obtaining any real estate appraisal required
by the Administrative Agent in connection therewith and in recording such mortgage or deed of
trust, and shall at its expense supply to the Administrative Agent a survey, environmental report,
hazard insurance policy, and a mortgagee’s policy of title insurance from a title insurer
reasonably acceptable to the Administrative Agent insuring the validity of such mortgage or deed of
trust and its status as a first Lien (subject to Liens permitted by this Agreement) on the real
property encumbered thereby and such other instrument, documents, certificates, and opinions
reasonably required by the Administrative Agent in connection therewith.

     Section 4.4. Guaranties. The payment and performance of the Obligations shall at all times be
guaranteed by each direct and indirect Subsidiary of the Borrower (individually a “Guarantor” and
collectively the “Guarantors”) pursuant to Section 12 of this Agreement; provided, however, that
Foreign Subsidiaries shall not be required to be Guarantors hereunder if providing such guaranty
would cause an adverse effect on the Borrower’s present or future federal income tax liability.

     Section 4.5. Further Assurances. The Borrower agrees that it shall, and shall cause each
Subsidiary to, from time to time at the request of the Administrative Agent, execute and deliver
such documents and do such acts and things as
the Administrative Agent may reasonably request in order to provide for or perfect or protect such
Liens on the Collateral.

Section 5. Definitions; Interpretation.

     Section 5.1. Definitions. The following terms when used herein shall have the following
meanings:

     “Acquired Business” means the entity or assets acquired by the Borrower or a Subsidiary in an
Acquisition, whether before or after the date hereof.

     “Acquisition” means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets
of a Person, or of any business or division of a Person, (b) the acquisition of in excess of 50% of
the capital stock, partnership interests, membership interests or equity of any Person (other than a

- 22 -

 

Person that is a Subsidiary), or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other than a Person that is a
Subsidiary) provided that the Borrower or the Subsidiary is the surviving entity.

     “Act” is defined in Section 13.25 hereof.

     “Adjusted EBITDA” means, with reference to any period, EBITDA for such period calculated on a
pro forma basis in good faith by the Borrower and established to the reasonable satisfaction of the
Administrative Agent as if each Acquisition which occurred during such period had taken place on
the first day of such period (including adjustments for non-recurring expenses and income
reasonably determined by the Borrower in good faith and established to the reasonable satisfaction
of the Administrative Agent).

     “Adjusted LIBOR” is defined in Section 1.4(b) hereof.

     “Administrative Agent” means Bank of Montreal, Chicago branch, and any successor pursuant to
Section 11.7 hereof.

     “Administrative Agent’s Quoted Rate” is defined in Section 1.7(c) hereof.

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

     “Affiliate” means any Person directly or indirectly controlling or controlled by, or under
direct or indirect common control with, another Person. A Person shall be deemed to control
another Person for the purposes of this definition if such Person possesses, directly or
indirectly, the power to direct, or cause the direction of, the management and policies of the
other Person, whether through the ownership of voting securities, common directors, trustees or
officers, by contract or otherwise; provided that, in any event for purposes of this definition,
any Person that owns, directly or indirectly, 15% or more of the securities having the ordinary
voting power for
the election of directors or governing body of a corporation or 15% or more of the partnership
or other ownership interest of any other Person (other than as a limited partner of such other
Person) will be deemed to control such corporation or other Person.

     “Agreement” means this Third Amended and Restated Credit Agreement, as the same may be
amended, modified, restated or supplemented from time to time pursuant to the terms hereof.

     “Applicable Margin” means, with respect to Loans, Reimbursement Obligations, and the
commitment fees and letter of credit fees payable under Section 2.1 hereof, until the first Pricing
Date, the rates per annum shown opposite Level I below, and thereafter from one Pricing Date to the
next the Applicable Margin means the rates per annum determined in accordance with the following
schedule:

- 23 -

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level	 	total Funded
Debt/Adjusted
EBITDA Ratio for
Such Pricing Date	 	Applicable Margin for
Base Rate Loans and
Reimbursement
Obligations Shall be	 	Applicable Margin
for Eurodollar
Loans and letter of
Credit Fee Shall be:	 	Applicable
Margin for
Revolving Credit
Commitment Fee
shall be:
	VI	 	Greater than or equal to 2.5 to 1.0
	 	 	.25	%	 	 	1.75	%	 	 	.35	%
	V	 	Greater than or equal to 2.0 to 1.0, but less than 2.5 to 1.0
	 	 	0	%	 	 	1.50	%	 	 	.30	%
	IV	 	Greater than or equal to 1.5 to 1.0, but less than 2.0 to 1.0
	 	 	0	%	 	 	1.25	%	 	 	.25	%
	III	 	Greater than or equal to 1.0 to 1.0, but less than 1.5 to 1.0
	 	 	0	%	 	 	1.00	%	 	 	.225	%
	II	 	Greater than or equal to 0.5 to 1.0, but less than 1.0 to 1.0
	 	 	0	%	 	 	.75	%	 	 	.20	%
	I	 	Less than 0.5 to 1.0
	 	 	0	%	 	 	.50	%	 	 	.175	%

For purposes hereof, the term “Pricing Date” means, for any fiscal quarter of the Borrower
ending on or after December 31, 2006, the date on which the Administrative Agent is in receipt of
the Borrower’s most recent financial statements for the fiscal quarter then ended (and in the case
of the year-end financial statements, audit report), pursuant to Section 8.5 hereof. The
Applicable Margin shall be established based on the Total Funded Debt/Adjusted 
EBITDA Ratio for the most recently completed fiscal quarter and the Applicable Margin
established on a Pricing Date shall remain in effect until the next Pricing Date. If the Borrower
has not delivered its financial statements (and, in the case of the year-end financial statements,
audit report) by the
date such financial statements are required to be delivered under Section 8.5 hereof, until such
financial statements are delivered, the Applicable Margin shall, at the election of the
Administrative Agent or the Required Lenders with written notice to the Borrower, be the highest
Applicable Margin (i.e., Level VI shall apply). If the Borrower subsequently delivers such
financial statements before the next Pricing Date, the Applicable Margin established by such late
delivered financial statements shall take effect from the date of delivery until the next Pricing
Date. In all other circumstances, the Applicable Margin established by such financial statements
shall be in effect from the Pricing Date that occurs immediately after the end of the fiscal
quarter covered by such financial statements until the next Pricing Date. Each determination of the
Applicable Margin made by the Administrative Agent in accordance with the foregoing shall be
conclusive and binding on the Borrower and the Lenders if reasonably determined.

- 24 -

 

     “Application” is defined in Section 1.2(b) hereof.

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an
Eligible Assignee (with the consent of any party whose consent is required by Section 13.12
hereof), and accepted by the Administrative Agent, in substantially the form of Exhibit H or any
other form approved by the Administrative Agent.

     “Authorized Representative” means those persons shown on the list of officers provided by the
Borrower pursuant to Section 7.2(i) hereof or on any update of any such list provided by the
Borrower to the Administrative Agent, or any further or different officers of the Borrower so named
by any Authorized Representative of the Borrower in a written notice to the Administrative Agent.

     “Base Rate” is defined in Section 1.4(a) hereof.

     “Base Rate Loan” means a Loan bearing interest at a rate specified in Section 1.4(a) hereof.

     “Bond Documents” means any of the documents or instruments executed and delivered in
connection with the issuance of the Bonds and any amendment, modification or supplement thereto.

     “Bond Letters of Credit” means the irrevocable transferable letters of credit issued by Harris
N.A., as successor by merger with Harris Trust and Savings Bank, to secure the payment of the
Bonds.

     “Bonds” means, collectively, (a) $2,800,000 City of Janesville, Wisconsin Adjustable Rate
Industrial Development Revenue Refunding Bonds Dated 3/1/96 Due 9/1/2007 (The Lamson & Sessions Co.
Project), (b) $2,780,000 City of Bowling Green, Ohio Adjustable Rate
Industrial Development Revenue Refunding Bonds Dated 6/28/95 Due 8/1/2009 (The Lamson &
Session Co. Project), (c) $1,820,000 City of Bowling Green, Ohio Adjustable Rate Industrial
Development Revenue Refunding Bonds Dated 3/1/94 Due 3/1/2023, (d) $1,650,000 City of Pasadena,
Texas Corporation Adjustable Rate Industrial Development Revenue Refunding Bonds Dated 2/28/95 Due
4/1/2017 (The Lamson & Sessions Co. Project), and (e) $3,800,000 City of Cabool, Missouri
Industrial Development Revenue Bonds Dated 4/20/00 Due 5/1/10 (City of Cabool, IRB).

     “Borrower” means The Lamson & Sessions Co., an Ohio corporation.

     “Borrowing” means the total of Loans of a single type advanced, continued for an additional
Interest Period, or converted from a different type into such type by the Lenders under a Credit on
a single date and, in the case of Eurodollar Loans, for a single Interest Period.

- 25 -

 

Borrowings of
Loans are made and maintained ratably from each of the Lenders under a Credit in accordance with
their Percentages of such Credit. A Borrowing is “advanced” on the day Lenders advance funds
comprising such Borrowing to the relevant Borrower, is “continued” on the date a new Interest
Period for the same type of Loans commences for such Borrowing, and is “converted” when such
Borrowing is changed from one type of Loans to the other, all as requested by the Borrower pursuant
to Section 1.6(a). Borrowings of Swing Loans are made by the Swing Line Lender in accordance with
the procedures set forth in Section 1.7 hereof.

     “Business Day” means any day (other than a Saturday or Sunday) on which banks are not
authorized or required to close in Chicago, Illinois and, if the applicable Business Day relates to
the advance or continuation of, or conversion into, or payment of a Eurodollar Loan, on which banks
are dealing in U.S. Dollar deposits in the interbank eurodollar market in London, England and
Nassau, Bahamas.

     “Capital Expenditures” means, with respect to any Person for any period, the aggregate amount
of all expenditures (whether paid in cash or accrued as a liability) by such Person during that
period for the acquisition or leasing (pursuant to a Capital Lease) of fixed or capital assets or
additions to property, plant, or equipment (including replacements, capitalized repairs, and
improvements) which should be capitalized on the balance sheet of such Person in accordance with
GAAP; provided, however, that Capital Expenditures shall not include (i) Permitted Acquisitions or
(ii) any Capital Expenditures acquired with the proceeds of property and casualty insurance or
condemnation proceeds paid as a result of any loss, damage or destruction of any assets.

     “Capital Lease” means any lease of Property which in accordance with GAAP is required to be
capitalized on the balance sheet of the lessee.

     “Capitalized Lease Obligation” means, for any Person, the amount of the liability shown on the
balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP.

     “Change of Control” means any of (a) the acquisition by any “person” or “group” (as such terms
are used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) at any time of beneficial ownership of more than 30% of the outstanding Voting Stock
of the Borrower on a fully-diluted basis, or (b) the failure of individuals who are members of the
board of directors of the Borrower on the date hereof (together with any new or replacement
directors whose initial nomination for election was approved by a majority of the directors who
were either directors on the date hereof or previously so approved) to constitute a majority of the
board of directors of the Borrower.

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

     “Collateral” means all properties, rights, interests and privileges from time to time subject
to the Liens granted to the Administrative Agent, or any security trustee therefor, by the
Collateral Documents.

- 26 -

 

     “Collateral Account” is defined in Section 9.4 hereof.

     “Collateral Documents” means the Pledge Agreement, the Security Agreement, the Mortgages, and
all other mortgages, deeds of trust, security agreements, pledge agreements, assignments, financing
statements and other documents as shall from time to time secure or relate to the Obligations or
any part thereof.

     “Commitments” means the Revolving Credit Commitments.

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

     “Credit” means either the Revolving Credit or the Swing Line.

     “Credit Event” means the advancing of any Loan, the continuation of or conversion into a
Eurodollar Loan, or the issuance of, or extension of the expiration date or increase in the amount
of, any Letter of Credit.

     “Default” means any event or condition the occurrence of which would, with the passage of time
or the giving of notice, or both, constitute an Event of Default.

     “Domestic Subsidiary” means any subsidiary other than a Foreign Subsidiary.

     “EBITDA” means, with respect to any period, Net Income for such period plus (A) all amounts
deducted in arriving at such Net Income in respect of (a) Interest Expense, plus (b) federal,
state, local, and foreign income taxes for such period, plus (c) amounts properly charged for
depreciation of fixed assets and amortization of intangible assets during such period, plus (d) any
non-cash expenses or non-cash charges to Net Income during such period. In the event that any
non-cash expense or non-cash charge is excluded from the computation of EBITDA for a given period
pursuant to clause (d) above but the circumstances giving rise to such expense or charge have a
cash impact in a subsequent period which would have reduced
EBITDA but for the expense or charge in the prior period, such impact shall be taken into
account in computing EBITDA in the period when such impact occurs.

     “Effective Date” is defined in Section 7.2 hereof.

     “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund,
and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent,
(ii) in the case of any assignment of a Revolving Credit Commitment, the L/C Issuer(s) and Swing
Line Lender, and (iii) unless an Event of Default has occurred and is continuing, the Borrower
(each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Borrower or any Guarantor or any of the
Borrower’s or such Guarantor’s Affiliates or Subsidiaries.

- 27 -

 

     “Eligible Line of Business” means any business engaged in as of the date of this Agreement by
the Borrower or any of its Subsidiaries or any business reasonably related thereto.

     “Environmental Claim” means any investigation, notice, violation, demand, allegation, action,
suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim
(whether administrative, judicial or private in nature) arising (a) pursuant to, or in connection
with an actual or alleged violation of, any Environmental Law, (b) in connection with any Hazardous
Material, (c) from any abatement, removal, remedial, corrective or response action in connection
with a Hazardous Material, Environmental Law or order of a governmental authority, or (d) from any
actual or alleged damage, injury, threat or harm to health, safety, natural resources or the
environment.

     “Environmental Law” means any current or future Legal Requirement pertaining to (a) the
protection of health, safety and the indoor or outdoor environment, (b) the conservation,
management or use of natural resources and wildlife, (c) the protection or use of surface water or
groundwater, (d) the management, manufacture, possession, presence, use, generation,
transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal,
remediation or handling of, or exposure to, any Hazardous Material, or (e) pollution (including any
Release to air, land, surface water or groundwater), and any amendment, rule, regulation, order or
directive issued thereunder.

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

     “Eurodollar Loan” means a Loan bearing interest at the rate specified in Section 1.4(b)
hereof.

     “Eurodollar Reserve Percentage” is defined in Section 1.4(b) hereof.

     “Event of Default” means any event or condition identified as such in Section 9.1 hereof.

     “Existing Letters of Credit” is defined in Section 1.2(a) hereof.

     “Federal Funds Rate” means the fluctuating interest rate per annum described in part (x) of
clause (ii) of the definition of Base Rate appearing in Section 1.4(a) hereof.

     “Fixed Charges” means, with reference to any period, the sum of (a) the aggregate amount of
payments scheduled to be made by the Borrower and its Subsidiaries during such period in respect of
principal on all Indebtedness for Borrowed Money (whether at maturity or as a result of mandatory
sinking fund redemption), plus (b) federal, state, local, and foreign income taxes payable in cash
for such period, plus (c) Interest Expense payable in cash for such period, plus (d) dividends
permitted by Section 8.12 hereof paid in cash for such period.

     “Foreign Subsidiary” means each Subsidiary which (a) is organized under the laws of a
jurisdiction other than the United States of America or any state thereof, (b) conducts

- 28 -

 

substantially all of its business outside of the United States of America, and (c) has
substantially all of its assets outside of the United States of America.

     “Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability” means the liability of
the Borrower or any Guarantor owing to any of the Lenders, or any Affiliates of such Lenders,
arising out of (a) the execution or processing of electronic transfers of funds by automatic
clearing house transfer, wire transfer or otherwise to or from deposit accounts of the Borrower
and/or any Guarantor now or hereafter maintained with any of the Lenders or their Affiliates, (b)
the acceptance for deposit or the honoring for payment of any check, draft or other item with
respect to any such deposit accounts, (c) any other deposit, disbursement, and cash management
services afforded to the Borrower or any Guarantor by any of such Lenders or their Affiliates, and
(d) the use of any corporate credit cards or purchasing cards issued by any Lender or their
Affiliates.

     “GAAP” means generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the
U.S. accounting profession), which are applicable to the circumstances as of the date of
determination.

     “Guarantor” and “Guarantors” each is defined in Section 4.4 hereof.

     “Hazardous Material” means any substance, chemical, compound, product, solid, gas, liquid,
waste, byproduct, pollutant, contaminant or material which is hazardous or toxic, and includes,
without limitation, (a) asbestos, polychlorinated biphenyls and petroleum (including crude oil or
any fraction thereof) and (b) any material classified or regulated as “hazardous” or “toxic” or
words of like import pursuant to an Environmental Law.

     “Hazardous Material Activity” means any activity, event or occurrence involving a Hazardous
Material, including, without limitation, the manufacture, possession, presence, use, generation,
transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal,
remediation, handling of or corrective or response action to any Hazardous Material.

     “Hedging Liability” means the liability of the Borrower or any Guarantor to any of the
Lenders, or any Affiliates of such Lenders, in respect of any interest rate, foreign currency,
and/or commodity swap, exchange, cap, collar, floor, forward, future or option agreement, or any
other similar interest rate, currency or commodity hedging arrangement, as the Borrower or such
Guarantor, as the case may be, may from time to time enter into with any one or more of the Lenders
party to this Agreement or their Affiliates, with prior written notice to the Administrative Agent.

     “Hostile Acquisition” means the acquisition of the capital stock or other equity interests of
a Person through a tender offer or similar solicitation of the owners of such capital stock or
other equity interests which has not been approved (prior to such acquisition) by resolutions of

- 29 -

 

the Board of Directors of such Person or by similar action if such Person is not a corporation, and
as to which such approval has not been withdrawn.

     “Indebtedness for Borrowed Money” means for any Person (without duplication): (a) all
indebtedness of such Person for borrowed money, whether current or funded, or secured or unsecured,
(b) all indebtedness for the deferred purchase price of Property or services, (c) all indebtedness
created or arising under any conditional sale or other title retention agreement with respect to
Property acquired by such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of a default are limited to repossession or sale of such Property), (d)
all indebtedness secured by a purchase money mortgage or other Lien to secure all or part of the
purchase price of Property subject to such mortgage or Lien, (e) the principal portion of all
obligations under Capital Leases in respect of which such Person is liable as lessee, (f) any
liability in respect of banker’s acceptances or letters of credit, (g) any indebtedness, whether or
not assumed, secured by Liens on Property acquired by such Person at the time of acquisition
thereof, and (h) all indebtedness referred to in clause (a), (b), (c), (d), (e), (f) or (g) above
which is directly or indirectly guaranteed by such Person or which such Person has agreed
(contingently or otherwise) to purchase or otherwise acquire or in respect of which any of them
have otherwise assured a creditor against loss, it being understood that the term “Indebtedness for
Borrowed Money” shall not include trade payables arising in the ordinary course of business.

     “Interest Expense” means, with reference to any period, the sum of all interest charges
(including imputed interest charges with respect to Capitalized Lease Obligations) of the Borrower
and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

     “Interest Period” is defined in Section 1.8 hereof.

     “L/C Issuer” means (a) Harris N.A. with respect to the Existing Letters of Credit and (b) Bank
of Montreal with respect to all other Letters of Credit issued under this Agreement.

     “L/C Sublimit” means $50,000,000, as reduced pursuant to the terms hereof.

     “L/C Obligations” means the aggregate undrawn face amounts of all outstanding Letters of
Credit and all unpaid Reimbursement Obligations.

     “Legal Requirement” means any treaty, convention, statute, law, regulation, ordinance,
license, permit, governmental approval, injunction, judgment, order, consent decree or other
requirement of any governmental authority, whether federal, state, or local.

     “Lenders” means and includes BMO Capital Markets Financing, Inc. and the other financial
institutions from time to time party to this Agreement, including each assignee Lender pursuant to
Section 13.12 hereof, and, unless the context otherwise requires, the Swing Line Lender.

     “Lending Office” is defined in Section 10.4 hereof.

- 30 -

 

     “Letter of Credit” is defined in Section 1.2(a) hereof.

     “LIBOR” is defined in Section 1.4(b) hereof.

     “Lien” means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind
in respect of any Property, including the interests of a vendor or lessor under any conditional
sale, Capital Lease or other title retention arrangement.

     “Loan” means any Swing Loan or any Revolving Loan outstanding as a Base Rate Loan or
Eurodollar Loan, each of which is a “type” of Loan hereunder.

     “Loan Documents” means this Agreement, the Notes (if any), the Applications (including the
Reimbursement Agreements with respect to the Bond Letters of Credit), the Collateral Documents, all
agreements evidencing or setting forth the terms and conditions applicable to Hedging Liability,
all agreements evidencing or setting forth the terms and conditions applicable to Funds Transfer,
Deposit Account, and Credit/Purchasing Card Liability, and each other instrument or document to be
delivered hereunder or thereunder or otherwise in connection therewith.

     “Material Adverse Effect” means (a) a material adverse change in, or material adverse effect
upon, the business, Property, financial condition, or results of operations of the Borrower and its
Subsidiaries taken as a whole, (b) a material adverse effect upon the ability of the Borrower and
its Subsidiaries to perform their obligations under the Loan Documents, or (c) a material adverse
effect upon the validity or enforceability of any of the Loan Documents or the rights or remedies
of the Administrative Agent or the Lenders thereunder.

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

     “Mortgages” means, collectively, each Mortgage and Security Agreement with Assignment of Rents
and each Deed of Trust and Security Agreement with Assignment of Rents between the Borrower or the
relevant Subsidiary and the Administrative Agent relating to such Person’s real property owned as
of the date hereof and located in the states of California, Florida, Iowa, Ohio, Oklahoma, and
Pennsylvania (except for the real property of the Borrower owned as of the date hereof and located
in Kent, Ohio, for which no Mortgage is currently being required) and any other mortgages or deeds
of trust delivered to the Administrative Agent pursuant to Section 4.3 hereof, as the same may be amended, modified, supplemented or restated from time
to time.

     “Net Income” means, with reference to any period, the net income (or net loss) of the Borrower
and its Subsidiaries for such period computed on a consolidated basis in accordance with GAAP;
provided that there shall be excluded from Net Income (a) the net income (or net loss) of any
Person accrued prior to the date it becomes a Subsidiary of, or has merged into or consolidated
with, the Borrower or another Subsidiary, and (b) the net income (or net loss) of any Person (other
than a Subsidiary) in which the Borrower or any of its Subsidiaries has a equity interest in,
except to the extent of the amount of dividends or other distributions actually paid to the
Borrower or any of its Subsidiaries during such period.

- 31 -

 

     “Net Worth” means, at any time the same is to be determined, the total shareholders’ equity
(including capital stock, additional paid-in capital and retained earnings after deducting treasury
stock) which would appear on the balance sheet of the Borrower and its Subsidiaries determined in
accordance with GAAP, but excluding the non-cash impact of FASB Statement No. 158 (Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans).

     “Notes” is defined in Section 1.12 hereof.

     “Obligations” means all obligations of the Borrower to pay principal and interest on the
Loans, all Reimbursement Obligations owing under the Applications (including the Reimbursement
Agreements with respect to the Bond Letters of Credit), all fees and charges payable hereunder, all
Hedging Liability, all Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability and
all other payment obligations of the Borrower or any Guarantor arising under or in relation to any
Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct
or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

     “Participating Lender” is defined in Section 1.2(d) hereof.

     “Participating Interest” is defined in Section 1.2(d) hereof.

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

     “Percentage” means for any Lender its Revolver Percentage.

     “Permitted Acquisition” means (a) any Acquisition consented to in writing by the Required
Lenders, and (b) any other Acquisition with respect to which all of the following conditions shall
have been satisfied:

     (i) the Acquired Business is in an Eligible Line of Business and has its primary
operations within the United States;

     (ii) the Acquisition shall not be a Hostile Acquisition;

     (iii) the financial statements of the Acquired Business shall have been audited by one
of the “Big Four” accounting firms or by another independent accounting firm of national or
regional repute or otherwise reasonably satisfactory to the Administrative Agent, or if such
financial statements have not been audited by such an accounting firm, (x) such financial
statements shall have been approved by the Administrative Agent and (y) the Acquired
Business has undergone a successful so-called businessman’s review by an accounting firm
reasonably satisfactory to the Administrative Agent as part of the Borrowers’ due diligence
on the Acquisition;

- 32 -

 

     (iv) the Total Consideration for the Acquired Business, when taken together with the
Total Consideration for all Acquired Businesses acquired after the Effective Date, does not
exceed $125,000,000;

     (v) if the Total Consideration payable in respect of such Acquisition exceeds
$15,000,000, the Borrower shall have notified the Administrative Agent and Lenders not less
than 20 days prior to any such Acquisition and furnished to the Administrative Agent and
Lenders at such time reasonable details as to such Acquisition (including sources and uses
of funds therefor), and 3-year historical financial information and 3-year pro forma
financial forecasts of the Acquired Business on a stand alone basis as well as of the
Borrower on a consolidated basis after giving effect to the Acquisition and covenant
compliance calculations reasonably satisfactory to the Administrative Agent;

     (vi) if a new Subsidiary is formed or acquired as a result of or in connection with the
Acquisition, the Borrower will have complied with the requirements of Sections 4 and 8.17
hereof in connection therewith;

     (vii) after giving effect to the Acquisition, no Default or Event of Default shall
exist, including with respect to the covenants contained in Section 8.21 on a pro forma
basis; provided, however, that the Borrower’s Total Funded Debt/Adjusted EBITDA Ratio,
computed on a pro forma basis after giving effect to the Acquisition, shall not exceed 2.75
to 1.0 as of the last day of the four most recently completed fiscal quarters prior to the
Acquisition; and

     (viii) after giving effect to the Acquisition and any Credit Event in connection
therewith, the Revolving Credit Commitments then in effect shall exceed by at least
$25,000,000 the aggregate principal amount of Revolving Loans, Swing Loans and L/C
Obligations.

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

     “Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the
minimum funding standards under Section 412 of the Code that either (a) is maintained by a member
of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained
pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which a member of
the Controlled Group is then making or accruing an obligation to make contributions or has within
the preceding five plan years made contributions.

     “Pledge Agreement” means that certain Amended and Restated Pledge Agreement dated as of the
date hereof, among the Borrower, its Subsidiaries party thereto, and the Administrative Agent, as
the same may be amended, modified, supplemented, or restated from time to time.

- 33 -

 

     “Premises” means the real property owned or leased by the Borrower or any Subsidiary,
including without limitation the real property and improvements thereon owned by the Borrower or
any Subsidiary subject to the Lien of the Mortgages or any other Collateral Documents.

     “Prior Credit Agreement” is defined in the Preliminary Statement hereof.

     “Property” means, as to any Person, all types of real, personal, tangible, intangible or mixed
property owned by such Person whether or not included in the most recent balance sheet of such
Person and its subsidiaries under GAAP.

     “RCRA” means the Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et seq.,
and any future amendments.

     “Reimbursement Agreement” means any application or reimbursement agreement entered into by the
Borrower in favor of the relevant L/C issuer relating to the issuance of any Bond Letter of Credit.

     “Reimbursement Obligation” is defined in Section 1.2(c) hereof.

     “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, migration, dumping, or disposing into the indoor or outdoor
environment, including, without limitation, the abandonment or discarding of barrels, drums,
containers, tanks or other receptacles containing or previously containing any Hazardous Material.

     “Required Lenders” means, as of the date of determination thereof, Lenders whose outstanding
Loans and interests in Letters of Credit and Unused Revolving Credit Commitments constitute more
than 50% of the sum of the total outstanding Loans, interests in Letters of Credit, and Unused
Revolving Credit Commitments.

     “Restricted Payments” is defined in Section 8.12 hereof.

     “Revolver Percentage” means, for each Lender, the percentage of the Revolving Credit
Commitments represented by such Lender’s Revolving Credit Commitment or, if the Revolving Credit
Commitments have been terminated, the percentage held by such Lender (including through
participation interests in Reimbursement Obligations) of the aggregate principal amount of all
Revolving Loans and L/C Obligations then outstanding.

     “Revolving Credit” means the credit facility for making Revolving Loans and issuing Letters of
Credit described in Sections 1.1 and 1.2 hereof.

     “Revolving Credit Commitment” means, as to any Lender, the obligation of such Lender to make
Revolving Loans and to participate in Swing Loans and Letters of Credit issued for the account of
the Borrower hereunder in an aggregate principal or face amount at any one time outstanding not to
exceed the amount set forth opposite such Lender’s name on Schedule 1

- 34 -

 

attached hereto and made a
part hereof, as the same may be reduced or modified at any time or from time to time pursuant to
the terms hereof. The Borrower and the Lenders acknowledge and agree that the Revolving Credit
Commitments of the Lenders aggregate $250,000,000 on the Effective Date.

     “Revolving Credit Termination Date” means November 20, 2011, or such earlier date on which the
Revolving Credit Commitments are terminated in whole pursuant to Section 1.14, 9.2, or 9.3 hereof.

     “Revolving Loan” and “Revolving Loans” each is defined in Section 1.1 hereof and, as so
defined, includes a Base Rate Loan or a Eurodollar Loan, each of which is a “type” of Revolving
Loan hereunder.

     “Revolving Note” and “Revolving Notes” each is defined in Section 1.12(a) hereof.

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

     “Security Agreement” means that certain Amended and Restated Security Agreement dated as of
the date hereof, among the Borrower, its Subsidiaries party thereto, and the Administrative Agent,
as the same may be amended, modified, supplemented, or restated from time to time.

     “Subsidiary” means, as to any particular parent corporation or organization, any other
corporation or organization more than 50% of the outstanding Voting Stock of which is at the time
directly or indirectly owned by such parent corporation or organization or by any one or more other
entities which are themselves subsidiaries of such parent corporation or organization. Unless
otherwise noted herein, the term “Subsidiary” means a Subsidiary of the Borrower or of any of its
direct or indirect Subsidiaries.

     “Swing Line” means the credit facility for making one or more Swing Loans described in Section
1.7 hereof.

     “Swing Line Lender” means BMO Capital Markets Financing, Inc., acting in its capacity as the
lender of Swing Loans hereunder, or any successor Lender acting in such capacity appointed pursuant
to Section 13.12 hereof.

     “Swing Line Sublimit” is defined in Section 1.7 hereof.

     “Swing Loan” and “Swing Loans” each is defined in Section 1.7 hereof.

     “Swing Note” is defined in Section 1.12(b) hereof.

     “Total Assets” means, for any Person at any time the same is to be determined, total net
assets which would appear on the balance sheet of such Person in accordance with GAAP.

- 35 -

 

     “Total Consideration” means, with respect to an Acquisition, the total amount (but without
duplication) of (a) cash paid in connection with any Acquisition, plus (b) indebtedness payable to
the seller in connection with such Acquisition, plus (c) the fair market value of any equity
securities, including any warrants or options therefor, delivered in connection with any
Acquisition, plus (d) the present value of covenants not to compete entered into in connection with
such Acquisition or other future payments which are required to be made over a period of time and
are not contingent upon the Borrower or its Subsidiary meeting financial performance objectives
(exclusive of salaries paid in the ordinary course of business) (discounted at the Base Rate), but
only to the extent not included in clause (a), (b) or (c) above, plus (e) the amount of
indebtedness assumed in connection with such Acquisition.

     “Total Funded Debt” means, at any time the same is to be determined, the aggregate of all
Indebtedness for Borrowed Money of the Borrower and its Subsidiaries at such time.

     “Total Funded Debt/Adjusted EBITDA Ratio” means, as of the last day of any fiscal quarter of
the Borrower, the ratio of Total Funded Debt as of the last day of such fiscal quarter to Adjusted
EBITDA of the Borrower and its Subsidiaries for the period of four fiscal quarters then ended.

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

     “Unused Revolving Credit Commitments” means, at any time, the difference between the Revolving
Credit Commitments then in effect and the aggregate outstanding principal amount of Revolving Loans
and L/C Obligations, provided that Swing Loans outstanding from time to time shall be deemed to
reduce the Unused Revolving Credit Commitment of the Swing Line Lender for purposes of computing
the commitment fee under Section 2.1(a) hereof.

     “U.S. Dollars” and “$” each means the lawful currency of the United States of America.

     “Voting Stock” of any Person means (a) capital stock or other equity interests of any class or
classes (however designated) having ordinary power for the election of directors or other similar
governing body of such Person, other than stock or other equity interests having such power only by
reason of the happening of a contingency and (b) stock not described in clause (a) above that is
nonetheless treated as voting stock for purposes of the Code.

     “Welfare Plan” means a “welfare plan” as defined in Section 3(1) of ERISA.

     “Wholly-owned Subsidiary” means a Subsidiary of which all of the issued and outstanding shares
of capital stock (other than directors’ qualifying shares as required by law) or other equity
interests are owned by the Borrower and/or one or more Wholly-owned Subsidiaries within the meaning
of this definition.

- 36 -

 

     Section 5.2. Interpretation. The foregoing definitions are equally applicable to both the
singular and plural forms of the terms defined. The words “hereof,” “herein,” and “hereunder” and
words of like import when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. All references to time of day herein are references
to Chicago, Illinois time unless otherwise specifically provided. Where the character or amount of
any asset or liability or item of income or expense is required to be determined or any
consolidation or other accounting computation is required to be made for the purposes of this
Agreement, it shall be done in accordance with GAAP except where such principles are inconsistent
with the specific provisions of this Agreement.

     Section 5.3. Change in Accounting Principles. If, after the date of this Agreement, there
shall occur any change in GAAP from those used in the preparation of the financial statements
referred to in Section 6.5 hereof and such change shall result in a change in the method of
calculation of any financial covenant, standard or term found in this Agreement, the Borrower or
the Required Lenders may by notice to the Lenders and the Borrower, respectively, require that the
Lenders and the Borrower negotiate in good faith to amend such covenants, standards, and terms so
as equitably to reflect such change in accounting principles, with the desired result being that
the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be
the same as if such change had not been made. No delay by the Borrower or the Required Lenders in
requiring such negotiation shall limit their right to so require such a negotiation at any time
after such a change in accounting principles. Until any such covenant, standard, or term is
amended in accordance with this Section 5.3, financial covenants shall be computed and determined
in accordance with GAAP in effect prior to such change in accounting principles. Without limiting
the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any
financial covenant hereunder nor out of compliance with any financial covenant hereunder if such
state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of
a change in accounting principles after the date hereof.

Section 6. Representations and Warranties.

     The Borrower represents and warrants to the Administrative Agent, the L/C Issuers, and the
Lenders as follows:

     Section 6.1. Organization and Qualification. The Borrower is duly organized, validly
existing, and in good standing as a corporation under the laws of the state of its incorporation,
has full and adequate corporate power
to own its Property and conduct its business as now conducted, and is duly licensed or qualified
and in good standing in each jurisdiction in which the nature of the business conducted by it or
the nature of the Property owned or leased by it requires such licensing or qualifying, except
where the failure to do so would not have a Material Adverse Effect.

     Section 6.2. Subsidiaries. Each Subsidiary is duly organized, validly existing, and in good
standing under the laws of the jurisdiction in which
it is incorporated or organized, as the case
may be, has full and adequate power to own its Property and conduct its business as now conducted,
and is duly licensed or qualified and in good standing in each jurisdiction in which

- 37 -

 

the nature of
the business conducted by it or the nature of the Property owned or leased by it requires such
licensing or qualifying, except where the failure to do so would not have a Material Adverse
Effect. Schedule 6.2 hereto identifies, as of the date hereof, each Subsidiary, the jurisdiction
of its incorporation or organization, as the case may be, the percentage of issued and outstanding
shares of each class of its capital stock or other equity interests owned by the Borrower and the
other Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as
required by law), a description of each class of its authorized capital stock and other equity
interests and the number of shares of each class issued and outstanding. All of the outstanding
shares of capital stock and other equity interests of each Subsidiary are validly issued and
outstanding and fully paid and nonassessable and all such shares and other equity interests
indicated on Schedule 6.2 as owned by the Borrower or another Subsidiary are owned, beneficially
and of record, by the Borrower or such Subsidiary free and clear of all Liens other than the Liens
granted in favor of the Administrative Agent pursuant to the Collateral Documents and other Liens
to the extent permitted by Section 8.8 hereof. As of the date hereof, there are no outstanding
commitments or other obligations of any Subsidiary to issue, and no options, warrants, or other
rights of any Person to acquire, any shares of any class of capital stock or other equity interests
of any Subsidiary.

     Section 6.3. Authority and Validity of Obligations. The Borrower has full power and authority
to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings
herein provided for, to issue its Notes in evidence thereof, to grant to the Administrative Agent
the Liens described in the Collateral Documents executed by the Borrower, and to perform all of its
obligations hereunder and under the other Loan Documents executed by it. Each Subsidiary has full
power and authority to enter into the Loan Documents executed by it, to guarantee the Obligations,
to grant to the Administrative Agent the Liens described in the Collateral Documents executed by
such Person, and to perform all of its obligations under the Loan Documents executed by it. The
Loan Documents delivered by the Borrower and by each Subsidiary have been duly authorized,
executed, and delivered by such Person and constitute valid and binding obligations of such Person
enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, or similar laws affecting creditors’ rights generally and
general principles of equity (regardless of whether the application of such principles is
considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do
not, nor does the performance or observance by the Borrower or any Subsidiary of any of the matters
and things herein or therein provided for, (a) contravene or constitute a default in any material
respect under any provision of law or any judgment, injunction, order, or decree binding upon the
Borrower or any Subsidiary or any
provision of the charter, articles of incorporation, by-laws, articles of association, operating
agreement, partnership agreement, or any similar organization agreement of the Borrower or any
Subsidiary, (b) contravene or constitute a default under any covenant, indenture, or agreement of
or affecting the Borrower or any Subsidiary or any of its Property, in each case where such
contravention or default is reasonably likely to have a Material Adverse Effect, or (c) result in
the creation or imposition of any Lien on any Property of the Borrower or any Subsidiary other than
the Liens granted in favor of the Administrative Agent pursuant to the Collateral Documents and
other Liens permitted by Section 8.8 hereof.

- 38 -

 

     Section 6.4. Use of Proceeds; Margin Stock. The Borrower shall use the proceeds of the Loans
and the Letters of Credit to amend and restructure the existing indebtedness outstanding under the
Prior Credit Agreement, for its general working capital purposes (including, without limitation, to
finance Permitted Acquisitions) and such other legal and proper purposes as are consistent with all
applicable laws. Neither the Borrower nor any Subsidiary is engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U
of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any
extension of credit made hereunder will be used to purchase or carry any such margin stock or to
extend credit to others for the purpose of purchasing or carrying any such margin stock.

     Section 6.5. Financial Reports. The consolidated balance sheet of the Borrower and its
Subsidiaries as at December 31, 2005, and the related consolidated statements of income, retained
earnings, and cash flows of the Borrower and its Subsidiaries for the 12 months then ended, and
accompanying notes thereto, which financial statements are accompanied by the audit report of Ernst
& Young LLP, independent public accountants, and the interim consolidated balance sheet of the
Borrower and its Subsidiaries as at September 30, 2006, and the related consolidated statements of
income, retained earnings, and cash flows of the Borrower and its Subsidiaries for the nine (9)
months then ended, each heretofore furnished to the Administrative Agent and the Lenders, fairly
present in all material respects the consolidated financial condition of the Borrower and its
Subsidiaries as at said dates and the consolidated results of their operations and cash flows for
the periods then ended in conformity with GAAP applied on a consistent basis. Neither the Borrower
nor any Subsidiary has contingent liabilities which are material to it other than as indicated on
the financial statements referred to above or, with respect to future periods, on the financial
statements furnished pursuant to Section 8.5 hereof.

     Section 6.6. No Material Adverse Change. Since December 31, 2005, there has been no Material
Adverse Effect.

     Section 6.7. Full Disclosure. As of the date hereof, none of the reports, financial
statements or certificates furnished in writing by or on behalf of the Borrower to the
Administrative Agent and the Lenders in connection with the negotiation of this Agreement or
delivered to the Administrative Agent and the Lenders hereunder (as modified or supplemented by
other information so furnished), taken together with any information contained in the public
filings made by the Borrower with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, contains any
material misstatement of fact or omits to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not materially misleading;
provided that the Administrative Agent and the Lenders acknowledge that as to any projections
furnished to the Administrative Agent and the Lenders, the Borrower only represents that the same
were prepared on the basis of information and estimates the Borrower believed to be reasonable at
the time made.

     Section 6.8. Trademarks, Franchises, and Licenses. Except as set forth on Schedule 6.8
hereof, the Borrower and its Subsidiaries own, possess, or have the right to use all necessary
patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets,

- 39 -

 

know how, and confidential commercial and proprietary information to conduct their businesses as
now conducted, without known conflict with any patent, license, franchise, trademark, trade name,
trade style, copyright, or other proprietary right of any other Person.

     Section 6.9. Governmental Authority and Licensing. The Borrower and its Subsidiaries have
received all licenses, permits, and approvals of all Federal, state, local, and foreign
governmental authorities, if any, necessary to conduct their business, in each case where the
failure to obtain or maintain the same is reasonably likely to have a Material Adverse Effect. No
investigation or proceeding which, if adversely determined, is reasonably likely to result in
revocation or denial of any material license, permit, or approval is, to the knowledge of the
Borrower, pending or threatened.

     Section 6.10. Good Title. The Borrower and its Subsidiaries have good and defensible title
(or valid leasehold interests) to their assets as reflected on the most recent consolidated balance
sheet of the Borrower and its Subsidiaries furnished to the Administrative Agent and the Lenders
(except for sales of assets in the ordinary course of business), subject to no Liens other than
such thereof as are permitted by Section 8.8 hereof.

     Section 6.11. Litigation and Other Controversies. There is no litigation or governmental
proceeding or labor controversy pending, nor to the knowledge of the Borrower threatened, against
the Borrower or any Subsidiaries which is reasonably probable to be adversely determined, and, if
adversely determined, is reasonably likely to have a Material Adverse Effect.

     Section 6.12. Taxes. All income and other material tax returns required to be filed by the
Borrower or any Subsidiary in any jurisdiction have, in fact, been filed, and all taxes,
assessments, fees, and other governmental charges upon any of the Borrower or any Subsidiary or
upon any of their respective Properties, income, or franchises, which are shown to be due and
payable in such returns, have been paid, except such taxes, assessments, fees, and governmental
charges, if any, as are being contested in good faith and by appropriate proceedings which prevent
enforcement of the matter under contest and as to which adequate reserves established in accordance
with GAAP have been provided. The Borrower does not know of any proposed additional material tax
assessment against the Borrower or
against any of its Subsidiaries for which adequate provisions in accordance with GAAP have not been
made on their accounts. Adequate provisions in accordance with GAAP for taxes on the books of the
Borrower and each Subsidiary have been made for all open years, and for its current fiscal period.

     Section 6.13. Approvals. No authorization, consent, license, or exemption from, or filing or
registration with, any court or governmental department, agency, or instrumentality, nor any
approval or consent of the stockholders of the Borrower or any Subsidiary, or any other Person, is
or will be necessary to the valid execution, delivery, or performance by the Borrower or any
Subsidiary of this Agreement or any other Loan Document, except for such approvals which have been
obtained prior to the date of this Agreement and which remain in full force and effect.

     Section 6.14. Affiliate Transactions. Neither the Borrower nor any Subsidiary is a party to
any contracts or agreements with any of its Affiliates (other than with Wholly-Owned Subsidiaries)
on terms and conditions which are less favorable to the Borrower or such

- 40 -

 

Subsidiary than would be
usual and customary in similar contracts or agreements between Persons not affiliated with each
other.

     Section 6.15. Investment Company. Neither the Borrower nor any Subsidiary is an “investment
company” or a company “controlled” by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

     Section 6.16. ERISA. The Borrower and each other member of its Controlled Group has fulfilled
its obligations under the minimum funding standards of and is in compliance in all material
respects with ERISA and the Code to the extent applicable to it and has not incurred any liability
to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under
Section 4007 of ERISA. Neither the Borrower nor any Subsidiary has any contingent liabilities with
respect to any post-retirement benefits under a Welfare Plan, other than retiree medical liability
disclosed to the Lenders on the Borrower’s financial statements referred to in Section 6.5 hereof
and other than liability for continuation coverage described in Part 6 of Subtitle B of Title I of
ERISA.

     Section 6.17. Compliance with Laws. (a) The Borrower and its Subsidiaries are in compliance
in all material respects with the requirements of all federal, state, and local laws, rules, and
regulations applicable to or pertaining to their Properties or business operations (including,
without limitation, the Occupational Safety and Health Act of 1970, the Americans with Disabilities
Act of 1990, and laws and regulations establishing quality criteria and standards for air, water,
land and toxic or hazardous wastes and substances), except where any non-compliance with such
requirements, individually or in the aggregate, is not reasonably likely to have a Material Adverse
Effect.

     (b) Without limiting the representations and warranties set forth in Section 6.17(a) above,
except for such matters which could not reasonably be expected to result in a Material Adverse
Effect, the Borrower represents and warrants that: (i) the Borrower and its Subsidiaries,
and each of the Premises, comply in all material respects with all applicable Environmental Laws;
(ii) the Borrower and its Subsidiaries have obtained all governmental approvals required for their
operations and each of the Premises by any applicable Environmental Law; (iii) the Borrower has no
knowledge of any Release, threatened Release or disposal of any Hazardous Material at, on, or
about, any of the Premises in any material quantity and, to the knowledge of the Borrower, none of
the Premises are materially adversely affected by any Release, threatened Release or disposal of a
Hazardous Material originating or emanating from any other property; (iv) to the knowledge of the
Borrower, none of the Premises contain and have contained any: (1) material amounts of asbestos
containing building material in material non-compliance with any Environmental Law, (2) landfills
or dumps, (3) hazardous waste treatment, storage or disposal facility as defined pursuant to RCRA
or any comparable state law, or (4) site on or nominated for the National Priority List promulgated
pursuant to CERCLA or any state remedial priority list promulgated or published pursuant to any
comparable state law; (v) the Borrower and its Subsidiaries have not used a material quantity of
any Hazardous Material and have conducted no Hazardous Material Activity at any of the Premises
except in material compliance with applicable Environmental Laws; (vi) the Borrower has no
knowledge of any material liability for response or corrective action, natural resource damage or
other harm pursuant to

- 41 -

 

CERCLA, RCRA or any comparable state law; (vii) the Borrower and its
Subsidiaries have no notice or knowledge of and are not required to give any notice of any
Environmental Claim involving the Borrower or any Subsidiary or any of the Premises, and the
Borrower has no knowledge of any conditions or occurrences at any of the Premises which could
reasonably be anticipated to form the basis for an Environmental Claim against the Borrower or any
Subsidiary or such Premises; (viii) none of the Premises are subject to any, and the Borrower has
no knowledge of any imminent, restriction on the ownership, occupancy, use or transferability of
the Premises in connection with any (1) Environmental Law or (2) Release, threatened Release or
disposal of a Hazardous Material; and (ix) the Borrower has no knowledge of any conditions or
circumstances at any of the Premises which pose an unreasonable risk to the environment or the
health or safety of Persons.

     Section 6.18. Other Agreements. Neither the Borrower nor any Subsidiary is in default under
the terms of any material covenant, indenture, or agreement of or affecting such Person or any of
its Property, which default if uncured, individually or in the aggregate, is reasonably likely to
have a Material Adverse Effect.

     Section 6.19. Solvency. The Borrower and its Subsidiaries, taken as a whole, are solvent,
able to pay their debts as they become due, and have sufficient capital to carry on their business
and all businesses in which they are about to engage.

     Section 6.20. No Default. No Default or Event of Default has occurred and is continuing.

Section 7. Conditions Precedent.

     The obligation of each Lender to advance, continue, or convert any Loan (other than the
continuation of, or conversion into, a Base Rate Loan) or of any L/C Issuer to issue, extend the
expiration date (including by not giving notice of non-renewal) of or increase the amount of
any Letter of Credit under this Agreement, shall be subject to the following conditions precedent:

     Section 7.1. All Credit Events. At the time of each Credit Event hereunder:

     (a) each of the representations and warranties set forth herein and in the other Loan
Documents shall be and remain true and correct in all material respects as of said time,
except to the extent the same expressly relate to an earlier date;

     (b) the Borrower and each Subsidiary shall be in compliance in all material respects
with all of the terms and conditions hereof and of the other Loan Documents, and no Default
or Event of Default shall have occurred and be continuing;

     (c) in the case of a Borrowing the Administrative Agent shall have received the notice
required by Section 1.6 or 1.7 hereof, as the case may be, in the case of the issuance of
any Letter of Credit the relevant L/C Issuer shall have received a duly completed
Application for such Letter of Credit together with any fees called for by Section 2.1
hereof and, in the case of an extension or increase in the amount of a Letter of

- 42 -

 

Credit, a
written request therefor in a form acceptable to the relevant L/C Issuer together with fees
called for by Section 2.1 hereof; and

     (d) such extension of credit shall not violate any order, judgment, or decree of any
court or other authority or any provision of law or regulation applicable to the
Administrative Agent or any Lender (including, without limitation, Regulation U of the Board
of Governors of the Federal Reserve System) as then in effect.

Each request for a Borrowing hereunder and each request for the issuance of, increase in the amount
of, or extension of the expiration date of, a Letter of Credit shall be deemed to be a
representation and warranty by the Borrower on the date on such Credit Event as to the facts
specified in subsections (a) through (c), both inclusive, of this Section 7.1.

     Section 7.2. Effective Date. This Agreement will become effective on the date (the “Effective
Date”) the following conditions have been satisfied:

     (a) the Administrative Agent shall have received this Agreement duly executed by the
Borrower, its Subsidiaries party hereto, and the Lenders;

     (b) if requested by any Lender, the Administrative Agent shall have received for such
Lender such Lender’s duly executed Note of the Borrower dated the date hereof and otherwise
in compliance with the provisions of Section 1.12 hereof;

     (c) the Administrative Agent shall have received the Pledge Agreement, the Security
Agreement, supplements to the existing Mortgages, and one or more deposit
account control agreements with Harris N.A. duly executed by the Borrower or the relevant
Subsidiaries;

     (d) the Administrative Agent shall have received evidence of insurance required to be
maintained under the Loan Documents, naming the Administrative Agent as lender’s loss payee,
mortgagee, and additional insured;

     (e) the Administrative Agent shall have received copies of the articles of
incorporation (or comparable constituent documents) and any amendments thereto for the
Borrower and each of its Subsidiaries party hereto, certified in each instance by the
appropriate governmental office of the state of its organization;

     (f) the Administrative Agent shall have received a copy of by-laws (or comparable
constituent documents) and any amendments thereto for the Borrower and each of its
Subsidiaries party hereto, certified in each instance by its Secretary or Assistant
Secretary;

     (g) the Administrative Agent shall have received copies of resolutions of the Board of
Directors for the Borrower and each of its Subsidiaries party hereto authorizing the
execution, delivery, and performance of this Agreement and the other Loan Documents to which
it is a party and the consummation of the transactions contemplated

- 43 -

 

hereby and thereby,
together with specimen signatures of the persons authorized to execute such documents on the
Borrower’s or such Subsidiary’s behalf, all certified in each instance by its Secretary or
Assistant Secretary;

     (h) the Administrative Agent shall have received copies of the certificates of good
standing for the Borrower and each of its Subsidiaries party hereto (dated no earlier than
30 days prior to the date hereof) from the office of the secretary of the state of its
incorporation and of each state in which it is qualified to do business as a foreign
corporation;

     (i) the Administrative Agent shall have received a list of the Borrower’s Authorized
Representatives;

     (j) the Administrative Agent shall have received the fee letter described in Section
2.1(c) hereof together with payment of the initial fees called for thereby;

     (k) the Administrative Agent shall have received the favorable written opinion of
counsel to the Borrower and its Subsidiaries party hereto, in form and substance reasonably
satisfactory to the Administrative Agent; and

     (l) the Administrative Agent shall have received for the account of the L/C Issuers and
the Lenders such other agreements, instruments, documents, certificates, and opinions as the
Administrative Agent may reasonably request.

Section 8. Covenants.

     The Borrower agrees that, so long as any credit is available to or in use by the Borrower
hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to
the terms of Section 13.14 hereof:

     Section 8.1. Maintenance of Business. The Borrower shall, and shall cause each Subsidiary to,
preserve, and maintain its existence, except as otherwise provided in Section 8.10(c) hereof. The
Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all
licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles,
copyrights, and other proprietary rights necessary to the proper conduct of its business where the
failure to do so is reasonably likely to have a Material Adverse Effect.

     Section 8.2. Maintenance of Properties. The Borrower shall, and shall cause each Subsidiary
to, maintain, preserve, and keep its property, plant, and equipment in good repair, working order,
and condition (ordinary wear and tear excepted) and shall from time to time make all needful and
proper repairs, renewals, replacements, additions, and betterments thereto so that at all times the
efficiency thereof shall be preserved and maintained, except to the extent that, in the reasonable
business judgment of such Person, any such Property is no longer necessary for the proper conduct
of the business of such Person.

- 44 -

 

     Section 8.3. Taxes and Assessments. The Borrower shall duly pay and discharge, and shall
cause each Subsidiary to duly pay and discharge, all taxes, rates, assessments, fees, and
governmental charges upon or against it or its Property, in each case before the same become
delinquent and before penalties accrue thereon, unless and to the extent that the same are being
contested in good faith and by appropriate proceedings which prevent enforcement of the matter
under contest and adequate reserves are provided therefor.

     Section 8.4. Insurance. The Borrower shall insure and keep insured, and shall cause each
Subsidiary to insure and keep insured, with good and responsible insurance companies, all insurable
Property owned by it which is of a character usually insured by Persons similarly situated and
operating like Properties against loss or damage from such hazards and risks, and in such amounts,
as are insured by Persons similarly situated and operating like Properties; and the Borrower shall
insure, and shall cause each Subsidiary to insure, such other hazards and risks (including
employers’ and public liability risks) with good and responsible insurance companies as and to the
extent usually insured by Persons similarly situated and conducting similar businesses. The
Borrower shall in any event maintain, and cause each Subsidiary to maintain, insurance on the
Collateral to the extent required by the Collateral Documents. The Borrower shall, upon the
request of the Administrative Agent, furnish to the Administrative Agent and the Lenders a
certificate setting forth in summary form the nature and extent of the insurance maintained
pursuant to this Section.

     Section 8.5. Financial Reports. The Borrower shall, and shall cause each Subsidiary to,
maintain a standard system of accounting in accordance with GAAP and shall furnish to the
Administrative Agent, each L/C Issuer, each Lender, and each of their duly authorized
representatives such information respecting the business and financial condition of the Borrower
and of each Subsidiary as the Administrative Agent, each L/C Issuer, or such Lender may reasonably
request; and without any request, the Borrower shall furnish to the Administrative Agent, the L/C
Issuers, and the Lenders:

     (a) as soon as available, and in any event within 45 days after the close of each of
the first three fiscal quarters of each fiscal year, a copy of the consolidated balance
sheet of the Borrower and its Subsidiaries as of the last day of such period and the
consolidated statements of income, retained earnings, and cash flows of the Borrower and its
Subsidiaries for the fiscal quarter and for the fiscal year-to-date period then ended, each
in reasonable detail and showing in comparative form the figures for the corresponding date
and period in the previous fiscal year, prepared by the Borrower in accordance with GAAP
(subject to the absence of footnote disclosures and year-end audit adjustments) and
certified to by its chief financial officer or another officer of the Borrower acceptable to
the Administrative Agent;

     (b) as soon as available, and in any event within 90 days after the close of each
fiscal year of the Borrower, a copy of the consolidated and consolidating balance sheet of
the Borrower and its Subsidiaries as of the last day of the period then ended and the
consolidated statements of income, retained earnings, and cash flows of the Borrower and its
Subsidiaries for the period then ended, and accompanying notes thereto, each in reasonable
detail showing in comparative form the figures for the previous fiscal year,

- 45 -

 

accompanied in
the case of the consolidated financial statements by an unqualified opinion of Ernst & Young
LLP or another firm of independent registered public accountants of recognized standing,
selected by the Borrower and reasonably satisfactory to the Administrative Agent, to the
effect that the consolidated financial statements have been prepared in accordance with GAAP
and present fairly in all material respects in accordance with GAAP the consolidated
financial condition of the Borrower and its Subsidiaries as of the close of such fiscal year
and the results of their operations and cash flows for the fiscal year then ended and that
an examination of such accounts in connection with such financial statements has been made
in accordance with generally accepted auditing standards and, accordingly, such examination
included such tests of the accounting records and such other auditing procedures as were
considered necessary in the circumstances;

     (c) promptly after receipt thereof, any additional written reports, management letters
or other detailed information contained in writing concerning significant aspects of the
Borrower’s or any Subsidiary’s operations and financial affairs given to it by its
independent registered public accounting firms;

     (d) promptly after the sending or filing thereof, copies of each financial statement,
report, notice or proxy statement sent by the Borrower, or any Subsidiary, to its
stockholders, and copies of each regular, periodic or special report, registration
statement or prospectus filed by the Borrower, or any Subsidiary, with any securities
exchange or the Securities and Exchange Commission or any successor agency;

     (e) as soon as available, and in any event no later than 30 days after the end of each
fiscal year of the Borrower, a copy of the Borrower’s consolidated and consolidating
operating budget for the current fiscal year, such operating budget to show the Borrower’s
projected consolidated and consolidating revenues, expenses, and balance sheet on
quarter-by-quarter basis, such operating budget to be in reasonable detail prepared by the
Borrower and in form satisfactory to the Administrative Agent (which shall include a summary
of all material assumptions made in preparing such operating budget);

     (f) notice of any Change in Control;

     (g) promptly after knowledge thereof shall have come to the attention of any
responsible officer of the Borrower, written notice of any threatened or pending litigation
or governmental proceeding or labor controversy against the Borrower or any Subsidiary
which, if adversely determined, is reasonably likely to have a Material Adverse Effect or of
the occurrence of any Default or Event of Default hereunder;

     (h) promptly after knowledge thereof shall have come to the attention of any
responsible officer of the Borrower or any Subsidiary, written notice of any default under
any Reimbursement Agreement or any Bond Document; and

- 46 -

 

     (i) as soon as available, and in any event within 45 days after the last day of each
fiscal quarter of the Borrower, a written certificate in the form attached hereto as Exhibit
E signed by the chief financial officer of the Borrower, or such other officer of the
Borrower acceptable to the Administrative Agent, to the effect that to the best of such
officer’s knowledge and belief no Default or Event of Default has occurred during the period
covered by the most recent financial statements furnished pursuant to Section 8.5(a) or
Section 8.5(b) above or, if any such Default or Event of Default has occurred during such
period, setting forth a description of such Default or Event of Default and specifying the
action, if any, taken by the Borrower to remedy the same together with calculations
supporting such statements in respect of Section 8.21 of this Agreement.

     Section 8.6. Inspection. The Borrower shall, and shall cause each Subsidiary to, permit the
Administrative Agent, each L/C Issuer, each Lender, and each of their duly authorized
representatives and agents to visit and inspect any of its Properties, corporate books, and
financial records, to examine and make copies of its books of accounts and other financial records,
and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its
officers, employees, and independent public accountants (and by this provision the Borrower hereby
authorizes such accountants to discuss with the Administrative Agent, such L/C Issuers, and such
Lenders the finances and affairs of the Borrower and each of its Subsidiaries) at such reasonable
times and intervals as the Administrative Agent, such L/C Issuer, or any such Lender may designate.
So long as no Event
of Default has occurred and is continuing, the Borrower shall not be obligated to reimburse the
Administrative Agent for its expenses incurred in connection with more than one such inspection per
calendar year. Any Lender may, upon reasonable prior notice to the Borrower, accompany the
Administrative Agent on such inspections at that Lender’s own expense.

     Section 8.7. Borrowings and Guaranties. The Borrower shall not, nor shall it permit any of
its Subsidiaries to, issue, incur, assume, create, or have outstanding any Indebtedness for
Borrowed Money, or be or become liable as endorser, guarantor, surety, or otherwise for any debt,
obligation, or undertaking of any other Person, or otherwise agree to provide funds for payment of
the obligations of another, or supply funds thereto or invest therein or otherwise assure a
creditor of another against loss, or apply for or become liable to the issuer of a letter of credit
which supports an obligation of another, or subordinate any claim or demand it may have to the
claim or demand of any other Person; provided, however, that the foregoing shall not restrict nor
operate to prevent:

     (a) the Obligations of the Borrower and its Subsidiaries owing to the Administrative
Agent and the Lenders under the Loan Documents;

     (b) obligations of the Borrower arising out of interest rate hedging agreements entered
into with financial institutions in the ordinary course of business (including, without
limitation, the Hedging Liability owed to the Lenders and their Affiliates);

     (c) endorsement of items for deposit or collection of commercial paper received in the
ordinary course of business;

- 47 -

 

     (d) indebtedness from time to time owing by any Domestic Subsidiary to the Borrower or
to any other Domestic Subsidiary or by the Borrower to any Domestic Subsidiary;

     (e) indebtedness from time to time owing by any Foreign Subsidiary to the Borrower or
to any other Subsidiary to the extent permitted by Section 8.9(h) hereof;

     (f) indebtedness identified and described on Schedule 8.7/8.8 hereof, as reduced by
payments of principal and interest thereon (and any refinancing, extension, renewal or
refunding of the then outstanding principal balance thereof);

     (g) indebtedness in respect of performance bonds, bid bonds and completion guarantees
and similar obligations in the ordinary course of business;

     (h) indebtedness arising from agreements of the Borrower or its Subsidiaries providing
for indemnities, adjustments to purchase price or similar obligations in connection with the
acquisition or disposition of any business or assets permitted by this Agreement;

     (i) indebtedness in respect of Capitalized Lease Obligations, synthetic leases,
mortgage indebtedness and industrial revenue or development bonds of any Subsidiary
acquired after the Closing Date or a Person merged into or consolidated with the Borrower or
any Subsidiary after the Closing Date and indebtedness assumed in connection with the
acquisition of assets, in each case, to the extent existing at the time at the time of
acquisition, merger or consolidation and not created in contemplation of such event;

     (j) other indebtedness of the Borrower and its Subsidiaries (including, without
limitation, purchase money indebtedness and Capitalized Lease Obligations) in an aggregate
amount at any one time outstanding not to exceed 10% of Net Worth of the Borrower and its
Subsidiaries as reflected on their most recent year-end audited financial statements; and

     (k) indebtedness relating to the Bonds.

     Section 8.8. Liens. The Borrower shall not, nor shall it permit any of its Subsidiaries to,
create, incur, or permit to exist any Lien of any kind on any Property owned by any such Person;
provided, however, that the foregoing shall not apply to nor operate to prevent:

     (a) Liens arising by statute in connection with worker’s compensation, unemployment
insurance, old age benefits, social security obligations, taxes, assessments, statutory
obligations or other similar charges (other than Liens arising under ERISA), good faith cash
deposits in connection with tenders, contracts, or leases to which the Borrower or any
Subsidiary is a party or other cash deposits required to be made in the ordinary course of
business, provided in each case that the obligation is not for borrowed money and that the
obligation secured is not overdue or, if overdue, is being contested in

- 48 -

 

good faith by
appropriate proceedings which prevent enforcement of the matter under contest and adequate
reserves have been established therefor;

     (b) mechanics’, workmen’s, materialmen’s, landlords’, carriers’, or other similar Liens
arising in the ordinary course of business with respect to obligations which are not due or
which are being contested in good faith by appropriate proceedings which prevent enforcement
of the matter under contest;

     (c) judgment liens and judicial attachment liens not constituting an Event of Default
under Section 9.1(g) hereof and the pledge of assets for the purpose of securing an appeal,
stay or discharge in the course of any legal proceeding, provided that the aggregate amount
(but without duplication) of such judgment liens and liabilities of the Borrower and its
Subsidiaries secured by a pledge of assets permitted under this subsection, including
interest and penalties thereon, if any, shall not be in excess of $2,500,000 at any one time
outstanding;

     (d) the Liens granted in favor of the Administrative Agent pursuant to the Collateral
Documents;

     (e) Liens identified and described on Schedule 8.7/8.8 hereof securing indebtedness
permitted by Section 8.7(f) hereof;

     (f) Liens on Property of the Borrower or any Subsidiary created solely for the purpose
of securing indebtedness permitted by Sections 8.7(i) and 8.7(j) hereof, representing or
incurred to finance, refinance, or refund the purchase price of such Property, provided that
(i) no such Lien shall extend to or cover other Property of the Borrower or such Subsidiary
other than the respective Property so acquired and (ii) the principal amount of indebtedness
secured by any such Lien shall at no time exceed the original purchase price of such
Property, as reduced by repayments of principal thereon;

     (g) any interest or title of a lessor or sublessor under any operating lease; and

     (h) easements, rights-of-way, restrictions, and other similar encumbrances incurred in
the ordinary course of business which, in the aggregate, are not substantial in amount and
which do not materially detract from the value of the Property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any Subsidiary.

     Section 8.9. Investments, Acquisitions, Loans, and Advances. The Borrower shall not, nor
shall it permit any of its Subsidiaries to, directly or indirectly, make, retain, or have
outstanding any investments (whether through purchase of stock or obligations or otherwise) in, or
loans or advances (other than for travel advances and other similar cash advances made to employees
in the ordinary course of business) to, any other Person, or acquire all or any substantial part of
the assets or business of any other Person or division thereof; provided, however, that the
foregoing shall not apply to nor operate to prevent:

- 49 -

 

     (a) investments in direct obligations of the United States of America or of any agency
or instrumentality thereof whose obligations constitute full faith and credit obligations of
the United States of America, provided that any such obligations shall mature within one
year of the date of issuance thereof;

     (b) investments in commercial paper rated at least P-1 by Moody’s and at least A-1 by
S&P maturing within one year of the date of issuance thereof;

     (c) investments in certificates of deposit issued by any Lender or by any United States
commercial bank having capital and surplus of not less than $100,000,000 which have a
maturity of one year or less;

     (d) investments in repurchase obligations with a term of not more than 7 days for
underlying securities of the types described in subsection (a) above entered into with any
bank meeting the qualifications specified in subsection (c) above, provided all such
agreements require physical delivery of the securities securing such repurchase agreement,
except those delivered through the Federal Reserve Book Entry System;

     (e) investments in money market funds that invest solely, and which are restricted by
their respective charters to invest solely, in investments of the type described in the
immediately preceding subsections (a), (b), (c), and (d) above;

     (f) the Borrower’s and each Domestic Subsidiary’s investments made from time to time in
its Domestic Subsidiaries;

     (g) intercompany advances made from time to time from the Borrower or any Domestic
Subsidiary to any one or more other Domestic Subsidiaries in the ordinary course of
business;

     (h) investments, loans, and advances made by the Borrower and its Subsidiaries in
Foreign Subsidiaries existing on the date hereof and identified and described on Schedule
8.9 hereof, and additional investments, loans, and advances made after the date hereof by
the Borrower and its Subsidiaries in Foreign Subsidiaries in an aggregate amount not to
exceed $15,000,000 at any one time outstanding;

     (i) investments received in connection with or as a result of a bankruptcy, insolvency
or similar reorganization of a customer;

     (j) Permitted Acquisitions; and

     (k) other investments, loans, and advances in addition to those otherwise permitted by
this Section, including investments in joint ventures entered into in the ordinary course of
business, in an aggregate amount not to exceed $5,000,000 at any one time outstanding.

- 50 -

 

In determining the amount of investments, acquisitions, loans, and advances permitted under this
Section, investments and acquisitions shall always be taken at the original cost thereof
(regardless of any subsequent appreciation or depreciation therein), and loans and advances shall
be taken at the principal amount thereof then remaining unpaid.

     Section 8.10. Mergers, Consolidations and Sales. The Borrower shall not, nor shall it permit
any of its Subsidiaries to, be a party to any merger or consolidation or amalgamation, or sell,
transfer, lease, or otherwise dispose of all or any part of its Property, including any disposition
of Property as part of a sale and leaseback transaction, or in any event sell or discount (with or
without recourse) any of its notes or accounts receivable; provided, however, that so long as no
Default or Event of Default exists (except as otherwise permitted by the Security Agreement) this
Section shall not apply to nor operate to prevent:

     (a) the sale of inventory in the ordinary course of business;

     (b) the sale, transfer, lease, or other disposition of Property of the Borrower or any
Domestic Subsidiary to one another in the ordinary course of its business;

     (c) the merger of any Subsidiary with and into the Borrower or any other Domestic
Subsidiary, provided that, in the case of any merger involving the Borrower, the Borrower is
the corporation surviving the merger;

     (d) the sale of delinquent notes or accounts receivable in the ordinary course of
business for purposes of collection only (and not for the purpose of any bulk sale or
securitization transaction);

     (e) the sale, transfer, or other disposition of any tangible personal property that, in
the reasonable business judgment of the Borrower or its Subsidiary has become uneconomical,
obsolete, or worn out, and which is disposed of in the ordinary course of business;

     (f) any disposition of Property as part of a sale and leaseback transaction aggregating
not more that $20,000,000 during the term of this Agreement; provided that (i) at the time
of such sale and leaseback transaction, and after giving effect thereto, no Default or Event
of Default exists, (ii) the consideration for the sale and leaseback transaction is payable
in cash and in an amount not less than the fair market value of such Property, and (iii)
the sale and leaseback transaction is with a third party not affiliated with the Borrower;
and

     (g) the sale, transfer, lease, or other disposition of Property of the Borrower or any
Subsidiary aggregating for the Borrower and its Subsidiaries during the 12-month period
ending on and including the date of such disposition not more than 5% of Total Assets of the
Borrower and its Subsidiaries as reflected on their most recent year-end audited financial
statements.

- 51 -

 

     Section 8.11. Maintenance of Subsidiaries. The Borrower shall not assign, sell, or transfer,
nor shall it permit any of its Subsidiaries to issue, assign, sell, or transfer, any shares of
capital stock of a Subsidiary (or any direct or indirect interest therein, whether by options,
warrants, or otherwise); provided, however, that the foregoing shall not operate to prevent (a)
Liens on the capital stock of Subsidiaries granted to the Administrative Agent pursuant to the
Collateral Documents, (b) the issuance, sale, and transfer to any person of any shares of capital
stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally necessary to
qualify, such person as a director of such Subsidiary, and (c) any transaction permitted by Section
8.10(c) above.

     Section 8.12. Dividends and Certain Other Restricted Payments. The Borrower shall not, nor
shall it permit any of its Subsidiaries to, declare or pay any dividends on or make any other
distributions in respect of any class or series of its capital stock, or directly or indirectly
purchase, redeem or otherwise acquire or retire any of its capital stock (collectively, “Restricted
Payments”); provided, however, that the foregoing shall not operate to prevent: (a) the making of
dividends or distributions to the Borrower by any of its Subsidiaries, (b) Restricted Payments
consisting of the purchase by the Borrower of shares of its common stock for the sole purpose of
the funding of the Borrower’s deferred compensation plan in accordance with its terms in a maximum
amount of $500,000 per fiscal year, (c) Restricted Payments consisting of the repurchase by the
Borrower of shares of its common stock not otherwise permitted by this Section; provided that (i)
no Default or Event of Default shall exist or shall result from the share repurchase, (ii) the
Borrower shall have demonstrated to the satisfaction of the Administrative Agent that it is in pro
forma compliance with Section 8.21 of this Agreement after giving effect to such share repurchase,
provided, further, that the Borrower’s pro forma Total Funded Debt/Adjusted EBITDA Ratio shall not
exceed 2.75 to 1.0 for the four most recently completed fiscal quarters, and (iii) immediately
after giving effect to any such repurchases, the Revolving Credit Commitments then in effect shall
exceed by at least $25,000,000 the aggregate principal amount of Revolving Loans, Swing Loans, and
L/C Obligations, and (iv) the aggregate value of shares repurchased during the term of this
Agreement shall not exceed $50,000,000, and (d) Restricted Payments consisting of cash dividends
paid by the Borrower during any fiscal year, provided that (i) no Default or Event of Default shall
exist or shall result from the payment of any such dividend, and (ii) the aggregate amount of such
dividends made in any fiscal year shall not exceed 50% of Net Income from the prior fiscal year.

     Section 8.13. ERISA. The Borrower shall, and shall cause each of its Subsidiaries to,
promptly pay and discharge all obligations and liabilities arising under ERISA of a character which
if unpaid or unperformed is reasonably likely to result in the imposition of a Lien against any of
its Property. The Borrower shall, and shall cause each of its Subsidiaries to, promptly notify the
Administrative Agent and each Lender of (a) the occurrence of any reportable event (as defined in
ERISA and the regulations thereunder) with respect to a Plan, other than those events as to which
the notice requirement is waived under the PBGC’s regulations, (b) receipt of any notice from the
PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, (c) its
intention to terminate or withdraw from any Plan, and (d) the occurrence of any event with respect
to any Plan which would result in the incurrence by the Borrower or any Subsidiary of any material
liability, fine, or penalty, or any material increase in the

- 52 -

 

contingent liability of the Borrower
or any Subsidiary with respect to any post-retirement Welfare Plan benefit.

     Section 8.14. Compliance with Laws. (a) The Borrower shall, and shall cause each of its
Subsidiaries to, comply in all material respects with the requirements of all federal, state, and
local laws, rules, regulations, ordinances, and orders applicable to or pertaining to its Property
or business operations, except where any non-compliance with such requirements, individually or in
the aggregate, is not reasonably likely to have a Material Adverse Effect or could result in a Lien
upon any of their Property.

     (b) Without limiting the agreements set forth in Section 8.14(a) above, the Borrower shall at
all times, and shall cause each Subsidiary to at all times, do the following to the extent the
failure to do so could reasonably be expected to have a Material Adverse Effect: (i) comply in all
material respects with, and maintain each of the Premises in compliance in all material respects
with, all applicable Environmental Laws; (ii) require that each tenant and subtenant, if any, of
any of the Premises or any part thereof comply in all material respects with all applicable
Environmental Laws; (iii) obtain and maintain in full force and effect all material governmental
approvals required by any applicable Environmental Law for operations at each of the Premises; (iv)
cure any material violation by it or at any of the Premises of applicable Environmental Laws;
(v) not allow the operation at any of the Premises of any (1) landfill or dump or (2) hazardous
waste treatment, storage, or disposal facility or solid waste disposal facility as defined pursuant
to RCRA or any comparable state law; (vi) not manufacture, use, generate, transport, treat, store,
release, dispose or handle any Hazardous Material at any of the Premises except in the ordinary
course of its business and in material compliance with Environmental Law; (vii) within 10 Business
Days notify the Administrative Agent in writing of and provide any reasonably requested documents
upon learning of any of the following in connection with the Borrower or any Subsidiary or any of
the Premises: (1) any material liability for response or corrective action, natural resource damage
or other harm pursuant to CERCLA, RCRA or any comparable state law; (2) any material Environmental
Claim; (3) any material violation of an Environmental Law or material Release, threatened Release
or disposal of a Hazardous Material; (4) any restriction on the ownership, occupancy, use or
transferability arising pursuant to any (x) Release, threatened Release or disposal of a Hazardous
Substance or (y) Environmental Law; or (5) any environmental, natural resource, health or safety
condition, which could reasonably be expected to have a Material Adverse Effect; (viii) conduct at
its expense any investigation, study, sampling, testing, abatement, cleanup, removal, remediation
or other response action necessary to remove, remediate, clean up or abate any material Release,
threatened Release or disposal of a Hazardous Material as required by any applicable Environmental
Law, (ix) abide by and observe any restrictions on the use of the Premises imposed by any
governmental authority as set forth in a deed or other instrument affecting the Borrower’s or any
Subsidiary’s interest therein; (x) promptly provide or otherwise make available to the
Administrative Agent any reasonably requested non-privileged environmental record concerning the
Premises which the Borrower or any Subsidiary possesses or can reasonably obtain; and (xi) perform,
satisfy, and implement any operation or maintenance actions required by any Environmental Law, or
included in any no further action letter or covenant not to sue issued by any governmental
authority under any Environmental Law.

- 53 -

 

     Section 8.15. Burdensome Contracts With Affiliates. The Borrower shall not, nor shall it
permit any of its Subsidiaries to, enter into any contract, agreement, or business arrangement with
any of its Affiliates (other than with Wholly-Owned Subsidiaries that are Guarantors) on terms and
conditions which are less favorable to the Borrower or such Subsidiary than would be usual and
customary in similar contracts, agreements, or business arrangements between Persons not affiliated
with each other.

     Section 8.16. No Changes in Fiscal Year. The fiscal year of the Borrower and its Subsidiaries
ends on the Saturday that is closest to December 31st of each year, and the Borrower shall not, nor
shall it permit any of its Subsidiaries to, change its fiscal year from its present basis.

     Section 8.17. Formation of Subsidiaries. In the event the Borrower forms or acquires any
Subsidiary, the Borrower shall at its expense cause the capital stock and other equity interest of
such Subsidiary owned by the Borrower or another Subsidiary to be pledged to the Administrative
Agent pursuant to Section 4 hereof (and, in the case of a Foreign Subsidiary, only to the extent
required by Section 4.1 hereof) and cause such Subsidiary to the extent required by Section 4.4
hereof to guarantee the Obligations
pursuant to Section 12 hereof (and, in that regard, the Borrower shall cause such Subsidiary to
execute an Additional Guarantor Supplement in the form attached hereto as Exhibit F or in such
other form acceptable to the Administrative Agent) and to pledge to the Administrative Agent a Lien
on such Subsidiary’s real and personal property pursuant to such Collateral Documents as the
Administrative Agent may request together with such other instruments, documents, certificates, and
opinions as the Administrative Agent may require.

     Section 8.18. Change in the Nature of Business. The Borrower shall not, nor shall it permit
any of its Subsidiaries to, engage in any business or activity if as a result the general nature of
the business of the Borrower or any Subsidiary would be changed in any material respect from the
general nature of the business engaged in by it as of the date of this Agreement.

     Section 8.19. Use of Loan Proceeds. The Borrower shall use the credit extended under this
Agreement solely for the purposes set forth in, or otherwise permitted by, Section 6.4 hereof.

     Section 8.20. No Restrictions on Subsidiary Distributions. Except as provided herein, the
Borrower shall not, nor shall it permit any of its Subsidiaries to, directly or indirectly create
or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction
of any kind on the ability of the Borrower or any Subsidiary to: (a) guarantee the Obligations and
grant Liens on its assets to the Administrative Agent for the benefit of the Lenders as required by
Sections 4 and 12 hereof, or (b) in the case of any Subsidiary, pay dividends or make any other
distribution on any of such Subsidiary’s capital stock or other equity interests owned by the
Borrower or any Subsidiary.

     Section 8.21. Financial Covenants. (a) Net Worth. The Borrower shall at all times maintain
Net Worth in an amount not less than the sum of (a) $100,000,000, plus (b) 50% of Net Income for
each fiscal quarter of the Borrower ending December 31, 2006, and thereafter, for which such Net
Income is a positive amount (i.e., there shall be no reduction to the minimum

- 54 -

 

amount of Net Worth required to be maintained hereunder for any fiscal quarter in which Net
Income is less than zero).

     (b) Total Funded Debt/Adjusted EBITDA Ratio. As of the last day of each fiscal quarter of the
Borrower, the Borrower shall not permit the Total Funded Debt/Adjusted EBITDA Ratio for the four
fiscal quarters of the Borrower then ended to be greater than 3.00 to 1.0.

     (c) Fixed Charge Coverage Ratio. As of the last day of each fiscal quarter of the Borrower,
the Borrower shall not permit the ratio of (a) Adjusted EBITDA for the four fiscal quarters of the
Borrower then ended (provided if Adjusted EBITDA for such period is less than $1, then for purposes
of this covenant Adjusted EBITDA shall be deemed to be $1) less Capital Expenditures for such
period to (b) Fixed Charges for the same four fiscal quarters then ended to be less than 1.75 to
1.0.

     (d) Operating Leases. The Borrower shall not, nor shall it permit any Subsidiary to, acquire
the use or possession of any Property under a lease or similar arrangement, whether or not the
Borrower or any Subsidiary has the express or implied right to acquire title to or purchase such
Property, at any time if, after giving effect thereto, the aggregate amount of fixed rentals and
other consideration payable by the Borrower and its Subsidiaries under all such leases and similar
arrangements would exceed $25,000,000 (excluding any amounts attributable to a sale and leaseback
transaction permitted by this Agreement) during any fiscal year of the Borrower. Capital Leases
shall not be included in computing compliance with this Section to the extent the Borrower’s and
its Subsidiaries’ liability in respect of the same is permitted by Section 8.7(g) hereof.

   Section 8.22. Post-Closing. Within sixty (60) days of the date hereof, the Borrower shall
cause to be delivered to the Administrative Agent date down endorsements to the mortgagee’s title
insurance policies insuring the Liens of the Mortgages as supplemented to be valid first priority
Liens subject to no defects or objections which are unacceptable in the reasonable judgment of the
Administrative Agent, together with such endorsements as the Administrative Agent may reasonably
require.

Section 9. Events of Default and Remedies.

   Section 9.1. Events of Default. Any one or more of the following shall constitute an “Event
of Default” hereunder:

     (a) (i) default in the payment when due of all or any part of the principal of any Loan
(whether at the stated maturity thereof or at any other time provided for in this Agreement)
or (ii) default for a period of 5 days in the payment when due of all or any part of the
interest on any Loan or of any Reimbursement Obligation or of any fee or other Obligation
payable hereunder or under any other Loan Document;

     (b) default in the observance or performance of any covenant set forth in Sections 8.1,
8.5(a), 8.5(b), 8.5(e), 8.5(f), 8.5(g), 8.5(h), 8.5(i), 8.7, 8.8, 8.9, 8.10, 8.11, 8.12,
8.16, 8.18, or 8.21 hereof or of any provision in any Loan Document dealing with

- 55 -

 

the use,
disposition or remittance of the proceeds of Collateral or requiring the maintenance of
insurance thereon;

     (c) default in the observance or performance of any other provision hereof or of any
other Loan Document which is not remedied within 30 days after the earlier of (i) the date
on which such default shall first become known to any senior officer of the Borrower or (ii)
written notice thereof is given to the Borrower by the Administrative Agent;

     (d) any representation or warranty made herein or in any other Loan Document or in any
certificate furnished to the Administrative Agent or the Lenders pursuant hereto or thereto
or in connection with any transaction contemplated hereby or thereby proves untrue in any
material respect as of the date of the issuance or making or deemed making thereof;

     (e) any event occurs or condition exists (other than those described in subsections (a)
through (d) above) which is specified as an event of default under any of the other Loan
Documents, or any of the Loan Documents shall for any reason not be or shall cease to be in
full force and effect or is declared to be null and void, or any of the Collateral Documents
shall for any reason fail to create a valid and perfected first priority Lien in favor of
the Administrative Agent in any Collateral purported to be covered thereby except as
expressly permitted by the terms thereof, or any Subsidiary takes any action for the purpose
of terminating, repudiating, or rescinding any Loan Document executed by it or any of its
obligations thereunder;

     (f) default shall occur under any Indebtedness for Borrowed Money issued, assumed or
guaranteed by the Borrower or any Subsidiary aggregating in excess of $2,500,000, or under
any indenture, agreement, or other instrument under which such Indebtedness for Borrowed
Money may be issued, and such default shall continue for a period of time sufficient to
permit the acceleration of the maturity of any such Indebtedness for Borrowed Money (whether
or not such maturity is in fact accelerated), or any such Indebtedness for Borrowed Money
shall not be paid when due after giving effect to any applicable grace periods provided
therein (whether by demand, lapse of time, acceleration or otherwise);

     (g) any judgment or judgments, writ or writs, or warrant or warrants of attachment, or
any similar process or processes shall be entered or filed against the Parent, the Borrower
or any Subsidiary, or against any of their Property, in an aggregate amount in excess of
$2,500,000 (except to the extent fully covered by insurance pursuant to which the insurer
has accepted liability therefor in writing), and which remains undischarged, unvacated,
unbonded, or unstayed for a period of 30 days;

     (h) the Borrower or any Subsidiary, or any member of its Controlled Group, shall fail
to pay when due an amount or amounts aggregating in excess of $1,000,000 which it shall have
become liable to pay to the PBGC or to a Plan under Title IV of ERISA; or notice of intent
to terminate a Plan or Plans having aggregate Unfunded

- 56 -

 

Vested Liabilities in excess of
$1,000,000 (collectively, a “Material Plan”) shall be filed under Title IV of ERISA by the
Parent, the Borrower or any Subsidiary, or any other member of its Controlled Group, any
plan administrator or any combination of the foregoing; or the PBGC shall institute
proceedings under Title IV of ERISA to terminate or to cause a trustee to be appointed to
administer any Material Plan or a proceeding shall be instituted by a fiduciary of any
Material Plan against the Borrower or any Subsidiary, or any member of its Controlled Group,
to enforce Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been
dismissed within 30 days thereafter; or a condition shall exist by reason of which the PBGC
would be entitled to obtain a decree adjudicating that any Material Plan must be terminated;

     (i) the Borrower or any Subsidiary shall (i) have entered involuntarily against it an
order for relief under the United States Bankruptcy Code, as amended, (ii) not pay, or admit
in writing its inability to pay, its debts generally as they become due, (iii) make an
assignment for the benefit of creditors, (iv) apply for, seek, consent to, or acquiesce in,
the appointment of a receiver, custodian, trustee, examiner, liquidator, or similar official
for it or any substantial part of its Property, (v) institute any proceeding seeking to have
entered against it an order for relief under the United States Bankruptcy Code, as amended,
to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment, or composition of it or its debts under any law relating to
bankruptcy, insolvency, or reorganization or relief of debtors or fail to file an answer or
other pleading denying the material allegations of any such proceeding filed against it,
(vi) take any corporate action in furtherance of any matter described in parts (i) through
(v) above, or (vii) fail to contest in good faith any appointment or proceeding described in
Section 9.1(j) hereof;

     (j) a custodian, receiver, trustee, examiner, liquidator, or similar official shall be
appointed for the Borrower or any Subsidiary, or any substantial part of any of its
Property, or a proceeding described in Section 9.1(i)(v) shall be instituted against the
Borrower or any Subsidiary, and such appointment continues undischarged or such proceeding
continues undismissed or unstayed for a period of 60 days; or

     (k) any event occurs or conditions exists which is specified as an event of default
under any Reimbursement Agreement or any Bond Document.

   Section 9.2. Non-Bankruptcy Defaults. When any Event of Default other than those described in
subsection (i) or (j) of Section 9.1 hereof has occurred and is continuing, the Administrative
Agent shall, by written notice to the Borrower: (a) if so directed by the Required Lenders,
terminate the remaining Commitments and all other obligations of the Lenders hereunder on the date
stated in such notice (which may be the date thereof); (b) if so directed by the Required Lenders,
declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and
payable and thereupon all outstanding Loans, including both principal and interest thereon, shall
be and become immediately due and payable together with all other amounts payable under the Loan
Documents without further demand, presentment, protest, or notice of any kind; and (c) if so
directed by the Required Lenders, demand that the Borrower immediately pay to the Administrative
Agent the full amount then available for drawing under

- 57 -

 

each or any Letter of Credit, and the
Borrower agrees to immediately make such payment and acknowledges and agrees that the Lenders would
not have an adequate remedy at law for failure by the Borrower to honor any such demand and that
the Administrative Agent, for the benefit of the Lenders, shall have the right to require the
Borrower to specifically perform such undertaking whether or not any drawings or other demands for
payment have been made under any Letter of Credit. The Administrative Agent, after giving notice
to the Borrower pursuant to Section 9.1(c) or this Section 9.2, shall also promptly send a copy of
such notice to the L/C Issuers and the Lenders, but the failure to do so shall not impair or annul
the effect of such notice.

   Section 9.3. Bankruptcy Defaults. When any Event of Default described in subsections (i) or
(j) of Section 9.1 hereof has occurred and is continuing, then all outstanding Loans shall
immediately become due and payable together with all other amounts payable under the Loan Documents
without presentment, demand, protest, or notice of any kind, the obligation of the Lenders to
extend further credit pursuant to any of the terms hereof shall immediately terminate and the
Borrower shall immediately pay to the Administrative Agent the full amount then available for
drawing under all outstanding Letters of Credit, the Borrower acknowledging and agreeing that the
Lenders would not have an adequate remedy at law for failure by the Borrower to honor any such
demand and that the Lenders, and the Administrative Agent on their behalf, shall have the right to
require the Borrower to specifically perform such undertaking whether or not any draws or other
demands for payment have been made under any of the Letters of Credit.

   Section 9.4. Collateral Account for Undrawn Letters of Credit and other Obligations. (a) If
the prepayment of the amount available for drawing under any or all outstanding Letters of Credit
is required under Section 1.2, Section 1.10(b), Section 9.2 or Section 9.3 above, the Borrower
shall forthwith pay the amount required to be so prepaid, to be held by the Administrative Agent as
provided in subsection (b) below.

     (b) All amounts prepaid pursuant to subsection (a) above shall be held by the Administrative
Agent in one or more separate collateral accounts (each such account, and the credit balances,
properties, and any investments from time to time held therein, and any substitutions for such
account, any certificate of deposit or other instrument evidencing any of the foregoing and all
proceeds of and earnings on any of the foregoing being collectively called the “Collateral
Account”) as security for, and for application by the relevant L/C Issuers (to the extent
available) to, the reimbursement of any payment under any Letter of Credit then or thereafter made
by such L/C Issuers, and to the payment of the unpaid balance of any Loans and all other
Obligations. The Collateral Account shall be held in the name of and subject to the exclusive
dominion and control of the Administrative Agent for the benefit of the Administrative Agent, the
L/C Issuers, and the Lenders. If and when requested by the Borrower, the Administrative Agent
shall invest funds held in the Collateral Account from time to time in direct obligations of, or
obligations the principal of and interest on which are unconditionally guaranteed by, the United
States of America with a remaining maturity of one year or less, provided that the Administrative
Agent is irrevocably authorized to sell investments held in the Collateral Account when and as
required to make payments out of the Collateral Account for application to amounts due and owing
from the Borrower to any L/C Issuer or the Lenders; provided, however, that (i) if the Borrower
shall have made payment of all obligations referred to

- 58 -

 

in subsection (a) above required under
Section 1.10(b) hereof, at the request of the Borrower the Administrative Agent shall release to
the Borrower amounts held in the Collateral Account so long as at the time of the release and after
giving effect thereto no Default or Event of Default exists, and (ii) if the Borrower shall have
made payment of all obligations referred to in subsection (a) above required under Section 9.2 or
9.3 hereof, so long as no Letters of Credit, Commitments, Loans or other Obligations remain
outstanding, at the request of the Borrower the Administrative Agent shall release to the Borrower
any remaining amounts held in the Collateral Account.

   Section 9.5. Additional Remedies in Bond Documents. In addition to the remedies otherwise
described in this Section or in any Reimbursement Agreement or Bond Document, upon the occurrence
of an Event of Default hereunder, the L/C Issuer of any Bond Letter of Credit, acting at the
direction of the Required Lenders, may exercise one or more of the following rights and remedies:
(a) give notice of the occurrence of an Event of Default to the trustee under the relevant
indenture for any of the Bonds directing an acceleration of such Bonds, thereby causing the
relevant Bond Letter of Credit to terminate the number of days thereafter specified in such Bond
Letter of Credit, or (b) pursue any rights and remedies provided to such L/C Issuer under the
relevant Bond Documents.

   Section 9.6. Notice of Default. The Administrative Agent shall give notice to the Borrower
under Section 9.1(c) hereof promptly upon being requested to do so by any Lender and shall
thereupon notify all the Lenders thereof.

   Section 9.7. Expenses. The Borrower agrees to pay to the Administrative Agent, each L/C
Issuer, and each Lender, and any other holder of any Obligations outstanding hereunder, all
expenses reasonably incurred or paid by the Administrative Agent, such L/C Issuer, and such Lender
or any such holder, including reasonable attorneys’ fees (including allocated costs of in-house
counsel) and court costs, in connection with any Default or Event of Default by the Borrower
hereunder or in connection with the enforcement of any of the Loan Documents (including all such
costs and expenses arising in connection with a proceeding under the United States Bankruptcy Code
affecting the Borrower or any Subsidiary).

Section 10. Change in Circumstances.

   Section 10.1. Change of Law. Notwithstanding any other provisions of this Agreement or any
Note, if at any time any change in applicable law or regulation or in the interpretation thereof
makes it unlawful for any Lender to make or continue to maintain any Eurodollar Loans or to perform
its obligations as contemplated hereby, such Lender shall promptly give notice thereof to the
Borrower (with a copy to the Administrative Agent) and such Lender’s obligations to make or
maintain Eurodollar Loans under this Agreement shall be suspended until it is no longer unlawful
for such Lender to make or maintain Eurodollar Loans. The Borrower shall prepay on demand the
outstanding principal amount of any such affected Eurodollar Loans to the extent the continued
maintenance thereof is unlawful, together with all interest accrued thereon and all other amounts
then due and payable to such Lender under this Agreement; provided, however, subject to all of the
terms and conditions of this Agreement, the Borrower may then elect to borrow the principal amount
of the affected Eurodollar Loans from such Lender by means of

- 59 -

 

Base Rate Loans from such Lender,
which Base Rate Loans shall not be made ratably by the Lenders but only from such affected Lender.

   Section 10.2. Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR.
If on or prior to the first day of any Interest Period for any Borrowing of Eurodollar Loans:

     (a) the Administrative Agent determines that deposits in U.S. Dollars (in the
applicable amounts) are not being offered to it in the interbank eurodollar market for such
Interest Period, or that by reason of circumstances affecting the interbank eurodollar
market adequate and reasonable means do not exist for ascertaining the applicable LIBOR, or

     (b) the Required Lenders advise the Administrative Agent that (i) LIBOR as determined
by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders
of funding their Eurodollar Loans for such Interest Period, or (ii) that the making or
funding of Eurodollar Loans become impracticable,

then the Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders,
whereupon until the Administrative Agent notifies the Borrower that the circumstances giving rise
to such suspension no longer exist, the obligations of the Lenders to make Eurodollar Loans shall
be suspended.

   Section 10.3. Increased Cost and Reduced Return. (a) If, on or after the date hereof, the
adoption of any applicable law, rule, or regulation, or any change therein, or any change in the
interpretation or administration thereof by any governmental authority, central bank, or comparable
agency charged with the interpretation or administration thereof, or compliance by any L/C Issuer
or any Lender (or its Lending Office) with any request or directive (whether or not having the
force of law) of any such authority, central bank, or comparable agency:

     (i) shall subject any L/C Issuer or any Lender (or its Lending Office) to any tax,
duty, or other charge with respect to its Eurodollar Loans, its Notes, its Letter(s) of
Credit, or its participation in any thereof, any Reimbursement Obligations owed to it or its
obligation to make Eurodollar Loans, issue a Letter of Credit, or to participate therein, or
shall change the basis of taxation of payments to any L/C Issuer or any Lender (or its
Lending Office) of the principal of or interest on its Eurodollar Loans, Letter(s) of
Credit, or participations therein or any other amounts due under this Agreement or any other
Loan Document in respect of its Eurodollar Loans, Letter(s) of Credit, any participation
therein, any Reimbursement Obligations owed to it, or its obligation to make Eurodollar
Loans, or issue a Letter of Credit, or acquire participations therein (except for changes in
the rate of tax on the overall net income of such L/C Issuer or Lender or its Lending Office
imposed by the jurisdiction in which such L/C Issuer’s or Lender’s principal executive
office or Lending Office is located); or

     (ii) shall impose, modify, or deem applicable any reserve, special deposit, or similar
requirement (including, without limitation, any such requirement imposed by the

- 60 -

 

Board of
Governors of the Federal Reserve System, but excluding with respect to any Eurodollar Loans
any such requirement included in an applicable Eurodollar Reserve Percentage) against assets
of, deposits with or for the account of, or credit extended by, any L/C Issuer or any Lender
(or its Lending Office) or shall impose on any L/C Issuer or any Lender (or its Lending
Office) or on the interbank market any other condition affecting its Eurodollar Loans, its
Notes, its Letter(s) of Credit, or its participation in any thereof, any Reimbursement
Obligation owed to it, or its obligation to make Eurodollar Loans, or to issue a Letter of
Credit, or to participate therein;

and the result of any of the foregoing is to increase the cost to such L/C Issuer or Lender (or its
Lending Office) of making or maintaining any Eurodollar Loan, issuing or maintaining a Letter of
Credit, or participating therein, or to reduce the amount of any sum received or receivable by such
L/C Issuer or Lender (or its Lending Office) under this Agreement or under any other Loan Document
with respect thereto, by an amount deemed by such L/C Issuer or Lender to be material, then, within
20 days after demand by such L/C Issuer or Lender (with a copy to the Administrative Agent), the
Borrower shall be obligated to pay to such L/C Issuer or Lender such additional amount or amounts
as will compensate such L/C Issuer or Lender for such increased cost or reduction, provided that
the Borrower shall not be required to indemnify such L/C Issuer or Lender for any such costs
incurred more than 90 days before such notice is given.

     (b) If, after the date hereof, any L/C Issuer, any Lender or the Administrative Agent shall
have determined that the adoption of any applicable law, rule, or regulation regarding capital
adequacy, or any change therein, or any change in the interpretation or administration thereof by
any governmental authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or compliance by any L/C Issuer, any Lender (or its Lending Office) or any
corporation controlling such L/C Issuer or Lender with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central bank, or
comparable agency, has had the effect of reducing the rate of return on such L/C Issuer’s or such
Lender’s or such corporation’s capital, as the case may be, as a consequence of its obligations
hereunder to a level below that which such L/C Issuer, such Lender or such corporation could have
achieved but for such adoption, change, or compliance (taking into consideration such L/C Issuer’s,
such Lender’s or such corporation’s policies with respect to capital adequacy) by an amount deemed
by such L/C Issuer or Lender to be material, then from time to time, within 20 days after demand by
such L/C Issuer or Lender (with a copy to the Administrative Agent), the Borrower shall pay to such
L/C Issuer or Lender such additional amount or amounts as will compensate such L/C Issuer or Lender
for such reduction, provided that the Borrower shall not be required to indemnify such L/C Issuer
or Lender for any such costs incurred more than 90 days before such notice is given.

     (c) A certificate of a L/C Issuer or Lender claiming compensation under this Section 10.3 and
setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive if
reasonably determined absent manifest error. In determining such amount, such L/C Issuer or Lender
may use any reasonable averaging and attribution methods.

   Section 10.4. Lending Offices. Each Lender may, at its option, elect to make its Loans
hereunder at the branch, office, or affiliate specified on the appropriate signature page hereof

- 61 -

 

(each a “Lending Office”) for each type of Loan available hereunder or at such other of its
branches, offices, or affiliates as it may from time to time elect and designate in a written
notice to the Borrower and the Administrative Agent. To the extent reasonably possible, a Lender
shall designate an alternative branch or funding office with respect to its Eurodollar Loans to
reduce any liability of the Borrower to such Lender under Section 10.3 hereof or to avoid the
unavailability of Eurodollar Loans under Section 10.2 hereof, so long as such designation is not
otherwise disadvantageous to the Lender.

   Section 10.5. Discretion of Lender as to Manner of Funding. Notwithstanding any other
provision of this Agreement, each Lender shall be entitled to fund and maintain its funding of all
or any part of its Loans in any manner it sees fit, it being understood, however, that for the
purposes of this Agreement all determinations hereunder with respect to Eurodollar Loans shall be
made as if each Lender had actually funded and maintained each Eurodollar Loan through the purchase
of deposits in the interbank eurodollar market having a maturity corresponding to such Loan’s
Interest Period and bearing an interest rate equal to LIBOR for such Interest Period.

Section 11. The Administrative Agent.

   Section 11.1. Appointment and Authorization of Administrative Agent. Harris N.A. is
administrative agent for the Lenders under the Prior Credit Agreement. Harris N.A.’s execution of
this Agreement shall serve as its written notice that it resigns as administrative agent under the
Prior Credit Agreement and the Loan Documents. Each L/C Issuer and each Lender hereby appoints
Bank of Montreal, Chicago branch, as the successor Administrative Agent under the Loan Documents,
effective immediately, and hereby authorizes the Administrative Agent to take such action as
Administrative Agent on its behalf and to exercise such powers under the Loan Documents as are
delegated to the Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto. The L/C Issuers and the Lenders expressly agree that the
Administrative Agent is not acting as a fiduciary of the L/C Issuers or the Lenders in respect of
the Loan Documents, the Borrower or otherwise, and nothing herein or in any of the other Loan
Documents shall result in any duties or obligations on the Administrative Agent or any of the L/C
Issuers or Lenders except as expressly set forth herein.

   Section 11.2. Administrative Agent and its Affiliates. The Administrative Agent shall have
the same rights and powers under this Agreement and the other Loan Documents as any other Lender
and may exercise or refrain from exercising such rights and power as though it were not the
Administrative Agent, and the Administrative Agent and its Affiliates may accept deposits from,
lend money to, and generally engage in any kind of business with the Borrower or any Affiliate of
the Borrower as if it were not the Administrative Agent under the Loan Documents. The term
“Lender” as used herein and in all other Loan Documents, unless the context otherwise clearly
requires, includes the Administrative Agent in its individual capacity as a Lender (if applicable).
References in Section 1 hereof to the Administrative Agent’s Loans, or to the amount owing to the
Administrative Agent for which an interest rate is being determined, refer to the Administrative
Agent in its individual capacity as a Lender (if applicable).

   Section 11.3. Action by Administrative Agent. The obligations of the Administrative Agent
under the Loan Documents are only those expressly set forth therein. Without limiting the

- 62 -

 

generality of the foregoing, the Administrative Agent shall not be required to take any action
hereunder with respect to any Default or Event of Default, except as expressly provided in Sections
9.2 and 9.5. Upon the occurrence of an Event of Default, the Administrative Agent shall take such
action to enforce its Lien on the Collateral and to preserve and protect the Collateral as may be
directed by the Required Lenders. Unless and until the Required Lenders give such direction, the
Administrative Agent may (but shall not be obligated to) take or refrain from taking such actions
as it deems appropriate and in the best interest of all the Lenders. In no event, however, shall
the Administrative Agent be required to take any action in violation of applicable law or of any
provision of any Loan Document, and the Administrative Agent shall in all cases be fully justified
in failing or refusing to act hereunder or under any other Loan Document unless it first receives
any further assurances of its indemnification from the Lenders that it may require, including
prepayment of any related expenses and any other protection it requires against any and all costs,
expense, and liability which may be incurred by it by reason of taking or continuing to take any
such action. The Administrative Agent shall be entitled to assume that no Default or Event of
Default exists unless notified in writing to the contrary by a L/C Issuer, a Lender or the
Borrower. If the Administrative Agent receives from the Borrower a written notice of an Event of
Default pursuant to Section 8.5 hereof, the Administrative Agent shall promptly give each of the
L/C Issuers and the Lenders written notice thereof. In all cases in which the Loan Documents do
not require the Administrative Agent to take specific action, the Administrative Agent shall be
fully justified in using its discretion in failing to take or in taking any action thereunder. Any
instructions of the Required Lenders, or of any other group of Lenders called for under the
specific provisions of the Loan Documents, shall be binding upon all the Lenders and the holders of
the Obligations.

   Section 11.4. Consultation with Experts. The Administrative Agent may consult with legal
counsel, independent public accountants, and other experts selected by it and shall not be liable
for any action taken or omitted to be taken by it in good faith in accordance with the advice of
such counsel, accountants, or experts.

   Section 11.5. Liability of Administrative Agent; Credit Decision. Neither the Administrative
Agent nor any of its directors, officers, agents, or employees shall be liable for any action taken
or not taken by it in connection with the Loan Documents: (a) with the consent or at the request
of the Required Lenders, or (b) in the absence of its own gross negligence or willful misconduct.
Neither the Administrative Agent nor any of its directors, officers, agents, or employees shall be
responsible for or have any duty to ascertain, inquire into, or verify: (i) any statement,
warranty, or representation made in connection with this Agreement, any other Loan Document, or any
Credit Event; (ii) the performance or observance of any of the covenants or agreements of the
Borrower or any Subsidiary contained herein or in any other Loan Document; (iii) the satisfaction
of any condition specified in Section 7 hereof, except receipt of items required to be delivered to
the Administrative Agent; or (iv) the validity, effectiveness, genuineness, enforceability,
perfection, value, worth, or collectibility hereof or of any other Loan Document or of any other
documents or writing furnished in connection with any Loan Document or of any Collateral; and the
Administrative Agent makes no representation of any kind or character with respect to any such
matter mentioned in this sentence. The Administrative Agent may execute any of its duties under
any of the Loan Documents by or through employees, agents, and attorneys-in-fact and shall not be
answerable to the L/C Issuers, the Lenders, the

- 63 -

 

Borrower, or any other Person for the default or
misconduct of any such agents or attorneys-in-fact selected with reasonable care. The
Administrative Agent shall not incur any liability by acting in reliance upon any notice, consent,
certificate, other document or statement (whether written or oral) believed by it to be genuine or
to be sent by the proper party or parties. In particular and without limiting any of the
foregoing, the Administrative Agent shall have no responsibility for confirming the accuracy of any
compliance certificate or other document or instrument received by it under the Loan Documents.
The Administrative Agent may treat the payee of any Obligation as the holder thereof until written
notice of transfer shall have been filed with the Administrative Agent signed by such payee in form
satisfactory to the Administrative Agent. Each L/C Issuer and each Lender acknowledges that it has
independently and without reliance on the Administrative Agent or any other L/C Issuer or any other
Lender, and based upon such information, investigations, and inquiries as it deems appropriate,
made its own credit analysis and decision to extend credit to the Borrower in the manner set forth
in the Loan Documents. It shall be the responsibility of each L/C Issuer and each Lender to keep
itself informed as to the creditworthiness of the Borrower and its Subsidiaries, and the
Administrative Agent shall have no liability to any L/C Issuer or any Lender with respect thereto.

   Section 11.6. Indemnity. The Lenders shall ratably, in accordance with their respective
Percentages, indemnify and hold the Administrative Agent, and its directors, officers, employees,
agents, and representatives harmless from and against any liabilities, losses, costs, or expenses
suffered or incurred by it under any Loan Document or in connection with the transactions
contemplated thereby, regardless of when asserted or arising, except to the extent they are
promptly reimbursed for the same by the Borrower and except to the extent that any event giving
rise to a claim was caused by the gross negligence or willful misconduct of the party seeking to be
indemnified. The obligations of the Lenders under this Section shall survive termination of this
Agreement. The Administrative Agent shall be entitled to offset amounts received for the account
of a Lender under this Agreement against unpaid amounts due from such Lender to the Administrative
Agent hereunder (whether as fundings of participations, indemnities or otherwise), but shall not be
entitled to offset against amounts owed to the Administrative Agent by any Lender arising outside
of this Agreement and the other Loan Documents.

   Section 11.7. Resignation of Administrative Agent and Successor Agent. The Administrative
Agent may resign at any time by giving written notice thereof to the L/C Issuers, the Lenders and
the Borrower. Upon any such resignation of the Administrative Agent, the Required Lenders shall
have the right to appoint a successor Administrative Agent to serve in the same capacity as such
resigning Administrative Agent, provided that, unless an Event of Default has occurred and is
continuing, such successor Administrative Agent is reasonably acceptable to the Borrower. If no
successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of
notice of resignation then the retiring Administrative Agent may, on behalf of the Lenders, appoint
a successor Administrative Agent, which shall be any Lender hereunder or any commercial bank
organized under the laws of the United States of America or of any State thereof and having a
combined capital and surplus of at least $200,000,000. Upon the acceptance of its appointment as
the Administrative Agent hereunder, such successor Administrative Agent shall thereupon succeed to
and become vested with all the rights and duties of the retiring Administrative Agent under the
Loan Documents, and the

- 64 -

 

retiring Administrative Agent shall be discharged from its duties and
obligations thereunder. After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Section 11 and all protective provisions of the other
Loan Documents shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent, but no successor Administrative Agent shall in any event be
liable or responsible for any actions of its predecessor. If any Administrative Agent resigns and
no successor is appointed, the rights and obligations of such Administrative Agent shall be
automatically assumed by the Required Lenders and (i) the Borrower shall be directed to make all
payments due each L/C issuer and each Lender hereunder directly to such L/C Issuer or Lender, and
(ii) the Administrative Agent’s rights in the Collateral Documents shall be assigned without
representation, recourse, or warranty to the Lenders and L/C Issuers as their interests may appear.

   Section 11.8. L/C Issuers and Swing Line Lender. Each L/C Issuer shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents associated therewith,
and the Swing Line Lender shall act on behalf of the Lenders with respect to the Swing Loans made
hereunder. The L/C Issuers and the Swing Line Lender shall each have all of the benefits and
immunities (i) provided to the Administrative Agent in this Section 11 with respect to any acts
taken or omissions suffered by such L/C Issuer or the Swing Line Lender in connection with Letters
of Credit issued by it or proposed to be issued by it and the Applications pertaining to such
Letters of Credit or Swing Loans made hereunder, as applicable, as fully as if the term
“Administrative Agent”, as used in this Section 11, included each L/C Issuer and the Swing Line
Lender with respect to such acts or omissions, and (ii) as additionally provided in this Agreement
with respect to such L/C Issuer or Swing Line Lender, as applicable.

   Section 11.9. Hedging Liability and Funds Transfer, Deposit Account, and Credit/Purchasing
Card Liability Arrangements. By virtue of a Lender’s execution of this Agreement or an assignment
agreement pursuant to Section 13.12 hereof, as the case may be, any Affiliate of such Lender with
whom the Borrower or any Guarantor has entered into an agreement creating Hedging Liability or
Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability shall be deemed a Lender
party hereto for purposes of any reference in a Loan Document to the parties for whom the
Administrative Agent is acting, it being understood and agreed that the rights and benefits of such
Affiliate under the Loan Documents consist exclusively of such Affiliate’s right to share in
payments and collections out of the Collateral and the Guaranties as more fully set forth in
Section 3 hereof. In connection with any such distribution of payments and collections, or any
request for the release of the Administrative Agent’s Liens in connection with the termination of
the Commitments and the payment in full of the Obligations, the Administrative Agent shall be
entitled to assume no amounts are due to any Lender or its Affiliate with respect to Hedging
Liability or Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability unless such
Lender has notified the Administrative Agent in writing of the amount of any such liability owed to
it or its Affiliate prior to such distribution or payment or release of Liens.

   Section 11.10. Designation of Additional Agents. The Administrative Agent shall have the
continuing right, for purposes hereof, at any time and from time to time to designate one or more
of the Lenders (and/or its or their Affiliates) as “syndication agents,” “documentation agents,”

- 65 -

 

“arrangers,” or other designations for purposes hereto, but such designation shall have no
substantive effect, and such Lenders and their Affiliates shall have no additional powers, duties,
or responsibilities as a result thereof.

   Section 11.11. Authorization to Release or Subordinate or Limit Liens. The Administrative
Agent is hereby irrevocably authorized by each of the Lenders to (a) release any Lien covering any
Collateral that is sold, transferred, or otherwise disposed of in accordance with the terms and
conditions of this Agreement and the relevant Collateral Documents (including a sale, transfer, or
disposition permitted by the terms of Section 8.10 hereof or which has otherwise been consented to
in accordance with Section 13.14 hereof), (b) release or subordinate any Lien on Collateral
consisting of goods financed with purchase money indebtedness or under a Capital Lease to the
extent such purchase money indebtedness or Capitalized Lease Obligation, and the Lien securing the
same, are permitted by Sections 8.7 and 8.8 hereof, (c) reduce or limit the amount of the
indebtedness secured by any particular item of Collateral to an amount not less than the estimated
value thereof to the extent necessary to reduce mortgage registry, filing and similar tax, and (d)
release Liens on the Collateral following termination or expiration of the Commitments and payment
in full in cash of the Obligations hereunder and, if then due, Hedging Liability and Funds
Transfer, Deposit Account, and Credit/Purchasing Card Liability.

   Section 11.12. Authorization to Enter into, and Enforcement of, the Collateral Documents. The
Administrative Agent is hereby irrevocably authorized by each of the L/C Issuers and Lenders to
execute and deliver the Collateral Documents on behalf of each of the L/C Issuers and Lenders and
their Affiliates and to take such action and exercise such powers under the Collateral Documents as
the Administrative Agent considers appropriate, provided the Administrative Agent shall not amend
the Collateral Documents unless such amendment is agreed to in writing by the Required Lenders.
Each Lender acknowledges and agrees that it will be bound by the terms and conditions of the
Collateral Documents upon the execution and delivery thereof by the Administrative Agent. Except
as otherwise specifically provided for herein, no L/C Issuer or Lender (or its Affiliates) other
than the Administrative Agent shall have the right to institute any suit, action or proceeding in
equity or at law for the foreclosure or other realization upon any Collateral or for the execution
of any trust or power in respect of the Collateral or for the appointment of a receiver or for the
enforcement of any other remedy under the Collateral Documents; it being understood and intended
that no one or more of the L/C Issuers or the Lenders (or their Affiliates) shall have any right in
any manner whatsoever to affect, disturb or prejudice the Lien of the Administrative Agent (or any
security trustee therefor) under the Collateral Documents by its or their action or to enforce any
right thereunder, and that all proceedings at law or in equity shall be instituted, had, and
maintained by the Administrative Agent (or its security trustee) in the manner provided for in the
relevant Collateral Documents for the benefit of the L/C Issuers, the Lenders, and their
Affiliates.

Section 12. The Guarantees.

   Section 12.1. The Guarantees. To induce the L/C Issuers and the Lenders to provide the
credits described herein and in consideration of benefits expected to accrue to the Borrower by
reason of the Commitments and for other good and valuable consideration, receipt of which is hereby
acknowledged, each Subsidiary party hereto (including any Subsidiary formed or

- 66 -

 

acquired after the
Effective Date executing an Additional Guarantor Supplement in the form attached hereto as Exhibit
F or such other form acceptable to the Administrative Agent) hereby unconditionally and irrevocably
guarantees jointly and severally to the Administrative Agent, the L/C Issuers, the Lenders, and
their Affiliates, the due and punctual payment of all present and future Obligations, Hedging
Liability, and Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability, including,
but not limited to, the due and punctual payment of principal of and interest on the Loans, the
Reimbursement Obligations, and the due and punctual payment of all other Obligations now or
hereafter owed by the Borrower under the Loan Documents and the due and punctual payment of all
Hedging Liability and Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability, in
each case as and when the same shall become due and payable, whether at stated maturity, by
acceleration, or otherwise, according to the terms hereof and thereof (including interest which,
but for the filing of a petition in bankruptcy, would otherwise accrue on any such indebtedness,
obligation, or liability). In case of failure by the Borrower or other obligor punctually to pay
any Obligations, Hedging Liability, or Funds Transfer, Deposit Account, and Credit/Purchasing Card
Liability guaranteed hereby, each Guarantor hereby unconditionally agrees to make such payment or
to cause such payment to be made punctually as and when the same shall become due and payable,
whether at stated maturity, by acceleration, or otherwise, and as if such payment were made by the
Borrower or such obligor.

   Section 12.2. Guarantee Unconditional. The obligations of each Guarantor under this Section
12 shall be unconditional and absolute and, without limiting the generality of the foregoing, shall
not be released, discharged, or otherwise affected by:

     (a) any extension, renewal, settlement, compromise, waiver, or release in respect of
any obligation of the Borrower or other obligor or of any other guarantor under this
Agreement or any other Loan Document or by operation of law or otherwise;

     (b) any modification or amendment of or supplement to this Agreement or any other Loan
Document or any agreement relating to Hedging Liability or Funds Transfer, Deposit Account,
and Credit/Purchasing Card Liability;

     (c) any change in the corporate existence, structure, or ownership of, or any
insolvency, bankruptcy, reorganization, or other similar proceeding affecting, the Borrower
or other obligor, any other guarantor, or any of their respective assets, or any resulting
release or discharge of any obligation of the Borrower or other obligor or of any other
guarantor contained in any Loan Document;

     (d) the existence of any claim, set-off, or other rights which the Borrower or other
obligor or any other guarantor may have at any time against the Administrative Agent, any
L/C Issuer, any Lender, or any other Person, whether or not arising in connection herewith;

     (e) any failure to assert, or any assertion of, any claim or demand or any exercise of,
or failure to exercise, any rights or remedies against the Borrower or other obligor, any
other guarantor, or any other Person or Property;

- 67 -

 

     (f) any application of any sums by whomsoever paid or howsoever realized to any
obligation of the Borrower or other obligor, regardless of what obligations of the Borrower
or other obligor remain unpaid;

     (g) any invalidity or unenforceability relating to or against the Borrower or other
obligor or any other guarantor for any reason of this Agreement or of any other Loan
Document or any agreement relating to Hedging Liability or Funds Transfer, Deposit Account,
and Credit/Purchasing Card Liability or any provision of applicable law or regulation
purporting to prohibit the payment by the Borrower or other obligor or any other guarantor
of the principal of or interest on any Loan or any Reimbursement Obligation or any other
amount payable under the Loan Documents or any agreement relating to Hedging Liability or
Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability; or

     (h) any other act or omission to act or delay of any kind by the Administrative Agent,
any L/C Issuer, any Lender, or any other Person or any other circumstance whatsoever that
might, but for the provisions of this paragraph, constitute a legal or equitable discharge
of the obligations of any Guarantor under this Section 12.

   Section 12.3. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances.
Each Guarantor’s obligations under this Section 12 shall remain in full force and effect until the
Commitments are terminated, all Letters of Credit have expired, and the principal of and interest
on the Loans and all other amounts payable by the Borrower and the Guarantors under this Agreement
and all other Loan Documents and, if then outstanding and unpaid, all Hedging Liability, and Funds
Transfer, Deposit Account, and Credit/Purchasing Card Liability shall have been paid in full. If
at any time any payment of the principal of or interest on any Loan or any Reimbursement Obligation
or any other amount payable by the Borrower or other obligor or any Guarantor under the Loan
Documents or any agreement relating to Hedging Liability or Funds Transfer, Deposit Account, and
Credit/Purchasing Card Liability is rescinded or must be otherwise restored or returned upon the
insolvency, bankruptcy, or reorganization of the Borrower or other obligor or of any guarantor, or
otherwise, each Guarantor’s obligations under this Section 12 with respect to such payment shall be
reinstated at such time as though such payment had become due but had not been made at such time.

   Section 12.4. Subrogation. Each Guarantor agrees it will not exercise any rights which it may
acquire by way of subrogation by any payment made hereunder, or otherwise, until all the
Obligations, Hedging Liability, and Funds Transfer, Deposit Account, and Credit/Purchasing Card
Liability shall have been paid in full subsequent to the termination of all the Commitments and
expiration of all Letters of Credit. If any amount shall be paid to a Guarantor on account of such
subrogation rights at any time prior to the later of (x) the payment in full of the Obligations,
Hedging Liability, and Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability and
all other amounts payable by the Borrower hereunder and the other Loan Documents and (y) the
termination of the Commitments and expiration of all Letters of Credit, such amount shall be held
in trust for the benefit of the Administrative Agent, the L/C Issuers, and the Lenders (and their
Affiliates) and shall forthwith be paid to the Administrative Agent for the benefit of the L/C
Issuers, the Lenders (and their Affiliates) or be credited and applied upon the Obligations,

- 68 -

 

Hedging Liability, and Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability,
whether matured or unmatured, in accordance with the terms of this Agreement.

   Section 12.5. Waivers. Each Guarantor irrevocably waives acceptance hereof, presentment,
demand, protest, and any notice not provided for herein, as well as any requirement that at any
time any action be taken by the Administrative Agent, any L/C Issuer, any Lender, or any other
Person against the Borrower or other obligor, another guarantor, or any other Person.

   Section 12.6. Limit on Recovery. Notwithstanding any other provision hereof, the right of
recovery against each Guarantor under this Section 12 shall not exceed $1.00 less than the lowest
amount which would render such Guarantor’s obligations under this Section 12 void or voidable under
applicable law, including, without limitation, fraudulent conveyance law.

   Section 12.7. Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Borrower or other obligor under this Agreement or any other Loan Document, or under
any agreement relating to Hedging Liability or Funds Transfer, Deposit Account, and
Credit/Purchasing Card Liability, is stayed upon the insolvency, bankruptcy or reorganization of
the Borrower or such obligor, all such amounts otherwise subject to acceleration under the terms of
this Agreement or the other Loan Documents, or under any agreement relating to Hedging Liability or
Funds Transfer, Deposit Account, and Credit/Purchasing Card Liability, shall nonetheless be payable
by the Guarantors hereunder forthwith on demand by the Administrative Agent made at the request of
the Required Lenders.

   Section 12.8. Benefit to Guarantors. The Borrower and the Guarantors are engaged in related
businesses and integrated to such an extent that the financial strength and flexibility of the
Borrower has a direct impact on the success of each Guarantor. Each Guarantor will derive
substantial direct and indirect benefit from the extensions of credit hereunder.

   Section 12.9. Guarantor Covenants. Each Guarantor shall take such action as the Borrower is
required by this Agreement to cause such Guarantor to take, and shall refrain from taking such
action as the Borrower is required by this Agreement to prohibit such Guarantor from taking.

Section 13. Miscellaneous.

   Section 13.1. Withholding Taxes. (a) Payments Free of Withholding. Except as otherwise
required by law and subject to Section 13.1(b) hereof, each payment by the Borrower or any
Guarantor under this Agreement or the other Loan Documents shall be made without withholding for or
on account of any present or future taxes (other than overall net income taxes on the recipient)
imposed by or within the jurisdiction in which the Borrower or such Guarantor is domiciled, any
jurisdiction from which the Borrower or such Guarantor makes any payment, or (in each case) any
political subdivision or taxing authority thereof or therein. If any such withholding is so
required, the Borrower or the relevant Guarantor shall make the withholding, pay the amount
withheld to the appropriate governmental authority before penalties attach thereto or interest
accrues thereon and forthwith pay such additional amount as may be necessary to ensure that the net
amount actually received by each L/C Issuer, each Lender, and the

- 69 -

 

Administrative Agent free and
clear of such taxes (including such taxes on such additional amount) is equal to the amount which
that L/C Issuer, that Lender or the Administrative Agent (as the case may be) would have received
had such withholding not been made. If the Administrative Agent, any L/C Issuer, or any Lender
pays any amount in respect of any such taxes, penalties, or interest, the Borrower or the relevant
Guarantor shall reimburse the Administrative Agent, such L/C Issuer, or such Lender for that
payment within 20 days after demand therefor in the currency in which such payment was made. If
the Borrower or a Guarantor pays any such taxes, penalties, or interest, it shall deliver official
tax receipts evidencing that payment or certified copies thereof to the L/C Issuer, the Lender or
the Administrative Agent on whose account such withholding was made (with a copy to the
Administrative Agent if not the recipient of the original) on or before the thirtieth day after
payment.

     (b) U.S. Withholding Tax Exemptions. Each L/C Issuer or Lender that is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) shall submit to the Borrower
and the Administrative Agent on or before the date the initial Credit Event is made hereunder or,
if later, the date such financial institution becomes a L/C Issuer or Lender hereunder, two duly
completed and signed copies of (i) either Form W-8 BEN (relating to such Lender and entitling it to
a complete exemption from withholding under the Code on all amounts to be received by such L/C
Issuer or Lender, including fees, pursuant to the Loan Documents and the Obligations) or Form W-8
ECI (relating to all amounts to be received by such L/C Issuer or Lender, including fees, pursuant
to the Loan Documents and the Obligations) of the United States Internal Revenue Service, or (ii)
solely if such L/C Issuer or Lender is claiming exemption from United States withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”, a Form W-8
BEN, or any successor form prescribed by the Internal Revenue Service, and a certificate
representing that such L/C Issuer or Lender is not a bank for purposes of Section 881(c) of the
Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of
the Borrower, and is not a controlled foreign corporation related to the Borrower (within the
meaning of Section 864(d)(4) of the Code). Thereafter and from time to time, each L/C Issuer and
Lender shall submit to the Borrower and the Administrative Agent such additional duly completed and
signed copies of one or the other of such Forms (or such successor forms as shall be adopted from
time to time by the relevant United States taxing authorities) and such other certificates as may
be (i) requested by the Borrower in a written notice, directly or through the Administrative Agent,
to such L/C Issuer or Lender, and (ii) required under then-current United States law or regulations
to avoid or reduce United States withholding taxes on payments in respect of all amounts to be
received by such L/C Issuer or Lender, including fees, pursuant to the Loan Documents or the
Obligations. Upon the request of the Borrower or the Administrative Agent, each L/C Issuer or
Lender that is a United States person (as such term is defined in Section 7701(a)(30) of the Code)
shall submit to the Borrower and the Administrative Agent a certificate to the effect that it is
such a United States person.

     (c) Inability of Lender to Submit Forms. If any L/C Issuer or Lender determines, as a result
of any change in applicable law, regulation, or treaty, or in any official application or
interpretation thereof, that it is unable to submit to the Borrower or the Administrative Agent any
form or certificate that such L/C Issuer or Lender is obligated to submit pursuant to

- 70 -

 

subsection
(b) of this Section 13.1 or that such L/C Issuer or Lender is required to withdraw or cancel any
such form or certificate previously submitted or any such form or certificate otherwise becomes
ineffective or inaccurate, such L/C Issuer or Lender shall promptly notify the Borrower and
Administrative Agent of such fact and the L/C Issuer or Lender shall to that extent not be
obligated to provide any such form or certificate and will be entitled to withdraw or cancel any
affected form or certificate, as applicable.

   Section 13.2. No Waiver, Cumulative Remedies. No delay or failure on the part of the
Administrative Agent, any L/C Issuer or any Lender or on the part of the holder or holders of any
of the Obligations in the exercise of any power or right under any Loan Document shall operate as a
waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of
any power or right preclude any other or further exercise thereof or the exercise of any other
power or right. The rights and remedies hereunder of the Administrative Agent, the L/C Issuers,
the Lenders, and of the holder or holders of any of the Obligations are cumulative to, and not
exclusive of, any rights or remedies which any of them would otherwise have.

   Section 13.3. Non-Business Days. Subject to Section 1.8, if any payment hereunder becomes due
and payable on a day which is not a Business Day, the due date of such payment shall be extended to
the next succeeding Business Day on which date such payment shall be due and payable. In the case
of any payment of principal falling due on a day which is not a Business Day, interest on such
principal amount shall continue to accrue during such extension at the rate per annum then in
effect, which accrued amount shall be due and payable on the next scheduled date for the payment of
interest.

   Section 13.4. Documentary Taxes. The Borrower agrees to pay on demand any documentary, stamp,
or similar taxes payable in respect of this Agreement or any other Loan Document, including
interest and penalties, in the event any such taxes are assessed, irrespective of when such
assessment is made and whether or not any credit is then in use or available hereunder.

   Section 13.5. Survival of Representations. All representations and warranties made herein or
in any other Loan Document or in certificates given pursuant hereto or thereto shall survive the
execution and delivery of this Agreement and the other Loan Documents, and shall continue in full
force and effect with respect to the date as of which they were made as long as any credit is in
use or available hereunder.

   Section 13.6. Survival of Indemnities. All indemnities and other provisions relative to
reimbursement to the L/C Issuers and the Lenders of amounts sufficient to protect the yield of the
L/C Issuers and Lenders with respect to the Loans and Letters of Credit, including, but not limited
to, Sections 1.13, 10.3, and 13.16 hereof, shall survive the termination of this Agreement and the
other Loan Documents and the payment of the Obligations.

   Section 13.7. Sharing of Set-Off. Each Lender agrees with each other Lender a party hereto
that if such Lender shall receive and retain any payment, whether by set-off or application of
deposit balances or otherwise, on any of the Loans or Reimbursement Obligations in excess of its
ratable share of payments on all such Obligations then outstanding to the Lenders, then such

- 71 -

 

Lender
shall purchase for cash at face value, but without recourse, ratably from each of the other Lenders
such amount of the Loans or Reimbursement Obligations, or participations therein, held by each such
other Lenders (or interest therein) as shall be necessary to cause such Lender to share such excess
payment ratably with all the other Lenders; provided, however, that if any such purchase is made by
any Lender, and if such excess payment or part thereof is thereafter recovered from such purchasing
Lender, the related purchases from the other Lenders shall be rescinded ratably and the purchase
price restored as to the portion of such excess payment so recovered, but without interest. For
purposes of this Section, amounts owed to or recovered by the Administrative Agent in connection
with Reimbursement Obligations in which Lenders have been required to fund their participation
shall be treated as amounts owed to or recovered by the Administrative Agent as a Lender hereunder.

   Section 13.8. Notices. Except as otherwise specified herein, all notices hereunder and under
the other Loan Documents shall be in writing (including, without limitation, notice by telecopy)
and shall be given to the relevant party at its address or telecopier number set forth below, or
such other address or telecopier number as such party may hereafter specify by notice to the
Administrative Agent and the Borrower given by courier, by United States certified or registered
mail, by telecopy or by other telecommunication device capable of creating a written record of such
notice and its receipt. Notices under the Loan Documents to any Lender shall be addressed to its
address or telecopier number set forth on its Administrative Questionnaire; and notices under the
Loans Documents to the Borrower, any Guarantor, any L/C Issuer or the Administrative Agent shall be
addressed to their respective addresses or telecopier numbers set forth below:

	 	 	 	 	 
	 

	 	to the Borrower or any Guarantor:
	 	to the Administrative Agent or Bank of
	 

	 	 	 	Montreal as the L/C Issuer:
	 

	 	The Lamson & Sessions Co.	 	 
	 

	 	25701 Science Park Drive
	 	Bank of Montreal
	 

	 	Cleveland, Ohio 44122-7313
	 	115 South LaSalle Street
	 

	 	Attention: James J. Abel
	 	Chicago, Illinois 60603
	 

	 	Telephone: (216) 766-6557
	 	Attention: David L. Mistic
	 

	 	Telecopy: (216) 514-6925
	 	Telephone: (312) 461-1402
	 

	 	 	 	Telecopy: (312) 293-5068
	 
	 	 	 	 
	 

	 	 	 	to Harris N.A. as the L/C Issuer of the
	 

	 	 	 	Existing Letters of Credit:
	 
	 	 	 	 
	 

	 	 	 	Harris N.A.
	 

	 	 	 	c/o Bank of Montreal
	 

	 	 	 	115 South LaSalle Street
	 

	 	 	 	Chicago, Illinois 60603
	 

	 	 	 	Attention: David L. Mistic
	 

	 	 	 	Telephone: (312) 461-1402
	 

	 	 	 	Telecopy: (312) 293-5068

- 72 -

 

	 	 	 	 	 
	 

	 	 	 	to the Swing Line Lender:
	 
	 	 	 	 
	 

	 	 	 	BMO Capital Markets Financing, Inc.
	 

	 	 	 	c/o Bank of Montreal
	 

	 	 	 	115 South LaSalle Street
	 

	 	 	 	Chicago, Illinois 60603
	 

	 	 	 	Attention: David L. Mistic
	 

	 	 	 	Telephone: (312) 461-1402
	 

	 	 	 	Telecopy: (312) 293-5068

Each such notice, request or other communication shall be effective (i) if given by telecopier,
when such telecopy is transmitted to the telecopier number specified in this Section or in the
relevant Administrative Questionnaire and a confirmation of such telecopy has been received by the
sender, (ii) if given by mail, 5 days after such communication is deposited in the mail, certified
or registered with return receipt requested, addressed as aforesaid or (iii) if given by any other
means, when delivered at the addresses specified in this Section or in the relevant Administrative
Questionnaire; provided that any notice given pursuant to Section 1 hereof shall be effective only
upon receipt.

   Section 13.9. Counterparts. This Agreement may be executed in any number of counterparts, and
by the different parties hereto on separate counterpart signature pages, and all such counterparts
taken together shall be deemed to constitute one and the same instrument.

   Section 13.10. Successors and Assigns. This Agreement shall be binding upon the Borrower and
the Guarantors and their successors and assigns, and shall inure to the benefit of the
Administrative Agent, each L/C Issuer, and each of the Lenders and the benefit of their respective
successors and assigns, including any subsequent holder of any of the Obligations. The Borrower
may not assign any of its rights or obligations under any Loan Document without the written consent
of all of the Lenders and, with respect to any Letter of Credit or the Application therefore, the
relevant L/C Issuer.

   Section 13.11. Participants. Each Lender shall have the right at its own cost to grant
participations (to be evidenced by one or more agreements or certificates of participation) in the
Loans made and Reimbursement Obligations and/or Commitments held by such Lender at any time and
from time to time to one or more other Persons; provided that no such participation shall relieve
any Lender of any of its obligations under this Agreement, and, provided further that no such
participant shall have any rights under this Agreement except as provided in this Section, and the
Administrative Agent shall have no obligation or responsibility to such participant. Any agreement
pursuant to which such participation is granted shall provide that the granting Lender shall retain
the sole right and responsibility to enforce the obligations of the Borrower under this Agreement
and the other Loan Documents, including, without limitation, the right to approve any amendment,
modification, or waiver of any provision of the Loan Documents, except that such agreement may
provide that such Lender will not agree to any modification, amendment, or waiver of the Loan
Documents with respect to any items in

- 73 -

 

Sections 13.14(i) and 13.14(ii). Any party to which such a
participation has been granted shall have the benefits of Section 1.13, Section 10.3, and Section
13.16 hereof, provided that the Borrower shall not be obligated to pay any amount in excess of the
amount it would have been liable for had such participation not been made. The Borrower authorizes
each Lender to disclose to any participant or prospective participant under this Section any
financial or other information pertaining to the Borrower or any Subsidiary, provided such
participant or prospective participant agrees to abide by Section 13.13 hereof.

   Section 13.12. Assignments. (a) Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

     (i) Minimum Amounts. (A) In the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans and participation interest in L/C Obligations at the
time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, no minimum amount need be assigned; and (B) in any case not described in subsection
(a)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes
Loans and participation interest in L/C Obligations outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the Loans and participation
interest in L/C Obligations of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent or, if “Effective Date” is specified in the Assignment and Acceptance, as of
the Effective Date) shall not be less than $5,000,000, in the case of any assignment with respect
to the Revolving Credit, unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to
be unreasonably withheld or delayed);

     (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned, except that this clause (ii) shall not prohibit any
Lender from assigning all or a portion of its rights and obligations among separate Credits on a
non-pro rata basis.

     (iii) Required Consents. No consent shall be required for any assignment except to the extent
required by Section 13.12(a)(i)(B) and, in addition:

     (a) the consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (x) an Event of Default has occurred and is continuing at
the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender
or an Approved Fund;

     (b) the consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments in respect of the Revolving Credit if
such assignment is to a Person that is not a Lender with a

- 74 -

 

Commitment in respect of such
facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender;

     (c) the consent of the L/C Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of the assignee
to participate in exposure under one or more Letters of Credit (whether or not then
outstanding);and

     (d) the consent of the Swing Line Lender (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the obligation of the
assignee to participate in exposure with respect to Swing Loans (whether or not then
outstanding).

     (iv) Assignment and Acceptance. The parties to each assignment shall execute and deliver to
the Administrative Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire.

     (v) No Assignment to Borrower or Parent. No such assignment shall be made to the Borrower or
any of its Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section
13.12(b) hereof, from and after the effective date specified in each Assignment and Acceptance, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 13.6 and 13.15 with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this Section shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with Section 13.11 hereof.

     (b) Register. The Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Chicago, Illinois, a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The

- 75 -

 

Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

     (c) Any Lender may at any time pledge or grant a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any such pledge or
grant to a Federal Reserve Bank, and this Section shall not apply to any such pledge or grant of a
security interest; provided that no such pledge or grant of a security interest shall release a
Lender from any of its obligations hereunder or substitute any such pledgee or secured party for
such Lender as a party hereto; provided further, however, the right of any such pledgee or grantee
(other than any Federal Reserve Bank) to further transfer all or any portion of the rights pledged
or granted to it, whether by means of foreclosure or otherwise, shall be at all times subject to
the terms of this Agreement.

     (d) Notwithstanding anything to the contrary herein, if at any time the Swing Line Lender
assigns all of its Revolving Credit Commitments and Revolving Loans pursuant to subsection (a)
above, the Swing Line Lender may terminate the Swing Line. In the event of such termination of the
Swing Line, the Borrower shall be entitled to appoint another Lender to act as the successor Swing
Line Lender hereunder (with such Lender’s consent); provided, however, that the failure of the
Borrower to appoint a successor shall not affect the resignation of the Swing Line Lender. If the
Swing Line Lender terminates the Swing Line, it shall retain all of the rights of the Swing Line
Lender provided hereunder with respect to Swing Loans made by it and outstanding as of the
effective date of such termination, including the right to require Lenders to make Revolving Loans
or fund participations in outstanding Swing Loans pursuant to Section 1.7 hereof.

   Section 13.13. Confidential Information. The Administrative Agent, the L/C Issuers, and the
Lenders each severally agree to use their commercially reasonable best efforts to keep confidential
any nonpublic information of the type that is ordinarily considered confidential or is otherwise
designated by the Borrower as confidential that is delivered to them by the Borrower (herein, the
“Information”), except that Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other advisors to the
extent any such Person has a need to know such Information (it being understood that the Persons to
whom such disclosure is made will first be informed of the confidential nature of such Information
and instructed to keep such Information confidential), (b) to the extent requested by any
regulatory authority (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same
as those of this Section, to (A) any assignee of or participant in, or any prospective assignee of
or participant in, any of its rights or obligations under this Agreement or (B) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to the
Borrower or any Subsidiary and its obligations, (g) with the prior written consent of the Borrower,
(h) to the extent such Information (A) becomes publicly available other than as a result of a
breach of this Section or (B) becomes available to the Administrative Agent, any

- 76 -

 

L/C Issuer, or any
Lender on a non-confidential basis from a source other than the Borrower or any Subsidiary or any
of their directors, officers, employees or agents, including accountants, legal counsel and other
advisors, (i) to rating agencies if requested or required by such agencies in connection with a
rating relating to the Loans or Commitments hereunder, or (j) to entities which compile and publish
information about the syndicated loan market, provided that only basic information about the
pricing and structure of the transaction evidenced hereby may be disclosed pursuant to this
subsection (j). 

   Section 13.14. Amendments. (a) Any provision of this Agreement or the other Loan Documents
may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by
(x) the Borrower, (y) the Required Lenders, and (z) if the rights or duties of the Administrative
Agent, L/C Issuer, or Swing Line Lender are affected thereby, the Administrative Agent, such L/C
Issuer, or Swing Line Lender, as applicable; provided that:

     (i) no amendment or waiver pursuant to this Section 13.14 shall (A) increase any
Commitment of any Lender without the consent of such Lender, or (B) reduce the amount of or
postpone the date for payment of any scheduled principal of or interest on any existing or
future Loan or of any Reimbursement Obligation or of any fee payable hereunder without the
consent of the Lender to which such payment is owing or which has committed to make such
Loan or Letter of Credit (or participate therein) hereunder; and

     (ii) no amendment or waiver pursuant to this Section 13.14 shall, unless signed by each
Lender, extend the Revolving Credit Termination Date or change the definition of Required
Lenders, change the provisions of this Section 13.14, release any material guarantor or all
or substantially all of the Collateral (except as otherwise provided for in the Loan
Documents), or affect the number of Lenders required to take any action hereunder or under
any other Loan Document or change the pro rata treatment of the Lenders as provided in the
Loan Documents.

     (b) If, in connection with any proposed change, waiver, discharge or termination of any of the
provisions of this Agreement which requires the consent of all the Lenders, and the consent of the
Required Lenders is obtained but the consent of one or more of such other Lenders whose consent is
sought is not obtained, then the Borrower shall have the right, subject to the approval of the
Administrative Agent and so long as all non-consenting Lenders whose individual consent is sought
are treated as described in either clauses (A) or (B) below, to either (A) replace each such
non-consenting Lender or Lenders with one or more replacement Lenders in accordance with the
provisions of Section 1.15 so long as the time of such replacement, each such replacement Lender
consents to the proposed change, waiver, discharge or termination or (B) terminate each such
non-consenting Lender’s Commitment and repay the outstanding Obligations of each such
non-consenting Lender in accordance with Section 1.15, provided that, unless the Commitment that is
terminated and the Obligations that are repaid pursuant to preceding clause (B) are immediately
replaced in full at such time through the addition of new Lenders or the increase of the
Commitments and/or outstanding Loans and interests in outstanding Letters of Credit of existing
Lenders (who in each case must specifically consent thereto), then in the case of any action
pursuant to preceding clause (B) the Required Lenders

- 77 -

 

(determined without giving effect to the
non-consenting Lenders) shall specifically consent thereto, provided further, that in any event the
Borrower shall not have the right to replace a Lender if, immediately after the termination of such
Lender’s Commitment and the repayment of such Lender’s Obligations, if immediately thereafter the
sum of (i) the aggregate outstanding principal amount of Revolving Loans plus (ii) the aggregate
amount of Swing Line Loans plus (iii) the aggregate amount of L/C Obligations, exceeds the
aggregate Revolving Credit Commitments as then in effect.

   Section 13.15. Headings. Section headings used in this Agreement are for reference only and
shall not affect the construction of this Agreement.

   Section 13.16. Costs and Expenses; Indemnification. (a) The Borrower agrees to pay all
reasonable costs and out-of-pocket expenses of the Administrative Agent in connection with the
preparation, negotiation, syndication, and administration of the Loan Documents, including, without
limitation, the reasonable fees and disbursements of counsel to the Administrative Agent, in
connection with the preparation and execution of the Loan Documents, and any amendment, waiver or
consent related thereto, whether or not the transactions contemplated herein are consummated,
together with any fees and charges suffered or incurred by the Administrative Agent in connection
with periodic environmental audits, fixed asset appraisals, title insurance policies, collateral
filing fees and lien searches. The Borrower further agrees to indemnify the Administrative Agent,
each L/C Issuer, each Lender, and any security trustee therefor, and their respective directors,
officers, employees, agents, financial advisors, and consultants (each such Person being called an
“Indemnitee”), against all losses, claims, damages, penalties, judgments, liabilities, and
reasonable expenses (including, without limitation, all reasonable expenses of litigation or
preparation therefor, whether or not the Indemnitee is a party thereto, or any settlement
arrangement arising from or relating to any such litigation) which any of them may pay or incur
arising out of or relating to any Loan Document or any of the transactions contemplated thereby or
the direct or indirect application or proposed application of the proceeds of any Loan or Letter of
Credit, other than those which arise from the gross negligence or willful misconduct of the party
claiming indemnification or such party’s material breach of this Agreement. The Borrower, upon
demand by the Administrative Agent, a L/C Issuer, or a Lender at any time, shall reimburse the
Administrative Agent, such L/C Issuer, or such Lender for any reasonable legal or other expenses
incurred in connection with investigating or defending against any of the foregoing (including any
settlement costs relating to the foregoing) except if the same is directly due to the gross
negligence or willful misconduct of the party to be indemnified. To the extent permitted by
applicable law, neither the Borrower nor any Guarantor shall assert, and each such Person hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or the other Loan Documents or any agreement or
instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any
Loan or Letter of Credit or the use of the proceeds thereof. The obligations of the Borrower under
this Section shall survive the termination of this Agreement.

     (b) The Borrower unconditionally agrees to forever indemnify, defend, and hold harmless, and
covenants not to sue for any claim for contribution against, each Indemnitee for

- 78 -

 

any damages,
costs, loss, or expense, including, without limitation, response, remedial, or removal costs,
arising out of any of the following: (i) any presence, release, threatened release, or disposal of
any hazardous or toxic substance or petroleum by the Borrower or any Subsidiary or otherwise
occurring on or with respect to its Property (whether owned or leased), (ii) the operation or
violation of any environmental law, whether federal, state, or local, and any regulations
promulgated thereunder, by the Borrower or any Subsidiary or otherwise occurring on or with respect
to its Property (whether owned or leased), (iii) any claim for personal injury or property damage
in connection with the Borrower or any Subsidiary or otherwise occurring on or with respect to its
Property (whether owned or leased), and (iv) the inaccuracy or breach of any environmental
representation, warranty, or covenant by the Borrower or any Subsidiary made herein or in any other
Loan Document evidencing or securing any Obligations or setting forth terms and conditions
applicable thereto or otherwise relating thereto, except for damages arising from the willful
misconduct or gross negligence of the party claiming indemnification or such party’s material
breach of this Agreement. This indemnification shall survive the payment and satisfaction of all
Obligations and the termination of this Agreement. This indemnification shall be binding upon the
successors and assigns of the Borrower and shall inure to the benefit of each Indemnitee and its
successors and assigns.

   Section 13.17. Set-off. In addition to any rights now or hereafter granted under the Loan
Documents or applicable law and not by way of limitation of any such rights, upon the occurrence of
any Event of Default, with the prior written consent of the Administrative Agent, each Lender, each
L/C Issuer, each subsequent holder of any Obligation, and each of their respective affiliates, is
hereby authorized by the Borrower and each Guarantor at any time or from time to time, without
notice to the Borrower, any Guarantor or to any other Person, any such notice being hereby
expressly waived, to set-off and to appropriate and to apply any and all deposits (general or
special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether
matured or unmatured, and in whatever currency denominated, but not including trust accounts) and
any other indebtedness at any time held or owing by that Lender, L/C Issuer, subsequent holder, or
affiliate, to or for the credit or the account of the Borrower or such Guarantor, whether or not
matured, against and on account of the Obligations of the Borrower or such Guarantor to that
Lender, L/C Issuer, or subsequent holder under the Loan Documents, including, but not limited to,
all claims of any nature or description arising out of or connected with the Loan Documents,
irrespective of whether or not (a) that Lender, L/C Issuer, or subsequent holder shall have made
any demand hereunder or (b) the principal of or the interest on the Loans and other amounts due
hereunder shall have become due and payable pursuant to Section 9 and although said obligations and
liabilities, or any of them, may be contingent or unmatured.

   Section 13.18. Entire Agreement. The Loan Documents constitute the entire understanding of
the parties thereto with respect to the subject matter thereof and any prior agreements, whether
written or oral, with respect thereto are superseded hereby.

   Section 13.19. Governing Law. This Agreement and the other Loan Documents, and the rights and
duties of the parties hereto, shall be construed and determined in accordance with the internal
laws of the State of Illinois.

- 79 -

 

   Section 13.20. Severability of Provisions. Any provision of any Loan Document which is
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such unenforceability without invalidating the remaining provisions hereof or affecting the
validity or enforceability of such provision in any other jurisdiction. All rights, remedies and
powers provided in this Agreement and the other Loan Documents may be exercised only to the extent
that the exercise thereof does not violate any applicable mandatory provisions of law, and all the
provisions of this Agreement and other Loan Documents are intended to be subject to all applicable
mandatory provisions of law which may be controlling and to be limited to the extent necessary so
that they will not render this Agreement or the other Loan Documents invalid or unenforceable.

   Section 13.21. Excess Interest. Notwithstanding any provision to the contrary contained
herein or in any other Loan Document, no such provision shall require the payment or permit the
collection of any amount in excess of the maximum amount of interest permitted by applicable law to
be charged for the use or detention, or the forbearance in the collection, of all or any portion of
the Loans or other obligations outstanding under this Agreement or any other Loan Document (“Excess
Interest”). If any Excess Interest is provided for, or is adjudicated to be provided for, herein
or in any other Loan Document, then in such event (a) the provisions of this Section shall govern
and control; (b) neither of the Borrower nor any guarantor or endorser shall be obligated to pay
any Excess Interest; (c) any Excess Interest that the Administrative Agent or any Lender may have
received hereunder shall, at the option of the Administrative Agent, be (i) applied as a credit
against the then outstanding principal amount of Loans hereunder, accrued and unpaid interest
thereon (not to exceed the maximum amount permitted by applicable law) and any other Obligations,
or all of the foregoing; (ii) refunded to the Borrower, or (iii) any combination of the foregoing;
(d) the interest rate payable hereunder or under any other Loan Document shall be automatically
subject to reduction to the maximum lawful contract rate allowed under applicable usury laws, and
this Agreement and the other Loan Documents shall be deemed to have been, and shall be, reformed
and modified to reflect such reduction in the relevant interest rate; and (e) neither of the
Borrower nor any guarantor or endorser shall have any action against the Administrative Agent or
any Lender for any damages whatsoever arising out of the payment or collection of any Excess
Interest.

   Section 13.22. Construction. Nothing contained herein shall be deemed or construed to permit
any act or omission which is prohibited by the terms of any Collateral Document, the covenants and
agreements contained herein being in addition to and not in substitution for the covenants and
agreements contained in the Collateral Documents.

   Section 13.23. Lender’s Obligations Several. The obligations of the Lenders hereunder are
several and not joint. Nothing contained in this Agreement and no action taken by the Lenders
pursuant hereto shall be deemed to constitute the Lenders a partnership, association, joint venture
or other entity.

   Section 13.24. Submission to Jurisdiction; Waiver of Jury Trial. The Borrower and the
Guarantors hereby submit to the nonexclusive jurisdiction of the United States District Court for
the Northern District of Illinois and of any Illinois State court sitting in the City of Chicago
for purposes of all legal proceedings arising out of or relating to this Agreement, the other Loan

- 80 -

 

Documents or the transactions contemplated hereby or thereby. The Borrower and the Guarantors
irrevocably waive, to the fullest extent permitted by law, any objection which they may now or
hereafter have to the laying of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been brought in an inconvenient forum.
The Borrower, the Guarantors, the Administrative Agent, the L/C Issuers, and the Lenders hereby
irrevocably waive any and all right to trial by jury in any legal proceeding arising out of or
relating to any Loan Document or the transactions contemplated thereby.

   Section 13.25. USA Patriot Act. Each L/C Issuer and each Lender that is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is
required to obtain, verify, and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such L/C Issuer
or such Lender to identify the Borrower in accordance with the Act.

   Section 13.26. Equalization of Loans and Commitments. Upon the satisfaction of the conditions
precedent set forth in Section 7.2 hereof, all loans and letters of credit outstanding under the
Prior Credit Agreement shall remain outstanding as the initial Borrowing of Loans and Letters of
Credit under this Agreement and, in connection therewith, the Borrower shall be deemed to have
prepaid all outstanding Eurodollar Loans on the Effective Date and shall pay to each Lender who is
currently a party to the Prior Credit Agreement any compensation due such Lender under Section 1.12
of the Prior Credit Agreement as a result thereof. On the Effective Date, the Lenders each agree
to make such purchases and sales of interests in the outstanding Loans and interests in outstanding
Letters of Credit between themselves so that each Lender is then holding its relevant Percentage of
outstanding Loans and L/C Obligations. Such purchases and sales shall be arranged through the
Administrative Agent and each Lender hereby agrees to execute such further instruments and
documents, if any, as the Administrative Agent may reasonably request in connection therewith.

   Section 13.27. Amendment and Restatement. This Agreement shall become effective on the
Effective Date and shall supersede all provisions of the Prior Credit Agreement as of such date.
From and after the Effective Date all references made to the Prior Credit Agreement in any Loan
Document or in any other instrument or document shall, without more, be deemed to refer to this
Agreement. The Borrower and the Guarantors heretofore executed and delivered certain Collateral
Documents. The Borrower and the Guarantors hereby acknowledge and agree that the Liens created and
provided for by the Collateral Documents continue to secure, among other things, the Obligations
arising under this Agreement; and the Collateral Documents and the rights and remedies of the
Administrative Agent thereunder, the obligations of the Borrower and the Guarantors thereunder, and
the Liens created and provided for thereunder remain in full force and effect and shall not be
affected, impaired or discharged hereby. Nothing herein contained shall in any manner affect or
impair the priority of the liens and security interests created and provided for by the Collateral
Documents as to the indebtedness which would be secured thereby prior to giving effect to this
Agreement. Without limiting the foregoing, the parties to this Agreement hereby acknowledge and
agree that the “Credit Agreement” and any other Loan

- 81 -

 

Document referred to in any of the Collateral
Documents shall from and after the date hereof be deemed a reference to this Agreement and the Loan
Documents referred to herein

   Section 13.28. Removal of Lender and Assignment of Interests. The Departing Lender hereby
agrees to sell and assign without representation, recourse, or warranty (except the Departing
Lender represents it has authority to execute and deliver this Agreement and sell its Obligations
contemplated hereby, which Obligations are owned by the Departing Lender free and clear of all
Liens), and upon the satisfaction of the conditions precedent set forth in Section 7.2 hereof the
Lenders hereby agree to purchase, 100% of the Departing Lender’s outstanding Obligations under the
Prior Credit Agreement and the Loan Documents (including, without limitation, all of the loans held
by the Departing Lender, together with all of its interests in outstanding letters of credit,
provided Harris N.A. shall remain a party to the Credit Agreement as the L/C Issuer of the Existing
Letters of Credit) for a purchase price equal to the outstanding principal balance of loans and
accrued but unpaid interest and fees owed to the Departing Lender under the Prior Credit Agreement
as of the Effective Date, which purchase price shall be paid in immediately available funds on the
Effective Date. Such purchases and sales shall be arranged through the Administrative Agent and
the Departing Lender hereby agrees to execute such further instruments and documents, if any, as
the Administrative Agent may reasonably request in connection therewith. Upon the execution and
delivery of this Agreement by the Departing Lender, the Lenders, the L/C Issuers, and the Borrower
and the payment of the Obligations owing to the Departing Lender, the Departing Lender shall cease
to be a Lender under the Credit Agreement and the other Loan Documents (except Harris N.A., shall
remain as an L/C Issuer with respect to the Existing Letters of Credit), and (i) the Lenders shall
have the rights of the Departing Lender thereunder subject to the terms and conditions hereof and
(ii) the Departing Lender shall have relinquished its rights (other than rights to indemnification
and reimbursements referred to in the Prior Credit Agreement which survive the repayment of the
Obligations owed to the Departing Lender in accordance with its terms, including Section 13.6 and
13.16 thereof, and Harris N.A.’s rights as L/C Issuer of the Existing Letters of Credit) and be
released from their obligations under the Prior Credit Agreement (except Harris N.A. as an L/C
Issuer with respect to the Existing Letters of Credit).

[Signature Pages to Follow]

- 82 -

 

     This Third Amended and Restated Credit Agreement is entered into between us for the
uses and purposes hereinabove set forth as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	“Borrower”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	The Lamson & Sessions Co.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 /s/ James J. Abel	 	 	 	 
	 

	 	 	 	Name:
	 	James J. Abel	 	 
	 

	 	 	 	Title:
	 	Executive Vice President, Secretary,

Treasurer & Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	“Guarantors”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Carlon Chimes Co.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 /s/ James J. Abel	 	 	 	 
	 

	 	 
	 	Name:
	 	James J. Abel	 	 
	 

	 	 	 	Title:
	 	Vice President, Secretary and
Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Dimango Products Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 /s/ James J. Abel	 	 	 	 
	 

	 	 	 	Name:
	 	James J. Abel	 	 
	 

	 	 	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Pyramid Industries II, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 /s/ James J. Abel	 	 	 	 
	 

	 	 	 	Name:
	 	James J. Abel	 	 
	 

	 	 	 	Title:
	 	Vice President and Treasurer	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Bank of Montreal, as Administrative
Agent and L/C Issuer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ David L. Mistic	 	 	 
	 

	 	 	 	Name	 	David L. Mistic	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 2 -

 

	 	 	 	 	 	 	 	 	 
	 	 	“Lenders”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BMO Capital Markets Financing, Inc., in
its individual capacity as Lender and as
Swing Line Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ David L. Mistic	 	 
	 

	 	 	 	Name	 	David L. Mistic	 	 
	 

	 	 	 	Title
	 	Vice
President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 3 -

 

	 	 	 	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A., in its
individual capacity as a Lender and as
Co-Syndication Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Phillip R. Duryea	 	 
	 

	 	 	 	Name	 	Phillip R. Duryea	 	 
	 

	 	 	 	Title
	 	First
Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 4 -

 

	 	 	 	 	 	 	 	 	 
	 	 	National City Bank, in its individual
capacity as a Lender and as Co-Syndication
Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Ronald J. Majka	 	 
	 

	 	 	 	Name	 	Ronald J. Majka	 	 
	 

	 	 	 	Title
	 	Sr.
Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 5 -

 

	 	 	 	 	 	 	 	 	 
	 	 	LaSalle Bank National Association, in
its individual capacity as a Lender and as
Documentation Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Brian H. Gallagher	 	 
	 

	 	 	 	Name	 	Brian H. Gallagher	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 6 -

 

	 	 	 	 	 	 	 	 	 
	 	 	HSBC Bank USA, National Association	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Robert J. McArdle	 	 
	 

	 	 	 	Name	 	Robert J. McArdle	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 7 -

 

	 	 	 	 	 	 	 	 	 
	 	 	Fifth Third Bank	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Jeff Miller	 	 
	 

	 	 	 	Name	 	Jeff Miller	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 8 -

 

	 	 	 	 	 	 	 	 	 
	 	 	The Huntington National Bank	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Donald W. Lambacher	 	 
	 

	 	 	 	Name	 	Donald W. Lambacher	 	 
	 

	 	 	 	Title
	 	Sr.
Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 9 -

 

	 	 	 	 	 	 	 	 	 
	 	 	Charter One Bank, N.A.	 	 
	 

	 	By	 	/s/ M. James Barry, III	 	 	 	 
	 

	 	 	 	Name	 	M. James Barry, III	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 10 -

 

	 	 	 	 	 	 	 	 	 
	 	 	The Northern Trust Company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ Jeffrey P. Sullivan	 	 	 	 
	 

	 	 	 	Name	 	Jeffrey P. Sullivan	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 11 -

 

	 	 	 	 	 	 	 	 	 
	 	 	Harris N.A., as L/C Issuer with respect
to Existing Letters of Credit and as
resigning Administrative Agent and Departing
Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/ David L. Mistic	 	 	 	 
	 

	 	 	 	Name	 	David L. Mistic	 	 
	 

	 	 	 	Title
	 	Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

- 12 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]