Document:

Ex-10.1

 

Exhibit 10.1

CREDIT AGREEMENT

dated as of October 20, 2006

among

LANCE, INC.,

TAMMING FOODS LTD.,

as the Canadian Borrower,

BANK OF AMERICA, NATIONAL ASSOCIATION,

as Administrative Agent,

Letter of Credit Issuing Lender and Canadian Agent,

WACHOVIA CAPITAL MARKETS, LLC,

as Syndication Agent

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC

as Lead Arranger and Book Manager

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	          1.1
	 	Certain Defined Terms	 	 	1	 
	          1.2
	 	Other Interpretive Provisions	 	 	24	 
	          1.3
	 	Accounting Principles	 	 	24	 
	          1.4
	 	Letter of Credit Amounts	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	THE CREDITS	 	 	25	 
	 
	 	 	 	 	 	 
	          2.1
	 	Amounts and Terms of Term Commitments and U.S. Revolving Credit Commitments	 	 	25	 
	          2.2
	 	Amounts and Terms of Canadian Commitments	 	 	26	 
	          2.3
	 	Loan Accounts	 	 	26	 
	          2.4
	 	Procedure for Term Borrowing and U.S. Revolving Credit Borrowings	 	 	26	 
	          2.5
	 	Conversion and Continuation Elections for Term Borrowing and U.S. Revolving Credit Borrowings	 	 	27	 
	          2.6
	 	Procedure for Canadian Borrowing of Canadian Prime Rate Loans	 	 	29	 
	          2.7
	 	Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes	 	 	29	 
	          2.8
	 	Voluntary Termination or Reduction of Commitments	 	 	33	 
	          2.9
	 	Optional Prepayments	 	 	34	 
	          2.10
	 	Repayment	 	 	35	 
	          2.11
	 	Interest	 	 	35	 
	          2.12
	 	Fees	 	 	36	 
	          2.13
	 	Computation of Fees and Interest	 	 	37	 
	          2.14
	 	Payments by the Company	 	 	37	 
	          2.15
	 	Payments by the Lenders to the Applicable Agent	 	 	39	 
	          2.16
	 	Sharing of Payments	 	 	40	 
	          2.17
	 	Increase in Aggregate U.S. Revolving Credit Commitment	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	THE LETTERS OF CREDIT	 	 	42	 
	 
	 	 	 	 	 	 
	          3.1
	 	The Letter of Credit Subfacility	 	 	42	 
	          3.2
	 	Issuance, Amendment and Renewal of Letters of Credit	 	 	43	 
	          3.3
	 	Risk Participations, Drawings and Reimbursements	 	 	45	 
	          3.4
	 	Repayment of Participations	 	 	47	 
	          3.5
	 	Role of the Issuing Lenders	 	 	48	 

-i-

 

TABLE OF CONTENTS
 (continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	          3.6
	 	Obligations Absolute	 	 	49	 
	          3.7
	 	Cash Collateral Pledge	 	 	49	 
	          3.8
	 	Letter of Credit Fees	 	 	50	 
	          3.9
	 	Applicability of ISP	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	TAXES, YIELD PROTECTION AND ILLEGALITY	 	 	50	 
	 
	 	 	 	 	 	 
	          4.1
	 	Taxes	 	 	50	 
	          4.2
	 	Illegality	 	 	51	 
	          4.3
	 	Increased Costs and Reduction of Return	 	 	52	 
	          4.4
	 	Funding Losses	 	 	53	 
	          4.5
	 	Inability to Determine Rates	 	 	53	 
	          4.6
	 	Certificates of Lenders	 	 	54	 
	          4.7
	 	Substitution of Lenders	 	 	54	 
	          4.8
	 	Canadian Lenders	 	 	54	 
	          4.9
	 	Survival	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	CONDITIONS PRECEDENT	 	 	55	 
	 
	 	 	 	 	 	 
	          5.1
	 	Conditions to Initial Credit Extensions	 	 	55	 
	          5.2
	 	Conditions to All Credit Extensions	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	REPRESENTATIONS AND WARRANTIES	 	 	57	 
	 
	 	 	 	 	 	 
	          6.1
	 	Corporate Existence and Power	 	 	57	 
	          6.2
	 	Corporate Authorization; No Contravention	 	 	57	 
	          6.3
	 	Governmental Authorization	 	 	58	 
	          6.4
	 	Binding Effect	 	 	58	 
	          6.5
	 	Litigation	 	 	58	 
	          6.6
	 	No Default	 	 	58	 
	          6.7
	 	ERISA Compliance; Canadian Plans	 	 	58	 
	          6.8
	 	Use of Proceeds; Margin Regulations	 	 	59	 
	          6.9
	 	Title to Properties	 	 	59	 
	          6.10
	 	Taxes	 	 	59	 
	          6.11
	 	Financial Condition	 	 	59	 
	          6.12
	 	Environmental Matters	 	 	60	 

-ii-

 

TABLE OF CONTENTS
 (continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	          6.13
	 	Regulated Entities	 	 	60	 
	          6.14
	 	No Burdensome Restrictions	 	 	60	 
	          6.15
	 	Copyrights, Patents, Trademarks and Licenses, etc	 	 	60	 
	          6.16
	 	Subsidiaries	 	 	60	 
	          6.17
	 	Insurance	 	 	60	 
	          6.18
	 	Swap Obligations	 	 	61	 
	          6.19
	 	Full Disclosure	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	AFFIRMATIVE COVENANTS	 	 	61	 
	 
	 	 	 	 	 	 
	          7.1
	 	Financial Statements	 	 	61	 
	          7.2
	 	Certificates; Other Information	 	 	62	 
	          7.3
	 	Notices	 	 	63	 
	          7.4
	 	Preservation of Corporate Existence, Etc	 	 	64	 
	          7.5
	 	Maintenance of Property	 	 	64	 
	          7.6
	 	Insurance	 	 	64	 
	          7.7
	 	Payment of Obligations	 	 	65	 
	          7.8
	 	Compliance with Laws	 	 	65	 
	          7.9
	 	Compliance with ERISA; Canadian Plans	 	 	65	 
	          7.10
	 	Inspection of Property and Books and Records	 	 	65	 
	          7.11
	 	Environmental Laws	 	 	65	 
	          7.12
	 	Use of Proceeds	 	 	66	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	NEGATIVE COVENANTS	 	 	66	 
	 
	 	 	 	 	 	 
	          8.1
	 	Financial Condition Covenants	 	 	66	 
	          8.2
	 	Limitation on Liens	 	 	66	 
	          8.3
	 	Disposition of Assets	 	 	68	 
	          8.4
	 	Consolidations and Mergers	 	 	68	 
	          8.5
	 	Loans and Investments	 	 	68	 
	          8.6
	 	Limitation on Subsidiary Indebtedness	 	 	69	 
	          8.7
	 	Transactions with Affiliates	 	 	70	 
	          8.8
	 	Use of Proceeds	 	 	70	 
	          8.9
	 	Swap Contracts	 	 	70	 

-iii-

 

TABLE OF CONTENTS
 (continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	          8.10
	 	Restricted Payments	 	 	70	 
	          8.11
	 	ERISA	 	 	70	 
	          8.12
	 	Change in Business	 	 	70	 
	          8.13
	 	Accounting Changes	 	 	71	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	EVENTS OF DEFAULT	 	 	71	 
	 
	 	 	 	 	 	 
	          9.1
	 	Event of Default	 	 	71	 
	          9.2
	 	Remedies	 	 	73	 
	          9.3
	 	Rights Not Exclusive	 	 	73	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	THE AGENTS	 	 	74	 
	 
	 	 	 	 	 	 
	          10.1
	 	Appointment and Authorization	 	 	74	 
	          10.2
	 	Delegation of Duties	 	 	74	 
	          10.3
	 	Exculpatory Provisions	 	 	75	 
	          10.4
	 	Reliance by Agents	 	 	75	 
	          10.5
	 	Notice of Default	 	 	76	 
	          10.6
	 	Credit Decision	 	 	76	 
	          10.7
	 	Agent in Individual Capacity	 	 	77	 
	          10.8
	 	Successor Agent	 	 	77	 
	          10.9
	 	Withholding Tax	 	 	78	 
	          10.10
	 	Other Agents	 	 	79	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	GUARANTY BY THE COMPANY	 	 	79	 
	 
	 	 	 	 	 	 
	          11.1
	 	Guaranty	 	 	79	 
	          11.2
	 	Guaranty Unconditional	 	 	80	 
	          11.3
	 	Discharge only upon Payment in Full; Reinstatement in Certain Circumstances	 	 	80	 
	          11.4
	 	Waiver by the Company	 	 	81	 
	          11.5
	 	Subrogation	 	 	81	 
	          11.6
	 	Stay of Acceleration	 	 	81	 
	 
	 	 	 	 	 	 
	ARTICLE XII
	 	MISCELLANEOUS	 	 	81	 
	 
	 	 	 	 	 	 
	          12.1
	 	Amendments and Waivers	 	 	81	 
	          12.2
	 	Notices; Effectiveness; Electronic Communications	 	 	82	 

-iv-

 

TABLE OF CONTENTS
 (continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	          12.3
	 	No Waiver; Cumulative Remedies	 	 	84	 
	          12.4
	 	Expenses; Indemnity; Damage Waiver	 	 	84	 
	          12.5
	 	Payments Set Aside	 	 	86	 
	          12.6
	 	Successors and Assigns	 	 	86	 
	          12.7
	 	Treatment of Certain Information; Confidentiality	 	 	90	 
	          12.8
	 	Survival of Representations and Warranties	 	 	91	 
	          12.9
	 	Set-off	 	 	91	 
	          12.10
	 	Notification of Addresses, Lending Offices, Etc	 	 	91	 
	          12.11
	 	Counterparts; Integration; Effectiveness	 	 	91	 
	          12.12
	 	Severability	 	 	92	 
	          12.13
	 	No Third Parties Benefited	 	 	92	 
	          12.14
	 	Governing Law and Jurisdiction	 	 	92	 
	          12.15
	 	Waiver of Jury Trial	 	 	92	 
	          12.16
	 	No Advisory or Fiduciary Responsibility	 	 	93	 
	          12.17
	 	USA PATRIOT Act Notice	 	 	93	 
	          12.18
	 	Judgment	 	 	94	 
	          12.19
	 	Entire Agreement	 	 	94	 

-v-

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 2.1(a)

	 	Term Commitments and Term Pro Rata Shares
	Schedule 2.1(b)

	 	U.S. Revolving Credit Commitments and U.S. Revolving Credit Pro Rata Shares
	Schedule 2.2

	 	Canadian Commitments and Canadian Pro Rata Shares
	Schedule 6.7

	 	ERISA
	Schedule 6.16

	 	Subsidiaries of Lance, Inc.
	Schedule 8.2

	 	Permitted Liens
	Schedule 12.2

	 	Eurodollar and Domestic Lending Offices, Addresses for Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A-1

	 	Form of Notice of Borrowing
	Exhibit A-2

	 	Form of Notice of Canadian Borrowing
	Exhibit A-3

	 	Form of Notice of Canadian BA Borrowing
	Exhibit B

	 	Form of Notice of Conversion/Continuation
	Exhibit C

	 	Form of Compliance Certificate
	Exhibit D

	 	Form of Assignment and Acceptance
	Exhibit E-1

	 	Form of Term Note
	Exhibit E-2

	 	Form of U.S. Revolving Credit Note
	Exhibit E-3

	 	Form of Canadian Note
	Exhibit F

	 	Form of Canadian BA Equivalent Note

-vi-

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT is entered into as of October 20, 2006, among LANCE, INC., a North
Carolina corporation (the “Company”), TAMMING FOODS LTD., an Ontario corporation (the
“Canadian Borrower” and together with the Company, collectively the “Borrowers”),
the several financial institutions from time to time party to this Agreement (collectively the
“Lenders”; individually each a “Lender”), WACHOVIA CAPITAL MARKETS, LLC, as
syndication agent, and BANK OF AMERICA, NATIONAL ASSOCIATION, as letter of credit issuing lender,
as administrative agent for the Lenders, and as Canadian Agent.

WITNESSETH:

     WHEREAS, the Borrowers have requested that the Lenders provide revolving credit and term loan
facilities, including a letter of credit subfacility and a Canadian dollar revolving credit
facility, and the Lenders are willing to do so on the terms and conditions set forth herein;

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

ARTICLE I

DEFINITIONS

     1.1 Certain Defined Terms. The following terms have the following meanings:

     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, or otherwise causing any Person to become a Subsidiary,
or (c) a merger or consolidation or amalgamation or any other combination with another
Person (other than a Person that is a Subsidiary) provided that the Company or the
Subsidiary is the surviving entity or, in the case of an amalgamation, the resulting
corporation has provided an assumption agreement and all other assurances as the
Administrative Agent may reasonably require.

     Administrative Agent means Bank of America in its capacity as agent for the
Lenders hereunder, and any successor thereto in such capacity arising under Section
10.8.

     Administrative Agent’s Payment Office means the address for payments set forth
on Schedule 12.2 or such other address as the Administrative Agent may from time to
time specify.

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

     Affiliate means, as to any Person, any other Person which, directly or
indirectly, is in control of, is controlled by, or is under common control with such Person.
A Person

 

 

shall be deemed to control another Person if the controlling 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 or membership
interests, by contract or otherwise.

     Agent means each of the Administrative Agent and the Canadian Agent.

     Agent Parties has the meaning specified in Section 12.2.

     Agent-Related Persons means Bank of America and any successor to Bank of
America as Administrative Agent arising under Section 10.8 and any successor to Bank
of America as an Issuing Lender hereunder and Bank of America and any successor to Bank of
America as Canadian Agent arising under Section 10.8, together with their respective
Related Parties.

     Aggregate Canadian Commitment means at any time an amount equal to the
aggregate amount of the Canadian Commitments of all Canadian Lenders. The initial amount of
the Aggregate Canadian Commitment is C$15,000,000.

     Aggregate Term Commitment means at any time an amount equal to the aggregate
amount of the Term Commitments of all Term Lenders.

     Aggregate U.S. Revolving Credit Commitment means at any time an amount equal to
the aggregate amount of the U.S. Revolving Credit Commitments of all U.S. Revolving Credit
Lenders. The initial amount of the Aggregate U.S. Revolving Credit Commitment is
US$100,000,000.

     Agreement means this Credit Agreement.

     Applicable Law means, with reference to any Person, all laws (foreign or
domestic), ordinances and treaties and all judgments, decrees, injunctions, writs and orders
of any court, arbitrator or Governmental Authority, and all rules and regulations of any
Governmental Authority applicable to such Person.

     Applicable Margin means (a) initially, (i) 0.32% per annum with respect to U.S.
Revolving Credit Loans and the L/C Fee Rate, and (ii) 0.40% per annum with respect to Term
Loans, and (b) beginning on any date on which the Applicable Margin is to be adjusted
pursuant to the sentence following the table below, the rate per annum set forth in the
table below opposite the applicable Pricing Total Debt to EBITDA Ratio:

2

 

	 	 	 	 	 	 	 	 	 	 
	             Pricing	 	 	U.S. Revolving Credit Loan and	 	 
	         Total Debt	 	 	L/C Fee Rate	 	Term Loan
	    to EBITDA Ratio	 	 	Applicable Margin	 	Applicable Margin
	Less than or equal

to 0.75 to 1

	 	 	 	0.28	%	 	 	0.35	%
	 
	 	 	 	 	 	 	 	 	 
	Greater than 0.75

to 1 but less than

or equal to 1.50 to 1

	 	 	 	0.32	%	 	 	0.40	%
	 
	 	 	 	 	 	 	 	 	 
	Greater than 1.50 to

to 1 but less than

or equal to 2.25 to 1

	 	 	 	0.40	%	 	 	0.50	%
	 
	 	 	 	 	 	 	 	 	 
	Greater than 2.25

to 1

	 	 	 	0.625	%	 	 	0.75	%

The Applicable Margin for all Eurodollar Rate Loans (and for purposes of the L/C Fee Rate)
shall be adjusted, to the extent applicable, 46 days (or, in the case of the last fiscal
quarter of any year, 101 days) after the end of each fiscal quarter (or, if earlier, 10 days
following delivery by the Company of the financial statements required by subsection
7.1(a) or 7.1(b), as applicable, and the related Compliance Certificate required
by subsection 7.2(a) for such fiscal quarter), based on the Pricing Total Debt to
EBITDA Ratio as of the last day of such fiscal quarter; it being understood that if
the Company fails to deliver the financial statements required by subsection 7.1(a)
or 7.1(b), as applicable, and the related Compliance Certificate required by
subsection 7.2(a) by the 46th day (or, if applicable, the 101st day) after any
fiscal quarter, the Applicable Margin for U.S. Revolving Credit Loans shall be 0.625% and
the Applicable Margin for Term Loans shall be 0.75%, in each case until such financial
statements and Compliance Certificate are delivered.

     Applicable Pro Rata Share means:

     (a) with respect to any Term Lender at any time, its Term Pro Rata Share at such time,

     (b) with respect to any U.S. Revolving Credit Lender at any time, its U.S. Revolving
Credit Pro Rata Share at such time, and

     (c) with respect to any Canadian Lender at any time, its Canadian Pro Rata Share at
such time.

The initial Applicable Pro Rata Share(s) of each Lender are set forth opposite the name of
such Lender on Schedules 2.1(a), 2.1(b) and 2.2 or in the Assignment
and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     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.

     Arranger means Banc of America Securities LLC.

3

 

     Assignee Group means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     Assignment and Assumption means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 12.6(b)), and accepted by the Administrative Agent, in substantially the
form of Exhibit D or any other form approved by the Administrative Agent.

     Attorney Costs means and includes all reasonable fees and disbursements of any
law firm or other external counsel, provided that all attorneys’ fees shall be determined
without regard to any statutory presumption based on the standard hourly rates for such
attorneys and the actual hours expended.

     Auto-Extension Letter of Credit has the meaning specified in Section
3.2.

     Bank of America means Bank of America, National Association, a national banking
association.

     Bankruptcy Code means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C.
§101, et seq.).

     BBA LIBOR has the meaning specified in the definition of “Eurodollar Base
Rate”.

     Borrower Materials has the meaning specified in Section 7.2

     Borrowers — see preamble to this Agreement.

     Borrowing means (a) a borrowing hereunder consisting of Loans of the same Type
made to a Borrower on the same day by one or more Lenders under Article II and,
other than in the case of U.S. Base Rate Loans or Canadian Prime Rate Loans, having the same
Interest Period or (b) a Canadian BA Borrowing.

     Borrowing Date means any date on which a Borrowing occurs under Section
2.4 or 2.6 or on which the Canadian Lenders accept Drafts and/or purchase BA
Equivalent Notes pursuant to Section 2.7.

     Business Day means any day other than a Saturday, Sunday or other day on which
commercial banks in Charlotte, North Carolina are authorized or required by law to close
and, if the applicable Business Day relates to any Eurodollar Rate Loan, means such a day on
which dealings are carried on in the London offshore dollar interbank market and, in the
case of payments and disbursements in Canadian Dollars and in the case of any matter
relating to Canadian Bankers’ Acceptances or Canadian BA Equivalent Notes such a day on
which Bank of America’s Canada Branch is open for commercial banking business in Toronto,
Ontario.

4

 

     Canadian Agent means Bank of America, National Association, acting through its
Canada Branch, in its capacity as agent for the Canadian Lenders hereunder, and any
successor thereto in such capacity arising under Section 10.8.

     Canadian BA Borrowing means Canadian Bankers’ Acceptances and Canadian BA
Equivalent Notes accepted or purchased by the Canadian Lenders in amounts substantially
equivalent (subject to subsection 2.7.2(b)) to their respective Canadian Pro Rata
Shares on the same day and for the same term.

     Canadian BA Discount Proceeds means, with respect to any Canadian Bankers’
Acceptance or Canadian BA Equivalent Note, an amount calculated on the applicable Borrowing
Date which is (rounded to the nearest full cent) equal to the face amount of such Canadian
Bankers’ Acceptance or Canadian BA Equivalent Note divided by the sum of one plus the
product of (i) the Canadian BA Discount Rate applicable thereto multiplied by (ii) a
fraction, the numerator of which is the term of such Canadian Bankers’ Acceptance or
Canadian BA Equivalent Note and the denominator of which is 365.

     Canadian BA Discount Rate means, with respect to any Canadian Bankers’
Acceptances or Canadian BA Equivalent Notes to be purchased by the Canadian Lenders on any
Borrowing Date, (i) for each Canadian BA Lender that is a bank named in Schedule I to the
Bank Act (Canada), the CDOR for bankers’ acceptances having an identical maturity date and
(if shown on the CDOR page of the Reuters screen) comparable aggregate face amount to the
maturity date and aggregate face amount of such Canadian Bankers’ Acceptances, (ii) for each
Canadian BA Lender that is not a bank named in Schedule I to the Bank Act (Canada), the
lesser of (A) the CDOR and (B) the discount rate of interest at which such Canadian BA
Lender is offering as of 10:00 a.m. (Toronto time) on such Borrowing Date to purchase
bankers’ acceptances accepted by it having an identical maturity date and comparable
aggregate face amount to the maturity date and aggregate face amount of the applicable
Canadian Bankers’ Acceptance of such Canadian BA Lender, as notified by such Lender to the
Canadian Agent and (iii) for each Canadian Non-BA Lender, the lesser of (A) the CDOR and (B)
the annual interest rate which is the cost to such Canadian Non-BA Lender of obtaining
Canadian Dollars to fund such purchase by it, as notified by such Lender to the Canadian
Agent.

     Canadian BA Equivalent Note — see Section 2.7.1.

     Canadian BA Lender means any Canadian Lender which is a bank mentioned in
Schedule I or Schedule II of the Bank Act (Canada) or is an authorized foreign bank
mentioned in Schedule III of the Bank Act (Canada) that is not subject to the restrictions
and requirements referred to in subsection 524(2) of the Bank Act (Canada).

     Canadian Bankers’ Acceptance means a Draft which has been accepted by a
Canadian BA Lender as provided in Section 2.7.

     Canadian Borrower — see the preamble to this Agreement.

5

 

     Canadian Borrowing means a Borrowing of Canadian Loans.

     Canadian Commitment — see Section 2.2.

     Canadian Cost of Funds Rate means, for any day, a rate per annum equal to the
cost of funds of the Canadian Agent as established by the Canadian Agent based on its
customary practice.

     Canadian Dollars and C$ each means lawful money of Canada.

     Canadian Lender means each Lender designated as a Canadian Lender on its
signature page hereto and its permitted successors and assigns.

     Canadian Loan means a Canadian Prime Rate Loan to the Canadian Borrower in
Canadian Dollars.

     Canadian Non-BA Lender means any Canadian Lender which is not a Canadian BA
Lender.

     Canadian Outstandings means, with respect to any Canadian Lender, the aggregate
principal amount of all outstanding Canadian Loans made by such Canadian Lender to the
Canadian Borrower plus the face amount of all outstanding Canadian Bankers’ Acceptances
accepted by such Canadian Lender or Canadian BA Equivalent Notes purchased by such Canadian
Lender.

     Canadian Plan means a pension plan established by the Canadian Borrower or any
other Canadian Subsidiary of the Company for any of its employees which is not subject to
ERISA.

     Canadian Prime Rate means, for any day, the per annum rate of interest in
effect for such day as determined from time to time by Bank of America, National
Association, acting through its Canada Branch in Toronto, Ontario as its “prime rate” for
loans made by Bank of America, National Association, acting through its Canada Branch to
borrowers in Canada in Canadian Dollars. (The “prime rate” is a rate set by Bank of America
based upon various factors including its costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some loans, which
may be priced at, above or below such determined rate.)

     Canadian Prime Rate Loan means a Canadian Loan that bears interest based on the
Canadian Prime Rate.

     Canadian Pro Rata Share means for any Canadian Lender at any time the
proportion (expressed as a decimal, rounded to the ninth decimal place) which such Canadian
Lender’s Canadian Commitment constitutes of the Aggregate Canadian Commitment (or, after the
Canadian Commitments have terminated, which (i) such Canadian Lender’s Canadian Outstandings
constitute of (ii) the Canadian Outstandings of all Canadian Lenders).

6

 

     Capital Adequacy Regulation means any guideline, request or directive of any
central bank or other relevant Governmental Authority, or any other law, rule or regulation,
whether or not having the force of law, in each case, regarding capital adequacy of any bank
or of any corporation controlling a bank.

     Cash Collateralize means, with respect to either Borrower, in connection with
the occurrence of the Termination Date, to pledge and deposit with or deliver to the
Administrative Agent or the Canadian Agent, as the case may be, for the benefit of the
Agents, the Issuing Lenders and the Lenders, as collateral for the L/C Obligations (in the
case of the Company (if and when required pursuant to Section 3.7 or 9.2))
or in respect of Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes (if and when
required pursuant to Section 9.2), cash or deposit account balances pursuant to
documentation in form and substance satisfactory to the applicable Agent. Derivatives of
such term shall have corresponding meanings. Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts at the applicable Agent or, with the
Administrative Agent’s consent, the applicable Issuing Lender.

     CDOR means, for any day, (a) the average of the annual discount rates (rounded
upward to the nearest 1/100 of 1%) for bankers’ acceptances denominated in Canadian Dollars
for a specified term and, if shown, the aggregate face amount that appears on the CDOR page
of the Reuters Screen as of 10:30 a.m. (Toronto time) on such day (or, if such day is not a
Business Day, as of 10:30 a.m. (Toronto time) on the immediately preceding Business Day),
all as determined by the Canadian Agent, or (b) if such average under clause (a) is
not available on such day, the discount rate of interest at which such Canadian Agent is
offering as of 10:00 a.m. (Toronto time) on such Borrowing Date to purchase bankers’
acceptances accepted by it having an identical maturity date and comparable aggregate face
amount to the maturity date and aggregate face amount of the applicable Canadian Bankers’
Acceptance of the Canadian Agent.

     Change of Control means any of the following events:

     (a) any Person or group (within the meaning of Rule 13d-5 of the SEC under the
Securities Exchange Act of 1934 as in effect on the date hereof) (other than the Van Every
Family) shall become the Beneficial Owner (as defined in Rule 13d-3 of the SEC under the
Securities Exchange Act of 1934 as in effect on the date hereof) of 20% or more of the
capital stock or other equity interests of the Company the holders of which are entitled
under ordinary circumstances (irrespective of whether at the time the holders of such stock
or other equity interests shall have or might have voting power by reason of the happening
of any contingency) to vote for the election of the directors of the Company; or

     (b) a majority of the members of the Board of Directors of the Company shall cease to
be Continuing Members; or

     (c) the Company shall fail to beneficially own, directly or indirectly, all of the
outstanding equity interests in the Canadian Borrower.

7

 

     Closing Date the first date all the conditions precedent in Section 4.1
are satisfied or waived in accordance with Section 12.1.

     Code means the U.S. Internal Revenue Code of 1986, and regulations promulgated
thereunder.

     Commitment means a Term Commitment, a U.S. Revolving Credit Commitment or a
Canadian Commitment.

     Company — see the preamble to this Agreement.

     Compliance Certificate means a certificate substantially in the form of
Exhibit C.

     Computation Period means any period of four consecutive fiscal quarters ending
on the last day of a fiscal quarter.

     Contingent Obligation means, as to any Person, without duplication, any direct
or indirect liability of such Person, whether or not contingent, with or without recourse,
(a) with respect to any Indebtedness, lease, dividend, letter of credit or other obligation
(the “primary obligations”) of another Person (the “primary obligor”), including any
obligation of such Person (i) to purchase, repurchase or otherwise acquire such primary
obligations or any security therefor, (ii) to advance or provide funds for the payment or
discharge of any such primary obligation, or to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency or any balance
sheet item, level of income or financial condition of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary
obligation, or (iv) otherwise to assure or hold harmless the holder of any such primary
obligation against loss in respect thereof (each a “Guaranty Obligation”); (b) with
respect to any Surety Instrument issued for the account of such Person or as to which such
Person is otherwise liable for reimbursement of drawings or payments; or (c) in respect of
any Swap Contract. The amount of any Contingent Obligation shall (a) in the case of
Guaranty Obligations, be deemed equal to the stated or determinable amount of the primary
obligation in respect of which such Guaranty Obligation is made or, if not stated or if
indeterminable, the maximum reasonably anticipated liability in respect thereof, and (b) in
the case of other Contingent Obligations, be equal to the maximum reasonably anticipated
liability in respect thereof.

     Continuing Member means a member of the Board of Directors of the Company who
either (a) was a member of the Company’s Board of Directors on the Closing Date and has been
such continuously thereafter or (b) became a member of such Board of Directors after the
Closing Date and whose election or nomination for election was approved by a vote of the
majority of the Continuing Members then members of the Company’s Board of Directors.

     Contractual Obligation means, as to any Person, any provision of any security
issued by such Person or of any agreement, undertaking, contract, indenture, mortgage,

8

 

deed of trust or other document to which such Person is a party or by which it or any
of its property is bound.

     Conversion/Continuation Date means any date on which, under Section 2.5
the applicable Borrower (a) converts Loans of one Type to the other Type or (b) continues
Eurodollar Rate Loans for a new Interest Period.

     Credit Extension means and includes (a) the making of any Loan hereunder, (b)
the acceptance of any Draft or the purchase of any Canadian BA Equivalent Note hereunder and
(c) the Issuance of any Letter of Credit hereunder.

     Defaulting Lender means any Lender that (a) has failed to fund any portion of
the Term Loans, U.S. Revolving Credit Loans, participations in L/C Obligations, Canadian
Borrowing or Canadian BA Borrowing required to be funded by it hereunder within one Business
Day of the date required to be funded by it hereunder, unless such failure has been cured,
(b) has otherwise failed to pay over to any Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or such failure has been cured, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

     Disclosure Memorandum means the disclosure memorandum dated October 18, 2006 of
the Borrowers delivered to the Agents and the Lenders on or before the Closing Date.

     Dollar, dollar, U.S. Dollar, $ and US$ each
means lawful money of the United States.

     Dollar Equivalent means, at any time, (a) as to any amount denominated in U.S.
Dollars, the amount thereof at such time, and (b) as to any amount denominated in Canadian
Dollars, the equivalent amount in U.S. Dollars as determined by the Administrative Agent at
such time on the basis of the Spot Rate for the purchase of U.S. Dollars with Canadian
Dollars.

     Draft — see Section 2.7.1.

     EBIT means, for any Computation Period, the Company’s consolidated net income
from continuing operations for such period, plus, to the extent deducted in determining such
earnings, Interest Expense and income taxes, minus, to the extent included in determining
such earnings, any income tax refunds.

     EBITDA means, for any Computation Period, the Company’s consolidated EBIT from
continuing operations for such period, plus, to the extent deducted in determining such
EBIT, depreciation and amortization.

     Effective Amount means, with respect to any outstanding L/C Obligations on any
date, the amount of such L/C Obligations on such date after giving effect to any Issuances
of Letters of Credit occurring on such date, any other changes in the aggregate amount of

9

 

the L/C Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letter of Credit or any reduction in the maximum
amount available for drawing under Letters of Credit taking effect on such date.

     Eligible Assignee means (a), in the case of Term Commitments, Term Loans, U.S.
Revolving Credit Commitments, U.S. Revolving Credit Loans and L/C Obligations, any Person
that meets the requirements to be an assignee under Section 12.6(b)(iii),
(v) and (vi) (subject to such consents, if any, as may be required under
Section 12.06(b)(iii)), and (b) in the case of Canadian Commitments and Canadian
Outstandings, a Person registered as a bank under the Bank Act (Canada) or another financial
institution that is not a non-resident of Canada for Canadian tax purposes and (i) having a
combined capital and surplus of at least C$100,000,000, or (ii) being a Subsidiary of a
commercial bank, financial institution or finance company organized under the laws of the
United States, or any state thereof, and having a combined capital and surplus of at least
US$100,000,000.

     Environmental Claims means all claims, however asserted, by any Governmental
Authority or other Person alleging potential liability or responsibility for violation of
any Environmental Law, or for release or injury to the environment.

     Environmental Laws means all federal, state or local laws, statutes, rules,
regulations, ordinances and codes, together with all administrative orders, directed duties,
requests, licenses, authorizations and permits of, and agreements with, any Governmental
Authorities, in each case relating to environmental and human health matters.

     ERISA means the U.S. Employee Retirement Income Security Act of 1974, and the
regulations promulgated thereunder.

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

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

10

 

     Escrow Funds has the meaning specified in Section 2.7.6.

     Eurodollar Base Rate means, for any Interest Period, the rate per annum equal
to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or other commercially available source providing quotations of BBA LIBOR as designated by
the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest
Period. If such rate is not available at such time for any reason, then the “Eurodollar
Base Rate” for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in Dollars for delivery on the first
day of such Interest Period in same day funds in the approximate amount of the Eurodollar
Rate Loan being made, continued or converted by Bank of America and with a term equivalent
to such Interest Period would be offered by Bank of America’s London Branch to major banks
in the London interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest Period.

     Eurodollar Rate means for any Interest Period with respect to a Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the following
formula:

	 	 	 
	Eurodollar Rate = 	 	Eurodollar Base Rate
	 	1.00 – Eurodollar Reserve Percentage

     Eurodollar Rate Loan means a Term Loan or a U.S. Revolving Credit Loan that
bears interest based on the Eurodollar Rate.

     Eurodollar Reserve Percentage means, for any day during any Interest Period,
the reserve percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations issued from
time to time by the FRB for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency
funding (currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of the effective date of
any change in the Eurodollar Reserve Percentage.

     Event of Default means any of the events or circumstances specified in
Section 9.1.

     Facility Fee Rate means (a) initially, 0.08% per annum, and (b) beginning on
any date on which the Facility Fee Rate is to be adjusted pursuant to the sentence following
the table below, the rate per annum set forth in the table below opposite the applicable
Pricing Total Debt to EBITDA Ratio:

11

 

	 	 	 	 	 
	          Pricing	 	 
	     Total Debt to	 	Facility
	    EBITDA Ratio	 	Fee Rate
	Less than or equal

to 0.75 to 1

	 	 	0.07	%
	 
	 	 	 	 
	Greater than 0.75

to 1 but less than

or equal to 1.50 to 1

	 	 	0.08	%
	 
	 	 	 	 
	Greater than 1.50 to

to 1 but less than

or equal to 2.25 to 1

	 	 	0.10	%
	 
	 	 	 	 
	Greater than 2.25

to 1

	 	 	0.125	%

The Facility Fee Rate shall be adjusted, to the extent applicable, 46 days (or, in the case
of the last fiscal quarter of any year, 101 days) after the end of each fiscal quarter (or,
if earlier, 10 days following delivery by the Company of the financial statements required
by subsection 7.1(a) or 7.1(b), as applicable, and the related Compliance
Certificate required by subsection 7.2(a) for such fiscal quarter), based on the
Pricing Total Debt to EBITDA Ratio as of the last day of such fiscal quarter; it being
understood that if the Company fails to deliver the financial statements required by
subsection 7.1(a) or 7.1(b), as applicable, and the related Compliance
Certificate required by subsection 7.2(a) by the 46th day (or, if applicable, the
101st day) after any fiscal quarter, the Facility Fee Rate shall be 0.125% until such
financial statements and Compliance Certificate are delivered.

     Federal Funds Rate means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary,
to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

     Fixed Rate Loan means a Eurodollar Rate Loan.

     Foreign Lender means any Term Lender or U.S. Revolving Credit Lender that is
organized under the laws of a jurisdiction other than that in which the Company is resident
for tax purposes. For purposes of this definition, the United States, each State thereof
and the District of Columbia shall be deemed to constitute a single jurisdiction.

12

 

     FRB means the Board of Governors of the Federal Reserve System, and any
Governmental Authority succeeding to any of its principal functions.

     Fund means any Person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

     Further Taxes means any and all present or future taxes, levies, assessments,
imposts, duties, deductions, fees, withholdings or similar charges (including net income
taxes and franchise taxes), and all liabilities with respect thereto, imposed by any
jurisdiction on account of amounts payable or paid pursuant to Section 4.1.

     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.

     Governmental Authority means any applicable nation or government, any state,
provincial or other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, and any corporation
or other entity owned or controlled, through stock or capital ownership or otherwise, by any
of the foregoing.

     Guaranty Obligation has the meaning specified in the definition of Contingent
Obligation.

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

     Honor Date has the meaning specified in subsection 3.3(b).

     Indebtedness of any Person means, without duplication, (a) all indebtedness of
such Person for borrowed money; (b) all obligations issued, undertaken or assumed by such
Person as the deferred purchase price of property or services (other than trade payables
entered into in the ordinary course of business on ordinary terms including Company credit
card debt); (c) all reimbursement or payment obligations of such Person with respect to
Surety Instruments; (d) all obligations of such Person evidenced by notes, bonds, debentures
or similar instruments; (e) all indebtedness of such Person created or arising under any
conditional sale or other title retention agreement, or incurred as financing, in either
case 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 default are limited to
repossession or sale of such property); (f) all obligations of such

13

 

Person with respect to capital leases which should be recorded on a balance sheet of
such Person in accordance with GAAP; (g) all indebtedness of the types referred to in
clauses (a) through (f) above secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon
or in property (including accounts and contracts rights) owned by such Person, even though
such Person has not assumed or become liable for the payment of such Indebtedness, provided
that the amount of any such Indebtedness shall be deemed to be the lesser of the face
principal amount thereof and the fair market value of the property subject to such Lien; and
(h) all Guaranty Obligations of such Person in respect of indebtedness or obligations of
others. For all purposes of this Agreement, the Indebtedness of any Person shall include
all Indebtedness of any partnership or joint venture in which such Person is a general
partner or a joint venturer to the extent of such Person’s liability therefor;
provided that to the extent that any such indebtedness is expressly non-recourse to
such Person it shall not be included as Indebtedness.

     Indemnitee
— see Section 12.4.

     Independent
Auditor — see subsection 7.1(a).

     Information has the meaning specified in Section 12.7.

     Insolvency Proceeding means, with respect to any Person, (a) any case, action
or proceeding with respect to such Person before any court or other Governmental Authority
relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution,
winding-up or relief of debtors or (b) any general assignment for the benefit of creditors,
composition, marshalling of assets for creditors, or other, similar arrangement in respect
of its creditors generally or any substantial portion of its creditors; in each case
undertaken under any Applicable Law, including the Bankruptcy Code.

     Interest Coverage Ratio means, for any Computation Period, the ratio of (a)
EBIT for such Computation Period, to (b) Interest Expense for such Computation Period.

     Interest Expense means for any period, the interest expense (whether paid or
accrued and including imputed interest expense in respect of capital lease obligations) of
the Company and its consolidated Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.

     Interest Payment Date means, as to any Eurodollar Rate Loan, the last day of
each Interest Period applicable to such Loan and, as to any U.S. Base Rate Loan or Canadian
Prime Rate Loan, the last Business Day of each calendar quarter, provided that if
any Interest Period for a Eurodollar Rate Loan exceeds three months, each three-month
anniversary of the first day of such Interest Period also shall be an Interest Payment Date.

     Interest Period means, as to any Eurodollar Rate Loan, the period commencing on
the Borrowing Date of such Loan or on the Conversion/Continuation Date on which such Loan is
converted into or continued as a Eurodollar Rate Loan, and ending on the date one, two,
three or six months thereafter as selected by the Company in its Notice of Borrowing or
Notice of Conversion/Continuation, as the case may be; provided that:

14

 

     (i) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the following Business Day unless, in the case of
a Eurodollar Rate Loan, the result of such extension would be to carry such Interest Period
into another calendar month, in which event such Interest Period shall end on the preceding
Business Day;

     (ii) any Interest Period for a Eurodollar Rate Loan that begins on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in
the calendar month at the end of such Interest Period) shall end on the last Business Day of
the calendar month at the end of such Interest Period; and

     (iii) no Interest Period for any Loan shall extend beyond the Termination Date.

     IRS means the Internal Revenue Service, and any Governmental Authority
succeeding to any of its principal functions under the Code.

     ISP means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance).

     Issuance Date has the meaning specified in subsection 3.1(a).

     Issue means, with respect to any Letter of Credit, to issue or to extend the
expiry of, or to renew or increase the amount of, such Letter of Credit; and the terms
“Issued,” “Issuing” and “Issuance” have corresponding meanings.

     Issuing Lender means Bank of America in its capacity as issuer of one or more
Letters of Credit hereunder, together with (i) any replacement letter of credit issuer
arising under subsection 10.1(b) or Section 10.8 and (ii) any other U.S.
Revolving Credit Lender or any Affiliate of a U.S. Revolving Credit Lender which the
Administrative Agent and the Company have approved in writing as an “Issuing Lender”
hereunder.

     L/C Advance means each U.S. Revolving Credit Lender’s participation in any L/C
Borrowing in accordance with its Pro Rata Share.

     L/C Amendment Application means an application form for amendment of an
outstanding standby letter of credit as shall at any time be in use by the applicable
Issuing Lender, as such Issuing Lender shall request.

     L/C Application means an application form for issuance of a standby letter of
credit as shall at any time be in use by the applicable Issuing Lender, as such Issuing
Lender shall request.

     L/C Borrowing means an extension of credit resulting from a drawing under any
Letter of Credit which shall not have been reimbursed on the date when made nor converted
into a Borrowing of U.S. Revolving Credit Loans under subsection 3.3(d).

15

 

     L/C Commitment means the commitment of the Issuing Lenders to Issue, and the
commitment of the U.S. Revolving Credit Lenders severally to participate in, Letters of
Credit from time to time Issued or outstanding under Article III in an aggregate
amount not to exceed on any date the lesser of US$30,000,000 and the Aggregate U.S.
Revolving Credit Commitment; it being understood that the L/C Commitment is a part of the
Aggregate U.S. Revolving Credit Commitment rather than a separate, independent commitment.

     L/C Fee Rate means, at any time, the Applicable Margin; provided that upon
notice to the Company from the Administrative Agent (acting at the request or with the
consent of the Required U.S. Revolving Credit Lenders) during the existence of any Event of
Default, and for so long as such Event of Default continues, such rate shall be increased by
2 percentage points.

     L/C Obligations means at any time the sum of (a) the aggregate undrawn amount
of all Letters of Credit then outstanding, plus (b) the amount of all unreimbursed drawings
under all Letters of Credit, including all outstanding L/C Borrowings.

     L/C-Related Documents means the Letters of Credit, the L/C Applications, the
L/C Amendment Applications and any other document relating to any Letter of Credit,
including any of the applicable Issuing Lender’s standard form documents for letter of
credit issuances.

     Lender — see the preamble to this Agreement. References to the “Lenders” shall
include each Issuing Lender in its capacity as such; for purposes of clarification only, to
the extent that any Issuing Lender may have any rights or obligations in addition to those
of the other Lenders due to its status as Issuing Lender, its status as such will be
specifically referenced.

     Lending Office means, as to any Lender, the office or offices of such Lender
specified as its “Lending Office” or “Domestic Lending Office” or “Eurodollar Lending
Office”, as the case may be, on Schedule 12.2, or such other office or offices as
such Lender may from time to time notify the Borrowers and the Agents.

     Letter of Credit means any standby letter of credit Issued by an Issuing Lender
pursuant to Article III.

     Lien means any security interest, mortgage, deed of trust, pledge,
hypothecation, assignment, charge or deposit arrangement, encumbrance, lien (statutory or
other) or preferential arrangement of any kind or nature whatsoever in respect of any
property (including those created by, arising under or evidenced by any conditional sale or
other title retention agreement, the interest of a lessor under a capital lease, or any
financing lease having substantially the same economic effect as any of the foregoing, but
not including the interest of a lessor under an operating lease).

     Loan means an extension of credit by a Lender to a Borrower under Article
II or Article III in the form of a Loan, which may be a U.S. Base Rate Loan, a
Eurodollar Rate Loan or a Canadian Prime Rate Loan (each a “Type” of Loan), or L/C
Advance.

16

 

     Loan Documents means this Agreement, any Notes, the Canadian Bankers’
Acceptances, the Canadian BA Equivalent Notes and the L/C-Related Documents.

     Margin Stock means “margin stock” as such term is defined in Regulation T, U or
X of the FRB.

     Material Adverse Effect means a material adverse change in, or a material
adverse effect upon, the operations, business, properties, assets, liabilities (actual or
contingent), or financial condition of the Company and its Subsidiaries taken as a whole.

     Material Financial Obligations means Indebtedness or Contingent Obligations of
the Company or any Subsidiary or obligations of the Company or any Subsidiary in respect of
any Securitization Transaction, in an aggregate principal amount (for all applicable
Indebtedness, Contingent Obligations and obligations in respect of Securitization
Transactions) equal to or greater than US$10,000,000.

     Multiemployer Plan means a “multiemployer plan”, within the meaning of Section
4001(a)(3) of ERISA, with respect to which the Company or any ERISA Affiliate may have any
liability.

     Non-Extension Notice Date has the meaning specified in Section 3.2.

     Note means a promissory note executed by a Borrower in favor of a Lender
pursuant to subsection 2.3(b), in substantially the applicable form of Exhibit
E-1, Exhibit E-2 or Exhibit E-3.

     Notice of Borrowing means a notice in substantially the form of Exhibit
A-1.

     Notice of Canadian BA Borrowing means a notice in substantially the form of
Exhibit A-2.

     Notice of Conversion/Continuation means a notice in substantially the form of
Exhibit B.

     Obligations means all advances, debts, liabilities, obligations, covenants and
duties arising under any Loan Document owing by a Borrower to any Lender, either Agent or
any other Indemnified Person, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, or now existing or hereafter
arising.

     Organization Documents means (i) for any corporation, the certificate of
incorporation, the bylaws, any certificate of determination or instrument relating to the
rights of preferred shareholders of such corporation, any shareholder rights agreement, and
all applicable resolutions of the board of directors (or any committee thereof) of such
corporation, (ii) for any partnership or joint venture, the partnership or joint venture
agreement and any other organizational document of such entity, (iii) for any limited
liability company, the certificate or articles of organization, the operating agreement and
any other organizational document of such limited liability company, (iv) for any trust,

17

 

the declaration of trust, the trust agreement and any other organizational document of
such trust and (v) for any other entity, the document or agreement pursuant to which such
entity was formed and any other organizational document of such entity.

     Other Taxes means any present or future stamp, court or documentary taxes or
any other excise or property taxes, charges or similar levies which arise from any payment
made hereunder or from the execution, delivery, performance, enforcement or registration of,
or otherwise with respect to, this Agreement or any other Loan Document.

     Participant
— see subsection 12.6(d).

     PBGC means the Pension Benefit Guaranty Corporation, or any Governmental
Authority succeeding to any of its principal functions under ERISA.

     Pension Plan means a pension plan (as defined in Section 3(2) of ERISA) subject
to Title IV of ERISA, other than a Multiemployer Plan, with respect to which the Company or
any ERISA Affiliate may have any liability.

     Permitted
Liens — see Section 8.2.

     Permitted Swap Obligations means all obligations (contingent or otherwise) of
the Company or any Subsidiary existing or arising under Swap Contracts, provided that such
obligations are (or were) entered into by such Person in the ordinary course of business for
the purpose of directly mitigating risks associated with (a) raw materials purchases, (b)
interest or currency exchange rates, (c) operating expenses or other anticipated obligations
of such Person, (d) other liabilities, commitments or assets held or reasonably anticipated
by such Person or (e) changes in the value of securities issued by such Person in
conjunction with a securities repurchase program not otherwise prohibited hereunder.

     Person means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint
venture or Governmental Authority.

     Plan means an employee benefit plan (as defined in Section 3(3) of ERISA),
other than a Multiemployer Plan, with respect to which the Company or any ERISA Affiliate
may have any liability, and includes any Pension Plan.

     Platform has the meaning specified in Section 7.2.

     Pricing Total Debt to EBITDA Ratio means, for any Computation Period, the ratio
of (a) Total Indebtedness (net of cash held by the Company and its Subsidiaries and
excluding any undrawn amounts of letters of credit issued) as of the last day of such
Computation Period, to (b) EBITDA for such Computation Period.

     Pro Rata Share means for any Lender at any time the proportion (expressed as a
decimal, rounded to the ninth decimal place) which the aggregate Dollar Equivalent amount of
such Lender’s Commitments constitutes of the aggregate Dollar Equivalent amount of the
combined Commitments (or, after the Commitments have terminated,

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which (i) the principal Dollar Equivalent amount of such Lender’s Term Loans, U.S.
Revolving Credit Outstandings and Canadian Outstandings constitutes of (ii) the Total
Outstandings).

     Public Lender has the meaning specified in Section 7.2.

     Register has the meaning specified in Section 12.6.

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

     Reportable Event means, any of the events set forth in Section 4043(b) of ERISA
or the regulations thereunder, other than any such event for which the 30-day notice
requirement under ERISA has been waived in regulations issued by the PBGC.

     Required Canadian Lenders means Canadian Lenders holding Canadian Pro Rata
Shares aggregating more than 50%.

     Required Lenders means Lenders holding Pro Rata Shares aggregating more than
50%; provided that if and so long as any U.S. Revolving Credit Lender fails to fund
any U.S. Revolving Credit Loan when required by Section 3.3 or a participation in an
L/C Borrowing pursuant to Section 3.3, as the case may be, such U.S. Revolving
Credit Lender’s Pro Rata Share shall be deemed for purposes of this definition to be reduced
by the percentage which the defaulted amount constitutes of the combined Commitments (or, if
the Commitments have terminated, the Total Outstandings), and the Pro Rata Share of the
applicable Issuing Lender shall be deemed for purposes of this definition to be increased by
such percentage.

     Required Term Lenders means, as of any date of determination, Term Lenders
holding more than 50% of the Term Pro Rata Shares on such date.

     Required U.S. Revolving Credit Lenders means Lenders holding U.S. Revolving Pro
Rata Shares aggregating more than 50%; provided that if and so long as any U.S.
Revolving Credit Lender fails to fund any U.S. Revolving Credit Loan when required by
Section 3.3 or a participation in an L/C Borrowing pursuant to Section 3.3,
as the case may be, such U.S. Revolving Credit Lender’s U.S. Revolving Pro Rata Share shall
be deemed for purposes of this definition to be reduced by the percentage which the
defaulted amount constitutes of the Aggregate U.S. Revolving Credit Commitment (or, if the
U.S. Revolving Credit Commitments have terminated, the Total U.S. Revolving Outstandings),
and the U.S. Revolving Pro Rata Share of the applicable Issuing Lender shall be deemed for
purposes of this definition to be increased by such percentage.

     Requirement of Law means, as to any Person, any law (statutory or common),
treaty, rule or regulation or determination of an arbitrator or of a Governmental Authority,
in each case applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

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     Responsible Officer means the chief executive officer, the president or any
vice president of the Company, or any other officer having substantially the same authority
and responsibility; or, with respect to financial matters, the chief financial officer or
the treasurer of the Company, or any other officer having substantially the same authority
and responsibility.

     SEC means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     Securitization Transaction means any sale, assignment or other transfer by the
Company or any Subsidiary of accounts receivable, lease receivables or other payment
obligations owing to the Company or any Subsidiary or any interest in any of the foregoing,
together in each case with any collections and other proceeds thereof, any collection or
deposit accounts related thereto, and any collateral, guaranties or other property or claims
in favor of the Company or such Subsidiary supporting or securing payment by the obligor
thereon of, or otherwise related to, any such receivables.

     Spot Rate for a currency means the rate quoted by Bank of America as the spot
rate for the purchase by Bank of America of such currency with another currency in
accordance with its customary procedures at approximately 11:00 a.m. (Charlotte time) on the
date on which the foreign exchange computation is made.

     Stamping Fee Rate means the rate per annum for accepting a Canadian Bankers’
Acceptance or purchasing a Canadian BA Equivalent Note equal to the sum of 0.125% plus the
Applicable Margin for U.S. Revolving Credit Loans.

     Subsidiary of a Person means any corporation, association, partnership, limited
liability company, joint venture or other business entity of which more than 50% of the
voting stock, membership interests or other equity interests is owned or controlled directly
or indirectly by such Person, or one or more of the Subsidiaries of such Person, or a
combination thereof. Unless the context otherwise clearly requires, references herein to a
“Subsidiary” refer to a Subsidiary of the Company.

     Surety Instruments means all letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, shipside bonds, surety bonds and similar
instruments.

     Swap Contract means any agreement, whether or not in writing, relating to any
transaction that is a rate swap, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap or option, bond, note or bill option, interest
rate option, forward foreign exchange transaction, cap, collar or floor transaction,
currency swap, cross-currency rate swap, swaption, currency option or any other, similar
transaction (including any option to enter into any of the foregoing) or any combination of
the foregoing, and, unless the context otherwise clearly requires, any master agreement
relating to or governing any or all of the foregoing.

     Taxes means any and all present or future taxes, levies, assessments, imposts,
duties, deductions, fees, withholdings or similar charges, and all liabilities with respect

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thereto, excluding, in the case of each Lender and each Agent, franchise taxes and
taxes imposed on or measured by its net income or capital by the jurisdiction (or any
political subdivision thereof) under the laws of which such Lender or such Agent, as the
case may be, is organized or maintains a lending office.

     Term Borrowing means a borrowing consisting of simultaneous Term Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by
each of the Term Lenders pursuant to Section 2.1(a).

     Term Commitment means, as to each Term Lender, its obligation to make Term
Loans to the Company pursuant to Section 2.1(a) in an aggregate principal amount at
any one time outstanding not to exceed the amount set forth opposite such Term Lender’s name
on Schedule 2.1(a) under the caption “Term Commitment” or opposite such caption in
the Assignment and Assumption pursuant to which such Term Lender becomes a party hereto, as
applicable, as such amount may be adjusted from time to time in accordance with this
Agreement.

     Term Lender means (a) at any time on or prior to the Closing Date, any Lender
that has a Term Commitment at such time and (b) at any time after the Closing Date, any
Lender that holds Term Loans at such time.

     Term Loan means a loan made by any Term Lender pursuant to Section
2.1(a).

     Term Pro Rata Share means, for any Term Lender at any time the proportion
(expressed as a decimal, rounded to the ninth decimal place) which such Term Lender’s Term
Commitment constitutes of the Aggregate Term Commitment (or, after the Term Commitments have
terminated, which (i) such Term Lender’s Term Loans constitute of (ii) all Term Loans).

     Termination Date means the earlier to occur of:

     (a) October 20, 2011; and

     (b) the date on which the Commitments terminate in accordance with the
provisions of this Agreement.

     Total Canadian Outstandings means the combined Canadian Outstandings of all
Canadian Lenders.

     Total Debt to EBITDA Ratio means, for any Computation Period, the ratio of (a)
Total Indebtedness as of the last day of such Computation Period, to (b) EBITDA for such
Computation Period.

     Total Indebtedness means, at any time, all Indebtedness of the Company and its
Subsidiaries determined on a consolidated basis and to the extent not included in the
definition of Indebtedness, the aggregate outstanding investment or claim held at such time
by purchasers, assignees or other transferees of (or of interests in) receivables or other
rights to payment of the Company and its Subsidiaries in connection with any

21

 

Securitization Transaction (regardless of the accounting treatment of such
Securitization Transaction).

     Total Outstandings means the sum of (i) the aggregate principal amount of all
outstanding Term Loans plus (ii) the Total U.S. Revolving Credit Outstandings plus (iii) the
Total Canadian Outstandings.

     Total U.S. Revolving Credit Outstandings means the combined U.S. Revolving
Credit Outstandings of all U.S. Revolving Credit Lenders.

     Type has the meaning specified in the definition of “Loan.”

     UCP — see Section 3.9.

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

     United States and U.S. each means the United States of America.

     Unmatured Event of Default means any event or circumstance which, with the
giving of notice, the lapse of time or both, will (if not cured, waived or otherwise
remedied during such time) constitute an Event of Default.

     U.S. Base Rate means, for any day, a fluctuating rate per annum equal to the
higher of: (a) 0.50% per annum above the Federal Funds Rate; and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of America as its
“prime rate.” The “prime rate” is a rate set by Bank of America based upon various factors
including Bank of America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be priced at,
above or below such announced rate. Any change in the prime rate announced by Bank of
America shall take effect at the opening of business on the day specified in the public
announcement of such change.

     U.S. Base Rate Loan means a Term Loan or U.S. Revolving Credit Loan that bears
interest based on the U.S. Base Rate.

     U.S. Revolving Credit Borrowing means a borrowing consisting of simultaneous
U.S. Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans,
having the same Interest Period made by each of the U.S. Revolving Credit Lenders pursuant
to Section 2.1(b).

     U.S. Revolving Credit Commitment means, as to each U.S. Revolving Credit
Lender, its obligation to (a) make U.S. Revolving Credit Loans to the Company pursuant to
Section 2.1(b), and (b) purchase participations in L/C Obligations, in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth opposite
such Lender’s name on Schedule 2.1(b) under the caption “U.S. Revolving Credit

22

 

Commitment” or opposite such caption in the Assignment and Assumption pursuant to which
such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

     U.S. Revolving Credit Lender means, at any time, any Lender that has a U.S.
Revolving Credit Commitment, U.S. Revolving Credit Loans or participations in L/C
Obligations at such time.

     U.S. Revolving Credit Loan has the meaning specified in Section 2.1(b).

     U.S. Revolving Credit Outstandings means, with respect to any U.S. Revolving
Credit Lender, the aggregate principal amount of all outstanding U.S. Revolving Credit Loans
made by such U.S. Revolving Credit Lender to the Company plus such U.S. Revolving Credit
Lender’s participation in all L/C Obligations.

     U.S. Revolving Credit Pro Rata Share means for any U.S. Revolving Credit Lender
at any time the proportion (expressed as a decimal, rounded to the ninth decimal place)
which such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment constitutes of
the Aggregate U.S. Revolving Credit Commitment (or, after the U.S. Revolving Credit
Commitments have terminated, which (i) the principal amount of such U.S. Revolving Credit
Lender’s Loans plus (without duplication) the participation of such U.S. Revolving
Credit Lender in (or in the case of an Issuing Lender, the unparticipated portion of) the
Effective Amount of all L/C Obligations constitutes of (ii) the aggregate principal amount
of all U.S. Revolving Credit Loans plus (without duplication) the Effective Amount
of all L/C Obligations).

     Van Every Family means (i) a lineal descendant of Salem A. Van Every, Sr.
including adopted persons as well as persons related by blood, (ii) a spouse, widow or
widower of an individual described in clause (i) above or (iii) a trust, estate,
custodian and other fiduciary or similar account for the benefit of an individual described
in either clause (i) or clause (ii) above.

     Wholly-Owned Subsidiary means any Subsidiary in which (other than directors’
qualifying shares required by law) 100% of the capital stock of each class having ordinary
voting power, and 100% of the capital stock of every other class, or 100% of the membership
interests or other equity interests, as applicable, in each case, at the time as of which
any determination is being made, is owned, beneficially and of record, by the Company, or by
one or more of the other Wholly-Owned Subsidiaries, or both.

23

 

     1.2 Other Interpretive Provisions.

          (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

          (b) The words “hereof”, “herein”, “hereunder” and similar words refer to this Agreement as a
whole and not to any particular provision of this Agreement; and subsection, Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

          (c) (i) The term “documents” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced.

          (ii) The term “including” is not limiting and means “including without limitation.”

          (iii) In the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including”; the words “to” and “until” each mean “to
but excluding”, and the word “through” means “to and including.”

          (d) Unless otherwise expressly provided herein, (i) references to agreements (including this
Agreement) and other contractual instruments shall be deemed to include all subsequent amendments
and other modifications thereto, but only to the extent such amendments and other modifications are
not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation
are to be construed as including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or regulation.

          (e) The captions and headings of this Agreement are for convenience of reference only and
shall not affect the interpretation of this Agreement.

          (f) This Agreement and other Loan Documents may use several different limitations, tests or
measurements to regulate the same or similar matters. All such limitations, tests and measurements
are cumulative and shall each be performed in accordance with their terms. Unless otherwise
expressly provided herein, any reference to any action of either Agent, the Lenders, the Required
Term Lenders, the Required U.S. Revolving Credit Lenders, the Required Canadian Lenders or the
Required Lenders by way of consent, approval or waiver shall be deemed modified by the phrase “in
its/their sole discretion.”

          (g) This Agreement and the other Loan Documents are the result of negotiations among and have
been reviewed by counsel to the Agents, the Borrowers and the other parties, and are the products
of all parties. Accordingly, they shall not be construed against the Lenders or the Agents merely
because of the Agents’ or Lenders’ involvement in their preparation.

     1.3 Accounting Principles

          (a) Unless the context otherwise clearly requires, all accounting terms not expressly defined
herein shall be construed, and all financial computations required under this

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Agreement shall be made, in accordance with GAAP, consistently applied; provided that
if the Company notifies the Administrative Agent that the Company wishes to amend any covenant in
Article VIII to eliminate the effect of any change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Company that the Required Lenders wish to
amend Article VIII for such purpose), then the Company’s compliance with such covenant
shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Company and the Required Lenders.

          (b) References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of
the Company.

     1.4 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a
Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in
effect at such time; provided, however, that with respect to any Letter of Credit
that, by its terms or the terms of any L/C-Related Document related thereto, provides for one or
more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time.

ARTICLE II

THE CREDITS

     2.1 Amounts and Terms of Term Commitments and U.S. Revolving Credit Commitments.

          (a) The Term Borrowing. Subject to the terms and conditions set forth herein, each
Term Lender severally agrees (and not jointly or jointly and severally), on the terms and
conditions set forth herein, to make a single loan to the Company on the Closing Date in an amount
not to exceed such Term Lender’s Term Commitment. The Term Borrowing shall consist of Term Loans
made simultaneously by the Term Lenders in accordance with their respective Term Pro Rata Shares.
Amounts borrowed under this Section 2.1(a) and repaid or prepaid may not be reborrowed.
Term Loans may be U.S. Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

          (b) U.S. Revolving Credit Borrowings. Each U.S. Revolving Credit Lender severally
agrees (and not jointly or jointly and severally), on the terms and conditions set forth herein, to
make U.S. Revolving Credit Loans to the Company from time to time on any Business Day during the
period from the Closing Date to the Termination Date, in an aggregate amount not to exceed at any
time outstanding such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment;
provided, however, that, after giving effect to any Borrowing, the Total U.S.
Revolving Credit Outstandings shall not exceed the Aggregate U.S. Revolving Credit Commitment.
Within the limits of each U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment, and
subject to the other terms and conditions hereof, the Company may borrow under this Section
2.1(b), prepay under Section 2.9(a) and reborrow under this Section 2.1(b).

25

 

     2.2 Amounts and Terms of Canadian Commitments. Each Canadian Lender severally agrees
(and not jointly or jointly and severally), on the terms and conditions set forth herein, to make
Canadian Loans to the Canadian Borrower and to accept Drafts or purchase Canadian BA Equivalent
Notes pursuant to Section 2.7 in Canada, from time to time on any Business Day during the
period from the Closing Date to the Termination Date, in an aggregate amount not to exceed at any
time outstanding the amount set forth on Schedule 2.2 (such amount, as reduced pursuant to
Section 2.8 or changed by one or more assignments under Section 12.8, such Canadian
Lender’s “Canadian Commitment”); provided, however, that, after giving
effect to any Borrowing, the Total Canadian Outstandings shall not exceed the Aggregate Canadian
Commitment; and provided, further, that the Canadian Outstandings of any
Canadian Lender shall not at any time exceed such Canadian Lender’s Canadian Commitment. Within
the limits of each Canadian Lender’s Canadian Commitment, and subject to the other terms and
conditions hereof, the Canadian Borrower may borrow under this Section 2.2, prepay under
Section 2.9(b) and reborrow under this Section 2.2.

     2.3 Loan Accounts. (a) The Loans made by each Lender and the Letters of Credit Issued
by each Issuing Lender shall be evidenced by one or more accounts or records maintained by such
Lender or Issuing Lender, as the case may be, in the ordinary course of business. The accounts or
records maintained by the Agents, each Issuing Lender and each Lender shall be rebuttable
presumptive evidence of the amount of the Loans made by the Lenders to the Borrowers and the
Letters of Credit Issued for the account of the Company, and the interest and payments thereon.
Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the
obligation of either Borrower hereunder to pay any amount owing with respect to the Loans or any
Letter of Credit.

          (a) Upon the request of any Lender made through an Agent, the Loans made by such Lender may be
evidenced by a Note, instead of or in addition to loan accounts. Each such Lender shall endorse on
the schedules annexed to its Note the date, amount and maturity of each Loan evidenced thereby and
the amount of each payment of principal made by the applicable Borrower with respect thereto (or
such Lender shall maintain such information in its own records). Each such Lender is irrevocably
authorized by each Borrower to endorse its Note and each Lender’s record shall be rebuttable
presumptive evidence of the amount of the Loans evidenced thereby, and the interest and payments
thereon; provided, however, that the failure of a Lender to make, or an error in
making, a notation thereon or an entry therein with respect to any Loan shall not limit or
otherwise affect the obligations of the Borrowers hereunder or under any such Note to such Lender.

     2.4 Procedure for Term Borrowing and U.S. Revolving Credit Borrowings. (a) The Term
Borrowing and each U.S. Revolving Credit Borrowing shall be made upon the Company’s irrevocable
written notice delivered to the Administrative Agent in the form of a Notice of Borrowing, which
notice must be received by the Administrative Agent prior to (i) 11:00 a.m. Charlotte time two
Business Days prior to the requested Borrowing Date, in the case of Eurodollar Rate Loans, and (ii)
11:00 a.m. Charlotte time on the requested Borrowing Date, in the case of U.S. Base Rate Loans,
specifying:

          (A) the amount of such Borrowing, which shall be in an aggregate amount of
US$1,000,000 or a higher multiple of US$500,000;

26

 

          (B) the requested Borrowing Date, which shall be a Business Day;

          (C) the Type of Loans comprising such Borrowing; and

          (D) in the case of Eurodollar Rate Loans, the duration of the initial Interest
Period applicable to such Loans.

          (b) The Administrative Agent will promptly notify each applicable Lender of its receipt of any
Notice of Borrowing and of the amount of such Lender’s Applicable Pro Rata Share of such Borrowing.

          (c) Each applicable Lender will make the amount of its Applicable Pro Rata Share of the Term
Borrowing and each U.S. Revolving Credit Borrowing available to the Administrative Agent for the
account of the Company at the Administrative Agent’s Payment Office by 1:00 p.m. Charlotte time (in
the case of Eurodollar Rate Loans) or by 2:00 p.m. Charlotte time (in the case of U.S. Base Rate
Loans) on the Borrowing Date requested by the Company in funds immediately available to the
Administrative Agent. The proceeds of all such Loans will then be made available to the Company by
the Administrative Agent by wire transfer in accordance with written instructions provided to the
Administrative Agent by the Company of like funds as received by the Administrative Agent.

          (d) After giving effect to the Term Borrowing, unless the Administrative Agent otherwise
consents, there may not be more than four different Interest Periods in effect for the Term
Borrowing. After giving effect to any U.S. Revolving Credit Borrowing, unless the Administrative
Agent otherwise consents, there may not be more than ten different Interest Periods in effect for
all such Borrowings.

     2.5 Conversion and Continuation Elections for Term Borrowing and U.S. Revolving Credit
Borrowings. (a) The Company may, upon irrevocable written notice to the Administrative Agent
in accordance with subsection 2.5(b):

          (i) elect, as of any Business Day, in the case of U.S. Base Rate Loans, or as of the
last day of the applicable Interest Period, in the case of Eurodollar Rate Loans, to convert
such Loans (or any part thereof in an aggregate amount of US$1,000,000 or a higher integral
multiple of US$500,000) into Loans of the other Type; or

          (ii) elect, as of the last day of the applicable Interest Period, to continue any
Eurodollar Rate Loans having Interest Periods expiring on such day (or any part thereof in
an aggregate amount of US$1,000,000 or a higher integral multiple of US$500,000) for another
Interest Period;

provided that if at any time the aggregate amount of Eurodollar Rate Loans in respect of
the Term Borrowing or any U.S. Revolving Credit Borrowing is reduced, by payment, prepayment, or
conversion of any part thereof, to be less than US$1,000,000, such Eurodollar Rate Loans shall
automatically convert into U.S. Base Rate Loans.

27

 

          (b) The Company shall deliver a Notice of Conversion/Continuation to be received by the
Administrative Agent not later than 11:00 a.m. Charlotte time at least (i) two Business Days in
advance of the Conversion/Continuation Date, if the Term Loans or U.S. Revolving Credit Loans are
to be converted into or continued as Eurodollar Rate Loans; and (ii) on the Conversion/Continuation
Date, if the Term Loans or U.S. Revolving Credit Loans are to be converted into U.S. Base Rate
Loans, specifying:

          (A) the proposed Conversion/Continuation Date;

          (B) the aggregate amount of Term Loans or U.S. Revolving Credit Loans to be
converted or continued;

          (C) the Type of Loans resulting from the proposed conversion or continuation;
and

          (D) in the case of conversion into or continuation of Eurodollar Rate Loans,
the duration of the requested Interest Period.

          (c) If upon the expiration of any Interest Period applicable to Eurodollar Rate Loans, the
Company has failed to select timely a new Interest Period to be applicable to such Eurodollar Rate
Loans, the Company shall be deemed to have elected to convert such Eurodollar Rate Loans into U.S.
Base Rate Loans effective as of the expiration date of such Interest Period.

          (d) The Administrative Agent will promptly notify each applicable Term Lender or U.S.
Revolving Credit Lender of its receipt of a Notice of Conversion/Continuation, or, if no timely
notice is provided by the Company, the Administrative Agent will promptly notify each such Lender
of the details of any automatic conversion. All conversions and continuations of Term Loans shall
be made ratably among the Term Lenders according to the respective outstanding principal amounts of
the Term Loans with respect to which the notice was given. All conversions and continuations of
U.S. Revolving Credit Loans shall be made ratably among the U.S. Revolving Credit Lenders according
to the respective outstanding principal amounts of the U.S. Revolving Credit Loans with respect to
which the notice was given.

          (e) Unless the Required Term Lenders otherwise consent, the Company may not elect to have a
Term Loan converted into or continued as a Eurodollar Rate Loan during the existence of an Event of
Default or Unmatured Event of Default.

          (f) After giving effect to any conversion or continuation of Term Loans, unless the
Administrative Agent shall otherwise consent, there may not be more than four different Interest
Periods in effect for all Term Loans.

          (g) Unless the Required U.S. Revolving Credit Lenders otherwise consent, the Company may not
elect to have a U.S. Revolving Credit Loan converted into or continued as a Eurodollar Rate Loan
during the existence of an Event of Default or Unmatured Event of Default.

28

 

          (h) After giving effect to any conversion or continuation of U.S. Revolving Credit Loans,
unless the Administrative Agent shall otherwise consent, there may not be more than ten different
Interest Periods in effect for all U.S. Revolving Credit Borrowings.

     2.6 Procedure for Canadian Borrowing of Canadian Prime Rate Loans. (a) Each Canadian
Borrowing of Canadian Prime Rate Loans shall be made upon the Canadian Borrower’s irrevocable
written notice delivered to the Canadian Agent in the form of a Notice of Borrowing, which notice
must be received by the Canadian Agent prior to 11:00 a.m. Toronto time on the requested Borrowing
Date, in the case of Canadian Prime Rate Loans, specifying:

          (A) the amount of the Canadian Borrowing, which shall be in an aggregate amount
of C$500,000 or a higher multiple of C$100,000; and

          (B) the requested Borrowing Date, which shall be a Business Day.

          (b) The Canadian Agent will promptly notify each Canadian Lender of its receipt of any Notice
of Borrowing and of the amount of such Canadian Lender’s Canadian Pro Rata Share of such Canadian
Borrowing.

          (c) Each Canadian Lender will make the amount of its Canadian Pro Rata Share of each Canadian
Borrowing available to the Canadian Agent for the account of the Canadian Borrower at the Canadian
Agent’s Payment Office by 1:00 p.m. Toronto time on the Borrowing Date requested by the Canadian
Borrower in funds immediately available to the Canadian Agent. The proceeds of all such Loans will
then be made available to the Canadian Borrower by the Canadian Agent by wire transfer in
accordance with written instructions provided to the Canadian Agent by the Canadian Borrower of
like funds as received by the Canadian Agent.

     2.7 Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes.

     2.7.1 Commitments to Accept Drafts and Purchase Canadian BA Equivalent Notes. Each
Canadian Lender severally agrees, on the terms and conditions set forth herein, (i) in the case of
a Canadian BA Lender, to accept drafts (each such draft, a “Draft”) drawn by the Canadian
Borrower upon such Canadian BA Lender and (ii) in the case of a Canadian Non-BA Lender, to purchase
non-interest-bearing promissory notes of the Canadian Borrower in favor of such Canadian Non-BA
Lender (each such promissory note, a “Canadian BA Equivalent Note”), in each case in an
aggregate face amount not to exceed at any time outstanding such Canadian Lender’s Canadian Pro
Rata Share of the amount of the combined Canadian Commitments; provided that, after giving
effect to any Canadian BA Borrowing, the Total Canadian Outstandings shall not exceed the combined
Canadian Commitments; and provided, further, that the Canadian Outstandings of any
Canadian Lender shall not at any time exceed such Canadian Lender’s Canadian Commitment.

     2.7.2 Procedure for Canadian Bankers’ Acceptances. (a) Each Canadian BA Borrowing
shall be made upon the Canadian Borrower’s irrevocable written notice delivered to the Canadian
Agent in the form of a Notice of Canadian BA Borrowing, which notice must be

29

 

received by the Canadian Agent prior to 12:00 noon (Toronto time) one Business Day prior to
the requested Borrowing Date, specifying:

          (i) the amount of such Canadian BA Borrowing, which shall be in an aggregate amount of
not less than C$500,000 or a higher integral multiple of C$100,000;

          (ii) the requested Borrowing Date, which shall be a Business Day; and

          (iii) the term for the Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes
included in such Canadian BA Borrowing, which shall be 30, 60, 90 or 180 days
(provided that such term may not extend beyond the scheduled Termination Date).

          (b) The Canadian Agent will promptly notify each Canadian Lender of its receipt of any Notice
of Canadian BA Borrowing and shall (i) advise each Canadian BA Lender of the face amount and term
of each Draft to be accepted by it, and (ii) advise each Canadian Non-BA Lender of the face amount
and term of the Canadian BA Equivalent Note to be purchased by it. The term of all Canadian
Bankers’ Acceptances and Canadian BA Equivalent Notes issued pursuant to any Notice of Canadian BA
Borrowing shall be identical. Each Canadian Bankers’ Acceptance and Canadian BA Equivalent Note
shall be dated the Borrowing Date on which it is issued. The aggregate face amount of the Drafts
to be accepted at any time by a Canadian BA Lender, and the face amount of the Canadian BA
Equivalent Note to be purchased at any time by a Canadian Non-BA Lender, shall be determined by the
Canadian Agent based upon the amounts of the respective Canadian Commitments, except that, if the
face amount of any Draft to be accepted by a Canadian BA Lender or of the Canadian BA Equivalent
Note to be purchased by a Canadian Non-BA Lender, determined as aforesaid, would not be an integral
multiple of C$1.00, the Canadian Agent in its sole discretion may increase such face amount to the
nearest integral multiple of C$1.00 or may reduce such face amount to the nearest integral multiple
of C$1.00.

          (c) Each Canadian BA Lender shall complete and accept on the applicable Borrowing Date Drafts
having the face amounts and term advised by the Canadian Agent pursuant to subsection (b)
above. Each Canadian BA Lender shall purchase from the Canadian Borrower on the applicable
Borrowing Date the Canadian Bankers’ Acceptances accepted by it, for an aggregate price equal to
the Canadian BA Discount Proceeds of such Canadian Bankers’ Acceptances.

          (d) Each Canadian Non-BA Lender shall, in lieu of accepting Drafts or purchasing Canadian
Bankers’ Acceptances on any Borrowing Date, complete and purchase from the Canadian Borrower on
such Borrowing Date a Canadian BA Equivalent Note in a face amount and for a term identical to the
aggregate face amount and term of the Drafts which such Canadian Non-BA Lender would have been
required to accept on such Borrowing Date if it were a Canadian BA Lender, for a price equal to the
Canadian BA Discount Proceeds of such Canadian BA Equivalent Note.

          (e) Upon acceptance of each Draft or purchase of each Canadian BA Equivalent Note, the
Canadian Borrower shall pay to the applicable Canadian Lender the related

30

 

fee specified in Section 2.12(d), and to facilitate payment such Canadian Lender shall
be entitled to deduct and retain for its own account the amount of such fee from the amount to be
transferred by such Canadian Lender to the Canadian Agent for the account of the Canadian Borrower
pursuant to subsection 2.7.2(f) in respect of the sale of the related Canadian Bankers’
Acceptance or of such Canadian BA Equivalent Note.

          (f) Each Canadian Lender shall transfer for value on each applicable Borrowing Date in
immediately available Canadian Dollars an aggregate amount equal to the amount of all Canadian BA
Discount Proceeds in respect of any Canadian Bankers’ Acceptance or Canadian BA Equivalent Note
purchased by it on such Borrowing Date, in each case net of the related fee payable to such
Canadian Lender pursuant to Section 2.12(d), to the Canadian Agent’s Payment Office. The
proceeds of all such amounts received by the Canadian Agent from the Canadian Lenders will then be
made available to the Canadian Borrower by the Canadian Agent by wire transfer in accordance with
written instructions provided to the Canadian Agent by the Canadian Borrower of like funds as
received by the Canadian Agent.

     2.7.3 Maturity of Canadian Bankers’ Acceptances. On the date of maturity of each
Canadian Bankers’ Acceptance or Canadian BA Equivalent Note, the Canadian Borrower shall pay to the
Canadian Agent, for the account of the Canadian Lender which accepted such Canadian Bankers’
Acceptance or the holder of such Canadian BA Equivalent Note, Canadian Dollars in an amount equal
to the face amount of such Canadian Bankers’ Acceptance or Canadian BA Equivalent Note, as the case
may be. The obligation of the Canadian Borrower to make such payment shall not be prejudiced by
the fact that the holder of any such Canadian Bankers’ Acceptance is the Canadian Lender that
accepted such Canadian Bankers’ Acceptance. No days of grace shall be claimed by the Canadian
Borrower for the payment at maturity of any Canadian Bankers’ Acceptance or Canadian BA Equivalent
Note. If the Canadian Borrower does not make such payment, from the proceeds of Loans or the
issuance of Canadian Bankers’ Acceptances and/or Canadian BA Equivalent Notes hereunder or
otherwise, the Canadian Lender that accepted such Canadian Bankers’ Acceptance or initially
purchased such Canadian BA Equivalent Note may (but shall not be obliged to), without receipt of a
Notice of Canadian Borrowing and irrespective of whether any other applicable conditions precedent
specified herein have been satisfied, and without waiver of the Canadian Borrower’s failure to make
such payment, make a Canadian Prime Rate Loan to the Canadian Borrower in the face amount of such
Canadian Bankers’ Acceptance or Canadian BA Equivalent Note, as the case may be, and shall
forthwith give notice thereof to the Canadian Borrower and the Canadian Agent (which shall promptly
give similar notice to the other Canadian Lenders). The Canadian Borrower agrees to accept each
such Canadian Prime Rate Loan and irrevocably authorizes and directs the applicable Canadian Lender
to apply the proceeds thereof in payment of the liability of the Canadian Borrower with respect to
the related Canadian Bankers’ Acceptance or Canadian BA Equivalent Note. Notwithstanding any other
provision hereof, all Canadian Prime Rate Loans made as contemplated by this Section 2.7.3
shall be payable on demand by the Canadian Agent or the Required Canadian Lenders.

     2.7.4 Special Provisions for Canadian Bankers’ Acceptances. If the Canadian Agent
determines in good faith, which determination shall be final, conclusive and binding upon the
Canadian Borrower, and so notifies the Canadian Borrower, that there does not exist at the
applicable time a normal market in Canada for the purchase and sale of bankers’ acceptances,

31

 

any right of the Canadian Borrower to require the Canadian Lenders to purchase Canadian
Bankers’ Acceptances and Canadian BA Equivalent Notes hereunder shall be suspended until the
Canadian Agent determines that such market does exist and gives notice thereof to the Canadian
Borrower, and any Notice of Canadian BA Borrowing shall be deemed to be a Notice of Canadian
Borrowing requesting Canadian Prime Rate Loans in a similar aggregate principal amount.

     2.7.5 Power of Attorney for Drafts and Canadian BA Equivalent Notes. To facilitate
availment of Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes, the Canadian Borrower
hereby appoints each Canadian Lender as its attorney to sign and endorse on its behalf (in
accordance with a Notice of Canadian BA Borrowing), in handwriting or by facsimile or mechanical
signature as and when deemed necessary by such Canadian Lender, blank forms of (a) in the case of a
Canadian BA Lender, Drafts in the form requested by such Lender, and (b) in the case of a Canadian
Non-BA Lender, Canadian BA Equivalent Notes in the form of Exhibit F. In this respect, it
is each Canadian Lender’s responsibility to maintain an adequate supply of blank forms of Drafts or
Canadian BA Equivalent Notes for acceptance or purchase, as applicable, under this Agreement. The
Canadian Borrower recognizes and agrees that all Canadian Bankers’ Acceptances and Canadian BA
Equivalent Notes signed and/or endorsed by a Canadian Lender on behalf of the Canadian Borrower
shall bind the Canadian Borrower as fully and effectually as if signed in the handwriting of and
duly issued by the proper signing officers of the Canadian Borrower. Each Canadian Lender is
hereby authorized (in accordance with a Notice of Canadian BA Borrowing) to issue such Canadian
Bankers’ Acceptances or Canadian BA Equivalent Notes, as appropriate, endorsed in blank in such
face amounts as may be determined by such Canadian Lender; provided that the aggregate
amount thereof is equal to the aggregate amount of Canadian Bankers’ Acceptance or Canadian BA
Equivalent Notes required to be accepted or purchased by such Canadian Lender. Each Canadian
Lender may at any time and from time to time hold, sell, rediscount, or otherwise dispose of any or
all Canadian Bankers’ Acceptances accepted and purchased by it. No Canadian Lender shall be liable
for any damage, loss or other claim arising by reason of any loss or improper use of any such
instrument, except to the extent resulting from the gross negligence or willful misconduct of such
Canadian Lender or its officers, employees, agents or representatives. Each Canadian Lender shall
maintain a record with respect to Canadian Bankers’ Acceptances or Canadian BA Equivalent Notes (i)
accepted and purchased by it hereunder; and (ii) canceled at maturity.

     To facilitate the acceptance of Canadian Bankers’ Acceptances hereunder, the Canadian Borrower
hereby authorizes the Canadian Lenders and irrevocably appoints each of the Canadian Lenders as its
attorney, respectively:

          (a) to complete and sign on the Canadian Borrower’s behalf, either manually or by facsimile or
mechanical signature, the Drafts to create the Canadian Bankers’ Acceptances (with, in each
Canadian Lender’s discretion, the inscription “This is a depository bill subject to the Depository
Bills and Notes Act (Canada)”);

          (b) after the acceptance thereof by any Canadian Lender, to endorse on the Canadian Borrower’s
behalf, either manually or by facsimile or mechanical signature, such Canadian Bankers’ Acceptances
in favor of the applicable purchaser or endorsee thereof

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including, in such Canadian Lender’s discretion, such Canadian Lender or a clearing house (as
defined by the Depository Bills and Notes Act (Canada));

          (c) to deliver such Canadian Bankers’ Acceptances to such purchaser or to deposit such
Canadian Bankers’ Acceptances with such clearing house; and

          (d) to comply with the procedures and requirements established from time to time by such
Canadian Lender or such clearing house in respect of the delivery, transfer and collection of
bankers’ acceptances and depository bills.

All Canadian Bankers’ Acceptances so completed, signed, endorsed, delivered or deposited by a
Canadian Lender on behalf of the Canadian Borrower shall be binding upon the Canadian Borrower as
if completed, signed, endorsed, delivered or deposited by it. The records of the Canadian Lenders
and such clearing houses shall, in the absence of manifest error, be conclusively binding on the
Canadian Borrower. None of the Canadian Lenders shall be liable for any claim arising by reason of
any loss or improper use of such Drafts or Canadian Bankers’ Acceptances except for damages
suffered by the Canadian Borrower caused by the willful misconduct or gross negligence of such
Canadian Lender.

     2.7.6 Prepayment through Escrowed Funds. The Canadian Borrower may effect prepayment
from time to time of Canadian Bankers’ Acceptances and Canadian BA Equivalent Notes in whole or in
part, in an aggregate amount of C$500,000 or a higher integral multiple of C$100,000, by depositing
into an escrow account maintained by and in the name of the Canadian Agent for the benefit of the
Canadian Lenders in accordance with their Canadian Pro Rata Shares an amount equal to the Canadian
Lenders’ maximum potential liability (as determined by the Canadian Agent) under then outstanding
Canadian Bankers’ Acceptances being prepaid plus the amount of Canadian BA Equivalent Notes being
prepaid plus interest to accrue on such prepaid amount to maturity (the “Escrow Funds”). The
Escrow Funds shall be held by the Canadian Agent for set-off against future Obligations of the
Canadian Borrower and pending such application shall bear interest at the rate declared by the
Canadian Agent from time to time as that payable by it in respect of deposits for such amount and
for such period relative to the maturity date of the Canadian Bankers’ Acceptances and Canadian BA
Equivalent Notes, as applicable. At the time of such prepayment, the Canadian Borrower shall grant
to the Canadian Agent, for the benefit of the Canadian Agent and the Canadian Lenders, a security
interest in the Escrow Funds pursuant to documentation in form and substance reasonably acceptable
to the Canadian Agent and the Required Canadian Lenders.

     2.8 Voluntary Termination or Reduction of Commitments.

          (a) The Company may, upon not less than five Business Days’ prior notice to the Administrative
Agent, terminate the U.S. Revolving Credit Commitments, or permanently reduce the U.S. Revolving
Credit Commitments by a minimum amount of US$1,000,000 or a higher integral multiple of US$500,000;
unless, after giving effect thereto and to any prepayments of U.S. Revolving Credit Loans
made on the Closing Date thereof, the Total U.S. Outstandings would exceed the amount of the
combined U.S. Revolving Credit Commitments then in effect. Once reduced in accordance with this
Section, the U.S. Revolving Credit Commitments may not be increased. Any reduction of the U.S.
Revolving Credit Commitments

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shall be applied to reduce the U.S. Revolving Credit Commitment of each U.S. Revolving Credit
Lender according to its U.S. Revolving Credit Pro Rata Share. If the Company terminates the U.S.
Revolving Credit Commitments or reduces the U.S. Revolving Credit Commitments to zero, the Company
shall pay all accrued and unpaid interest, fees and other amounts payable hereunder on the date of
such termination.

          (b) The Canadian Borrower may, upon not less than five Business Days’ prior notice to the
Canadian Agent, terminate the Canadian Commitments, or permanently reduce the Canadian Commitments
by a minimum amount of C$500,000 or a higher integral multiple of C$100,000; unless, after
giving effect thereto and to any prepayments of Canadian Loans made on the Closing Date thereof,
the aggregate principal amount of Canadian Loans outstanding would exceed the amount of the
combined Canadian Commitments then in effect. Once reduced in accordance with this Section, the
Canadian Commitments may not be increased. Any reduction of the Canadian Commitments shall be
applied to reduce the Canadian Commitment of each Canadian Lender according to its Canadian Pro
Rata Share. If the Company terminates the Canadian Commitments or reduces the Canadian Commitments
to zero, the Company shall pay all accrued and unpaid interest, fees and other amounts payable
hereunder on the date of such termination.

     2.9 Optional Prepayments.

          (a) Subject to the proviso to subsection 2.5(a) and to Section 4.4, the
Company may, from time to time, upon irrevocable notice to the Administrative Agent, which notice
must be received by the Administrative Agent prior to 11:00 a.m. Charlotte time (i) two Business
Days prior to the date of prepayment, in the case of Eurodollar Rate Loans, and (ii) on the date of
prepayment, in the case of U.S. Base Rate Loans, ratably prepay Term Loans in whole or in part, in
an aggregate amount of US$1,000,000 or a higher integral multiple of US$500,000. Such notice of
prepayment shall specify the date and amount of such prepayment and the Term Loans to be prepaid.
The Administrative Agent will promptly notify each Term Lender of its receipt of any such notice
and of such Lender’s Term Pro Rata Share of such prepayment. If such notice is given by the
Company, the Company shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein, together with, in the case of Eurodollar
Rate Loans, accrued interest to such date on the amount prepaid and any amounts required pursuant
to Section 4.4.

          (b) Subject to the proviso to subsection 2.5(a) and to Section 4.4, the
Company may, from time to time, upon irrevocable notice to the Administrative Agent, which notice
must be received by the Administrative Agent prior to 11:00 a.m. Charlotte time (i) two Business
Days prior to the date of prepayment, in the case of Eurodollar Rate Loans, and (ii) on the date of
prepayment, in the case of U.S. Base Rate Loans, ratably prepay U.S. Revolving Credit Loans in
whole or in part, in an aggregate amount of US$1,000,000 or a higher integral multiple of
US$500,000 (or, if any U.S. Base Rate Loans have been made pursuant to subsection 3.3(d),
in an aggregate amount equal to the aggregate amount of such U.S. Base Rate Loans). Such notice of
prepayment shall specify the date and amount of such prepayment and the U.S. Revolving Credit Loans
to be prepaid. The Administrative Agent will promptly notify each U.S. Revolving Credit Lender of
its receipt of any such notice and of such Lender’s U.S. Revolving Credit Pro Rata Share of such
prepayment. If such notice is given by the Company, the

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Company shall make such prepayment and the payment amount specified in such notice shall be
due and payable on the date specified therein, together with, in the case of Eurodollar Rate Loans,
accrued interest to such date on the amount prepaid and any amounts required pursuant to
Section 4.4.

          (c) The Canadian Borrower may, from time to time, upon irrevocable notice to the Canadian
Agent, which notice must be received by the Canadian Agent prior to 11:00 a.m. Toronto time on the
date of prepayment, ratably prepay Canadian Prime Rate Loans in whole or in part, in an aggregate
amount of C$1,000,000 or a higher integral multiple of C$100,000. Such notice of prepayment shall
specify the date and amount of such prepayment and the Canadian Prime Rate Loans to be prepaid.
The Canadian Agent will promptly notify each Canadian Lender of its receipt of any such notice and
of such Canadian Lender’s Canadian Pro Rata Share of such prepayment. If such notice is given by
the Canadian Borrower, the Canadian Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein.

     2.10 Repayment. The Company shall repay all Term Loans and U.S. Revolving Credit
Loans on the Termination Date. The Canadian Borrower shall repay all Canadian Loans on the
Termination Date.

     2.11 Interest. (a) Each Term Loan shall bear interest on the outstanding principal
amount thereof from the applicable Borrowing Date at a rate per annum equal to (i) the Eurodollar
Rate plus the Applicable Margin or (ii) the U.S. Base Rate, as the case may be (and subject to the
Company’s right to convert to the other Type of Term Loan under Section 2.5).

          (b) Each U.S. Revolving Credit Loan shall bear interest on the outstanding principal amount
thereof from the applicable Borrowing Date at a rate per annum equal to (i) the Eurodollar Rate
plus the Applicable Margin or (ii) the U.S. Base Rate, as the case may be (and subject to the
Company’s right to convert to the other Type of U.S. Revolving Credit Loan under Section
2.5).

          (c) Each Canadian Loan shall bear interest on the outstanding principal amount thereof from
the applicable Borrowing Date at a rate per annum equal to the Canadian Prime Rate.

          (d) Interest on each Loan shall be paid in arrears on each Interest Payment Date. Interest
also shall be paid on the date of any conversion of Fixed Rate Loans under Section 2.5 or
2.7 and prepayment of Fixed Rate Loans under Section 2.9, in each case for the
portion of the Loans so converted or prepaid.

          (e) Notwithstanding the foregoing provisions of this Section, upon notice to the Borrowers
from the Administrative Agent (acting at the request or with the consent of the Required Lenders)
during the existence of any Event of Default, and for so long as such Event of Default continues,
the Borrowers shall pay interest (after as well as before entry of judgment thereon to the extent
permitted by law) on the principal amount of all outstanding Loans and, to the extent permitted by
Applicable Law, on any other amount payable hereunder or under any other Loan Document, at a rate
per annum which is determined by adding 2% per annum to the

35

 

rate otherwise applicable thereto pursuant to the terms hereof or such other Loan Document
(or, if no such rate is specified, the U.S. Base Rate or, in the case of Canadian Loans, the
Canadian Prime Rate). All such interest shall be payable on demand.

          (f) Anything herein to the contrary notwithstanding, the obligations of the Borrowers to any
Lender hereunder shall be subject to the limitation that payments of interest shall not be required
for any period for which interest is computed hereunder, to the extent (but only to the extent)
that contracting for or receiving such payment by such Lender would be contrary to the provisions
of any law applicable to such Lender limiting the highest rate of interest that may be lawfully
contracted for, charged or received by such Lender, and in such event the applicable Borrower shall
pay such Lender interest at the highest rate permitted by Applicable Law.

          (g) Notwithstanding any provision hereof, in no event shall the aggregate “interest” (as
defined in section 347 of the Criminal Code (Canada)) payable by the Canadian Borrower hereunder
exceed the effective annual rate of interest on the “credit advanced” (as defined in such section
347) hereunder lawfully permitted by such section 347, and if any payment, collection or demand
pursuant to this Agreement in respect of “interest” (as defined in such section 347) is determined
to be contrary to the provisions of such section 347, such payment, collection or demand shall be
deemed to have been made by mutual mistake of the Canadian Borrower and the applicable Canadian
Lender and the amount of such payment or collection shall be refunded to the Canadian Borrower.
For the purposes of this Agreement, the effective annual rate of interest shall be determined in
accordance with generally accepted actuarial practices and principles over the relevant term and,
in the event of dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed
by the Canadian Agent will be prima facia evidence of such rate.

          (h) For the purpose of the Interest Act (Canada) and any other purpose, (i) the principle of
deemed reinvestment of interest shall not apply to any calculation under this Agreement and (ii)
the rates of interest and fees stipulated in this Agreement are intended to be nominal rates and
effective rates or yields.

     2.12 Fees. In addition to certain fees described in Section 3.8:

          (a) Arrangement, Agency Fees. The Company agrees to pay to the Administrative Agent
and the Arranger such fees at such times and in such amounts as are set forth in the fee letter
dated September 25, 2006 to the Company from Bank of America and the Arranger, as it may be amended
or replaced from time to time (the “Fee Letter”).

          (b) Upfront Fees. The Borrowers shall pay to the Administrative Agent for the account
of each Lender an upfront fee of four basis points on the amount of such Lender’s Commitments, such
upfront fee to be due and payable on the Closing Date.

          (c) Facility Fees. The Company shall pay to the Administrative Agent for the account
of each U.S. Revolving Credit Lender a facility fee computed at the Facility Fee Rate per annum on
the amount of such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment as in effect
from time to time (whether used or unused) or, if the U.S. Revolving

36

 

Credit Commitments have terminated, on the sum (without duplication) of (i) the principal
amount of such U.S. Revolving Credit Lender’s U.S. Revolving Credit Loans plus (ii) the
participation of such U.S. Revolving Credit Lender in (or in the case of an Issuing Lender, its
unparticipated portion of) the Effective Amount of all L/C Obligations. The Canadian Borrower
shall pay to the Canadian Agent for the account of each Canadian Lender a facility fee computed at
the Facility Fee Rate per annum on the amount of such Canadian Lender’s Canadian Commitment as in
effect from time to time (whether used or unused) or, if the Canadian Commitments have terminated,
on the principal amount of such Canadian Lender’s Canadian Loans. Such facility fees shall accrue
from the Closing Date to the Termination Date, and thereafter until all Loans are paid in full and,
in the case of facility fees payable by the Company, all Letters of Credit are terminated, and
shall be due and payable quarterly in arrears on the last Business Day of each calendar quarter,
with the final payment to be made on the Termination Date (or, if later, on the date all Loans are
paid in full and all Letters of Credit are terminated).

          (d) Canadian BA Fees. The Canadian Borrower shall pay to each Canadian BA Lender in
respect of each Draft tendered by the Canadian Borrower to and accepted by such Canadian BA Lender,
and to each Canadian Non-BA Lender in respect of each Canadian BA Equivalent Note tendered to and
purchased by such Canadian Non-BA Lender, as a condition of such acceptance or purchase, a fee in
Canadian Dollars calculated at a rate per annum equal to the Stamping Fee Rate, on the basis of the
face amount and the term of such Bankers’ Acceptance or Canadian BA Equivalent Note (it being
understood that the Canadian Borrower’s obligation to make such payment shall be satisfied to the
extent that the applicable Canadian Lender nets the amount of such fee against the amount to be
transferred to the Agent in respect of the applicable Canadian Bankers’ Acceptance or Canadian BA
Equivalent Note, as contemplated by subsection 2.7.2(f)).

     2.13 Computation of Fees and Interest. (a) All computations of interest on (i) U.S.
Base Rate Loans when the U.S. Base Rate is determined by Bank of America’s “prime rate” and (ii)
Canadian Prime Rate Loans and all computations of the Stamping Fee Rate shall in each case be made
on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of interest and fees shall be made on the basis of a 360-day year and actual days
elapsed. Interest and fees shall accrue during each period during which such interest or such fees
are computed from the first day thereof to the last day thereof.

          (b) Each determination of an interest rate by an Agent and each determination of the Canadian
BA Discount Rate or the CDOR by the Canadian Agent shall be conclusive and binding on the Borrowers
and the Lenders in the absence of manifest error. Each Agent will, at the request of a Borrower or
any Lender, deliver to such Borrower or such Lender, as the case may be, a statement showing the
quotations used by the such Agent in determining any interest rate and the resulting interest rate.

     2.14 Payments by the Company. (a) All payments to be made by the Company shall be
made without condition or deduction for any set-off, recoupment, defense or counterclaim. Except
as otherwise expressly provided herein, all payments by the Company shall be made to the
Administrative Agent for the account of the U.S. Revolving Credit Lenders at the Administrative
Agent’s Payment Office, and shall be made in U.S. Dollars and in immediately available funds, no
later than 4:00 p.m. Charlotte time on the date specified herein. The

37

 

Administrative Agent will promptly distribute to each U.S. Revolving Credit Lender its U.S.
Revolving Credit Pro Rata Share (or other applicable share as expressly provided herein) of such
payment in like funds as received. Any payment received by the Administrative Agent later than
4:00 p.m. Charlotte time shall be deemed to have been received on the following Business Day and
any applicable interest or fee shall continue to accrue.

          (b) All payments to be made by the Canadian Borrower shall be made without set-off, recoupment
or counterclaim. Except as otherwise expressly provided herein, all payments by the Canadian
Borrower shall be made to the Canadian Agent for the account of the Canadian Lenders at the
Canadian Agent’s Payment Office, and shall be made in Canadian Dollars and in immediately available
funds, no later than 2:00 p.m. Toronto time on the date specified herein. The Canadian Agent will
promptly distribute to each Canadian Lender its Canadian Pro Rata Share (or other applicable share
as expressly provided herein) of such payment in like funds as received. Any payment received by
the Canadian Agent later than 2:00 p.m. Toronto time shall be deemed to have been received on the
following Business Day and any applicable interest or fee shall continue to accrue.

          (c) Whenever any payment is due on a day other than a Business Day, such payment shall be made
on the following Business Day (unless, in the case of a payment with respect to a Eurodollar Rate
Loan, the following Business Day is in another calendar month, in which case such payment shall be
made on the preceding Business Day), and such extension of time shall in such case be included in
the computation of interest or fees, as the case may be.

          (d) Unless the applicable Agent receives notice from a Borrower prior to the date on which any
payment is due to the Lenders that such Borrower will not make such payment in full as and when
required, such Agent may assume that such Borrower has made such payment in full to such Agent on
such date in immediately available funds and such Agent may (but shall not be so required), in
reliance upon such assumption, distribute to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent such Borrower has not made such payment in full
to such Agent, each Lender shall repay to such Agent on demand such amount distributed to such
Lender in immediately available funds, together with interest thereon at (in the case of amounts in
U.S. Dollars) the greater of the Federal Funds Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Administrative Agent in connection with the
foregoing, or (in the case of amounts in Canadian Dollars) the Canadian Cost of Funds Rate for each
day from the date such amount is distributed to such Lender until the date repaid. If such
Borrower and such Lender shall pay such interest to such Agent for the same or an overlapping
period, such Agent shall promptly remit to such Borrower the amount of such interest paid by such
Borrower for such period. If such Lender pays its share of the applicable Borrowing to such Agent,
then the amount so paid shall constitute such Lender’s Loan included in such Borrowing. Any
payment by such Borrower shall be without prejudice to any claim such Borrower may have against a
Lender that shall have failed to make such payment to such Agent. A notice of an Agent to any
Lender or a Borrower with respect to any amount owing under this subsection (d) shall be
conclusive, absent manifest error.

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          (e) If any Lender makes available to an Agent funds for any Credit Extension to be made by
such Lender as provided in the foregoing provisions of this Article II, and such funds are
not made available to the applicable Borrower by such Agent because the conditions to such Credit
Extension set forth in Article V are not satisfied or waived in accordance with the terms
hereof, such Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

          (f) The obligations of the Lenders hereunder to make Credit Extensions, to fund participations
in Letters of Credit and to make payments pursuant to Section 12.4 are several and not
joint. The failure of any Lender to make any Credit Extension, to fund any such participation or
to make any payment under Section 12.4 on any date required hereunder shall not relieve any
other Lender of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Credit Extension, to purchase its
participation or to make its payment under Section 12.4.

          (g) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Credit Extension in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for any Credit Extension
in any particular place or manner.

     2.15 Payments by the Lenders to the Applicable Agent. (a) Unless the applicable
Agent receives notice from a Lender (i) at least one Business Day prior to the date of a Borrowing
of Fixed Rate Loans or Canadian BA Borrowing, (ii) by 12:00 noon Charlotte time on the day of any
Borrowing of U.S. Base Rate Loans or (iii) by 12:00 noon Toronto time on the day of any Borrowing
of Canadian Prime Rate Loans, that such Lender will not make available as and when required
hereunder to such Agent for the account of the applicable Borrower the amount of such Lender’s
Applicable Pro Rata Share of such Credit Extension, such Agent may assume that such Lender has made
such amount available to such Agent in immediately available funds on the Borrowing Date and such
Agent may (but shall not be so required), in reliance upon such assumption, make available to the
applicable Borrower on such date a corresponding amount.

          (b) If and to the extent any Lender shall not have made its full amount of any Loan available
to such Agent in immediately available funds and such Agent in such circumstances has made
available to such Borrower such amount, such Lender shall on the Business Day following such
Borrowing Date make such amount available to such Agent, together with interest at (in the case of
amounts in U.S. Dollars) the Federal Funds Rate or (in the case of amounts in Canadian Dollars) the
Canadian Cost of Funds Rate. If such amount is so made available, such payment to such Agent shall
constitute such Lender’s Loan on the date of Borrowing for all purposes of this Agreement. If such
amount is not made available to such Agent on the Business Day following the Borrowing Date, such
Agent will notify the applicable Borrower of such failure to fund and, upon demand by such Agent,
such Borrower shall pay such amount to such Agent for such Agent’s account, together with interest
thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the
interest rate applicable at the time to the Loans comprising such Borrowing.

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          (c) If and to the extent that any Canadian Lender shall not have made the full amount required
pursuant to subsection 2.7.2(e) available to the Canadian Agent in immediately available
funds on the applicable Borrowing Date, and the Canadian Agent in such circumstances has made
available to the Canadian Borrower such amount pursuant to subsection (a) above, the
Canadian Agent shall be entitled to recover from the Canadian Borrower, on demand the corresponding
amount made available by the Canadian Agent to the Canadian Borrower as aforesaid, together with
interest thereon at the rate applicable hereunder to Canadian Prime Rate Loans. If, after the
applicable Borrowing Date but prior to such time as the Canadian Agent has demanded repayment from
the Canadian Borrower as permitted by the preceding sentence, the funds required to be made
available by the applicable Canadian Lender are in fact received by the Canadian Agent, the
Canadian Agent shall be entitled to retain such funds for its own account and the corresponding
amount made available by the Canadian Agent to the Canadian Borrower on such Borrowing Date shall,
notwithstanding the preceding sentence, be deemed to have been the proceeds of a Canadian Bankers’
Acceptance or a Canadian BA Equivalent Note, as the case may be, made available by such Canadian
Lender to the Canadian Borrower on such Borrowing Date and such Canadian Lender shall pay to the
Canadian Agent on demand interest at the Canadian Cost of Funds Rate for the period from such
Borrowing Date to the date on which such funds are received by the Canadian Agent.

          (d) A notice of an Agent submitted to any Lender with respect to amounts owing under
subsection (b) or (c) above shall be conclusive absent manifest error.

          (e) The failure of any Lender to make any Loan on any Borrowing Date shall not relieve any
other Lender of any obligation hereunder to make a Loan on such Borrowing Date, but no Lender shall
be responsible for the failure of any other Lender to make the Loan to be made by such other Lender
on any Borrowing Date.

     2.16 Sharing of Payments. If, when an Event of Default occurs and is continuing, any
Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by application
of setoff or otherwise) on account of any Loan, Canadian Bankers’ Acceptance or Canadian BA
Equivalent Note (other than pursuant to the terms of Sections 4.1, 4.3 and
4.4) in excess of its pro rata share of payments then or therewith obtained
by all Lenders, such Lender shall purchase from the other Lenders such participations in Loans,
Canadian Bankers’ Acceptances and/or Canadian BA Equivalent Notes made by them as shall be
necessary to cause such purchasing Lender to share the excess payment or other recovery ratably
with each of them; provided, however, that if all or any portion of the excess
payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall
be rescinded and each Lender which has sold a participation to the purchasing Lender shall repay to
the purchasing Lender the purchase price to the ratable extent of such recovery together with an
amount equal to such selling Lender’s ratable share (according to the proportion of

          (a) the amount of such selling Lender’s required repayment to the purchasing Lender

to

          (b) the total amount so recovered from the purchasing Lender)

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of any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrowers agree that any Lender so purchasing a participation from
another Lender pursuant to this Section may, to the fullest extent permitted by law, exercise all
its rights of payment (including pursuant to Section 12.9) with respect to such
participation as fully as if such Lender were the direct creditor of the applicable Borrower in the
amount of such participation. If under any applicable bankruptcy, insolvency or other similar law,
any Lender receives a secured claim in lieu of a setoff to which this Section applies, such Lender
shall, to the extent practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the Lenders entitled under this Section to share in the benefits of
any recovery on such secured claim. The Lenders may, without the consent of either Borrower or any
other Person, make arrangements among themselves to amend or otherwise modify this subsection
(b) and to establish different sharing arrangements with respect to payments by or on behalf of
the Borrowers; provided that any such amendment, modification or sharing arrangement shall be
consented to by all Lenders.

     2.17 Increase in Aggregate U.S. Revolving Credit Commitment.

          (a) Request for Increase. Provided there exists no Event of Default or Unmatured
Event of Default, upon notice to the Administrative Agent (which shall promptly notify the U.S.
Revolving Credit Lenders), the Company may from time to time, request an increase in the Aggregate
U.S. Revolving Credit Commitment by an amount (for all such requests) not exceeding US$50,000,000;
provided that any such request for an increase shall be in a minimum amount of
US$10,000,000. Such increase shall be provided by existing U.S. Revolving Credit Lenders that, in
response to a request of the Company in each such existing Revolving Credit Lender’s sole
discretion, agree to so increase their U.S. Revolving Credit Commitments and/or, subject to the
approval of the Administrative Agent and the Issuing Lenders (which approvals shall not be
unreasonably withheld), by Eligible Assignees that become U.S. Revolving Credit Lenders pursuant to
a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel.

          (b) Effective Date and Allocations. If the Aggregate U.S. Revolving Credit Commitment
is increased in accordance with this Section, the Administrative Agent and the Company shall
determine the effective date (the “U.S. Revolving Credit Increase Effective Date”) and the
final allocation of such increase. The Administrative Agent shall promptly notify the Company and
the U.S. Revolving Credit Lenders of the final allocation of such increase and the U.S. Revolving
Credit Increase Effective Date.

          (c) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Company shall deliver to the Administrative Agent a certificate of the Company dated
as of the U.S. Revolving Credit Increase Effective Date (in sufficient copies for each U.S.
Revolving Credit Lender) signed by a Responsible Officer of the Company (i) certifying and
attaching the resolutions adopted by the Company approving or consenting to such increase, and (ii)
certifying that, before and after giving effect to such increase, (A) the representations and
warranties contained in Article VI are true and correct on and as of the U.S. Revolving
Credit Increase Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct as of such earlier
date, and except that for purposes of this Section 2.17, the representations and warranties
contained in subsections

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(a) and (b) of Section 6.11 shall be deemed to refer to the most recent statements
furnished pursuant to clause (a) of Section 7.1, and (B) no Default exists. If the U.S.
Revolving Credit Commitments are being increased on a nonratable basis, the Company shall make such
nonratable borrowings and such prepayments of U.S. Revolving Credit Loans (and pay any additional
amounts required pursuant to Section 4.4) on the U.S. Revolving Credit Increase Effective
Date, to the extent necessary so that after giving effect to such borrowings and prepayments, the
U.S. Revolving Credit Loans outstanding are held by the U.S. Revolving Credit Lenders ratably in
accordance with the revised U.S. Revolving Credit Pro Rata Shares arising from the nonratable
increase in the U.S. Revolving Credit Commitments under this Section.

          (d) Conflicting Provisions. This Section shall supersede any provisions in
Section 2.14 or 12.1 to the contrary.

ARTICLE III

THE LETTERS OF CREDIT

     3.1 The Letter of Credit Subfacility. (a) On the terms and conditions set forth
herein (i) each Issuing Lender agrees, in reliance upon the agreements of the U.S. Revolving Credit
Lenders set forth in this Article III, (A) from time to time on any Business Day during the
period from the Closing Date to the Termination Date to issue Letters of Credit for the account of
the Company, and to amend or renew Letters of Credit previously issued by it, in accordance with
subsections 3.2(c) and 3.2(d), and (B) to honor properly drawn drafts under the
Letters of Credit issued by it; and (ii) the U.S. Revolving Credit Lenders severally agree to
participate in Letters of Credit Issued for the account of the Company; provided that no
Issuing Lender shall be obligated to Issue, and no U.S. Revolving Credit Lender shall be obligated
to participate in, any Letter of Credit if as of the date of Issuance of such Letter of Credit (the
“Issuance Date”) (1) the Total U.S. Revolving Credit Outstandings exceed the Aggregate U.S.
Revolving Credit Commitment, (2) the Effective Amount of all L/C Obligations would exceed the L/C
Commitment or (3) the participation of any U.S. Revolving Credit Lender in the Effective Amount of
all L/C Obligations plus the outstanding principal amount of the U.S. Revolving Credit Loans of
such U.S. Revolving Credit Lender would exceed such U.S. Revolving Credit Lender’s U.S. Revolving
Credit Commitment. Within the foregoing limits, and subject to the other terms and conditions
hereof, the Company’s ability to obtain Letters of Credit shall be fully revolving, and,
accordingly, the Company may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit which have expired or which have been drawn upon and reimbursed.

          (b) No Issuing Lender shall be under any obligation to Issue any Letter of Credit if:

          (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain such Issuing Lender from Issuing such Letter of
Credit, or any Requirement of Law applicable to such Issuing Lender or any request or
directive (whether or not having the force of law) from any Governmental Authority with
jurisdiction over such Issuing Lender shall prohibit, or request that such Issuing Lender
refrain from, the Issuance of letters of credit generally or such Letter of

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Credit in particular or shall impose upon such Issuing Lender with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which such Issuing
Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon such Issuing Lender any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which such Issuing Lender in good faith deems material to
it (it being understood that the applicable Issuing Lender shall promptly notify the Company
and the Administrative Agent of any of the foregoing events or circumstances);

          (ii) such Issuing Lender has received written notice from any U.S. Revolving Credit
Lender, the Administrative Agent or the Company, on or prior to the Business Day prior to
the requested date of Issuance of such Letter of Credit, that one or more of the applicable
conditions contained in Article V is not then satisfied;

          (iii) the expiry date of such requested Letter of Credit is after the Termination Date,
unless all of the U.S. Revolving Credit Lenders have approved such expiry date in writing;

          (iv) such Letter of Credit does not provide for drafts, or is not otherwise in form and
substance reasonably acceptable to such Issuing Lender, or the Issuance of a Letter of
Credit shall violate any applicable policies of such Issuing Lender;

          (v) such Letter of Credit is denominated in a currency other than U.S. Dollars, unless
all of the U.S. Revolving Credit Lenders have approved in writing denominating such Letter
of Credit in such currency; or

          (vi) a default of any U.S. Revolving Credit Lender’s obligations to fund under
Section 3.3 exists or any U.S. Revolving Credit Lender is at such time a Defaulting
Lender hereunder, unless the Issuing Lender has entered into satisfactory arrangements with
the Company or such U.S. Revolving Credit Lender to eliminate the Issuing Lender’s risk with
respect to such U.S. Revolving Credit Lender.

     3.2 Issuance, Amendment and Renewal of Letters of Credit. (a) Each Letter of Credit
shall be issued or amended, as the case may be, upon the irrevocable written request of the Company
received by the applicable Issuing Lender (with a copy sent by the Company to the Administrative
Agent) at least two Business Days (or such shorter time as the applicable Issuing Lender and the
Administrative Agent may agree in a particular instance in their sole discretion) prior to the
proposed date of issuance in the form of an L/C Application or L/C Amendment Application,
appropriately completed and signed by a Responsible Officer of the Company. Such L/C Application
or L/C Amendment Application must be received by the applicable Issuing Lender and the
Administrative Agent not later than 11:00 a.m. at least two Business Days (or such later date and
time as the Administrative Agent and the applicable Issuing Lender may agree in a particular
instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the
case may be. In the case of a request for an initial issuance of a Letter of Credit, such L/C
Application shall specify in form and detail satisfactory to the applicable Issuing Lender: (i)
proposed issuance date of the Letter of Credit; (ii) the amount of the Letter of Credit; (iii) the
expiry date of the Letter of Credit; (iv) the name and address of the beneficiary

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thereof; (v) the documents to be presented by the beneficiary of the Letter of Credit in case
of any drawing thereunder; (vi) the full text of any certificate to be presented by the beneficiary
in case of any drawing thereunder; and (vii) such other matters as such Issuing Lender may require.
Additionally, the Company shall furnish to the Issuing Lender and the Administrative Agent such
other ordinary and customary documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any L/C-Related Documents, as the Issuing Lender or the
Administrative Agent may reasonably require.

          (b) Promptly upon receipt of any L/C Application or L/C Amendment Application, the applicable
Issuing Lender will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such L/C Application or L/C Amendment Application from
the Company and, if not, such Issuing Lender will provide the Administrative Agent with a copy
thereof. Unless the applicable Issuing Lender has received on or before the Business Day
immediately preceding the date such Issuing Lender is to issue or amend the applicable Letter of
Credit, (A) notice from the Administrative Agent directing such Issuing Lender not to issue such
Letter of Credit because such issuance is not then permitted under subsection 3.1(a) as a
result of the limitations set forth in clauses (1) through (3) thereof or (B) a
notice described in subsection 3.1(b)(ii) or (C) any limitation set forth in clauses
(iii) or (v) of subsection 3.1(b) has not been waived in writing by all U.S.
Revolving Credit Lenders, then, subject to the terms and conditions hereof, such Issuing Lender
shall, on the requested date, issue a Letter of Credit for the account of the Company, or enter
into the applicable amendment, as the case may be, in each case in accordance with such Issuing
Lender’s usual and customary business practices.

          (c) From time to time while a Letter of Credit is outstanding and prior to the Termination
Date, the applicable Issuing Lender will, upon the written request of the Company received by such
Issuing Lender (with a copy sent by the Company to the Administrative Agent) at least two Business
Days (or such shorter time as the applicable Issuing Lender and the Administrative Agent may agree
in a particular instance in their sole discretion) prior to the proposed date of amendment, amend
any Letter of Credit issued by it. Each such request for amendment of a Letter of Credit shall be
made by facsimile, confirmed immediately (by messenger or overnight courier) in an original
writing, made in the form of an L/C Amendment Application and shall specify in form and detail
satisfactory to such Issuing Lender: (i) the Letter of Credit to be amended; (ii) the proposed
date of amendment of such Letter of Credit (which shall be a Business Day); (iii) the nature of the
proposed amendment; and (iv) such other matters as such Issuing Lender may require. No Issuing
Lender shall have any obligation to amend any Letter of Credit if: (A) such Issuing Lender would
have no obligation at such time to issue such Letter of Credit in its amended form under the terms
of this Agreement; or (B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit. The Administrative Agent will promptly notify the U.S.
Revolving Credit Lenders of any Issuance or amendment of a Letter of Credit.

          (d) If the Company so requests in any applicable L/C Application, an Issuing Lender may, in
its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension
provisions (each, an “Auto-Extension Letter of Credit”); provided that any such
Auto-Extension Letter of Credit must permit the Issuing Lender to prevent any such extension at
least once in each twelve-month period (commencing with the date of issuance of

44

 

such Letter of Credit) by giving prior notice to the beneficiary thereof not later than three
days (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon
at the time such Letter of Credit is issued. Unless otherwise directed by the Issuing Lender, the
Company shall not be required to make a specific request to the Issuing Lender for any such
extension. Once an Auto-Extension Letter of Credit has been issued, the U.S. Revolving Credit
Lenders shall be deemed to have authorized (but may not require) the Issuing Lender to permit the
extension of such Letter of Credit at any time to an expiry date not later than the Letter of
Credit Expiration Date; provided, however, that the Issuing Lender shall not permit
any such extension if (A) the Issuing Lender has determined that it would not be permitted, or
would have no obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of Section 3.1(b) or
otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before
the day that is five Business Days before the Non-Extension Notice Date (1) from the Administrative
Agent that the Required U.S. Revolving Credit Lenders have elected not to permit such extension or
(2) from the Administrative Agent, any U.S. Revolving Credit Lender or the Company that one or more
of the applicable conditions specified in Section 5.2 is not then satisfied, and in each
such case directing the Issuing Lender not to permit such extension.

          (e) Each Issuing Lender may, at its election (or as required by the Administrative Agent at
the direction of the Required U.S. Revolving Credit Lenders), deliver any notice of termination or
other communication to any Letter of Credit beneficiary or transferee, and take any other action as
necessary or appropriate, at any time and from time to time, in order to cause the expiry date of
such Letter of Credit to be a date not later than the Termination Date.

          (f) This Agreement shall control in the event of any conflict with any L/C-Related Document
(other than any Letter of Credit).

          (g) Each Issuing Lender will deliver to the Administrative Agent and the Company, concurrently
or promptly following its delivery of a Letter of Credit, or amendment to or renewal of a Letter of
Credit, to an advising bank or a beneficiary, a true and complete copy of such Letter of Credit or
of such amendment or renewal.

     3.3 Risk Participations, Drawings and Reimbursements

          (a) Immediately upon the Issuance of each Letter of Credit on or after the Closing Date, each
U.S. Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the applicable Issuing Lender a participation in such Letter of Credit and each
drawing thereunder in an amount equal to the product of (i) such U.S. Revolving Credit Lender’s
U.S. Revolving Credit Pro Rata Share times (ii) the maximum amount available to be drawn under such
Letter of Credit and the amount of such drawing, respectively. For purposes of Section
2.1, each Issuance of a Letter of Credit shall be deemed to utilize the U.S. Revolving Credit
Commitment of each U.S. Revolving Credit Lender by an amount equal to the amount of such
participation.

          (b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, the applicable Issuing Lender will promptly notify the

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Company and the Administrative Agent. The Company shall (subject, if applicable, to its right
to obtain U.S. Base Rate Loans as provided below) reimburse the applicable Issuing Lender prior to
11:00 a.m. Charlotte time on each date that any amount is paid by such Issuing Lender under any
Letter of Credit (each such date, an “Honor Date”) in an amount equal to the amount so paid
by such Issuing Lender; provided that, to the extent that any Issuing Lender accepts a drawing
under a Letter of Credit after 11:00 a.m. Charlotte time, the Company will not be obligated to
reimburse such Issuing Lender until the next Business Day and the “Honor Date” for such Letter of
Credit shall be such next Business Day. If the Company fails to reimburse an Issuing Lender for
the full amount of any drawing under any Letter of Credit by 11:00 a.m. Charlotte time on the Honor
Date, such Issuing Lender will promptly notify the Administrative Agent and the Administrative
Agent will promptly notify each U.S. Revolving Credit Lender thereof (no later than 12:00 noon
Charlotte time on such Honor Date), and the Company shall be deemed to have requested that U.S.
Base Rate Loans be made by the U.S. Revolving Credit Lenders to be disbursed on the Honor Date
under such Letter of Credit, subject to the amount of the unutilized portion of the Aggregate U.S.
Revolving Credit Commitment and subject to the conditions set forth in Section 5.2 other
than Section 5.2(a). Any notice given by an Issuing Lender or the Administrative Agent
pursuant to this subsection 3.3(b) may be oral if immediately confirmed in writing
(including by facsimile or email); provided that the lack of such an immediate confirmation
shall not affect the conclusiveness or binding effect of such notice.

          (c) Each U.S. Revolving Credit Lender shall upon any notice pursuant to subsection
3.3(b) make available to the Administrative Agent for the account of the applicable Issuing
Lender an amount in Dollars and in immediately available funds equal to its U.S. Revolving Credit
Pro Rata Share of the amount of the drawing, whereupon the U.S. Revolving Credit Lenders shall
(subject to subsection 3.3(d)) each be deemed to have made a U.S. Revolving Credit Loan
consisting of a U.S. Base Rate Loan to the Company in such amount. If any U.S. Revolving Credit
Lender so notified fails to make available to the Administrative Agent for the account of the
applicable Issuing Lender the amount of such U.S. Revolving Credit Lender’s U.S. Revolving Credit
Pro Rata Share of the amount of such drawing by no later than 2:00 p.m. Charlotte time on the Honor
Date, then interest shall accrue on such U.S. Revolving Credit Lender’s obligation to make such
payment, from the Honor Date to the date such U.S. Revolving Credit Lender makes such payment, at a
rate per annum equal to the greater of the Federal Funds Rate in effect from time to time during
such period and a rate determined by the Issuing Lender in accordance with banking industry rules
on interbank compensation, plus any administrative, processing or similar fees customarily charged
by the Issuing Lender in connection with the foregoing. If such Lender pays such amount (with
interest and fees as aforesaid), the amount so paid shall constitute such Lender’s U.S. Revolving
Credit Loan included in the relevant Borrowing or L/C Advance in respect of the relevant Borrowing,
as the case may be. A certificate of the Issuing Lender submitted to any U.S. Revolving Credit
Lender (through the Administrative Agent) with respect to any amounts owing under this Section
3.3(c) shall be conclusive absent manifest error. The Administrative Agent will promptly give
notice of the occurrence of the Honor Date, but failure of the Administrative Agent to give any
such notice on the Honor Date or in sufficient time to enable any U.S. Revolving Credit Lender to
effect such payment on such date shall not relieve such U.S. Revolving Credit Lender from its
obligations under this Section 3.3.

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          (d) With respect to any unreimbursed drawing that is not converted into U.S. Base Rate Loans
in whole or in part, because of the Company’s failure to satisfy the conditions set forth in
Section 5.2 (other than subsection 5.2(a) which need not be satisfied) or for any
other reason, the Company shall be deemed to have incurred from the applicable Issuing Lender an
L/C Borrowing in the amount of such drawing, which L/C Borrowing shall be due and payable on demand
and shall bear interest (payable on demand) at a rate per annum equal to the U.S. Base Rate plus
2%, and each U.S. Revolving Credit Lender’s payment to such Issuing Lender pursuant to
subsection 3.3(c) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such U.S. Revolving Credit Lender in
satisfaction of its participation obligation under this Section 3.3. Until each U.S.
Revolving Credit Lender funds its U.S. Revolving Credit Loan or L/C Advance pursuant to this
Section 3.3 to reimburse the Issuing Lender for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s U.S. Revolving Credit Pro Rata Share of such amount
shall be solely for the account of the Issuing Lender.

          (e) Each U.S. Revolving Credit Lender’s obligation in accordance with this Agreement to make
the Loans or L/C Advances, as contemplated by this Section 3.3, as a result of a drawing
under a Letter of Credit, shall be absolute and unconditional and without recourse to any Issuing
Lender and shall not be affected by any circumstance, including (i) any set-off, counterclaim,
recoupment, defense or other right which such U.S. Revolving Credit Lender may have against the
applicable Issuing Lender, the Company or any other Person for any reason whatsoever; (ii) the
occurrence or continuance of an Event of Default, an Unmatured Event of Default or a Material
Adverse Effect; or (iii) any other circumstance, happening, event or condition whatsoever, whether
or not similar to any of the foregoing; provided that each U.S. Revolving Credit Lender’s
obligation to make Loans under this Section 3.3 is subject to the conditions set forth in
Section 5.2 (other than subsection 5.2(a)). No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Company to reimburse the Issuing Lender for the
amount of any payment made by the Issuing Lender under any Letter of Credit, together with interest
as provided herein.

     3.4 Repayment of Participations. (a) Upon (and only upon) receipt by the
Administrative Agent for the account of an Issuing Lender of immediately available funds from the
Company (i) in reimbursement of any payment made by such Issuing Lender under a Letter of Credit
with respect to which any Lender has paid the Administrative Agent for the account of such Issuing
Lender for such U.S. Revolving Credit Lender’s participation in such Letter of Credit pursuant to
Section 3.3 or (ii) in payment of interest thereon, the Administrative Agent will pay to
each U.S. Revolving Credit Lender, in the same funds as those received by the Administrative Agent
for the account of such Issuing Lender, the amount of such U.S. Revolving Credit Lender’s U.S.
Revolving Credit Pro Rata Share of such funds, and such Issuing Lender shall receive the amount of
the U.S. Revolving Credit Pro Rata Share of such funds of any U.S. Revolving Credit Lender that did
not so pay the Administrative Agent for the account of such Issuing Lender.

          (b) If the Administrative Agent or an Issuing Lender is required at any time to return to the
Company, or to a trustee, receiver, liquidator or custodian, or to any official in any Insolvency
Proceeding, any portion of any payment made by the Company or the U.S. Revolving Credit Lenders to
the Administrative Agent for the account of an Issuing Lender pursuant to

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subsection 3.4(a) in reimbursement of a payment made under a Letter of Credit or
interest or fee thereon, each U.S. Revolving Credit Lender shall, on demand of the Administrative
Agent, forthwith return to the Administrative Agent or the applicable Issuing Lender the amount of
its U.S. Revolving Credit Pro Rata Share of any amount so returned by the Administrative Agent or
such Issuing Lender plus interest thereon from the date such demand is made to the date such amount
is returned by such U.S. Revolving Credit Lender to the Administrative Agent or such Issuing
Lender, at a rate per annum equal to the Federal Funds Rate in effect from time to time. The
obligations of the U.S. Revolving Credit Lenders under this clause shall survive the payment in
full of the Obligations and the termination of this Agreement.

     3.5 Role of the Issuing Lenders. (a) Each U.S. Revolving Credit Lender and the
Company agree that, in paying any drawing under a Letter of Credit, the applicable Issuing Lender
shall not have any responsibility to obtain any document (other than any sight draft and
certificate expressly required by such Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person executing or delivering
any such document.

          (b) No Issuing Lender or Agent-Related Person, nor any of their respective Related Parties nor
any correspondent, participant or assignee of an Issuing Lender, shall be liable to any U.S.
Revolving Credit Lender for: (i) any action taken or omitted in connection herewith at the request
or with the approval of the U.S. Revolving Credit Lenders or the Required U.S. Revolving Credit
Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or
willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any
L/C-Related Document.

          (c) The Company hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided that this assumption
is not intended to, and shall not, preclude the Company’s pursuing such rights and remedies as it
may have against the beneficiary or transferee at law or under any other agreement. No Issuing
Lender or Agent-Related Person, nor any of their respective Related Parties, nor any correspondent,
participant or assignee of an Issuing Lender, shall be liable or responsible for any of the matters
described in clauses (i) through (vii) of Section 3.6; provided
that, anything in such clauses to the contrary notwithstanding, the Company may have a claim
against an Issuing Lender, and such Issuing Lender may be liable to the Company, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by
the Company which the Company proves were caused by such Issuing Lender’s willful misconduct or
gross negligence or such Issuing Lender’s willful failure to pay under any Letter of Credit after
the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying
with the terms and conditions of such Letter of Credit. In furtherance and not in limitation of
the foregoing: (i) an Issuing Lender may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or information to the
contrary; and (ii) no Issuing Lender shall be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

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     3.6 Obligations Absolute. The obligations of the Company under this Agreement and any
L/C-Related Document to reimburse the applicable Issuing Lender for a drawing under a Letter of
Credit, and to repay any L/C Borrowing and any drawing under a Letter of Credit converted into
Loans, shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance
with the terms of this Agreement and each such other L/C-Related Document under all circumstances,
including the following:

          (i) any lack of validity or enforceability of this Agreement or any L/C-Related
Document;

          (ii) any change in the time, manner or place of payment of, or in any other term of,
all or any of the obligations of the Company in respect of any Letter of Credit or any other
amendment or waiver of or any consent to departure from all or any of the L/C-Related
Documents;

          (iii) the existence of any claim, counterclaim, set-off, defense or other right that
the Company or any Subsidiary may have at any time against any beneficiary or any transferee
of any Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), the applicable Issuing Lender or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or by any L/C-Related Document or
any unrelated transaction;

          (iv) any draft, demand, certificate or other document presented under any Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under any
Letter of Credit;

          (v) any payment by an Issuing Lender under any Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by an Issuing Lender under any Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of any Letter of Credit, including any arising in connection with any
Insolvency Proceeding;

          (vi) any exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any other guarantee, for all or any of
the obligations of the Company in respect of any Letter of Credit; or

          (vii) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Company or a guarantor.

     3.7 Cash Collateral Pledge. If any Letter of Credit remains outstanding and partially
or wholly undrawn as of the Termination Date, then the Company shall immediately Cash Collateralize
the L/C Obligations in an amount equal to the maximum amount then available to be drawn under all
Letters of Credit. If at any time on or after the Termination Date the

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Administrative Agent determines that any funds held as Cash Collateral are subject to any
right or claim of any Person other than the Administrative Agent or that the total amount of such
funds is less than the aggregate Effective Amount of all L/C Obligations, the Company will,
forthwith upon demand by the Administrative Agent, pay to the Administrative Agent, as additional
funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate
Effective Amount over (y) the total amount of funds, if any, then held as Cash Collateral that the
Administrative Agent determines to be free and clear of any such right and claim. Upon the drawing
of any Letter of Credit for which funds are on deposit as Cash Collateral, such funds shall be
applied, to the extent permitted under applicable Laws, to reimburse the Issuing Lender.

     3.8 Letter of Credit Fees. (a) The Company shall pay to the Administrative Agent for
the account of each U.S. Revolving Credit Lender a letter of credit fee with respect to each Letter
of Credit equal to the L/C Fee Rate per annum of the average daily maximum amount available to be
drawn on such Letter of Credit, computed on a quarterly basis in arrears on the last Business Day
of each calendar quarter and on the Termination Date (or such later date on which such Letter of
Credit shall expire or be fully drawn).

          (b) The letter of credit fees payable under subsection 3.8(a) shall be due and payable
quarterly in arrears on the last Business Day of each calendar quarter during which Letters of
Credit are outstanding, commencing on the first such quarterly date to occur after the Closing
Date, through the Termination Date (or such later date upon which all outstanding Letters of Credit
shall expire or be fully drawn), with the final payment to be made on the Termination Date (or such
later date).

          (c) The Company shall pay to each Issuing Lender a letter of credit fronting fee at such times
and in such amounts as are mutually agreed to from time to time by the Company and such Issuing
Lender.

          (d) The Company shall pay to each Issuing Lender from time to time on demand the normal
issuance, presentation, amendment and other processing fees, and other standard costs and charges,
of such Issuing Lender relating to letters of credit as from time to time in effect.

     3.9 Applicability of ISP. Unless otherwise expressly agreed by the Issuing Lender and
the Company when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of
Credit.

ARTICLE IV

TAXES, YIELD PROTECTION AND ILLEGALITY

     4.1 Taxes. (a) Any and all payments by each Borrower to each Lender or each Agent
under this Agreement and any other Loan Document shall be made free and clear of, and without
deduction or withholding for, any Taxes. In addition, the Borrowers shall pay all Other Taxes and
Further Taxes.

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          (b) If either Borrower shall be required by law to deduct or withhold any Taxes, Other Taxes
or Further Taxes from or in respect of any sum payable hereunder to any Lender or Agent, then:

          (i) the sum payable shall be increased as necessary so that, after making all required
deductions and withholdings (including deductions and withholdings applicable to additional
sums payable under this Section), such Lender or Agent, as the case may be, receives and
retains an amount equal to the sum it would have received and retained had no such
deductions or withholdings been made;

          (ii) such Borrower shall make such deductions and withholdings; and

          (iii) such Borrower shall pay the full amount deducted or withheld to the relevant
taxing authority or other authority in accordance with Applicable Law.

          (c) The Company agrees to indemnify and hold harmless each Lender and Agent for the full
amount of Taxes, Other Taxes and Further Taxes in the amount that such Lender specifies as
necessary to preserve the after-tax yield such Lender would have received if such Taxes, Other
Taxes or Further Taxes had not been imposed, and any liability (including penalties, interest,
additions to tax and expenses) arising therefrom or with respect thereto, whether or not such
Taxes, Other Taxes or Further Taxes were correctly or legally asserted. Payment under this
indemnification shall be made within 30 days after the date such Lender or Agent makes written
demand therefor.

          (d) Within 30 days after the date of any payment by a Borrower of any Taxes, Other Taxes or
Further Taxes, such Borrower shall furnish each applicable Lender and Agent the original or a
certified copy of a receipt evidencing payment thereof, or other evidence of payment satisfactory
to such Lender and Agent.

          (e) If a Borrower is required to pay any amount to any Lender or Agent pursuant to
subsection (b) or (c) of this Section, then such Lender shall use reasonable
efforts (consistent with legal and regulatory restrictions) to change the jurisdiction of its
Lending Office so as to eliminate any such additional payment by such Borrower which may thereafter
accrue, if such change in the sole judgment of such Lender is not otherwise disadvantageous to such
Lender.

          (f) Notwithstanding the foregoing provisions of this Section 4.1, if any Lender fails
to notify the Company or the applicable Borrower of any event or circumstance which will entitle
such Lender to compensation pursuant to this Section 4.1 within 120 days after such Lender
obtains knowledge of such event or circumstance, then such Lender shall not be entitled to
compensation from such Borrower for any amount arising prior to the date which is 120 days before
the date on which such Lender notifies the Company or such Borrower of such event or circumstance.

     4.2 Illegality. (a) If any Lender determines that the introduction of any
Requirement of Law, or any change in any Requirement of Law, or in the interpretation or
administration of any Requirement of Law, has made it unlawful, or that any central bank or other
Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending
Office to

51

 

make Fixed Rate Loans, then, on notice thereof by such Lender to the Company through the
Administrative Agent, any obligation of such Lender to make Fixed Rate Loans shall be suspended
until such Lender notifies the Administrative Agent and the Company that the circumstances giving
rise to such determination no longer exist.

          (b) If a Lender determines that it is unlawful to maintain any Fixed Rate Loan, the applicable
Borrower shall, upon its receipt of notice of such fact and demand from such Lender (with a copy to
the Administrative Agent), prepay in full such Fixed Rate Loan of such Lender then outstanding,
together with interest accrued thereon and amounts required under Section 4.4, either on
the last day of the Interest Period thereof, if such Lender may lawfully continue to maintain such
Fixed Rate Loan to such day, or immediately, if such Lender may not lawfully continue to maintain
such Fixed Rate Loan. If such Borrower is required to so prepay any Fixed Rate Loan, then
concurrently with such prepayment, such Borrower shall borrow from the affected Lender, in the
amount of such repayment, a U.S. Base Rate Loan or Canadian Prime Rate Loan, as applicable.

          (c) If the obligation of any Lender to make or maintain Fixed Rate Loans has been so
terminated or suspended, all Loans which would otherwise be made by such Lender as Fixed Rate Loans
shall be instead U.S. Base Rate Loans or Canadian Prime Rate Loans.

          (d) Before giving any notice to the Administrative Agent under this Section, the affected
Lender shall designate a different Lending Office with respect to its Fixed Rate Loans if such
designation will avoid the need for giving such notice or making such demand and will not, in the
judgment of such Lender, be illegal or otherwise disadvantageous to such Lender.

     4.3 Increased Costs and Reduction of Return. (a) If any Lender determines that, due
to either (i) the introduction of or any change (other than any change by way of imposition of or
increase in reserve requirements included in the calculation of the Eurodollar Rate) in or in the
interpretation of any law or regulation or (ii) compliance by such Lender with any guideline or
request from any central bank or other Governmental Authority (whether or not having the force of
law), there shall be any increase in the cost to such Lender of agreeing to make or making, funding
or maintaining any Fixed Rate Loan or participating in any Letter of Credit, or, in the case of an
Issuing Lender, any increase in the cost to such Issuing Lender of agreeing to issue, issuing or
maintaining any Letter of Credit or of agreeing to make or making, funding or maintaining any
unpaid drawing under any Letter of Credit, then the applicable Borrower shall be liable for, and
shall from time to time, upon demand (with a copy of such demand to be sent to the applicable
Agent), pay to the applicable Agent for the account of such Lender, additional amounts as are
sufficient to compensate such Lender for such increased cost.

          (b) If any Lender shall have determined that (i) the introduction of any Capital Adequacy
Regulation, (ii) any change in any Capital Adequacy Regulation, (iii) any change in the
interpretation or administration of any Capital Adequacy Regulation by any central bank or other
Governmental Authority charged with the interpretation or administration thereof, or (iv)
compliance by such Lender (or its Lending Office) or any corporation controlling such Lender with
any Capital Adequacy Regulation affects or would affect the amount of capital required or expected
to be maintained by such Lender or any corporation controlling such Lender and (taking into
consideration such Lender’s or such corporation’s policies with respect to capital

52

 

adequacy and such Lender’s desired return on capital) determines that the amount of such
capital is increased as a consequence of its Commitment, Loans or obligations under this Agreement,
then, upon demand of such Lender to the applicable Borrower through the applicable Agent, the
applicable Borrower shall pay to such Lender, from time to time as specified by such Lender,
additional amounts sufficient to compensate such Lender for such increase.

          (c) Notwithstanding the foregoing provisions of this Section 4.3, if any Lender fails
to notify the applicable Borrower of any event or circumstance which will entitle such Lender to
compensation pursuant to this Section 4.3 within 60 days after such Lender obtains
knowledge of such event or circumstance, then such Lender shall not be entitled to compensation
from the applicable Borrower for any amount arising prior to the date which is 60 days before the
date on which such Lender notifies the applicable Borrower of such event or circumstance.

     4.4 Funding Losses. The applicable Borrower shall reimburse each Lender and hold each
Lender harmless from any loss or expense which the Lender may sustain or incur as a consequence of:

          (a) the failure of the applicable Borrower to make on a timely basis any payment of principal
of any Fixed Rate Loan;

          (b) the failure of the applicable Borrower to borrow, continue or convert a Loan or to issue a
Canadian Bankers’ Acceptance or a Canadian BA Equivalent Note after the applicable Borrower has
given (or is deemed to have given) a Notice of Borrowing or a Notice of Conversion/Continuation for
such Loan or a Notice of Canadian BA Borrowing;

          (c) the failure of the applicable Borrower to make any prepayment in accordance with any
notice delivered under Section 2.9; or

          (d) the prepayment (including after acceleration thereof) of a Fixed Rate Loan on a day that
is not the last day of the relevant Interest Period;

including any such loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain its Fixed Rate Loans or from fees payable to terminate the deposits from which
such funds were obtained. For purposes of calculating amounts payable by the Company to the Term
Lenders or the U.S. Revolving Credit Lenders under this Section and under subsection
4.3(a), each Eurodollar Rate Loan made by a Lender (and each related reserve, special deposit
or similar requirement) shall be conclusively deemed to have been funded at the LIBOR rate used in
determining the Eurodollar Rate for such Eurodollar Rate Loan by a matching deposit or other
borrowing in the interbank eurodollar market for a comparable amount and for a comparable period,
whether or not such Eurodollar Rate Loan is in fact so funded.

     4.5 Inability to Determine Rates. If (i) the Administrative Agent determines that for
any reason adequate and reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan, or (ii) the Required
Term Lenders or the Required U.S. Revolving Credit Lenders, as the case may be, determine that the
Eurodollar Rate applicable pursuant to Section 2.11 for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the

53

 

cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify
the Company and each Term Lender or U.S. Revolving Credit Lender, as applicable. Thereafter, the
obligation of the Term Lenders or the U.S. Revolving Credit Lenders, as the case may be, to make or
maintain Eurodollar Rate Loans hereunder shall be suspended until the Administrative Agent (upon
the instruction of the Required Term Lenders or the Required U.S. Revolving Credit Lenders, as the
case may be, in the case of clause (ii)) revokes such notice in writing. Upon receipt of
such notice, the Company may revoke any Notice of Borrowing or Notice of Conversion/Continuation
then submitted by it. If the Company does not revoke such Notice, the Term Lenders or the U.S.
Revolving Credit Lenders, as the case may be, shall make, convert or continue such Loans, as
proposed by the Company, in the amount specified in the applicable notice submitted by the Company,
but such Loans shall be made, converted or continued as U.S. Base Rate Loans instead of Eurodollar
Rate Loans.

     4.6 Certificates of Lenders. Any Lender claiming reimbursement or compensation under
this Article IV shall deliver to the applicable Borrower (with a copy to the Administrative
Agent) a certificate setting forth in reasonable detail the amount payable to such Lender hereunder
and the manner in which such amount has been calculated, and such certificate shall be conclusive
and binding on the applicable Borrower in the absence of manifest error.

     4.7 Substitution of Lenders. Upon the receipt by either Borrower from any Lender of a
claim for compensation under Section 4.1 or 4.3 or a notice of the type described
in Section 4.2, the Company may: (i) designate a replacement bank or financial institution
satisfactory to the Company (a “Replacement Lender”) to acquire and assume all of such
affected Lender’s Loans and Commitment; and/or (ii) request one or more of the other Lenders to
acquire and assume all of such affected Lender’s Loans and Commitment. Any designation of a
Replacement Lender under clause (i) shall be subject to the prior written consent of the
Administrative Agent and, if applicable, the Canadian Agent (which consents shall not be
unreasonably withheld or delayed).

     4.8 Canadian Lenders. Each Canadian Lender agrees that it shall, no later than the
Closing Date (or, in the case of a Canadian Lender which becomes a party hereto after the Closing
Date, the date upon which such Canadian Lender becomes a party hereto) deliver to the Canadian
Agent and to the Canadian Borrower through the Canadian Agent an instrument in writing certifying
that such Canadian Lender is not a non-resident of Canada for the purposes of Part XIII of the
Income Tax Act (Canada) and that it is the sole beneficial owner of payments of principal of and
interest on its Canadian Loans and other extensions of credit to the Canadian Borrower and
undertaking to advise the Canadian Agent and the Canadian Borrower of any changes in respect of
such matters so certified. In addition, each Canadian Lender shall, promptly upon the Canadian
Agent’s or the Canadian Borrower’s reasonable request to that effect, deliver to the Canadian Agent
or the Canadian Borrower (as the case may be) such other instruments in writing, forms or similar
documentation as may be required from time to time by any applicable law, treaty, rule or
regulation or the official interpretation of any such law, treaty, rule, or regulation by any
Governmental Authority charged with the interpretation or administration thereof (whether or not
having the force of law) in order to establish such Canadian Lender’s tax status for withholding
purposes. If the Canadian Agent or either Borrower receives a request from the Canada Customs and
Revenue Agency or any other Governmental Authority to provide additional information concerning the
withholding tax status

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of any Canadian Lender, such Canadian Lender shall (upon notice of such request from the
Canadian Agent) use all reasonable efforts to obtain and deliver such information to such taxing
Governmental Authority, the Canadian Agent and the Borrowers. Notwithstanding the foregoing, no
Canadian Lender shall be required to deliver any form pursuant to this Section 4.8 if such
Canadian Lender is not legally permitted to deliver such form as a result of a change in any
Applicable Law or the official interpretation thereof after the date such Canadian Lender becomes a
party to this Agreement. Bank of America hereby represents that Bank of America is an authorized
foreign bank mentioned in Schedule III of the Bank Act (Canada) that is not subject to the
restrictions and requirements referred to in subsection 524(2) of the Bank Act (Canada).

     4.9 Survival. The agreements and obligations of the Borrowers in this Article
IV shall survive the termination of this Agreement and the payment of all other Obligations.

ARTICLE V

CONDITIONS PRECEDENT

     5.1 Conditions to Initial Credit Extensions. The obligation of each Lender to make
its initial Credit Extension under this Agreement shall be subject to the condition that the
Administrative Agent shall have received all of the following, in form and substance satisfactory
to the Administrative Agent and each Lender, and (except for the Notes) in sufficient copies for
each Lender:

          (a) Agreement and Notes. This Agreement and the Notes executed by each party hereto
and thereto.

          (b) Resolutions; Incumbency.

          (i) Copies of the resolutions of the board of directors of each Borrower authorizing
the execution and delivery of the Loan Documents to which such Person is a party and the
consummation of the transactions contemplated hereby, certified as of the Closing Date by
the Secretary or an Assistant Secretary of such Person; and

          (ii) a certificate of the Secretary or Assistant Secretary of each Borrower certifying
the names and true signatures of the officers of such Borrower authorized to execute and
deliver the Loan Documents, Notices of Borrowing, Notices of Conversion/Continuation,
Compliance Certificates, L/C Applications, L/C Amendment Applications and other documents in
connection herewith.

          (c) Organization Documents. The articles or certificate of incorporation and the
bylaws of each Borrower as in effect on the Closing Date, certified by the Secretary or Assistant
Secretary of such Borrower as of the Closing Date.

          (d) Legal Opinions. An opinion of U.S. counsel to the Borrowers, and an opinion of
Canadian counsel to the Canadian Borrower, each in form and substance satisfactory to the Agents
and the Lenders; and

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          (e) Payment of Fees. Evidence of payment by the Company and the Canadian Borrower of
all accrued and unpaid fees, costs and expenses to the extent then due and payable hereunder on the
Closing Date, together with external Attorney Costs of Bank of America to the extent invoiced prior
to or on the Closing Date.

          (f) Certificate. A certificate signed by a Responsible Officer, dated as of the
Closing Date, stating that:

          (i) the representations and warranties contained in Article VI are true and
correct on and as of such date, as though made on and as of such date;

          (ii) no Event of Default or Unmatured Event of Default exists or would result from the
effectiveness of this Agreement; and

          (iii) since December 31, 2005, no event or circumstance has occurred that has resulted
or could reasonably be expected to result in a Material Adverse Effect.

          (g) Repayment and Termination of Existing Credit Agreements. Instructions by the
Company to apply the initial borrowings hereunder to payment of all amounts owing (and termination
by the Company and Lanfin Investments Inc. of all commitments) under the Second Amended and
Restated Credit Agreement dated as of February 8, 2002 among the Company, Lanfin Investments Inc.,
the lenders party thereto and Bank of America as administrative agent, issuing lender and Canadian
agent, and under the Bridge Credit Agreement dated as of October 21, 2005 between the Company and
Bank of America.

          (h) Other Documents. Such other approvals, opinions, documents or materials as the
Administrative Agent or any Lender may reasonably request.

     5.2 Conditions to All Credit Extensions. The obligation of each Lender to make any
Credit Extension to be made by it and the obligation of any Issuing Lender to Issue any Letter of
Credit is subject to the satisfaction of the following conditions precedent on the relevant
Borrowing Date or Issuance Date:

          (a) Notice, Application. The applicable Agent shall have received a Notice of
Borrowing or Notice of BA Borrowing as required under Section 2.4, 2.6 or
2.7 or in the case of the Issuance of any Letter of Credit, the applicable Issuing Lender
and the Administrative Agent shall have received an L/C Application or L/C Amendment Application,
as required under Section 3.2.

          (b) Continuation of Representations and Warranties. The representations and
warranties in Article VI shall be true and correct in all material respects on and of such
Borrowing Date or Issuance Date with the same effect as if made on and as of such Borrowing Date or
Issuance Date (except to the extent such representations and warranties expressly refer to an
earlier date, in which case they shall be true and correct as of such earlier date).

          (c) No Existing Default. No Event of Default or Unmatured Event of Default shall
exist or shall result from such Credit Extension.

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Each Notice of Borrowing, Notice of Canadian BA Borrowing, notice of acceptance of an L/C
Application and L/C Amendment Application submitted by a Borrower hereunder shall constitute a
representation and warranty by such Borrower that, as of the date of each such notice and as of the
relevant Borrowing Date or Issuance Date, as applicable, the conditions in this Section 5.2
are satisfied.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

     The Company represents and warrants to each Agent and each Lender (and the Canadian Borrower
represents and warrants with respect to itself to each Agent and each Lender) that:

     6.1 Corporate Existence and Power. The Company and each of its Subsidiaries:

          (a) is a corporation duly organized and validly existing and, if applicable in the
jurisdiction of its incorporation, in good standing under the laws of the jurisdiction of its
incorporation;

          (b) has the power and authority and all governmental licenses, authorizations, consents and
approvals (i) to own its assets and to carry on its business and (ii) to execute, deliver and
perform its obligations under the Loan Documents to which it is a party;

          (c) is duly qualified as a foreign corporation and is licensed and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification or license; and

          (d) is in compliance with all Requirements of Law;

except, in each case referred to in subclause (b)(i), clause (c) or clause
(d), to the extent that the failure to do so could not reasonably be expected to have a
Material Adverse Effect.

     6.2 Corporate Authorization; No Contravention. The execution, delivery and
performance by the Company and the Canadian Borrower of each Loan Document to which either is party
have been duly authorized by all necessary corporate action, and do not and will not:

          (a) contravene the terms of any of such Person’s Organization Documents;

          (b) conflict with or result in any breach or contravention of, or the creation of any Lien
under, any document evidencing any material Contractual Obligation to which the Company or any of
its Subsidiaries is a party or any order, injunction, writ or decree of any Governmental Authority
to which the Company or any of its Subsidiaries or any of its or their property is subject; or

          (c) violate any Requirement of Law.

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     6.3 Governmental Authorization. No approval, consent, exemption, authorization or
other action by, or notice to, or filing with, any Governmental Authority is necessary or required
in connection with the execution, delivery or performance by, or enforcement against, the Company
or the Canadian Borrower of the Agreement or any other Loan Document.

     6.4 Binding Effect. This Agreement and each other Loan Document to which it is party
constitute the legal, valid and binding obligations of the Company and the Canadian Borrower,
enforceable against the Company and the Canadian Borrower in accordance with their respective
terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally or by equitable principles relating to
enforceability.

     6.5 Litigation. Except as specifically disclosed in Part I of the Disclosure
Memorandum, there are no actions, suits, proceedings, claims or disputes pending or, to the best
knowledge of the Company and the Canadian Borrower, threatened or contemplated, at law, in equity,
in arbitration or before any Governmental Authority, against the Company or any Subsidiary or any
of their respective properties (a) which purport to affect or pertain to this Agreement or any
other Loan Document, or any of the transactions contemplated hereby or thereby; or (b) as to which
there exists a reasonable likelihood of an adverse determination, which determination would
reasonably be expected to have a Material Adverse Effect. No injunction, writ, temporary
restraining order or other order of any nature has been issued by any court or other Governmental
Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement
or any other Loan Document, or directing that the transactions provided for herein or therein not
be consummated as herein or therein provided.

     6.6 No Default. No Event of Default or Unmatured Event of Default exists or would
result from the incurring of any Obligations by the Company or the Canadian Borrower. As of the
Closing Date, neither the Company nor any Subsidiary is in default under or with respect to any
Contractual Obligation in any respect which, individually or together with all such defaults, could
reasonably be expected to have a Material Adverse Effect.

     6.7 ERISA Compliance; Canadian Plans. Except as specifically disclosed in Schedule
6.7:

          (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other federal or state law. Each Plan which is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from the IRS and to the
best knowledge of the Company, nothing has occurred which would cause the loss of such
qualification. The Company and each ERISA Affiliate has made all required contributions to any
Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of
any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

          (b) There are no pending or, to the best knowledge of Company, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan which has resulted or
could reasonably be expected to result in a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect

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to any Plan which has resulted or could reasonably be expected to result in a Material Adverse
Effect.

          (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no contribution
failure has occurred with respect to a Pension Plan sufficient to give rise to a Lien under Section
302(f) of ERISA; (iii) no Pension Plan has any Unfunded Pension Liability; (iv) neither the Company
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV
of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section
4007 of ERISA); (v) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects
to incur, any liability (and no event has occurred which, with the giving of notice under Section
4219 of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with respect to
a Multiemployer Plan; and (vi) neither the Company nor any ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.

          (d) All Canadian Plans are duly registered when required by, and in good standing under,
Applicable Law; all required contributions have been made under all Canadian Plans; all Canadian
Plans are funded in accordance with the respective rules thereof and all Requirements of Law; and
no past service or experience deficiency funding liabilities exist under any Canadian Plan.

     6.8 Use of Proceeds; Margin Regulations. The proceeds of the Loans will be used
solely for the purposes set forth in and permitted by Section 7.12 and Section 8.8.
Neither the Company nor any Subsidiary is generally engaged in the business of purchasing or
selling Margin Stock or extending credit for the purpose of purchasing or carrying Margin Stock.

     6.9 Title to Properties. The Company and each Subsidiary have good record and
marketable title in fee simple to, or valid leasehold interests in, all real property necessary or
used in the ordinary conduct of their respective businesses, except for such liens, title defects
and other matters affecting title as could not, individually or in the aggregate, have a Material
Adverse Effect. As of the Closing Date, the property of the Company and its Subsidiaries is
subject to no Liens, other than Permitted Liens.

     6.10 Taxes. The Company and its Subsidiaries have filed all Federal and other
material tax returns and reports required to be filed, and have paid all Federal and other material
taxes, assessments, fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are being contested in
good faith by appropriate proceedings and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against the Company or any Subsidiary
that would, if made, have a Material Adverse Effect.

     6.11 Financial Condition. (a) The audited consolidated financial statements of the
Company and its Subsidiaries dated as of December 31, 2005, and the related consolidated statements
of income or operations, stockholders’ equity and cash flows for the fiscal year ended on that
date:

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               (i) were prepared in accordance with GAAP consistently applied throughout the periods
covered thereby, except as otherwise expressly noted therein;

               (ii) fairly present the financial condition of the Company and its Subsidiaries as of
the dates thereof and the results of operations for the periods covered thereby; and

               (iii) except as specifically disclosed in Part II of the Disclosure Memorandum, show
all material indebtedness and other liabilities, absolute or contingent, of the Company and
its consolidated Subsidiaries as of the dates thereof, including liabilities for all
material taxes and material Contingent Obligations.

          (b) Since December 31, 2005, there has been no Material Adverse Effect.

     6.12 Environmental Matters. Except as specifically disclosed in Part III of the
Disclosure Memorandum, the Company and its Subsidiaries are in material compliance with all
applicable Environmental Laws and are not subject to Environmental Claims except for such
non-compliance and Environmental Claims that could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     6.13 Regulated Entities. None of the Company, any Person controlling the Company, or
any Subsidiary is an “Investment Company” within the meaning of the Investment Company Act of 1940.
Neither the Company nor the Canadian Borrower is subject to regulation under the Federal Power
Act, the Interstate Commerce Act, any state public utilities code, or any other Applicable Law
limiting the ability to incur Indebtedness.

     6.14 No Burdensome Restrictions. Neither the Company nor any Subsidiary is a party to
or bound by any Contractual Obligation, or subject to any restriction in any Organization Document
or any Requirement of Law, which could reasonably be expected to have a Material Adverse Effect.

     6.15 Copyrights, Patents, Trademarks and Licenses, etc. The Company or its
Subsidiaries own or are licensed or otherwise have the right to use all of the material patents,
trademarks, service marks, trade names, copyrights, contractual franchises, authorizations and
other rights that are reasonably necessary for the operation of their respective businesses,
without conflict with the rights of any other Person. To the best knowledge of the Company, no
slogan or other advertising device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Company or any Subsidiary, and which is
material to the business or operations of the Company and its Subsidiaries, infringes upon any
rights held by any other Person.

     6.16 Subsidiaries. As of the Closing Date, the Company has no Subsidiaries other than
those specifically disclosed in part (a) of Schedule 6.16 and has no equity
investments in any other corporation or entity other than those specifically disclosed in part
(b) of Schedule 6.16. The Canadian Borrower is an indirect Wholly-Owned Subsidiary of
the Company.

     6.17 Insurance. The properties of the Company and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Company, in such

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amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where the Company or such
Subsidiary operates.

     6.18 Swap Obligations. Neither the Company nor any of its Subsidiaries has incurred
any outstanding obligations under any Swap Contracts, other than Permitted Swap Obligations.

     6.19 Full Disclosure. The representations and warranties made by the Company, the
Canadian Borrower and their Subsidiaries in the Loan Documents as of the date such representations
and warranties are made or deemed made, and the statements contained in any exhibit, report,
statement or certificate furnished by or on behalf of the Company, the Canadian Borrower or any
Subsidiary in connection with the Loan Documents, taken as a whole, do not contain any untrue
statement of a material fact or omit any material fact required to be stated therein or necessary
to make the statements made therein, in light of the circumstances under which they are made, not
misleading as of the time when made or delivered.

ARTICLE VII

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, unless the
Required Lenders waive compliance in writing:

     7.1 Financial Statements. The Company shall deliver to the Administrative Agent in
form and detail satisfactory to the Administrative Agent and the Required Lenders, with sufficient
copies for each Lender and the Canadian Agent.

          (a) as soon as available, but not later than 100 days after the end of each fiscal year, a
copy of the audited consolidated balance sheet of the Company and its Subsidiaries as at the end of
such year and the related consolidated statements of income or operations, stockholders’ equity and
cash flows for such year, setting forth in each case in comparative form the figures for the
previous fiscal year, and accompanied by the opinion of KPMG LLP or another nationally-recognized
independent public accounting firm (“Independent Auditor”), which opinion (i) shall state
that such consolidated financial statements present fairly the Company’s consolidated financial
position for the periods indicated in conformity with GAAP and (ii) shall not be qualified or
limited because of a restricted or limited examination by the Independent Auditor of any material
portion of the Company’s or any Subsidiary’s records (it being agreed that the requirements of this
subsection 7.1(a) may be satisfied by the delivery of the applicable annual report on Form
10-K of the Company to the Agent by email to the extent that it is delivered within the applicable
time period noted herein); and

          (b) as soon as available, but not later than 45 days after the end of each of the first three
fiscal quarters of each fiscal year, a copy of the unaudited consolidated balance sheet of the
Company and its Subsidiaries as of the end of such quarter and the related consolidated statements
of income, stockholders’ equity and cash flows for the period commencing on the first day and
ending on the last day of such quarter, and certified by a Responsible Officer as

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fairly presenting, in accordance with GAAP (subject to ordinary, good faith year-end audit
adjustments), the financial position and the results of operations of the Company and its
Subsidiaries as of such date and for such period (it being agreed that the requirements of this
subsection 7.1(b) may be satisfied by the delivery of the applicable quarterly report on
Form 10-Q of the Company to the Agent by email to the extent that it is delivered within the
applicable time period noted herein).

     7.2 Certificates; Other Information. The Company shall furnish to the Administrative
Agent, with sufficient copies for each Lender and the Canadian Agent:

          (a) concurrently with the delivery of the financial statements referred to in subsections
7.1(a) and (b), a Compliance Certificate executed by a Responsible Officer;

          (b) promptly, copies of all financial statements and reports that the Company sends to its
shareholders, and copies of all financial statements and regular, periodic or special reports
(including Forms 10-K, 10-Q and 8-K) that the Company or any Subsidiary may make to, or file with,
the SEC (it being agreed that the requirements of this subsection 7.2(b) may be satisfied
by the delivery of such financial statements and reports to the Agent by email); and

          (c) promptly, such additional information regarding the business, financial or corporate
affairs of the Company or any Subsidiary as the Administrative Agent, at the request of any Lender,
may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 7.1(a) or (b) or
Section 7.2(b) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company posts such documents, or provides a link thereto on
the Company’s website on the Internet at the website address listed on Schedule 12.2; or (ii) on
which such documents are posted on the Company’s behalf on an Internet or intranet website, if any,
to which each Lender and the Administrative Agent have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent); provided that: (i) the Company
shall deliver paper copies of such documents to the Administrative Agent or any Lender that
requests the Company to deliver such paper copies until a written request to cease delivering paper
copies is given by the Administrative Agent or such Lender and (ii) the Company shall notify the
Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such
documents and provide to the Administrative Agent by electronic mail electronic versions (i.e.,
soft copies) of such documents. Notwithstanding anything contained herein, in every instance the
Company shall be required to provide paper copies of the Compliance Certificates required by
Section 7.2(a) to the Administrative Agent. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by
the Company with any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

     The Company hereby acknowledges that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the L/C Issuer materials and/or information

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provided by or on behalf of the Company hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on IntraLinks or another similar electronic system (the
“Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with respect to the Company or
its securities) (each, a “Public Lender”). The Company hereby agrees that it will use commercially
reasonable efforts to identify that portion of the Borrower Materials that may be distributed to
the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on
the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Company shall be deemed to
have authorized the Administrative Agent, the Arranger, the Issuing Lenders and the Lenders to
treat such Borrower Materials as not containing any material non-public information (although it
may be sensitive and proprietary) with respect to the Company or its securities for purposes of
United States Federal and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as set forth in
Section 12.9); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Investor;” and (z) the
Administrative Agent and the Arranger shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Investor.”

     7.3 Notices. The Company shall promptly (or, in the case of any event described in
clause (c)(ii) below, not less than 10 days prior to the occurrence of such event) notify
the Administrative Agent, the Canadian Agent and each Lender:

          (a) of the occurrence of any Event of Default or Unmatured Event of Default known to the
Company;

          (b) of any of the following matters that has resulted or is reasonably expected to result in a
Material Adverse Effect: (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Company or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Company or any Subsidiary and any Governmental Authority; or
(iii) the commencement of, or any material development in, any litigation or proceeding affecting
the Company or any Subsidiary including pursuant to any applicable Environmental Laws;

          (c) of the occurrence of any of the following events known to the Company which affect the
Company or any ERISA Affiliate, and deliver to the Administrative Agent, the Canadian Agent and
each Lender a copy of any notice with respect to such event that is filed with a Governmental
Authority and any notice delivered by a Governmental Authority to the Company or any ERISA
Affiliate with respect to such event:

               (i) an ERISA Event;

               (ii) a contribution failure with respect to a Pension Plan sufficient to give rise to a
Lien under Section 302(f) of ERISA;

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               (iii) a material increase in the Unfunded Pension Liability of any Pension Plan;

               (iv) the adoption of, or the commencement of contributions to, any Plan subject to
Section 412 of the Code by the Company or any ERISA Affiliate; or

               (v) the adoption of any amendment to a Plan subject to Section 412 of the Code, if such
amendment results in a material increase in contributions or Unfunded Pension Liability; and

          (d) of any material change in accounting policies or financial reporting practices by the
Company and its consolidated Subsidiaries.

     Each notice under this Section shall be accompanied by a written statement by a Responsible
Officer setting forth details of the occurrence referred to therein, and stating what action the
Company or any affected Subsidiary proposes to take with respect thereto. Each notice under
subsection 7.3(a) shall describe with particularity any and all clauses or provisions of
this Agreement or any other Loan Document that, to the best of such Responsible Officer’s
knowledge, have been breached or violated.

     7.4 Preservation of Corporate Existence, Etc. The Company shall, and shall cause each
Subsidiary to:

          (a) except as otherwise permitted with respect to any Subsidiary pursuant to Section
8.4, preserve and maintain in full force and effect its corporate existence and valid existence
under the laws of its jurisdiction of organization;

          (b) preserve and maintain in full force and effect all governmental rights, privileges,
qualifications, permits, licenses and franchises necessary in the normal conduct of its business
(except (i) in connection with transactions permitted by Section 8.4 and sales of assets
permitted by Section 8.3 and (ii) to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect);

          (c) use reasonable efforts, in the ordinary course of business, to preserve its business
organization and goodwill; and

          (d) preserve or renew all of its registered patents, trademarks, trade names and service
marks, the non-preservation of which could reasonably be expected to have a Material Adverse
Effect.

     7.5 Maintenance of Property. The Company shall, and shall cause each Subsidiary to,
maintain and preserve all its property which is used or useful in its business in good working
order and condition, ordinary wear and tear excepted, except to the extent that failure to do so
would not reasonably be expected to have a Material Adverse Effect.

     7.6 Insurance. The Company shall, and shall cause each Subsidiary to, maintain, with
financially sound and reputable independent insurers, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by Persons engaged in

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the same or similar business, of such types and in such amounts as are customarily carried
under similar circumstances by such other Persons.

     7.7 Payment of Obligations. The Company shall, and shall cause each Subsidiary to,
pay and discharge, as the same shall become due and payable, all their respective material
obligations and liabilities, including:

          (a) all material tax liabilities, assessments and governmental charges or levies upon it or
its properties or assets, unless the same are being contested in good faith by appropriate
proceedings and adequate reserves in accordance with GAAP are being maintained by the Company or
such Subsidiary; and

          (b) all material claims which, if unpaid, would by law become a Lien upon its property unless
the same are contested in good faith by appropriate proceedings and adequate reserves in accordance
with GAAP are being maintained by the Company or such Subsidiary.

     7.8 Compliance with Laws. The Company shall, and shall cause each Subsidiary to,
comply in all material respects with all material Requirements of Law of any Governmental Authority
having jurisdiction over it or its business (including the Federal Fair Labor Standards Act),
except such as may be contested in good faith or as to which a bona fide dispute may exist.

     7.9 Compliance with ERISA; Canadian Plans. The Company shall, and shall cause each of
its ERISA Affiliates to: (a) maintain each Plan in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law; (b) cause each Plan which
is qualified under Section 401(a) of the Code to maintain such qualification; and (c) make all
required contributions to any Plan subject to Section 412 of the Code. The Company shall maintain,
and cause the Canadian Borrower and each other Canadian Subsidiary to maintain, each Canadian Plan
in compliance in all material respects with all Requirements of Law.

     7.10 Inspection of Property and Books and Records. The Company shall, and shall cause
each Subsidiary to, maintain proper books of record and account, in which true and correct entries
(sufficient to permit the preparation of consolidated financial statements in conformity with GAAP)
shall be made of all financial transactions and matters involving the assets and business of the
Company and such Subsidiary. The Company shall permit, and shall cause each Subsidiary to permit,
the Administrative Agent, the Canadian Agent or any Lender, at any reasonable time during normal
business hours upon advance request of the Administrative Agent, the Canadian Agent or the relevant
Lender, to visit and inspect the properties of the Company or any Subsidiary and to examine their
respective corporate, financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss the affairs, finances and accounts of the Company or any Subsidiary with
the appropriate officers of the Company or such Subsidiary.

     7.11 Environmental Laws. The Company shall, and shall cause each Subsidiary to,
conduct its operations and keep and maintain its property in material compliance with all material
Environmental Laws, except such as may be contested in good faith or as to which a bona fide
dispute may exist.

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     7.12 Use of Proceeds. The Company and the Canadian Borrower shall use the proceeds of
the Loans for working capital, intercompany loans and other general corporate purposes not in
contravention of any Requirement of Law or of any Loan Document; provided that the Company
and the Canadian Borrower shall not use the proceeds of any Loan to make any Acquisition if the
Board of Directors of the Person to be acquired has not approved such Acquisition.

ARTICLE VIII

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation
shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, unless the
Required Lenders waive compliance in writing:

     8.1 Financial Condition Covenants

          (a) Total Debt to EBITDA Ratio. The Company shall not permit the Total Debt to EBITDA
Ratio for any Computation Period to be greater than 3.00 to 1.

          (b) Interest Coverage Ratio. The Company shall not permit, as of the last day of any
Computation Period, the Interest Coverage Ratio to be less than 2.50 to 1.

     8.2 Limitation on Liens. The Company shall not, and shall not suffer or permit any
Subsidiary to, directly or indirectly, make, create, incur, assume or suffer to exist any Lien upon
or with respect to any part of its property, whether now owned or hereafter acquired, other than
the following (“Permitted Liens”):

          (a) any Lien existing on property of the Company or any Subsidiary on the Closing Date and set
forth in Schedule 8.2 securing Indebtedness outstanding on such date, and any extension,
renewal or replacement of any such Lien so long as the principal amount secured thereby is not
increased and the scope of the property subject to such Lien is not extended;

          (b) any Lien created under any Loan Document;

          (c) Liens for taxes, fees, assessments or other governmental charges which are not delinquent
or remain payable without penalty, or to the extent that non-payment thereof is permitted by
Section 7.7, provided that no notice of lien has been filed or recorded under the Code or
any other Requirement of Law;

          (d) carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s or other
similar Liens arising in the ordinary course of business which are not delinquent or remain payable
without penalty or which are being contested in good faith and by appropriate proceedings, which
proceedings have the effect of preventing the forfeiture or sale of the property subject thereto;

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          (e) Liens (other than any Lien imposed by ERISA) consisting of pledges or deposits required in
the ordinary course of business in connection with workers’ compensation, unemployment insurance
and other social security legislation;

          (f) Liens on the property of the Company or any Subsidiary securing (i) the non-delinquent
performance of bids, trade contracts (other than for borrowed money), leases, statutory
obligations, (ii) surety bonds (excluding appeal bonds and other bonds posted in connection with
court proceedings or judgments) and (iii) other non-delinquent obligations of a like nature; in
each case incurred in the ordinary course of business, provided all such Liens in the aggregate
would not (even if enforced) cause a Material Adverse Effect;

          (g) Liens consisting of judgment or judicial attachment liens and liens securing contingent
obligations on appeal bonds and other bonds posted in connection with court proceedings or
judgments, provided that all such liens in the aggregate at any time outstanding for the Company
and its Subsidiaries do not exceed US$5,000,000 unless, in the case of judgment and judicial
attachment liens, the enforcement of such liens is effectively stayed;

          (h) easements, rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business which, individually or in the aggregate, do not materially detract from
the value of the property subject thereto or interfere with the ordinary conduct of the businesses
of the Company and its Subsidiaries;

          (i) purchase money security interests on any property acquired or held by the Company or its
Subsidiaries in the ordinary course of business, securing Indebtedness incurred or assumed for the
purpose of financing all or any part of the cost of acquiring such property; provided that
(i) any such Lien attaches to such property concurrently with or within 90 days after the
acquisition thereof, (ii) such Lien attaches solely to the property so acquired in such
transaction, (iii) the principal amount of the debt secured thereby does not exceed 100% of the
cost of such property, and (iv) the principal amount of the Indebtedness secured by any and all
such purchase money security interests shall not at any time exceed US$5,000,000;

          (j) Liens securing obligations in respect of capital leases on assets subject to such leases,
provided that such capital leases are otherwise permitted hereunder;

          (k) Liens arising solely by virtue of any statutory or common law provision relating to
banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts or other
funds maintained with a creditor depository institution; provided that (i) such deposit
account is not a dedicated cash collateral account and is not subject to restrictions against
access by the Company in excess of those set forth by regulations promulgated by the FRB, and (ii)
such deposit account is not intended by the Company or any Subsidiary to provide collateral to the
depository institution;

          (l) Liens arising in connection with Securitization Transactions; provided that the
aggregate investment or claim held at any time by all purchasers, assignees or other transferees of
(or of interests in) receivables and other rights to payment in all Securitization Transactions
shall not exceed US$25,000,000; and

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          (m) other Liens securing Indebtedness not at any time exceeding in the aggregate
US$10,000,000.

     8.3 Disposition of Assets. The Company shall not, and shall not permit any Subsidiary
to, directly or indirectly, sell, assign, lease, convey, transfer or otherwise dispose of (whether
in one or a series of transactions) any property (including accounts and notes receivable, with or
without recourse) or enter into any agreement to do any of the foregoing, except:

          (a) dispositions of inventory, or used, worn-out or surplus equipment, all in the ordinary
course of business;

          (b) the sale, assignment or other transfer of accounts receivable, lease receivables or other
rights to payment pursuant to any Securitization Transaction; provided that the aggregate
investment or claim held at any time by all purchasers, assignees or other transferees of (or of
interests in) such receivables or other rights to payment shall not exceed US$25,000,000;

          (c) the sale of assets that are leased back to the Company or a Subsidiary, involving amounts
not to exceed US$10,000,000 in the aggregate in any fiscal year; and

          (d) dispositions not otherwise permitted hereunder which are made for fair market value;
provided that (i) at the time of any disposition, no Event of Default shall exist or shall
result from such disposition and (ii) the aggregate value of all assets so disposed of by the
Company and its Subsidiaries in any fiscal year shall not exceed US$20,000,000.

     8.4 Consolidations and Mergers. The Company shall not, and shall not permit any
Subsidiary to, merge, consolidate or amalgamate with or into, or convey, transfer, lease or
otherwise dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
other Person, except:

          (a) any Subsidiary may merge or amalgamate with the Company, provided that the Company shall
be the continuing or surviving corporation or, in the case of an amalgamation, the resulting
corporation shall have entered into all assumption agreements and provided all further assurances
as the Administrative Agent may reasonably require, or with any one or more Subsidiaries, provided
that if any transaction shall be between a Subsidiary and a Wholly-Owned Subsidiary, the
Wholly-Owned Subsidiary shall be the continuing or surviving corporation, or the continuing or
surviving corporation shall be a Wholly-Owned Subsidiary;

          (b) any Subsidiary may sell all or substantially all of its assets (upon voluntary liquidation
or otherwise), to the Company or another Wholly-Owned Subsidiary; and

          (c) any merger, amalgamation, consolidation or disposition in connection with a transaction
permitted by Section 8.3 or an Acquisition permitted by Section 8.5.

     8.5 Loans and Investments. The Company shall not, and shall not permit any Subsidiary
to, purchase or acquire, or make any commitment to purchase or acquire, any capital

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stock, equity interest or obligations or other securities of, or any interest in, any Person,
or make or commit to make any Acquisition, or make or commit to make any advance, loan, extension
of credit or capital contribution to or any other investment in any Person (including any Affiliate
of the Company)(any of the foregoing an “Investment”), except for:

          (a) Investments held by the Company or any Subsidiary in the form of cash equivalents or short
term marketable securities;

          (b) extensions of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business;

          (c) Investments by the Company in any of its Subsidiaries or by any of its Subsidiaries to
another of its Subsidiaries;

          (d) other Investments (including those incurred in order to consummate Acquisitions not
otherwise prohibited herein), provided that no Event of Default or Unmatured Event of
Default exists or will result therefrom;

          (e) Investments constituting Permitted Swap Obligations or payments or advances under Swap
Contracts relating to Permitted Swap Obligations;

          (f) pledges or deposits required in the ordinary course of business in connection with
workmen’s compensation, unemployment insurance and other social security legislation;

          (g) advances, loans or extensions of credit to suppliers in the ordinary course of business by
the Company and its Subsidiaries;

          (h) advances, loans or extensions of credit in the ordinary course of business by the Company
and its Subsidiaries to employees of the Company and its Subsidiaries;

          (i) repurchases by the Company of its common stock to the extent permitted by Section
8.10; and

          (j) loans to an employee stock ownership plan established by the Company, the proceeds of
which are used solely to purchase stock of the Company.

     8.6 Limitation on Subsidiary Indebtedness. The Company shall not permit its
Subsidiaries to create, incur, assume or suffer to exist, or otherwise become or remain directly or
indirectly liable with respect to, any Indebtedness (other than Indebtedness owing to the Company
or another Subsidiary or Indebtedness under this Agreement) at any time outstanding in an aggregate
amount not to exceed the excess of (i) US$30,000,000 over (ii) to the extent not constituting
Indebtedness, obligations of its Subsidiaries in respect of Securitization Transactions to the
extent of the aggregate investment or claim held at any time by purchasers, assignees or other
transferees of (or of interests in) receivables and other rights to payment in Securitization
Transactions.

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     8.7 Transactions with Affiliates. The Company shall not, and shall not permit any
Subsidiary to, enter into any transaction with any Affiliate of the Company (other than the Company
or a Subsidiary), except upon fair and reasonable terms no less favorable to the Company or such
Subsidiary than would obtain in a comparable arm’s-length transaction with a Person not an
Affiliate of the Company or such Subsidiary.

     8.8 Use of Proceeds. The Company shall not, and shall not suffer or permit any
Subsidiary to, use any portion of the Credit Extension proceeds or any Letter of Credit, directly
or indirectly, (i) to purchase or carry Margin Stock, (ii) to repay or otherwise refinance
indebtedness of the Company or others incurred to purchase or carry Margin Stock or (iii) to extend
credit for the purpose of purchasing or carrying any Margin Stock or to refund indebtedness
originally incurred for such purpose.

     8.9 Swap Contracts. The Company shall not, and shall not permit any Subsidiary to,
create, incur, assume or suffer to exist any obligations under Swap Contracts except for Permitted
Swap Obligations.

     8.10 Restricted Payments. The Company shall not (i) declare or make any dividend
payment or other distribution of assets, properties, cash, rights, obligations or securities on
account of any shares of any class of its capital stock or (ii) purchase, redeem or otherwise
acquire for value, or permit any Subsidiary to purchase or otherwise acquire for value, any shares
of the Company’s capital stock or any warrants, rights or options to acquire such shares, now or
hereafter outstanding, except that:

          (a) the Company may declare and make dividend payments or other distributions payable solely
in its common stock;

          (b) the Company may purchase, redeem or otherwise acquire shares of its common stock or
warrants or options to acquire any such shares with the proceeds received from the substantially
concurrent issue of new shares of its common stock; and

          (c) so long as (1) no Event of Default or Unmatured Event of Default exists or would result
therefrom and (2) the Company’s consolidated stockholders’ equity, after giving effect thereto, is
not less than US$125,000,000, the Company may (x) declare and pay cash dividends to its
stockholders; and (y) purchase, redeem or otherwise acquire shares of its common stock or warrants
or options to acquire such shares.

     8.11 ERISA. The Company shall not, and shall not permit any of its ERISA Affiliates
to: (a) engage in a prohibited transaction or violation of the fiduciary responsibility rules with
respect to any Plan which has resulted or could reasonably be expected to result in liability of
the Company in an aggregate amount in excess of US$5,000,000; or (b) engage in a transaction that
could be subject to Section 4069 or 4212(c) of ERISA.

     8.12 Change in Business. The Company shall not, and shall not suffer or permit any
Subsidiary to, engage in any material line of business substantially different from those lines of
business carried on by the Company and its Subsidiaries on the date hereof.

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     8.13 Accounting Changes. The Company shall not, and shall not permit any Subsidiary
to, make any significant change in accounting treatment or reporting practices, except as required
by GAAP.

ARTICLE IX

EVENTS OF DEFAULT

     9.1 Event of Default. Any of the following shall constitute an “Event of Default”:

          (a) Non-Payment. The Company or the Canadian Borrower fails to pay, (i) when and as
required to be paid herein, any amount of principal of any Loan or of any Canadian Bankers’
Acceptance or any Canadian BA Equivalent Note or of any L/C Obligation, or (ii) within three
Business Days after the same becomes due, any interest, fee or any other amount payable hereunder
or under any other Loan Document.

          (b) Representation or Warranty. Any representation or warranty by the Company or the
Canadian Borrower or any Subsidiary made or deemed made herein or in any other Loan Document, or
which is contained in any certificate, document or financial or other statement by the Company, any
Subsidiary or any Responsible Officer furnished at any time under this Agreement or under any other
Loan Document, is incorrect in any material respect on or as of the date made or deemed made.

          (c) Specific Defaults. The Company fails to perform or observe any term, covenant or
agreement contained in any of subsection 7.3(a), Section 8.2, 8.3,
8.4, 8.8, 8.11 or 8.13.

          (d) Other Defaults. The Company or the Canadian Borrower fails to perform or observe
any other term or covenant contained in this Agreement or any other Loan Document, and such failure
shall continue unremedied for a period of 30 days after the date upon which written notice thereof
is given to the Company by the Administrative Agent, the Canadian Agent or any Lender.

          (e) Cross-Default. The Company, the Canadian Borrower or any Subsidiary (A) fails to
make any payment in respect of any Material Financial Obligations when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise); or (B) fails to perform or
observe any other condition or covenant, or any other event shall occur or condition shall exist,
under any agreement or instrument relating to any such Material Financial Obligations, if the
effect of such failure, event or condition is to cause, or to permit the holder or holders of such
Material Financial Obligations or beneficiary or beneficiaries of such Material Financial
Obligations (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, such Material Financial Obligations to become due and payable prior to its
stated maturity, or such Material Financial Obligations to become payable or cash collateral in
respect thereof to be demanded.

          (f) Insolvency; Voluntary Proceedings. The Company, the Canadian Borrower or any
Subsidiary (i) ceases or fails to be solvent, or generally fails to pay, or admits in writing its
inability to pay, its debts as they become due, subject to applicable grace periods, if

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any, whether at stated maturity or otherwise; (ii) voluntarily ceases to conduct its business
in the ordinary course; (iii) commences any Insolvency Proceeding with respect to itself; or (iv)
takes any action to effectuate or authorize any of the foregoing.

          (g) Involuntary Proceedings. (i) Any involuntary Insolvency Proceeding is commenced
or filed against the Company, the Canadian Borrower or any Subsidiary, or any writ, judgment,
warrant of attachment, execution or similar process is issued or levied against a substantial part
of the Company’s, the Canadian Borrower’s or any Subsidiary’s properties, and such proceeding or
petition shall not be dismissed, or such writ, judgment, warrant of attachment, execution or
similar process shall not be released, vacated or fully bonded, within 60 days after commencement,
filing or levy; (ii) the Company, the Canadian Borrower or any Subsidiary admits the material
allegations of a petition against it in any Insolvency Proceeding, or an order for relief (or
similar order under non-U.S. law) is ordered in any Insolvency Proceeding with respect to the
Company, the Canadian Borrower or such Subsidiary; or (iii) the Company, the Canadian Borrower or
any Subsidiary acquiesces in the appointment of a receiver, trustee, custodian, conservator,
liquidator, mortgagee in possession (or agent therefor), or other similar Person for itself or a
substantial portion of its property or business.

          (h) ERISA; Canadian Plans. (i) An ERISA Event shall occur with respect to a Pension
Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in
liability of the Company under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the
PBGC in an aggregate amount in excess of US$5,000,000; (ii) a contribution failure shall occur with
respect to a Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA; (iii)
the aggregate amount of Unfunded Pension Liability among all Pension Plans at any time exceeds
US$5,000,000; (iv) the Company or any ERISA Affiliate shall fail to pay when due, after the
expiration of any applicable grace period (or any period during which (x) the Company is permitted
to contest its obligation to make such payment without incurring any liability (other than
interest) or penalty and (y) the Company is contesting such obligation in good faith and by
appropriate proceedings), any installment payment with respect to its withdrawal liability under
Section 4201 of ERISA or any contribution obligation under Section 4243 of ERISA, in each case
under a Multiemployer Plan in an aggregate amount in excess of US$5,000,000; or (v) the Canadian
Borrower or any other Person shall institute steps to terminate a Canadian Plan if as a result of
such termination, the Company or the Canadian Borrower could be required to make a contribution to
such Canadian Plan, or could incur a liability or obligation to such Canadian Plan, in excess of
C$5,000,000.

          (i) Judgments. One or more non-interlocutory judgments, non-interlocutory orders,
decrees or arbitration awards is entered against the Company, the Canadian Borrower or any
Subsidiary involving in the aggregate a liability (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage) as to any single or
related series of transactions, incidents or conditions of US$15,000,000 or more, and the same
shall remain unvacated and unstayed pending appeal for a period of 30 days after the entry thereof,
with payment thereof being then due.

          (j) Change of Control. Any Change of Control occurs.

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     9.2 Remedies. If any Event of Default occurs, the Administrative Agent shall, at the
request of, or may, with the consent of, the Required Lenders,

          (a) declare the commitment of each Lender to make any Credit Extension (including any
obligation of each Issuing Lender to Issue any Letter of Credit) to be terminated, whereupon such
commitments and obligation shall be terminated;

          (b) declare an amount equal to the maximum aggregate amount that is or at any time thereafter
may become available for drawing under all outstanding Letters of Credit (whether or not any
beneficiary shall have presented, or shall be entitled at such time to present, the drafts or other
documents required to draw under such Letters of Credit) to be immediately due and payable, and
declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid
thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived by the Company;

          (c) demand that the Company immediately provide Cash Collateral to the Administrative Agent in
an amount equal to the maximum amount then available to be drawn under all Letters of Credit,
whereupon the Company shall become immediately obligated to provide such Cash Collateral;

          (d) demand that the Canadian Borrower immediately provide Cash Collateral to the Canadian
Agent in an amount equal to the face amount of all outstanding Canadian Bankers’ Acceptances and
Canadian BA Equivalent Notes, whereupon the Canadian Borrower shall become immediately obligated to
provide such Cash Collateral; and

          (e) exercise on behalf of itself and the Lenders all other rights and remedies available to it
and the Lenders under the Loan Documents or Applicable Law;

provided, however, that upon the occurrence of any event specified in
subsection (f) or (g) of Section 9.1 (in the case of clause (i) of
subsection (g), upon the expiration of the 60-day period mentioned therein), the obligation
of each Lender to make Credit Extensions (including any obligation of each Issuing Lender to Issue
Letters of Credit) shall automatically terminate and the unpaid principal amount of all outstanding
Loans and all other Obligations shall automatically become due and payable, the Company shall
automatically become obligated to provide Cash Collateral in the amounts set forth in clause
(c) above and the Canadian Borrower shall automatically become obligated to provide Cash
Collateral in the amounts set forth in clause (d) above, in each case without further act
of either Agent, the Issuing Lender or any other Lender.

     9.3 Rights Not Exclusive. The rights provided for in this Agreement and the other
Loan Documents are cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document or agreement now
existing or hereafter arising.

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ARTICLE X

THE AGENTS

     10.1 Appointment and Authorization. (a) Each Lender hereby irrevocably (subject to
Section 10.8) appoints, designates and authorizes each Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of this Agreement or
any other Loan Document, together with such powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other
Loan Document, neither Agent shall have any duties or responsibilities, except those expressly set
forth herein, nor shall either Agent have or be deemed to have any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Loan Document or otherwise exist against either
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” in
this Agreement with reference to either Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such
term is used merely as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties. The provisions of this
Article are solely for the benefit of the Agents, the Lenders and the Issuing Lenders, and neither
Borrower shall have rights as a third party beneficiary of any of such provisions.

          (b) Each Issuing Lender shall act on behalf of the U.S. Revolving Credit Lenders with respect
to any Letters of Credit Issued by it and the documents associated therewith until such time and
except for so long as the Administrative Agent may agree at the request of the Required U.S.
Revolving Credit Lenders to act for such Issuing Lender with respect thereto; provided,
however, that each Issuing Lender shall have all of the benefits and immunities (i)
provided to the Administrative Agent in this Article X with respect to any acts taken or
omissions suffered by such Issuing Lender in connection with Letters of Credit Issued by it or
proposed to be Issued by it and the application and agreements for letters of credit pertaining to
the Letters of Credit as fully as if the term “Agent”, as used in this Article X, included
such Issuing Lender with respect to such acts or omissions, and (ii) as additionally provided in
this Agreement with respect to such Issuing Lender.

     10.2 Delegation of Duties. Each Agent may execute any of its duties under this
Agreement or any other Loan Document by or through sub-agents, employees or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. Neither
Agent shall be responsible for the negligence or misconduct of any agent or attorney-in-fact that
it selects with reasonable care. Such Agent and any such sub-agent may perform any and all of its
duties and exercise its rights and powers by or through their respective Related Parties. The
exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties
of each Agent and any such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as activities as such
Agent.

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     10.3 Exculpatory Provisions. No Agent shall have any duties or obligations except
those expressly set forth herein and in the other Loan Documents. Without limiting the generality
of the foregoing, no Agent:

          (a) shall be subject to any fiduciary or other implied duties, regardless of whether an Event
of Default or Unmatured Event of Default has occurred and is continuing;

          (b) shall have any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents
that such Agent is required to exercise as directed in writing by the Required Lenders (or such
other number or percentage of the Lenders as shall be expressly provided for herein or in the other
Loan Documents), provided that no Agent shall be required to take any action that, in its
opinion or the opinion of its counsel, may expose such Agent to liability or that is contrary to
any Loan Document or applicable law; and

          (c) shall, except as expressly set forth herein and in the other Loan Documents, have any duty
to disclose, nor shall be liable for the failure to disclose, any information relating to the
Borrowers or any of their Affiliates that is communicated to or obtained by the Person serving as
an Agent or any of its Affiliates in any capacity. None of the Agent-Related Persons shall (i) be
liable to any Lender for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions contemplated hereby
(a) with the consent or at the request of the Required Lenders (or such other number or percentage
of the Lenders as shall be necessary, or as such Agent-Related Person shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 12.1 and 9.2)
or (b) in the absence of its own gross negligence or willful misconduct), or (ii) be responsible in
any manner to any of the Lenders for any recital, statement, representation or warranty made in or
in connection with this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by either Agent under or in
connection with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or any
other agreement, instrument or document, or for any failure of either Borrower or any other party
to any Loan Document to perform its obligations hereunder or thereunder, or the satisfaction of any
condition set forth in Article V or elsewhere herein, other than, in the case of the
Administrative Agent, to confirm receipt of items expressly required to be delivered to the
Administrative Agent. No Agent-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, this Agreement or any other Loan Document, or to inspect the properties, books or
records of either Borrower or any of the Company’s Subsidiaries or Affiliates.

     10.4 Reliance by Agents. (a) Each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or other
writing (including any electronic message, Internet or intranet website posting or other
distribution) or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of legal counsel
(including counsel to either Borrower), independent accountants and other experts selected by such
Agent and shall

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not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Credit Extension or the issuance of a Letter of Credit, that by its
terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, each Agent may
presume that such condition is satisfactory to such Lender or the Issuing Lender unless such Agent
shall have received notice to the contrary from such Lender or the Issuing Lender prior to the
making of such Credit Extension or the issuance of such Letter of Credit. Each Agent may consult
with legal counsel (who may be counsel for a Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts. Each Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan Document unless it
shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and,
if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking or continuing to take any
such action. Each Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a request or consent of
the Required Lenders and such request and any action taken or failure to act pursuant thereto shall
be binding upon all of the Lenders.

          (b) For purposes of determining compliance with the conditions specified in Section
5.1, each Lender that has executed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter either sent by either
Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to
be consented to or approved by or acceptable or satisfactory to the Lender.

     10.5 Notice of Default. Neither Agent shall be deemed to have knowledge or notice of
the occurrence of any Event of Default or Unmatured Event of Default, except with respect to
defaults in the payment of principal, interest and fees required to be paid to such Agent for the
account of the Lenders, unless such Agent shall have received written notice from a Lender or a
Borrower referring to this Agreement, describing such Event of Default or Unmatured Event of
Default and stating that such notice is a “notice of default”. If either Agent receives such a
notice, such Agent will notify the Lenders of its receipt of such notice. Each Agent shall take
such action with respect to such Event of Default or Unmatured Event of Default as may be requested
by the Required Lenders in accordance with this Article X; provided,
however, that unless and until such Agent has received any such request, such Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, with respect
to such Event of Default or Unmatured Event of Default as it shall deem advisable or in the best
interest of the Lenders.

     10.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons
has made any representation or warranty to it, and that no act by either Agent hereafter taken,
including any review of the affairs of the Borrowers and their Subsidiaries, shall be deemed to
constitute any representation or warranty by any Agent-Related Person to any Lender. Each Lender
represents to the Agents that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Borrowers and their Subsidiaries, and all applicable
bank regulatory laws relating to the transactions contemplated

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hereby, and made its own decision to enter into this Agreement and to extend credit to the
Borrowers hereunder. Each Lender also represents that it will, independently and without reliance
upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrowers. Except for notices,
reports and other documents expressly herein required to be furnished to the Lenders by an Agent,
neither Agent shall have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial and other condition
or creditworthiness of either Borrower which may come into the possession of any Agent-Related
Person.

     10.7 Agent in Individual Capacity. Bank of America and its Affiliates may make loans
to, issue letters of credit for the account of, accept deposits from, acquire equity interests in
and generally engage in any kind of banking, trust, financial advisory, underwriting or other
business with the Borrowers and their Subsidiaries and Affiliates as though Bank of America were
not the Administrative Agent or an Issuing Lender hereunder and without notice to or consent of the
Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of America or its
Affiliates may receive information regarding the Borrowers or their Affiliates (including
information that may be subject to confidentiality obligations in favor of the Company or such
Subsidiary) and acknowledge that neither Agent shall be under any obligation to provide such
information to them. With respect to their respective Credit Extensions and Commitments, Bank of
America and its Affiliates shall have the same rights and powers under this Agreement as any other
Lender and may exercise the same as though it were not an Agent or an Issuing Lender.

     10.8 Successor Agent. Either Agent may, and at the request of the Required Lenders
shall, resign as Agent upon 30 days’ notice to the Lenders. If either Agent resigns under this
Agreement, the Required Lenders (with, so long as no Event of Default exists, the consent of the
Company, which shall not be unreasonably withheld or delayed) shall appoint from among the Lenders
or Affiliates of Lenders a successor Administrative Agent or Canadian Agent, as applicable, for the
Lenders, which successor shall be a bank with an office in the United States (in the case of a
successor Administrative Agent) or Canada (in the case of a successor Canadian Agent) or an
Affiliate of any such bank with an office in the United States or Canada, as the casy may be. Upon
the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed
to all the rights, powers and duties of the retiring Agent and the term “Administrative Agent” or
“Canadian Agent”, as applicable, shall mean such successor agent and the retiring Agent’s
appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation
hereunder as an Agent, the provisions of this Article X and Sections 11.4 and
11.5 shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was an Agent under this Agreement. If no successor agent has accepted appointment as the
applicable Agent by the date which is 30 days following a retiring Agent’s notice of resignation,
then the retiring Agent may on behalf of the Lenders, appoint a successor Agent meeting the
qualifications set forth above; provided that if such Agent shall notify the Company and the
Lenders that no qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (a) the retiring Agent shall be
discharged from its duties and obligations hereunder and under the other Loan Documents and

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(b) all payments, communications and determinations provided to be made by, to or through such
Agent shall instead be made by or to each Lender directly, until such time as the Required Lenders
(or Required Canadian Lenders, as the case may be) appoint a successor Agent as provided for above
in this Section. The fees payable by the Company to a successor Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Company and such successor.
Notwithstanding the foregoing, however, Bank of America may not be removed as the Administrative
Agent at the request of the Required Lenders unless Bank of America shall also simultaneously be
replaced as the Canadian Agent, a “Canadian Lender” and an “Issuing Lender” hereunder pursuant to
documentation in form and substance reasonably satisfactory to Bank of America. Any successor
Canadian Agent shall be a Canadian Lender or an Eligible Assignee with respect to the Canadian
Commitments and Canadian Loans.

     10.9 Withholding Tax. (a) If any Term Lender or U.S. Revolving Credit Lender is a
“foreign corporation, partnership or trust” within the meaning of the Code and such Lender claims
exemption from, or a reduction of, U.S. withholding tax under Sections 1441 or 1442 of the Code,
such Lender agrees with and in favor of the Administrative Agent, to deliver to the Administrative
Agent:

               (i) if such Lender claims an exemption from, or a reduction of, withholding tax under a
United States tax treaty, properly completed IRS Form W-8BEN (or any successor forms) before
the payment of any interest in the first calendar year and before the payment of any
interest in each third succeeding calendar year during which interest may be paid under this
Agreement;

               (ii) if such Lender claims that interest paid under this Agreement is exempt from
United States withholding tax because it is effectively connected with a United States trade
or business of such Lender, two properly completed and executed copies of IRS Form W-8ECI
(or any successor form) before the payment of any interest is due in the first taxable year
of such Lender and in each succeeding taxable year of such Lender during which interest may
be paid under this Agreement; and

               (iii) such other form or forms as may be required under the Code or other laws of the
United States as a condition to exemption from, or reduction of, United States withholding
tax.

Each such Lender agrees to promptly notify the Administrative Agent of any change in circumstances
which would modify or render invalid any claimed exemption or reduction.

          (b) If any Term Lender or U.S. Revolving Credit Lender claims exemption from, or reduction of,
withholding tax under a United States tax treaty by providing IRS Form W-8BEN (or any successor
form) and such Lender sells, assigns, grants a participation in, or otherwise transfers all or part
of the Obligations of the Company to such Lender, such Lender agrees to notify the Administrative
Agent of the percentage amount in which it is no longer the beneficial owner of Obligations of the
Company to such Lender. To the extent of such percentage amount, the Administrative Agent will
treat such Lender’s IRS Form W-8BEN (or any successor form) as no longer valid.

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          (c) If any Term Lender or U.S. Revolving Credit Lender claiming exemption from United States
withholding tax by filing IRS Form W-8ECI (or any successor form) with the Administrative Agent
sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of
the Company to such Lender, such Lender agrees to undertake sole responsibility for complying with
the withholding tax requirements imposed by Sections 1441 and 1442 of the Code.

          (d) If any Term Lender or U.S. Revolving Credit Lender is entitled to a reduction in the
applicable withholding tax, the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable withholding tax after taking into account such
reduction. If the forms or other documentation required by subsection (a) of this Section
are not delivered to the Administrative Agent, then the Administrative Agent may withhold from any
interest payment to such Lender not providing such forms or other documentation an amount
equivalent to the applicable withholding tax.

          (e) If the IRS or the Canada Customs and Revenue Agency or any other Governmental Authority of
the United States, Canada or any other jurisdiction asserts a claim that an Agent did not properly
withhold tax from amounts paid to or for the account of any Lender (because the appropriate form
was not delivered or was not properly executed, or because such Lender failed to notify the
applicable Agent of a change in circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason) such Lender shall indemnify such Agent fully
for all amounts paid, directly or indirectly, by such Agent as tax or otherwise, including
penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable
to such Agent under this Section, together with all costs and expenses (including Attorney Costs).
The obligation of the Lenders under this subsection shall survive the payment of all Obligations
and the resignation or replacement of either Agent.

     10.10 Other Agents. Anything herein to the contrary notwithstanding, none of the
Arranger or the Syndication Agent listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity,
as applicable, as a Lender hereunder.

ARTICLE XI

GUARANTY BY THE COMPANY

     11.1 Guaranty. The Company hereby absolutely, unconditionally and irrevocably
guarantees the full and punctual payment (whether at stated maturity, upon acceleration or
otherwise) of the principal of and interest on each Canadian Loan of the Canadian Borrower, and the
full and punctual payment of all other amounts payable by the Canadian Borrower under this
Agreement. Upon failure by the Canadian Borrower to pay punctually any such amount, the Company
shall forthwith on demand pay the amount not so paid at the place, in the currency and in the
manner specified in this Agreement. In addition (and without limiting the foregoing), upon any
Loan to the Canadian Borrower being declared or otherwise becoming immediately due and payable
pursuant to Section 9.2, the Company shall forthwith on demand pay all amounts payable in
respect of such Canadian Loan at the place, in the currency and in the manner specified in this
Agreement.

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     11.2 Guaranty Unconditional. The obligations of the Company under this Article
XI shall be absolute, unconditional and irrevocable 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 Canadian Borrower under this Agreement or any other Loan Document, by operation
of law or otherwise;

          (b) any modification or amendment of or supplement to this Agreement or any other Loan
Document;

          (c) any release, impairment, non-perfection or invalidity of any other guaranty or of any
direct or indirect security for any obligation of the Canadian Borrower under this Agreement or any
other Loan Document;

          (d) any change in the corporate existence, structure or ownership of the Canadian Borrower or
any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Canadian
Borrower or the Canadian Borrower’s assets or any resulting release or discharge of any obligation
of the Canadian Borrower contained in this Agreement or any other Loan Document;

          (e) the existence of any claim, set-off or other right which the Company may have at any time
against the Canadian Borrower, either Agent, any Lender or any other Person, whether in connection
herewith or any unrelated transaction, provided that nothing herein shall prevent the
assertion of any such claim by separate suit or compulsory counterclaim;

          (f) any invalidity or unenforceability relating to or against the Canadian Borrower for any
reason of this Agreement or any other Loan Document, or any provision of Applicable Law purporting
to prohibit the payment by the Canadian Borrower of the principal of or interest on any other Loan
Document or any other amount payable by the Canadian Borrower under this Agreement; or

          (g) any other act or omission to act or delay of any kind by the Canadian Borrower, either
Agent, any Lender or any other Person or any other circumstance whatsoever which might, but for the
provisions of this paragraph, constitute a legal or equitable discharge of the Company’s
obligations as guarantor hereunder.

     11.3 Discharge only upon Payment in Full; Reinstatement in Certain Circumstances. The
Company’s obligations as guarantor hereunder shall remain in full force and effect until the
Commitments shall have terminated and all obligations of the Canadian Borrower under this Agreement
and each other Loan Document shall have been paid in full. If at any time any payment of
principal, interest or any other amount payable by the Canadian Borrower under this Agreement or
any other Loan Document is rescinded or must be otherwise restored or returned upon the insolvency,
bankruptcy or reorganization of the Canadian Borrower or otherwise, the Company’s obligations
hereunder with respect to such payment shall be reinstated as though such payment had been due but
not made at such time.

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     11.4 Waiver by the Company. The Company irrevocably waives acceptance hereof,
presentment, demand, protest and any notice not provided otherwise for herein, as well as any
requirement that at any time any action be taken by any Person against the Canadian Borrower or any
other Person. The Company further hereby waives the benefits of all provisions of Applicable Law
permitting or providing for discharge of the liability and obligation of the Company as guarantor
hereunder based on the action or failure to act by either Agent or any Lender with respect to the
enforcement of the obligations and liability guaranteed hereby against the Canadian Borrower or its
property. Without limiting the foregoing, the Company hereby specifically waives the benefits of
N.C. Gen. Stat. Sections 26-7 through 26-9, inclusive.

     11.5 Subrogation. Notwithstanding any payment made by or for the account of the
Canadian Borrower pursuant to this Article XI, the Company shall not be subrogated to any
right of either Agent or any Lender until such time as the Agents and the Lenders shall have
received final payment in cash of the full amount of all obligations of the Canadian Borrower
hereunder.

     11.6 Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Canadian Borrower under this Agreement or any other Loan Document is stayed upon the
insolvency, bankruptcy or reorganization of the Canadian Borrower, all such amounts otherwise
subject to acceleration under the terms of this Agreement shall nonetheless be payable by the
Company hereunder forthwith on demand by the Administrative Agent made at the request of the
Required Lenders.

ARTICLE XII

MISCELLANEOUS

     12.1 Amendments and Waivers. No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent with respect to any departure by either
Borrower or any applicable Subsidiary therefrom, shall be effective unless the same shall be in
writing and signed by the Required Lenders (or by the Administrative Agent at the written request
of the Required Lenders) and the Company and acknowledged by the Administrative Agent, and then any
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such waiver, amendment or
consent shall, unless in writing and signed by all Lenders and the Company and acknowledged by the
Administrative Agent, do any of the following:

          (a) increase or extend the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 9.2);

          (b) postpone or delay any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder
or under any other Loan Document;

          (c) reduce the principal of, or the rate of interest specified herein on, any Loan, or reduce
any fees (other than the fees referred to in subsection 2.12(a) or subsections
3.8(c) and (d)) or other amounts payable hereunder or under any other Loan Document;

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          (d) change the percentage of the Commitments or of the aggregate unpaid principal amount of
the Loans which is required for the Lenders or any of them to take any action hereunder; or

          (e) amend this Section or any other provision herein expressly providing for consent or other
action by all Lenders;

and provided, further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the applicable Issuing Lender in addition to the Required Lenders or all
Lenders, as the case may be, affect the rights or duties of such Issuing Lender under this
Agreement or any L/C-Related Document relating to any Letter of Credit Issued or to be Issued by
it, (ii) no amendment, waiver or consent shall, unless in writing and signed by the applicable
Agent in addition to the Required Lenders or all Lenders, as the case may be, affect the rights or
duties of either Agent under this Agreement or any other Loan Document, (iii) no provision
affecting Term Lenders in their capacity as such shall be amended, modified or waived without the
written consent of the Required Term Lenders, (iv) no provision affecting U.S. Revolving Credit
Lenders in their capacity as such shall be amended, modified or waived without the written consent
of the Required U.S. Revolving Credit Lenders, (v) no provision affecting Canadian Lenders in their
capacity as such shall be amended, modified or waived without the written consent of the Required
Canadian Lenders, and (vi) no release of the Company’s guaranty contained in Article XI may
be effected without the written consent of the Canadian Agent and all Canadian Lenders.

     12.2 Notices; Effectiveness; Electronic Communications. (a) Notices
Generally. Except in the case of notices and other communications expressly permitted to be
given by telephone (and except as provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier as follows, and all
notices and other communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

               (i) if to a Borrower, an Agent or Bank of America as Issuing Lender, to the address,
telecopier number, electronic mail address or telephone number specified for such Person on
Schedule 12.2; and

               (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection (b) below
shall be effective as provided in such subsection (b).

          (b) Electronic Communications. Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including e-mail

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and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to
Article II or III if such Lender has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication. The Agents or the
Borrowers may, in their respective discretion, agree to accept notices and other communications to
it hereunder by electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

          (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Agents or any of their Related Parties
(collectively, the “Agent Parties”) have any liability to either Borrower, any Lender or
any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort,
contract or otherwise) arising out of a Borrower’s or an Agent’s transmission of Borrower Materials
through the Internet, except to the extent that such losses, claims, damages, liabilities or
expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment
to have resulted from the gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to a Borrower, any Lender or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

          (d) Change of Address, Etc. Each of the Borrowers, the Agents, and the Issuing
Lenders may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the other parties hereto. Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder by notice to the
Company, the Agents and the Issuing Lenders. In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier number and

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electronic mail address to which notices and other communications may be sent and (ii)
accurate wire instructions for such Lender.

          (e) Reliance by Agents and Lenders. The Agents and the Lenders shall be entitled to
rely and act upon any notices (including telephonic requests for Credit Extensions) purportedly
given by or on behalf of a Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of notice specified
herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation
thereof. The Borrowers shall indemnify the Agents, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of a Borrower. All telephonic notices to and other
telephonic communications with an Agent may be recorded by such Agent, and each of the parties
hereto hereby consents to such recording.

     12.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of either Agent or any Lender, any right, remedy, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.

     12.4 Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses. The
Company shall pay (i) all customary and reasonable out-of-pocket expenses incurred by the Agents
and their Affiliates (including the reasonable fees, charges and disbursements of counsel for the
Agents), in connection with the syndication of the credit facilities provided for herein, the
preparation, negotiation, execution, delivery and administration of this Agreement and the other
Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by the Issuing Lenders in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and
(iii) all out of pocket expenses incurred by the Agents, any Lender or the Issuing Lenders
(including the fees, charges and disbursements of any counsel for the Agents, any Lender or the
Issuing Lenders), in connection with the enforcement or protection of its rights (A) in connection
with this Agreement and the other Loan Documents, including its rights under this Section, or (B)
in connection with Credit Extensions made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Credit Extensions or Letters of Credit.

          (b) Indemnification by the Company. The Company shall indemnify each Agent (and any
sub-agent thereof), each Lender and each Issuing Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses
(including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by a Borrower arising out of,
in connection with, or as a result of (i) the execution or delivery of this Agreement, any other
Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the consummation of the
transactions contemplated hereby or thereby, or, in the

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case of either Agent (and any sub-agent thereof) and its Related Parties only, the
administration of this Agreement and the other Loan Documents, (ii) any Credit Extension or Letter
of Credit or the use or proposed use of the proceeds therefrom (including any refusal by an Issuing
Lender to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or
operated by the Company or any of its Subsidiaries, or any Environmental Claims related in any way
to the Company or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by any Borrower or any of a Borrower’s
directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by a
Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
or under any other Loan Document, if such Borrower has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

          (c) Reimbursement by Lenders. To the extent that the Company for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to an Agent (or any sub-agent thereof), an Issuing Lender or any Related Party of any of the
foregoing, each Lender severally agrees to pay to such Agent (or any such sub-agent), such Issuing
Lender or such Related Party, as the case may be, such Lender’s Pro Rata Share (determined as of
the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against such Agent
(or any such sub-agent) or an Issuing Lender in its capacity as such, or against any Related Party
of any of the foregoing acting for such Agent (or any such sub-agent) or such Issuing Lender in
connection with such capacity. The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.14(g).

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Credit Extension or Letter of Credit or the use of the proceeds
thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed to such
unintended recipients by such Indemnitee through telecommunications, electronic or other
information transmission systems in connection with this Agreement or the other Loan Documents or
the transactions contemplated hereby or thereby other than for direct or actual damages resulting
from the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

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          (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

          (f) Survival. The agreements in this Section shall survive the resignation of any
Agent and any Issuing Lender, the replacement of any Lender, the termination of the Commitments and
the repayment, satisfaction or discharge of all the other Obligations.

     12.5 Payments Set Aside. To the extent that a Borrower makes a payment to the Agents
or the Lenders, or either Agent or any Lender exercises its right of set-off, and such payment or
the proceeds of such set-off or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by such Agent or such Lender in its discretion) to be repaid to a trustee, a receiver or any
other party, in connection with any Insolvency Proceeding or otherwise, then (a) to the extent of
such recovery the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such set-off had not
occurred and (b) each Lender severally agrees to pay to the applicable Agent upon demand its pro
rata share of any amount so recovered from or repaid by such Agent.

     12.6 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrowers may not assign or transfer any of their rights or obligations under this Agreement
without the prior written consent of the Agents and each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of Section 12.6(b), (ii) by way of participation in
accordance with the provisions of Section 12.6(d), or (iii) by way of pledge or assignment
of a security interest subject to the restrictions of Section 12.6(f) (and any other
attempted assignment or transfer by any party hereto shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Agents, the Issuing Lenders and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans (including for purposes of this Section 12.6(a),
participations in L/C Obligations) 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 any
Commitment of the Assigning Lender and the Credit Extensions at the time owing to it
in respect of such Commitment or in the case of an assignment to

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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 (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Credit Extensions of the assigning Lender subject to each
such assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent or, if a “Trade
Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not
be less than US$5,000,000, in the case of any assignment in respect of the U.S.
Revolving Credit Commitments or the Term Loans, or C$5,000,000, in the case of any
assignment in respect of the Canadian Commitments, unless each of the Administrative
Agent and, so long as no Event of Default has occurred and is continuing, the
Company otherwise consents (each such consent not to be unreasonably withheld or
delayed); provided, however, that concurrent assignments to members
of an Assignee Group and concurrent assignments from members of an Assignee Group to
a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group) will be treated as a single assignment for purposes of determining whether
such minimum amount has been met;

               (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 Credit Extensions 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 Commitments on a non-pro rata basis;

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

               (A) the consent of the Company (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund that, in the case of an assignment in
respect of a Canadian Commitment or Canadian Outstandings, is a Person described in
clause (b) of the definition of “Eligible Assignee”;

               (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in respect of
(i) any Term Commitment, U.S. Revolving Credit Commitment or Canadian Commitment if
such assignment is to a Person that is not a Lender with a Commitment of the same
type, an Affiliate of such Lender or an Approved Fund with respect to such Lender or
(ii) any Term Loan to a Person that is not a Lender, an Affiliate of a Lender or an
Approved Fund; and

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               (C) the consent of the Issuing Lenders (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).

               (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount of US$3,500; provided, however,
that the Administrative Agent may, in its sole discretion, elect to waive such processing
and recordation fee in the case of any assignment. The assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

               (v) No Assignment to Borrower. No such assignment shall be made to a Borrower
or any of the Borrowers’ 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 subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Article IV and Section 12.4 with respect to facts and
circumstances occurring prior to the effective date of such assignment). Upon request, the
applicable Borrower (at its expense) shall execute and deliver a Note to the assignee Lender. Any
assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this subsection 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
12.6(d).

          (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Company, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Term Lenders and the U.S. Revolving Credit Lenders, and the Term Commitments and U.S. Revolving
Credit Commitments of, and principal amounts of the Credit Extensions and L/C Obligations owing to,
each Term Lender and U.S. Revolving Credit Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Company, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Company and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

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          (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrowers or the Agents, sell participations to any Person (other than a natural person or a
Borrower or any of a Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all
or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Credit Extensions (including such Lender’s participations in
L/C Obligations) owing to it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the Borrowers, the Agents, the
Lenders and the Issuing Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree to any amendment,
waiver or other modification described in the first proviso to Section 12.1 that affects
such Participant. Subject to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Article IV and Section 12.1 to the
same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 12.6(a). To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 12.10 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.16 as though it were a Lender.

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 4.1 or 4.4 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Company’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to
the benefits of Section 4.1 unless the Company is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Company, to comply with
Section 4.1(e) as though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any
of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

          (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

89

 

          (h) Resignation as Issuing Lender after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its U.S. Revolving Credit
Commitment and U.S. Revolving Credit Loans pursuant to Section 12.6(a), Bank of America
may, upon 30 days’ notice to the Company and the Lenders, resign as Issuing Lender. In the event
of any such resignation as Issuing Lender, the Company shall be entitled to appoint from among the
Lenders a successor Issuing Lender hereunder; provided, however, that no failure by
the Company to appoint any such successor shall affect the resignation of Bank of America as
Issuing Lender. If Bank of America resigns as Issuing Lender, it shall retain all the rights,
powers, privileges and duties of the Issuing Lender hereunder with respect to all Letters of Credit
outstanding as of the effective date of its resignation as Issuing Lender and all L/C Obligations
with respect thereto (including the right to require the U.S. Revolving Credit Lenders to make U.S.
Base Rate Loans or fund risk participations in L/C Obligations pursuant to Article III).
Upon the appointment of a successor Issuing Lender, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender, and
(b) the successor Issuing Lender shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory
to Bank of America to effectively assume the obligations of Bank of America with respect to such
Letters of Credit.

     12.7 Treatment of Certain Information; Confidentiality. Each of the Agents and the
Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and representatives (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (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 action or proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to a Borrower and its obligations, (g) with the consent of a Borrower or (h) to the extent
such Information (i) becomes publicly available other than as a result of a breach of this Section
or (ii) becomes available to any Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than a Borrower.

     For purposes of this Section, “Information” means all information received from any Borrower
or any Subsidiary thereof relating to any Borrower or any Subsidiary thereof or their respective
businesses, other than any such information that is available to any Agent or any Lender on a
nonconfidential basis prior to disclosure by any Borrower or any Subsidiary thereof. Any Person
required to maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has exercised the

90

 

same degree of care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

     Each of the Agents and the Lenders acknowledges that (a) the Information may include material
non-public information concerning a Borrowers or a Subsidiary, as the case may be, (b) it has
developed compliance procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with applicable Law, including
Federal and state securities Laws.

     12.8 Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by each Agent and
each Lender, regardless of any investigation made by any Agent or any Lender or on their behalf and
notwithstanding that any Agent or any Lender may have had notice or knowledge of any Event of
Default or Unmatured Event of Default at the time of any Credit Extension, and shall continue in
full force and effect as long as any Credit Extension or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

     12.9 Set-off. In addition to any rights and remedies of the Lenders provided by law,
if an Unmatured Event of Default under subsection 9.1(a), (f) or (g) or any
Event of Default exists, each Lender is authorized at any time and from time to time, without prior
notice to the Borrowers, any such notice being expressly waived by each Borrower to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held by, and other indebtedness at any time owing by,
such Lender to or for the credit or the account of either Borrower against any and all Obligations
owing to such Lender, now or hereafter existing, irrespective of whether or not either Agent or
such Lender shall have made demand under this Agreement or any other Loan Document and although
such Obligations may be contingent or unmatured. Each Lender agrees promptly to notify the Company
and the Administrative Agent after any such set-off and application made by such Lender;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application.

     12.10 Notification of Addresses, Lending Offices, Etc. Each Lender shall notify the
Administrative Agent in writing of any change in the address to which notices to such Lender should
be directed, of addresses of any Lending Office, of payment instructions in respect of all payments
to be made to it hereunder and of such other administrative information as the Administrative Agent
shall reasonably request.

     12.11 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.1, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts

91

 

hereof that, when taken together, bear the signatures of each of the other parties hereto.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

     12.12 Severability. The illegality or unenforceability of any provision of this
Agreement or any instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or any instrument or
agreement required hereunder.

     12.13 No Third Parties Benefited. This Agreement is made and entered into for the
sole protection and legal benefit of the Company, the Lenders, the Agents and the Agent-Related
Persons, and their permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement or any of the other Loan Documents.

     12.14 Governing Law and Jurisdiction. (a) THIS AGREEMENT AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NORTH CAROLINA WITHOUT
REGARD TO THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF; PROVIDED THAT THE PARTIES HERETO SHALL
RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

          (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NORTH CAROLINA OR OF THE UNITED STATES FOR THE WESTERN
DISTRICT OF NORTH CAROLINA, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE BORROWERS,
THE AGENTS AND THE LENDERS CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF SUCH COURTS. EACH OF THE BORROWERS, THE AGENTS AND THE LENDERS
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION
OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.
THE BORROWERS, THE AGENTS AND THE LENDERS EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR
OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NORTH CAROLINA LAW.

     12.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)

92

 

ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

     12.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby, the Borrowers each acknowledge and agree, and acknowledge their
respective Affiliates’ understanding, that: (i) the credit facilities provided for hereunder and
any related arranging or other services in connection therewith (including in connection with any
amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrowers and their respective Affiliates, on the one hand, and
the Agents and the Arranger, on the other hand, and each of the Borrowers is capable of evaluating
and understanding and understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment, waiver or other
modification hereof or thereof); (ii) in connection with the process leading to such transaction,
the Agents and the Arranger each is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for any Borrower or any of their respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) neither any Agent nor the Arranger
has assumed or will assume an advisory, agency or fiduciary responsibility in favor of any Borrower
with respect to any of the transactions contemplated hereby or the process leading thereto,
including with respect to any amendment, waiver or other modification hereof or of any other Loan
Document (irrespective of whether any Agent or the Arranger has advised or is currently advising
any Borrower or any of their respective Affiliates on other matters) and neither any Agent nor the
Arranger has any obligation to the Borrowers or any of their respective Affiliates with respect to
the transactions contemplated hereby except those obligations expressly set forth herein and in the
other Loan Documents; (iv) the Agents and the Arranger and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ from those of the
Borrowers and their respective Affiliates, and neither any Agent nor the Arranger has any
obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary
relationship; and (v) the Agents and the Arranger have not provided and will not provide any legal,
accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby
(including any amendment, waiver or other modification hereof or of any other Loan Document) and
each of the Borrowers has consulted its own legal, accounting, regulatory and tax advisors to the
extent it has deemed appropriate. Each of the Borrowers hereby waives and releases, to the fullest
extent permitted by law, any claims that it may have against the Agents and the Arranger with
respect to any breach or alleged breach of agency or fiduciary duty.

     12.17 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter
defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies
the Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies each Borrower, which information includes the name and address of each
Borrower and other information that will allow such Lender or the Administrative Agent, as
applicable, to identify each Borrower in accordance with the Act.

93

 

     12.18 Judgment. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or under any other Loan Document in one currency into
another currency, the rate of exchange used shall be that at which in accordance with normal and
customary banking procedures the Administrative Agent could purchase the first currency with such
other currency on the Business Day preceding that on which final judgment is given. The obligation
of each Borrower in respect of any such sum due from it to either Agent or any Lender hereunder or
under any other Loan Document shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by such Agent or such Lender of any sum adjudged to be
so due in the Judgment Currency, such Agent or such Lender may in accordance with normal and
customary banking procedures purchase the Agreement Currency with the Judgment Currency. If the
amount of the Agreement Currency so purchased is less than the sum originally due to such Agent or
such Lender in the Agreement Currency, the applicable Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Agent or such Lender against such loss. If
the amount of the Agreement Currency so purchased is greater than the sum originally due to such
Agent or such Lender in such currency, such Agent or such Lender agrees to return the amount of any
excess to the applicable Borrower (or to any other Person who may be entitled thereto under
Applicable Law).

     12.19 Entire Agreement. This Agreement, together with the other Loan Documents (and
the Fee Letter referred in subsection 2.12(a)), embodies the entire agreement and
understanding among the Borrowers, the Lenders and the Agents, and supersedes all prior or
contemporaneous agreements and understandings of such Persons, verbal or written, relating to the
subject matter hereof and thereof.

94

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rick D. Pucket	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TAMMING FOODS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rick D. Pucket	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President	 	 

CREDIT AGREEMENT

S-1 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, NATIONAL	 	 
	 	 	ASSOCIATION, as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William Sweeney	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, NATIONAL	 	 
	 	 	ASSOCIATION, as an Issuing Lender and a U.S.	 	 
	 	 	Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William Sweeney	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

CREDIT AGREEMENT

S-2 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL MARKETS, LLC,	 	 
	 	 	as Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark S. Supple	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Director	 	 

CREDIT AGREEMENT

S-3 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL	 	 
	 	 	ASSOCIATION, as a Term Lender and U.S.	 	 
	 	 	Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark S. Supple	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President and Director	 	 

CREDIT AGREEMENT

S-4 

 

	 	 	 	 	 	 	 
	 	 	REGIONS BANK, as a Term Lender and U.S.	 	 
	 	 	Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ C. Kemp Simmons	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

CREDIT AGREEMENT

S-5 

 

	 	 	 	 	 	 	 
	 	 	BRANCH BANKING AND TRUST COMPANY,	 	 
	 	 	as a Term Lender and U.S. Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Illegible	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

CREDIT AGREEMENT

S-6 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,as a Term	 	 
	 	 	Lender and U.S. Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Lister	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

CREDIT AGREEMENT

S-7 

 

	 	 	 	 	 	 	 
	 	 	SUNTRUST BANKS INC., as a Term Lender and	 	 
	 	 	U.S. Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Illegible	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Director	 	 

CREDIT AGREEMENT

S-8 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, NATIONAL	 	 
	 	 	ASSOCIATION, acting through its Canada	 	 
	 	 	Branch, as Canadian Agent and	 	 
	 	 	a Canadian Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Medina Sales de Andrade	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 

CREDIT AGREEMENT

S-9 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE	 	 
	 	 	CORPORATION (CANADA), as a Canadian	 	 
	 	 	Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Enza Agosta	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 

CREDIT AGREEMENT

S-10 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as a Canadian Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael Lister	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Managing Director	 	 

CREDIT AGREEMENT

S-11 

 

SCHEDULE 2.1(a)

TERM COMMITMENTS

AND TERM PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	Term Lender	 	Term Commitment	 	Term Pro Rata Share
	Bank of America, National Association
	 	US$	12,500,000.00	 	 	 	25.000000000	%
	Wachovia Bank, National Association
	 	US$	11,500,000.00	 	 	 	23.000000000	%
	Regions Bank
	 	US$	6,666,666.67	 	 	 	13.333333334	%
	Branch Banking and Trust Company
	 	US$	6,666,666.67	 	 	 	13.333333334	%
	JPMorgan Chase Bank, N.A.
	 	US$	6,000,000.00	 	 	 	12.000000000	%
	SunTrust Banks Inc.
	 	US$	6,666,666.66	 	 	 	13.333333333	%
	TOTAL
	 	US$	50,000,000.00	 	 	 	100.000000000	%

 

 

SCHEDULE 2.1(b)

U.S. REVOLVING CREDIT COMMITMENTS

AND U.S. REVOLVING PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	 	 	U.S. Revolving	 	U.S. Revolving
	U.S. Revolving Credit Lender	 	Credit Commitment	 	Credit Pro Rata Share
	Bank of America, National Association
	 	US$	26,000,000.00	 	 	 	26.000000000	%
	Wachovia Bank, National Association
	 	US$	23,000,000.00	 	 	 	23.000000000	%
	Regions Bank
	 	US$	13,333,333.33	 	 	 	13.333333333	%
	Branch Banking and Trust Company
	 	US$	13,333,333.33	 	 	 	13.333333333	%
	JPMorgan Chase Bank, N.A.
	 	US$	11,000,000.00	 	 	 	11.000000000	%
	SunTrust Banks Inc.
	 	US$	13,333,333.34	 	 	 	13.333333334	%
	TOTAL
	 	US$	100,000,000.00	 	 	 	100.000000000	%

 

 

SCHEDULE 2.2

CANADIAN COMMITMENTS

AND CANADIAN PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	 	 	Canadian	 	Canadian
	Canadian Lender	 	Commitment	 	Pro Rata Share
	Bank of America, National Association
	 	 	C$6,500,000.00	 	 	 	43.333333333	%
	Wachovia Capital Finance Corporation
(Canada)
	 	 	C$5,500,000.00	 	 	 	36.666666667	%
	JPMorgan Chase Bank, N.A.
	 	 	C$3,000,000.00	 	 	 	20.000000000	%
	TOTAL
	 	 	C$15,000,000.00	 	 	 	100.000000000	%

 

 

Schedule 6.7

ERISA

Compliance; Canadian Plans

     None

 

 

Schedule 6.16

SUBSIDIARIES OF LANCE, INC.

Part (a)

	 	 	 	 	 
	Name of Subsidiary	 	State/Province of Incorporation	 
	Lance Mfg. LLC
	 	North Carolina

	Caronuts, Inc.
	 	North Carolina

	Vista Bakery, Inc.
	 	North Carolina

	Cape Cod Potato Chip Company, Inc.
	 	Massachusetts

	Lanhold Investments, Inc.
	 	Delaware

	Tamming Foods Ltd.
	 	Ontario

	Lanfin Investments Inc.
	 	Ontario

	Fresno Ventures, Inc.
	 	North Carolina

	Carriage Hill Brands, Inc.
	 	North Carolina

 

 

Schedule 8.2

PERMITTED LIENS

     None

 

 

SCHEDULE 12.2

EURODOLLAR AND DOMESTIC LENDING OFFICES,

ADDRESSES FOR NOTICES

LANCE, INC.

Mr. Rick D. Puckett

Executive Vice President, Chief Financial Officer,

Treasurer and Secretary

P.O. Box 32368

8600 South Boulevard

Charlotte, N.C. 28273

Telephone: 704-554-1421

Facsimile:   704-557-8197

TAMMING FOODS LTD.

Mr. Rick D. Puckett

Executive Vice President, Chief Financial Officer,

Treasurer and Secretary

P.O. Box 32368

8600 South Boulevard

Charlotte, N.C. 28273]

Telephone: 704-554-1421

Facsimile:   704-557-8197

BANK OF AMERICA, N.A.,

  as Administrative Agent

Bank of America, N.A.

1455 Market Street

CA5-701-05-19

San Francisco, CA 94404

Attention: Joan Mok

Telephone: 415-436-3496

Facsimile:   415-503-5085

 

 

Administrative Agent’s Payment Office:

Bank of America, N.A.

Building B, 2001 Clayton Road

CA4-702-02-25

Concord, CA 94520

Attention: Geralyn Hair

Telephone: 925-675-7338

Facsimile:    888-969-9235

For Credit To:

Account No.: #3750836479

ABA# 026009593

Reference: Lance, Inc.

BANK OF AMERICA, N.A.,

  as an Issuing Lender and as a Lender

Domestic and Eurodollar Office:

Bank of America, N.A.

Building B, 2001 Clayton Road

CA4-702-02-25

Concord, CA 94520

Attention: Geralyn Hair

Telephone: 925-675-7338

Facsimile:    888-969-9235

Notices (other than borrowing notices and Notices of

Conversion/Continuation):

Bank of America, N.A.

231 South LaSalle Street

Chicago, Illinois 60697

Attention: William Sweeney

Telephone: 312-828-1843

Facsimile:    312-987-1276

 

 

WACHOVIA CAPITAL MARKETS, LLC,

  as Syndication Agent

One South Broad Street

MC: PA4843

Philadelphia, Pennsylvania 19107

Attention: Mark S. Supple

Telephone: 267-321-6634

Facsimile:    267-321-6700

BANK OF AMERICA, N.A.,

  as Canadian Agent and a Canadian Lender

Credit and Draft Documentation Contact:

BANK OF AMERICA, N.A.

200 Front Street W

Toronto, Ontario

Canada M5V 3L2

Attention: Medina Sales De Andrade

Telephone: (416) 349-5433

Facsimile:    (416) 349-4283

With a copy to:

William F. Sweeney

Telephone: (312) 828-1843

Facsimile:    (415) 503-5027

Operations Contact:

BANK OF AMERICA, N.A.

200 Front Street W, Suite 2700,

Toronto, Ontario

Canada M5V 3L2

Attention: Domingo Braganza

Telephone: (416) 349-5464

Facsimile:    (416) 349-4282

 

 

EXHIBIT A-1

FORM OF

NOTICE OF BORROWING

			
	Date:	 	                    

			
	To:	 	Bank of America, National Association, as Administrative Agent under
the Credit Agreement, dated as of October 20, 2006 (as amended from
time to time, the “Credit Agreement”), among Lance, Inc., Tamming
Foods Ltd., various financial institutions, and Bank of America,
National Association, as Administrative Agent and Canadian Agent.

Ladies and Gentlemen:

     The undersigned, Lance, Inc. (the “Company”), refers to the Credit Agreement (terms
defined therein being used herein as therein defined) and hereby gives you notice irrevocably,
pursuant to Section 2.4 of the Credit Agreement, of the Borrowing of [Term][U.S. Revolving Credit]
Loans specified below:

     1.
The Business Day of the proposed Borrowing is                     , ___.

     2. The Borrowing is to be comprised of [U.S. Base Rate] [Eurodollar Rate] Loans.

     3. The aggregate amount of the proposed Borrowing is US$                    .

     [4. The duration of the Interest Period for the Eurodollar Rate Loans included in the
Borrowing shall be                      months.]

     The Company certifies that the following statements are true on the date hereof, and will be
true on the date of the proposed Borrowing, before and after giving effect thereto and to the
application of the proceeds therefrom:

     (a) the representations and warranties contained in Article VI of the Credit Agreement
are true and correct in all material respects as though made on and as of such date (except
to the extent such representations and warranties expressly relate to an earlier date, in
which case they are true and correct as of such earlier date);

     (b) no Event of Default or Unmatured Event of Default has occurred and is continuing or
will result from such proposed Borrowing; and

 

 

     (c) the proposed Borrowing will not cause [the aggregate principal amount of all Term
Loans to exceed the Aggregate Term Commitment][the Total U.S. Revolving Credit Outstandings
to exceed the Aggregate U.S. Revolving Credit Commitment].

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A-2

FORM OF

NOTICE OF CANADIAN BORROWING

			
	Date:	 	                    

			
	To:	 	Bank of America, National Association, as Canadian Agent under the
Credit Agreement, dated as of October 20, 2006 (as amended from time
to time, the “Credit Agreement”), among Lance, Inc., Tamming Foods
Ltd., various financial institutions, and Bank of America, National
Association, as Administrative Agent and Canadian Agent.

Ladies and Gentlemen:

     The undersigned, Tamming Foods Ltd. (the “Canadian Borrower”), refers to the Credit
Agreement (terms defined therein being used herein as therein defined) and hereby gives you notice
irrevocably, pursuant to Section 2.6 of the Credit Agreement, of the Borrowing specified below:

     1. The Business Day of the proposed Borrowing is                     , ___.

     2. The Borrowing is to be comprised of Canadian Prime Rate Loans.

     3. The aggregate amount of the proposed Borrowing is C$                    .

     The Canadian Borrower certifies that the following statements are true on the date hereof, and
will be true on the date of the proposed Borrowing, before and after giving effect thereto and to
the application of the proceeds therefrom:

     (a) the representations and warranties contained in Article VI of the Credit Agreement
are true and correct in all material respects as though made on and as of such date (except
to the extent such representations and warranties expressly relate to an earlier date, in
which case they are true and correct as of such earlier date);

     (b) no Event of Default or Unmatured Event of Default has occurred and is continuing or
will result from such proposed Borrowing; and

 

 

     (c) the proposed Borrowing will not cause the Total Canadian Outstandings to exceed
Aggregate Canadian Commitment.

	 	 	 	 	 	 	 
	 	 	TAMMING FOODS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A-3

FORM OF

NOTICE OF CANADIAN BA BORROWING

			
	Date:	 	                    

			
	To:	 	Bank of America, National Association, as Canadian Agent under the
Credit Agreement, dated as of October 20, 2006 (as amended from time
to time, the “Credit Agreement”), among Lance, Inc., Tamming Foods
Ltd., various financial institutions, and Bank of America, National
Association, as Administrative Agent and Canadian Agent.

Ladies and Gentlemen:

     The undersigned, Tamming Foods Ltd. (the “Canadian Borrower”), refers to the Credit
Agreement (terms defined therein being used herein as therein defined) and hereby gives you notice
irrevocably, pursuant to Section 2.7 of the Credit Agreement of the Canadian BA Borrowing specified
below:

     1. The Business Day of the proposed Borrowing is                     , ___.

     2. The aggregate amount of the Canadian BA Borrowing is C$                    .

     3. The maturity date for the Canadian Bankers Acceptances and Canadian BA Equivalent
Notes included in the Borrowing is                     , ___.

     The Canadian Borrower certifies that the following statements are true on the date hereof, and
will be true on the date of the proposed Borrowing, before and after giving effect thereto and to
the application of the proceeds therefrom:

     (a) the representations and warranties contained in Article VI of the Credit Agreement
are true and correct in all material respects as though made on and as of such date (except
to the extent such representations and warranties expressly relate to an earlier date, in
which case they are true and correct as of such earlier date);

     (b) no Event of Default or Unmatured Event of Default has occurred and is continuing or
will result from such proposed Borrowing; and

 

 

     (c) the proposed Borrowing will not cause the Total Canadian Outstandings to exceed the
Aggregate Canadian Commitment.

	 	 	 	 	 	 	 
	 	 	TAMMING FOODS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

FORM OF

NOTICE OF CONVERSION/CONTINUATION

OF TERM OR U.S. REVOLVING CREDIT LOANS

			
	Date:	 	                    

			
	To:	 	Bank of America, National Association, as Administrative Agent under
the Credit Agreement, dated as of October 20, 2006 (as amended from
time to time, the “Credit Agreement”), among Lance, Inc., Tamming
Foods Ltd., various financial institutions, and Bank of America,
National Association, as Administrative Agent and Canadian Agent.

Ladies and Gentlemen:

     The undersigned, Lance, Inc. (the “Company”), refers to the Credit Agreement (terms
defined therein being used herein as therein defined) and hereby gives you notice irrevocably,
pursuant to Section 2.5 of the Credit Agreement, with respect to the [conversion] [continuation] of
the [Term][U.S Revolving Credit]. Loans specified herein, that:

     1. The Conversion/Continuation Date is                     , ___.

     2. The aggregate amount of the [Term][U.S. Revolving Credit] Loans to be [converted]
[continued] is US$                    .

     3. The [Term][U.S. Revolving Credit] Loans are to be [converted into] [continued as]
[Eurodollar Rate] [U.S. Base Rate] Loans.

     [ 4. The duration of the Interest Period for the Eurodollar Rate Loans included in the
[conversion] [continuation] shall be   months.]

     The Company certifies that on the date hereof, and on the proposed Conversion/Continuation
Date both before and after giving effect thereto, no Event of Default or Unmatured Event of Default
has occurred and is continuing, or would result from such proposed [conversion] [continuation].

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT C

FORM OF

COMPLIANCE CERTIFICATE

			
	To:	 	Bank of America, National Association, as Administrative Agent and Canadian Agent and the
Lenders which are party to the Credit Agreement referred to below

     Reference is made to the Credit Agreement dated as of October 20, 2006 (as amended or
otherwise modified from time to time, the “Credit Agreement”) among Lance, Inc. (the
“Company”), Tamming Foods Ltd., various financial institutions, and Bank of America,
National Association, as Administrative Agent and Canadian Agent. Terms used but not otherwise
defined herein are used herein as defined in the Credit Agreement.

	I.	 	Reports. Enclosed herewith is a copy of the Company’s most recent [Form 10-Q/Form
10-K] filed with the SEC, which includes the [annual audited/quarterly] report of the Company
as at
                    , ___ (the “Computation Date”). This report fairly presents, in
accordance with GAAP (subject to ordinary, good faith year-end audit adjustments) the
consolidated financial position of the Company and its Subsidiaries, as of the Computation
Date and for the period then ended.
	 
	II.	 	Financial Tests. The Company hereby certifies and warrants to you that the following
is a true and correct computation as at the Computation Date of the following ratios and/or
financial restrictions contained in the Credit Agreement:

	 	A.	 	Subsection 8.1(a) Total Debt to EBITDA Ratio
	 
	 	(1)	 	Total Indebtedness as of the last

     day of the Computation Period

     ending on the Computation Date:          $___
	 
	 	(2)	 	EBITDA for the Computation Period

     ending on the Computation Date           $___
	 
	 	(3)	 	Ratio of Item (1)          ___.___%

     to Item (2):
	 
	 	(4)	 	Maximum ratio allowed:     3.00 to 1

 

 

	 	B.	 	Subsection 8.1(b) Interest Coverage Ratio
	 
	 	(1)	 	EBIT for the Computation Period

     ending on the Computation Date:          $___
	 
	 	(2)	 	Interest Expense for the

     Computation Period ending on 

     the Computation Date:                           $___
	 
	 	(3)	 	Ratio of Item (1)          ___.___%

     to Item (2):
	 
	 	(4)	 	Minimum ratio allowed:          2.50 to 1

	III.	 	Defaults. The Company hereby further certifies and warrants to you as of the date of the filing of the [Form 10-Q/Form
10-K] referred to in clause I that no Event of Default or Unmatured Event of Default has occurred and is continuing.

          IN WITNESS WHEREOF, the Company has caused this Certificate to be executed and delivered by
its duly authorized officer this                                          day of                                         , ___.

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT D

FORM OF

ASSIGNMENT AND ACCEPTANCE

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of
the Effective Date set forth below and is entered into by and between [the][each]1
Assignor identified in item 1 below ([the][each, an] “Assignor”) and
[the][each]2 Assignee identified in item 2 below ([the][each, an] “Assignee”).
[It is understood and agreed that the rights and obligations of [the Assignors][the
Assignees]3 hereunder are several and not joint.]4 Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below (including, without limitation, the Letters of Credit included in such
facilities5) and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses
(i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).
Each

 

			
	1	 	For bracketed language here and
elsewhere in this form relating to the Assignor(s), if the assignment is from a
single Assignor, choose the first bracketed language. If the assignment is
from multiple Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and
elsewhere in this form relating to the Assignee(s), if the assignment is to a
single Assignee, choose the first bracketed language. If the assignment is to
multiple Assignees, choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are
either multiple Assignors or multiple Assignees.
	 
	5	 	Include all applicable subfacilities.

 

 

such sale and assignment is without recourse to [the][any] Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by [the][any]
Assignor.

	 	 	 	 	 	 	 
	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]
	 
	 	 	 	 	 	 
	3.

	 	Borrower(s):	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	4.	 	Administrative Agent: Bank of America, N.A., as the administrative agent under the
Credit Agreement
	 
	 	 	 	 	 	 
	5.	 	Credit Agreement: Credit Agreement, dated as of October 20, 2006, among Lance, Inc.,
Tamming Foods Ltd., the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, Issuing Lender and Canadian Agent

 

 

6. Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate	 	Amount of	 	Percentage	 	 
	 	 	 	 	 	 	Amount of	 	Commitment/	 	Assigned of	 	 
	 	 	 	 	Facility	 	Commitment/Loans	 	Loans	 	Commitment/	 	CUSIP
	Assignor[s]6	 	Assignee[s]7	 	Assigned8	 	for all Lenders9	 	Assigned	 	Loans10	 	Number
	 

	 	 
	 	Term Loan
	 	US$
	 	US$
	 	%
	 	 
	 

	 	 	 	 	 	 
	 	 
	 	 

	 

	 	 
	 	U.S. Revolving
Credit Commitment
	 	US$
	 	US$
	 	%	 	 
	 

	 	 	 	 	 	 
	 	 
	 	 

	 

	 	 
	 	Canadian Commitment
	 	  C$
	 	  C$
	 	%	 	 
	 

	 	 	 	 	 	 
	 	 
	 	 

[7. Trade Date: ___]11

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

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

	 	 	 	 	 	 	 
	 	 	ASSIGNOR	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

 

			
	6	 	List each Assignor, as appropriate.
	 
	7	 	List each Assignee, as appropriate.
	 
	8	 	Fill in the appropriate terminology for
the types of facilities under the Credit Agreement that are being assigned
under this Assignment (e.g. “Revolving Credit Commitment”,
“Term Loan”, “Canadian Commitment”).
	 
	9	 	Amounts in this column and in the
column immediately to the right to be adjusted by the counterparties to take
into account any payments or prepayments made between the Trade Date and the
Effective Date.
	 
	10	 	Set forth, to at least 9 decimals, as
a percentage of the Commitment/Loans of all Lenders thereunder.
	 
	11	 	To be completed if the Assignor and
the Assignee intend that the minimum assignment amount is to be determined as
of the Trade Date.

 

 

	 	 	 	 	 	 	 
	[Consented to and]12 Accepted:
	 
	 	 	 	 	 	 
	BANK OF AMERICA, N.A., as
	  Administrative Agent
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	[Consented to:]13
	 
	 	 	 	 	 	 
	BANK OF AMERICA, N.A., as Issuing Lender
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	LANCE, INC.
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 

 

			
	12	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	13	 	To be added only if the consent of the
Borrower and/or other parties (e.g. Issuing Lender) is required by the terms of
the Credit Agreement.

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

CREDIT AGREEMENT DATED AS OF OCTOBER 20, 2006 WITH LANCE, INC. AND

TAMMING FOODS LTD.

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

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

          1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all the requirements to be an assignee under Section
12.6(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents,
if any, as may be required under Section 12.6(b)(iii) of the Credit Agreement), (iii) from
and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a
Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to Section 7.1 thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it
has, independently and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and
information as it

 

 

shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all
of the obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

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

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

 

 

EXHIBIT E-1

FORM OF TERM NOTE

			
	US$                    
	 	                    , ___
	 	 	 

          FOR VALUE RECEIVED, the undersigned, LANCE, INC. (the “Company”), hereby promises to
pay to the order of                      (the “Lender”) the principal sum of
                     U.S. Dollars (US$                    ) or, if less, the aggregate unpaid principal amount
of the Term Loans made by the Lender to the Company pursuant to the Credit Agreement, dated as of
October 20, 2006 (as amended or otherwise modified from time to time, the “Credit
Agreement”), among the Company, Tamming Foods Ltd., various financial institutions, and Bank of
America, National Association, as Administrative Agent and Canadian Agent, on the dates and in the
amounts provided in the Credit Agreement. The Company further promises to pay interest on the
unpaid principal amount of the Term Loans evidenced hereby from time to time at the rates, on the
dates, and otherwise as provided in the Credit Agreement.

          The Lender is authorized to endorse the amount and the date on which the Term Loan is made and
each payment of principal with respect thereto on the schedules annexed hereto and made a part
hereof, or on continuations thereof which shall be attached hereto and made a part hereof; provided
that any failure to endorse such information on such schedule or continuation thereof shall not in
any manner affect any obligation of the Company under the Credit Agreement and this Promissory Note
(this “Note”).

          This Note is one of the Notes referred to in, and is entitled to the benefits of, the Credit
Agreement, which Credit Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events.

          Terms defined in the Credit Agreement are used herein with their defined meanings therein
unless otherwise defined herein. This Note shall be governed by, and construed and interpreted in
accordance with, the laws of the State of North Carolina without regard to the conflicts or choice
of law principles thereof.

 

 

          IN WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Schedule A to Note

U.S. BASE RATE LOANS AND REPAYMENTS OF

U.S. BASE RATE LOANS

	 	 	 	 	 	 	 
	 	 	(2)	 	(3)	 	 
	 	 	Amount of	 	Amount of	 	(4)
	(1)	 	U.S. Base	 	U.S. Base Rate	 	Notation
	Date	 	Rate Loan	 	Loan Repaid	 	Made By
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

 

 

Schedule B to Note

EURODOLLAR RATE LOANS AND REPAYMENTS

OF EURODOLLAR RATE LOANS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(3)	 	(4)	 	 
	 	 	(2)	 	Interest	 	Amount of	 	 
	 	 	Amount of	 	Period for	 	Eurodollar	 	(5)
	(1)	 	Eurodollar	 	Eurodollar	 	Rate	 	Notation
	Date	 	Rate Loan	 	Rate Loan	 	Loan Repaid	 	Made By
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

 

EXHIBIT E-2

FORM OF U.S. REVOLVING CREDIT NOTE

			
	US$                    
	 	                    , ___
	 	 	 

          FOR VALUE RECEIVED, the undersigned, LANCE, INC. (the “Company”), hereby promises to
pay to the order of                      (the “Lender”) the principal sum of
                     U.S. Dollars (US$                    ) or, if less, the aggregate unpaid principal amount
of all U.S. Loans made by the Lender to the Company pursuant to the Credit Agreement, dated as of
October 20, 2006 (as amended or otherwise modified from time to time, the “Credit
Agreement”), among the Company, Tamming Foods Ltd., various financial institutions, and Bank of
America, National Association, as Administrative Agent and Canadian Agent, on the dates and in the
amounts provided in the Credit Agreement. The Company further promises to pay interest on the
unpaid principal amount of the U.S. Revolving Credit Loans evidenced hereby from time to time at
the rates, on the dates, and otherwise as provided in the Credit Agreement.

          The Lender is authorized to endorse the amount and the date on which each U.S. Revolving
Credit Loan is made and each payment of principal with respect thereto on the schedules annexed
hereto and made a part hereof, or on continuations thereof which shall be attached hereto and made
a part hereof; provided that any failure to endorse such information on such schedule or
continuation thereof shall not in any manner affect any obligation of the Company under the Credit
Agreement and this Promissory Note (this “Note”).

          This Note is one of the Notes referred to in, and is entitled to the benefits of, the Credit
Agreement, which Credit Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events.

          Terms defined in the Credit Agreement are used herein with their defined meanings therein
unless otherwise defined herein. This Note shall be governed by, and construed and interpreted in
accordance with, the laws of the State of North Carolina without regard to the conflicts or choice
of law principles thereof.

 

 

          IN WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	LANCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Schedule A to Note

U.S. BASE RATE LOANS AND REPAYMENTS OF

U.S. BASE RATE LOANS

	 	 	 	 	 	 	 
	 	 	(2)	 	(3)	 	 
	 	 	Amount of	 	Amount of	 	(4)
	(1)	 	U.S. Base	 	U.S. Base Rate	 	Notation
	Date	 	Rate Loan	 	Loan Repaid	 	Made By
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

 

 

Schedule B to Note

EURODOLLAR RATE LOANS AND REPAYMENTS

OF EURODOLLAR RATE LOANS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	(3)	 	(4)	 	 
	 	 	(2)	 	Interest	 	Amount of	 	 
	 	 	Amount of	 	Period for	 	Eurodollar	 	(5)
	(1)	 	Eurodollar	 	Eurodollar	 	Rate	 	Notation
	Date	 	Rate Loan	 	Rate Loan	 	Loan Repaid	 	Made By
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

 

EXHIBIT E-3

FORM OF CANADIAN NOTE

			
	C$                    
	 	                    , ___
	 	 	 

          FOR VALUE RECEIVED, the undersigned, TAMMING FOODS LTD. (the “Canadian Borrower”),
hereby promises to pay to the order of                      (the “Lender”) the
principal sum of                      Canadian Dollars (C$                    ) or, if less, the aggregate
unpaid principal amount of all Canadian Loans made by the Lender to the Canadian Borrower pursuant
to the Credit Agreement, dated as of October 20, 2006 (as amended or otherwise modified from time
to time, the “Credit Agreement”), among Lance, Inc., the Canadian Borrower, various
financial institutions, and Bank of America, National Association, as Administrative Agent and
Canadian Agent, on the dates and in the amounts provided in the Credit Agreement. The Canadian
Borrower further promises to pay interest on the unpaid principal amount of the Canadian Loans
evidenced hereby from time to time at the rates, on the dates, and otherwise as provided in the
Credit Agreement.

          The Lender is authorized to endorse the amount and the date on which each Canadian Loan is
made and each payment of principal with respect thereto on the schedules annexed hereto and made a
part hereof, or on continuations thereof which shall be attached hereto and made a part hereof;
provided that any failure to endorse such information on such schedule or continuation thereof
shall not in any manner affect any obligation of the Canadian Borrower under the Credit Agreement
and this Promissory Note (this “Note”).

          This Note is one of the Notes referred to in, and is entitled to the benefits of, the Credit
Agreement, which Credit Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and the guaranty hereof by Lance, Inc.

          Terms defined in the Credit Agreement are used herein with their defined meanings therein
unless otherwise defined herein. This Note shall be governed by, and construed and interpreted in
accordance with, the laws of the State of North Carolina without regard to the conflicts or choice
of law principles thereof.

 

 

          IN WITNESS WHEREOF, the Canadian Borrower has caused this Note to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	TAMMING FOODS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

Schedule A to Note

CANADIAN PRIME RATE LOANS AND REPAYMENTS OF

CANADIAN PRIME RATE LOANS

	 	 	 	 	 	 	 
	 	 	 	 	(3)	 	 
	 	 	(2)	 	Amount of	 	 
	 	 	Amount of	 	Canadian Prime	 	(4)
	(1)	 	Canadian Prime	 	Rate Loan	 	Notation
	Date	 	Rate Loan	 	Repaid	 	Made By
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

 

 

EXHIBIT F

FORM OF

CANADIAN BA EQUIVALENT NOTE

			
	C$                     
	 	Date:                     
	 	 	 

          The undersigned refers to the Credit Agreement dated as of October 20, 2006 among Lance, Inc.,
Tamming Foods Ltd., various financial institutions, and Bank of America, National Association, as
Administrative Agent and Canadian Agent (as amended, modified or restated from time to time, the
“Credit Agreement”). All capitalized terms set forth herein and not otherwise defined have
the respective meanings specified in the Credit Agreement.

          For value received, the undersigned promises to pay on                      or on such earlier date
as such amount may become due pursuant to the provisions of the Credit Agreement (the “Maturity
Date”), to or to the order of                      (the “Holder”), the sum of
C$                     , without interest until the Maturity Date, and thereafter, with interest in accordance
with the Credit Agreement.

          The undersigned hereby waives presentment, protest and notice of every kind and waives any
defense based upon indulgences which may be granted by the Holder to the undersigned and waives any
days of grace.

          Payment of this note shall be made in Canadian Dollars in immediately available funds. This
note evidences debt incurred under, is secured as provided in, and is subject to the terms and
provisions of, the Credit Agreement.

     [This note shall be governed by the laws of the Province of Ontario and the laws of Canada
applicable in such Province.]

	 	 	 	 	 	 	 
	 	 	TAMMING FOODS LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:EX-4.3

 

EXHIBIT 4.3

 

 

 

THE E.W. SCRIPPS COMPANY,

Issuer

TO

U.S. BANK NATIONAL ASSOCIATION,

Trustee

 

Indenture

Dated as of October 26, 2006

 

 

 

 

THE E.W. SCRIPPS COMPANY

Certain Sections of this Indenture relating to Sections 310 through 318,

inclusive, of the Trust Indenture Act of 1939:

	 	 	 
	Trust Indenture     	 	 
	Act Section     	 	Indenture Section
	§310(a)(1) 
	 	609
	(a)(2) 
	 	609
	(a)(3) 
	 	Not Applicable
	(a)(4) 
	 	Not Applicable
	(b)
	 	608, 610
	§311(a)
	 	613
	(b)
	 	613
	§312(a)
	 	701, 702(a)
	(b)
	 	702(b)
	(c)
	 	702(c)
	§313(a)
	 	703(a)
	(b)
	 	703(a)
	(c)
	 	703(a)
	(d)
	 	703(b)
	§314(a) 
	 	704
	(a)(4) 
	 	1007
	(b)
	 	Not Applicable
	(c)(l) 
	 	102
	(c)(2) 
	 	102
	(c)(3) 
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	§315(a)
	 	601
	(b)
	 	602
	(c)
	 	601
	(d)
	 	601
	(e)
	 	514
	§316(a) 
	 	101
	(a)(1)(A) 
	 	502, 512
	(a)(1)(B) 
	 	513
	(a)(2) 
	 	Not Applicable
	(b)
	 	508
	(c)
	 	104(c)
	§317(a)(1) 
	 	503
	(a)(2) 
	 	504
	(b)
	 	1003
	§318(a)
	 	107

 

			
	 	 	NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

1

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1
	Section 101. Definitions
	 	 	1
	Act
	 	 	2
	Affiliate
	 	 	2
	Authenticating Agent
	 	 	2
	Board of Directors
	 	 	2
	Board Resolution
	 	 	2
	Business Day
	 	 	2
	Commission
	 	 	2
	Company
	 	 	2
	Company Request or Company Order
	 	 	2
	Corporate Trust Office
	 	 	2
	corporation
	 	 	2
	Defaulted Interest
	 	 	2
	Depository
	 	 	3
	Event of Default
	 	 	3
	Foreign Government Obligations
	 	 	3
	Global Security
	 	 	3
	Holder
	 	 	3
	Indenture
	 	 	3
	interest
	 	 	3
	Interest Payment Date
	 	 	3
	Maturity
	 	 	4
	Officers’ Certificate
	 	 	4
	Opinion of Counsel
	 	 	4
	Original Issue Discount Security
	 	 	4
	Outstanding
	 	 	4
	Paying Agent
	 	 	5
	Person
	 	 	5
	Place of Payment
	 	 	5
	Predecessor Security
	 	 	5
	Redemption Date
	 	 	5
	Redemption Price
	 	 	5
	Regular Record Date
	 	 	5
	Responsible Officer
	 	 	5
	Securities
	 	 	6
	Security Register and Security Registrar
	 	 	6
	Special Record Date
	 	 	6
	Stated Maturity
	 	 	6
	Subsidiary
	 	 	6
	Trustee
	 	 	6
	Trust Indenture Act
	 	 	6

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	     U.S. Government Obligation	 	 	6	 
	     Vice President	 	 	7	 
	Section 102.
	 	Compliance Certificates and Opinions	 	 	7	 
	Section 103.
	 	Form of Documents Delivered to Trustee	 	 	7	 
	Section 104.
	 	Acts of Holders; Record Dates	 	 	8	 
	Section 105.
	 	Notices, Etc., to Trustee and Company	 	 	9	 
	Section 106.
	 	Notice to Holders; Waiver	 	 	9	 
	Section 107.
	 	Conflict with Trust Indenture Act	 	 	10	 
	Section 108.
	 	Effect of Headings and Table of Contents	 	 	10	 
	Section 109.
	 	Successors and Assigns	 	 	10	 
	Section 110.
	 	Separability Clause	 	 	10	 
	Section 111.
	 	Benefits of Indenture	 	 	10	 
	Section 112.
	 	Governing Law; Waiver of Jury Trial	 	 	10	 
	Section 113.
	 	Legal Holidays	 	 	11	 
	Section 114.
	 	Personal Immunity from Liability for Incorporators, Stockholders, Etc	 	 	11	 
	Section 115.
	 	Force Majeure	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE TWO SECURITY FORMS	 	 	11	 
	 
	Section 201.
	 	Forms Generally	 	 	11	 
	Section 202.
	 	Form of Face of Security	 	 	12	 
	Section 203.
	 	Form of Reverse of Security	 	 	14	 
	Section 204.
	 	Form of Trustee’s Certificate of Authentication	 	 	18	 
	Section 205.
	 	Additional Provisions Required in Global Security	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE THREE THE SECURITIES	 	 	19	 
	 
	Section 301.
	 	Amount Unlimited; Issuable in Series	 	 	19	 
	Section 302.
	 	Denominations	 	 	21	 
	Section 303.
	 	Execution, Authentication, Delivery and Dating	 	 	21	 
	Section 304.
	 	Temporary Securities	 	 	23	 
	Section 305.
	 	Registration, Registration of Transfer and Exchange	 	 	23	 
	Section 306.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	25	 
	Section 307.
	 	Payment of Interest; Interest Rights Preserved	 	 	25	 
	Section 308.
	 	Persons Deemed Owners	 	 	26	 
	Section 309.
	 	Cancellation	 	 	27	 
	Section 310.
	 	Computation of Interest	 	 	27	 
	Section 311.
	 	CUSIP Numbers	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE FOUR SATISFACTION AND DISCHARGE SECTION	 	 	28	 
	 
	Section 401.
	 	Satisfaction and Discharge of Indenture	 	 	28	 
	Section 402.
	 	Application of Trust Money	 	 	29	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE FIVE REMEDIES	 	 	30	 
	 
	Section 501.
	 	Events of Default	 	 	30	 
	Section 502.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	31	 
	Section 503.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	32	 
	Section 504.
	 	Trustee May File Proofs of Claim	 	 	32	 
	Section 505.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	33	 
	Section 506.
	 	Application of Money Collected	 	 	33	 
	Section 507.
	 	Limitation on Suits	 	 	33	 
	Section 508.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	34	 
	Section 509.
	 	Restoration of Rights and Remedies	 	 	34	 
	Section 510.
	 	Rights and Remedies Cumulative	 	 	35	 
	Section 511.
	 	Delay or Omission Not Waiver	 	 	35	 
	Section 512.
	 	Control by Holders	 	 	35	 
	Section 513.
	 	Waiver of Past Defaults	 	 	36	 
	Section 514.
	 	Undertaking for Costs	 	 	36	 
	Section 515.
	 	Waiver of Stay or Extension Laws	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE SIX THE TRUSTEE	 	 	37	 
	 
	Section 601.
	 	Certain Duties and Responsibilities	 	 	37	 
	Section 602.
	 	Notice of Defaults	 	 	37	 
	Section 603.
	 	Certain Rights of Trustee	 	 	37	 
	Section 604.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	39	 
	Section 605.
	 	May Hold Securities	 	 	39	 
	Section 606.
	 	Money Held in Trust	 	 	39	 
	Section 607.
	 	Compensation and Reimbursement	 	 	39	 
	Section 608.
	 	Disqualification; Conflicting Interests	 	 	40	 
	Section 609.
	 	Corporate Trustee Required; Eligibility	 	 	40	 
	Section 610.
	 	Resignation and Removal; Appointment of Successor	 	 	40	 
	Section 611.
	 	Acceptance of Appointment by Successor	 	 	41	 
	Section 612.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	42	 
	Section 613.
	 	Preferential Collection of Claims Against Company	 	 	43	 
	Section 614.
	 	Appointment of Authenticating Agent	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	44	 
	 
	Section 701.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	44	 
	Section 702.
	 	Preservation of Information; Communications to Holders	 	 	45	 
	Section 703.
	 	Reports by Trustee	 	 	45	 
	Section 704.
	 	Reports by Company	 	 	45	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	46	 
	 
	Section 801.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	46	 
	Section 802.
	 	Successor Corporation Substituted	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE NINE SUPPLEMENTAL INDENTURES	 	 	47	 
	 
	Section 901.
	 	Supplemental Indentures Without Consent of Holders	 	 	47	 
	Section 902.
	 	Supplemental Indentures with Consent of Holders	 	 	48	 
	Section 903.
	 	Execution of Supplemental Indentures	 	 	49	 
	Section 904.
	 	Effect of Supplemental Indentures	 	 	49	 
	Section 905.
	 	Conformity with Trust Indenture Act	 	 	49	 
	Section 906.
	 	Reference in Securities to Supplemental Indentures	 	 	50	 
	Section 907.
	 	Waiver of Compliance by Holders	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE TEN COVENANTS	 	 	50	 
	 
	Section 1001.
	 	Payment of Principal Premium and Interest	 	 	50	 
	Section 1002.
	 	Maintenance of Office or Agency	 	 	50	 
	Section 1003.
	 	Money for Securities Payments to Be Held in Trust	 	 	51	 
	Section 1004.
	 	Corporate Existence	 	 	52	 
	Section 1005.
	 	Reserved	 	 	52	 
	Section 1006.
	 	Defeasance and Covenant Defeasance	 	 	52	 
	Section 1007.
	 	Statement by Officers as to Default	 	 	55	 
	Section 1008.
	 	Waiver of Certain Covenants	 	 	56	 
	Section 1009.
	 	Calculation of Original Issue Discount	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE ELEVEN REDEMPTION OF SECURITIES	 	 	56	 
	 
	Section 1101.
	 	Applicability of Article	 	 	56	 
	Section 1102.
	 	Election to Redeem; Notice to Trustee	 	 	56	 
	Section 1103.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	56	 
	Section 1104.
	 	Notice of Redemption	 	 	57	 
	Section 1105.
	 	Deposit of Redemption Price	 	 	58	 
	Section 1106.
	 	Securities Payable on Redemption Date	 	 	58	 
	Section 1107.
	 	Securities Redeemed in Part	 	 	58	 
	 
	 	 	 	 	 	 
	ARTICLE TWELVE SINKING FUNDS	 	 	59	 
	 
	Section 1201.
	 	Applicability of Article	 	 	59	 
	Section 1202.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	59	 
	Section 1203.
	 	Redemption of Securities for Sinking Fund	 	 	59	 

-iv-

 

     INDENTURE, dated as of October 26, 2006, between The E.W. Scripps Company, an Ohio corporation
having its principal office at 312 Walnut Street, Suite 2800, Cincinnati, Ohio 45202 (the
“Company”), and U.S. Bank National Association, a national banking association duly organized and
existing under the laws of the United States of America, having its designated corporate trust
office at 100 Wall Street, Suite 1600, New York, New York 10005, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes or other evidences of
indebtedness (herein called the “Securities”), to be issued in one or more series as in this
Indenture provided.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities or of series thereof, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 101. Definitions

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

               (1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

               (2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

               (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term “generally accepted accounting principles” with respect
to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; and

 

 

               (4) the words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other
subdivision.

     “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board.

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

     “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday,
Wednesday, Thursday and Friday that is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law or executive order to close.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties at such time.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its President or one of its Vice Presidents, and by its
Treasurer, its Secretary or one of its Assistant Secretaries, and delivered to the Trustee.

     “Corporate Trust Office” means the office of the Trustee, at which at any particular time its
corporate trust business shall be principally administered, which office at the date of this
Indenture is located at 100 Wall Street, Suite 1600, New York, New York 10005.

     “corporation” means a corporation, association, company, limited liability company,
joint-stock company or business (including Delaware statutory) trust.

     “Defaulted Interest” has the meaning specified in Section 307.

2

 

     “Depository” means, with respect to any Security issuable or issued in the form of one or more
Global Securities, the Person designated as Depository by the Company in or pursuant to this
Indenture, which Person must be, to the extent required by applicable law or regulation, a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and, if so provided with
respect to any Security, any successor to such Person. If at any time there is more than one such
person, “Depository” shall mean, with respect to any Securities, the qualifying entity that has
been appointed with respect to such Securities.

     “Event of Default” has the meaning specified in Section 501.

     “Foreign Government Obligations” means (x) any security that is (i) a direct obligation of the
government that issued such currency for the payment of which the full faith and credit of such
government is pledged or (ii) an obligation of a Person controlled or supervised by and acting as
an agency or instrumentality for such government the payment of which is unconditionally guaranteed
as a full faith and credit obligation by such government, which, in either case (i) or (ii), is not
callable or redeemable at the option of the issuer thereof, and (y) any depositary receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian
(I) with respect to any specific payment of principal of or interest on any such Foreign Government
Obligation specified in Clause (x) of this definition of Foreign Government Obligation and held by
such custodian for the account of the holder of such depositary receipt, or (II) with respect to
any specific payment of principal of or interest on any such Foreign Government Obligation,
provided that (except as required by law) such custodian is not authorized to make any deduction
from the amount payable to the holder of such depositary receipt from any amount received by the
custodian in respect of the Foreign Government Obligation or the specific payment of principal or
interest evidenced by such depositary receipt.

     “Global Security” means a Security in the form prescribed in Section 205 evidencing all or a
part of any series of Securities which is executed by the Company and authenticated and delivered
by the Trustee to the Depository or pursuant to the Depository’s instruction, all in accordance
with this Indenture and pursuant to a Company Order, which shall be registered in the name of the
Depository or its nominee.

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities established as contemplated by
Section 201.

     “interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date,” when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

3

 

     “Maturity,” when used with respect to any Security, means the date on which the principal of
such Securities or an installment of principal becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.

     “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice
Chairman of the Board, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Corporate Secretary or an Assistant Corporate Secretary, of the Company, and
delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for (including an
employee of) the Company, and who shall be reasonably acceptable to the Trustee in the case of
opinions delivered pursuant to Section 401 and, in all other cases, to the Company and the Trustee.

     “Original Issue Discount Security” means any Security which provides for an amount less than
the principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

     “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

               (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

               (ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust
or set aside and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities; provided that, if such Securities are to
be redeemed, notice of such redemption has been
duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made;

               (iii) Securities for whose payment or redemption money or U.S. Government Obligations
in the necessary amount has been theretofore deposited with the Trustee (or another trustee
satisfying the requirements of Section 609) in trust for the Holders of such Securities in
accordance with Section 1006; and

               (iv) Securities which have been paid pursuant to Section 306 or in exchange for or in
lieu of which other Securities have been authenticated and delivered pursuant to this
Indenture other than any such Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities are held by a bona fide
purchaser in whose hands such Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, any request, demand, authorization, direction, notice, consent
or waiver hereunder, (i) the principal amount of an Original Issue Discount Security that

4

 

shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof pursuant to Section
502, (ii) the principal amount of a Security denominated in one or more foreign currencies or
currency units shall be the U.S. dollar equivalent, determined in the manner provided as
contemplated by Section 301 on the date of original issuance of such Security, of the principal
amount (or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent on the
date of original issuance of such Security of the amount determined as provided in (i) above) of
such Security, and (iii) Securities owned by the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities which a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities on behalf of the Company.

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

     “Place of Payment,” when used with respect to the Securities of any series, means the place or
places where the principal of (and premium, if any) and interest on the Securities of that series
are payable as specified as contemplated by Section 301.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

     “Redemption Date,” when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price,” when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

     “Responsible Officer”, when used with respect to the Trustee, shall mean any officer within
the corporate trust department (or any successor group of the Trustee), including any
vice-president, assistant vice president, or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons who at the time shall

5

 

be such officers or to whom any corporate trust matter is referred at the Corporate Trust Office
because of his knowledge of and familiarity with the particular subject.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Securities Laws” means the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, and the Trust Indenture Act, and any rules and regulations promulgated
thereunder.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
305.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

     “Stated Maturity”, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the
purposes of this definition, “voting stock” means stock which ordinarily has voting power for
the election of directors, whether at all times or only as long as no senior class of stock has
such voting power by reason of any contingency.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean the Trustee with respect to Securities of that series.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such
amendment, the Trust Indenture Act of 1939 as so amended.

     “U.S. Government Obligation” means (x) any security that is (i) a direct obligation of the
United States of America for the payment of which the full faith and credit of the United States of
America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an
agency or instrumentality for the United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of America, which, in either
case (i) or (ii), is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933,
as amended) as custodian (I) with respect to any specific payment of principal of or interest on
any such U.S. Government Obligation specified in clause (x) of this definition of U.S.

6

 

Government Obligation and held by such custodian for the account of the holder of such depositary receipt, or
(II) with respect to any specific payment of principal of or interest on any such U.S. Government
Obligation, provided that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depositary receipt from any amount received
by the custodian in respect of the U.S. Government Obligation or the specific payment of principal
or interest evidenced by such depositary receipt.

     “Vice President,” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president”.

Section 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee such certificates and
opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall
be given in the form of an Officers’ Certificate, if to be given by an officer of the Company, or
an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the
Trust Indenture Act and any other requirements set forth in this Indenture.

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

               (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

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

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

               (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 103. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

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     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 104. Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing, or by any Person duly authorized by means of any written certification,
proxy or other authorization furnished by a Depository; and, except as
herein otherwise expressly provided, such action shall become effective when such instrument
or instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments or,
in the case of the Depository, furnishing the written certification, proxy or other authorization
pursuant to which such instrument or instruments are signed. Proof of execution of any such
instrument, any writing appointing any such agent or authorizing any such Person or any such
written certification or proxy shall be sufficient for any purpose of this Indenture and (subject
to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided
in this Section.

     (b) The fact and date of the execution by any Person of any such instrument, writing,
certification or proxy may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument, writing, certification or proxy
acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also constitute sufficient
proof of his authority. The fact and date of the execution of any such instrument, writing,
certification or proxy or the authority of the Person executing the same, may also be proved in any
other manner which the Trustee deems sufficient.

     (c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any date
as the record date for the purpose of determining the Holders of Securities of any series entitled
to give or take any request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken by Holders of
Securities of such series. If not set by the Company prior to the first solicitation of a Holder of

8

 

Securities of such series made by any Person in respect of any such action, or, in the case of any
such vote, prior to such vote, the record date for any such action or vote shall be the 30th day
(or, if later, the date of the most recent list of Holders required to be provided pursuant to
Section 701) prior to such first solicitation or vote, as the case may be. With regard to any
record date for action to be taken by the Holders of one or more series of Securities, only the
Holders of Securities of such series on such date (or their duly designated proxies) shall be
entitled to give or take, or vote on, the relevant action.

     (d) The ownership of Securities shall be proved by the Security Register.

     (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

Section 105. Notices, Etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

               (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (including telecopy) to or with the
Trustee at its Corporate Trust Office, Attention: Corporate Trust Services, or

               (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing (including telecopy)
and mailed, first-class postage prepaid, to the Company, Attention: Treasurer, addressed to
the Company at the address of its principal office specified in the first paragraph of this
instrument or at any other address previously furnished in writing to the Trustee by the
Company.

Section 106. Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any time such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Where this Indenture provides for notice in any manner, notice may be waived in writing by the
Person entitled to receive notice, either before or after the event, and such waiver shall be
equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver.

9

 

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 107. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies, or conflicts with a provision of the Trust
Indenture Act that is required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the latter provision shall be deemed
to apply to this Indenture as so modified be excluded, as the case may be.

Section 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 110. Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 111. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

Section 112. Governing Law; Waiver of Jury Trial.

     This Indenture and the Securities shall be governed by and construed in accordance with the
internal laws of the State of New York, without regard to conflicts of laws principles thereof.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTION CONTEMPLATED HEREBY.

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Section 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, Maturity or Stated Maturity of
any Securities shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states that such provision shall apply in lieu of this Section) payment
of interest or principal (and premium, if any) need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or Redemption Date or at the Maturity or
Stated Maturity, provided that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date, Maturity or Stated Maturity, as the case may be.

Section 114. Personal Immunity from Liability for Incorporators, Stockholders, Etc.

     No recourse shall be had for the payment of the principal of or premium, if any, or interest,
if any, on any Security, or for any claim based thereon, or otherwise in respect of any Security,
or based on or in respect of this Indenture or any indenture supplemental hereto, against any
incorporator, or against any past, present or future stockholder, director, officer, employee or
agent, as such, of the Company or of any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being expressly waived and released as a condition of, and as
consideration for, the execution of this Indenture and the issue of the Securities.

Section 115. Force Majeure.

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

ARTICLE TWO

SECURITY FORMS

Section 201. Forms Generally.

     The Securities of each series shall be in substantially the form set forth in Sections 202 and
203 hereof, or in such other form as shall be established by or pursuant to a Board Resolution, or
an Officers’ Certificate executed by officers of the Company authorized by Board Resolution, or in
one or more indentures supplemental hereto, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by this

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Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by
their execution of the Securities. If the form of Securities of any series is established by action
pursuant to a Board Resolution, or an Officers’ Certificate executed by officers of the Company
authorized by Board Resolution, a copy of an appropriate record of such action shall be certified
by the Corporate Secretary or an Assistant Corporate Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of Securities.

     The definitive Securities shall be printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in any other manner, all
as determines the officers executing such Securities, as evidenced by their execution such
Securities.

Section 202. Form of Face of Security.

     [Insert any legend required by the Internal Revenue Code and the regulations thereunder, the
Securities Laws, or Section 205 hereof.]

THE E.W. SCRIPPS COMPANY

(Title of Security)

	 	 	 
	No. ___

	 	$___

CUSIP NO. _______

     THE E.W. SCRIPPS COMPANY, an Ohio corporation (herein called the “Company”), for value
received, hereby promises to pay to ___, or registered assigns, the principal sum
of _____ [Dollars] [If applicable, substitute other currency] on
_____ [If the Security is to bear interest prior to Maturity, insert— and to
pay interest thereon from ___ or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, [semi-annually on ___ and ___ in each
year] [If other than semi-annual payments, insert— frequency of payments and payment dates],
commencing ___, at the rate of ___% per annum [or describe formula to calculate rate, e.g.
commercial paper rate], until the principal hereof is paid or made available for payment. [If
applicable insert—, and (to the extent that the payment of such interest shall be legally
enforceable) at the rate of ___% per annum on any overdue principal [and premium] and on any
overdue installment of interest]. [If applicable, insert — The amount of interest payable for any
period shall be computed on the basis of twelve 30-day months and a 360-day year.] The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest,
which shall be the ___ or (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for
will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid
to the Person in whose name this Security (or one or more Predecessor Securities) is registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest to be

12

 

fixed by the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 calendar days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Securities of this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture].

     [If the Security is not to bear interest prior to Maturity, insert—The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of ___% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of such default in
payment to the date payment of such principal has been made or duly provided for. Interest on any
overdue principal shall be payable on demand.]

     Payment of the principal of (and premium, if any) and [if applicable insert— any such]
interest on this Security will be made at the office or agency of the Paying Agent maintained for
that purpose in New York, New York, in such coin or currency [of the United States of America] [if
applicable, substitute other currency] as at the time of payment is legal tender for payment of
public and private debts [if applicable, insert—; provided, however, that at the option of the
Company payment of interest may be made by (i) check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register, or (ii) by wire transfer in
immediately available funds at such place and to such account as may be designated in writing by
the Person entitled thereto as specified in the Security Register at least fifteen days prior to
the relevant Interest Payment Date.]

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed the Trustee referred to on
the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

[SEAL]

	 	 	 	 	 
	 	THE E.W. SCRIPPS COMPANY

 	 
	 	By  	 	 
	 	 	 	 
	 	 	 	 
	 

Attest:

______________________________

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Section 203. Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
October 26, 2006 (herein called the “Indenture”), between the Company and U.S. Bank National
Association (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof [if applicable, insert — [initially], limited in aggregate principal
amount to $                                        ; provided, however, that the authorized aggregate principal amount of the
securities may be increased above such amount by a Board Resolution to such effect].

     [If applicable, insert—The Securities of this series are subject to redemption upon not less
than 30 calendar days’ nor more than 60 calendar days’ notice by mail, [if applicable, insert—(1)
on                                          in any year commencing with the year ... and ending with the year                      through
operation of the sinking fund for this series at a Redemption Price equal to 100% of the principal
amount, [and (2)] [If applicable, insert — at any time [on or after                                         ], as a whole or
in part, at the election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed [on or before                                         ,                     %, and if,
redeemed] during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Redemption	 	 	 	 	 
	 	 	 	 	 	 	Year	 	 	Price	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ....% of the principal amount, together in the case
of any such redemption [if applicable, insert—(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated
Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the relevant Record
Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert—The Securities of this series are subject redemption upon not less
than 30 calendar days’ nor more than 60 calendar days’ notice by mail, (1) on ___in any year
commencing with the year ___and ending with the year ___through operation of the sinking fund
for this series at the Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below, and (2) at any
time [on or after ___], as a whole or in part, at the election of the Company, at the
Redemption Prices for redemption otherwise than through operation of the sinking fund

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(expressed as percentages of the principal amount) set forth in the table below: If redeemed during
the 12-month period beginning          of the years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Redemption Price	 
	 	 	Redemption Price	 	 	for Redemption	 
	 	 	for Redemption	 	 	Otherwise	 
	 	 	Through	 	 	Than Through	 
	 	 	Operation	 	 	Operation of	 
	 	 	of the	 	 	the	 
	Year	 	Sinking Fund	 	 	Sinking Fund	 
	 
	 	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to Redemption Date, but interest installments whose Stated Maturity or prior to such
Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.]

     [If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
___, redeem any Securities of this series as contemplated by [if applicable, insert — Clause
(2) of] the preceding paragraph as a part of, or, in anticipation of, any refunding operation by
the application, directly or indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less than ___% per
annum.]

     [If applicable, insert — The sinking fund for this series provides for the redemption on
___in each year beginning with the year ___to and ending with the year ___of [not
less than] $___[(“mandatory sinking fund”) and not more than $___] aggregate principal
amount of Securities of this series. [Securities of this series acquired or redeemed by the Company
otherwise than through [mandatory] sinking fund payments may be credited against subsequent
[mandatory] sinking fund payments otherwise required to be made [if applicable—in the inverse
order in which they become due.]]

     [If this Security is subject to redemption,—In the event of redemption of this Security in
part only, a new Security or Securities of this series for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]

     [If applicable, insert — The Securities of this series are not subject to redemption by the
Company prior to their Stated Maturity and will not be entitled to the benefit of any sinking
fund.]

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     [If the Security is not an Original Issue Discount Security,—If an Event of Default with
respect to Securities of this series shall occur and be continuing, the principal of the Securities
of this series may be declared due and payable in the manner and with the effect provided in the
Indenture.]

     [If the Security is an Original Issue Discount Security,—If an Event of Default with respect
to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to—insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the extent that the payment
of such interest shall be legally enforceable), all of the Company’s obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this series shall
terminate.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of not less than a majority in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate principal amount
of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, or the right of the Holder of this Security,
which is absolute and unconditional, to pay, or, in the case of the Holder of this Security, to
receive payment of, the principal of (and premium, if any) and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in
writing; and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $___and any integral multiple [thereof] [or $___in excess thereof].

16

 

As provided in the Indenture and subject to certain limitations therein set forth, Securities
of this series are exchangeable for other Securities of this series, of a like tenor and aggregate
principal amount but of a different authorized denomination, as requested by the Holder
surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company or the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Securities, other than exchanges pursuant to Section 304, 906 or 1107 of the Indenture not
involving any transfer.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     The Indenture provides that the Company, at the Company’s option, (a) will be discharged from
any and all obligations in respect of the Securities (except for certain obligations to register
the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain
paying agencies and hold moneys for payment in trust) or (b) need not comply with certain
restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the
Trustee money, or U.S. Government Obligations (or Foreign Government Obligations if the Securities
are denominated in a foreign currency or currencies) which through the payment of interest thereon
and principal thereof in accordance with their terms will provide money, in an amount sufficient to
pay all the principal (including any mandatory sinking fund payments) of, and (premium, if any) and
interest on, the Securities on the dates such payments are due in accordance with the terms of such
Securities, and certain other conditions are satisfied.

     No recourse shall be had for the payment of the principal of (and premium, if any) or interest
on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in
respect of the Indenture or any indenture supplemental thereto, against any incorporator,
stockholder, officer, employee, agent or director, as such, past, present or future, of the Company
or of any successor corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise, all such liability being, by the
acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Indenture and this Security shall be governed by and construed in accordance with the laws
of the State of New York without regard to conflicts of laws principles thereof.

17

 

Section 204. Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificate of authentication shall be in substantially the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	Dated: 	U.S. Bank National Association,

as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Section 205. Additional Provisions Required in Global Security.

     Any Global Security issued hereunder shall, in addition to the provisions contained in
Sections 202 and 203, bear the following legend (and/or such additional or alternate legend(s)
relative to the terms of Global Securities as the Depository may request or the Company authorize
in an Officers’ Certificate pursuant to Section 201):

     “This Security is a Global Security within the meaning of the Indenture hereinafter
referred to and is registered in the name of a Depository or a nominee of a Depository. This
Global Security exchangeable for Securities registered in the name of a person other than
the Depository or its nominee only in the limited circumstances hereinafter described and
may not be transferred except as a whole by the Depository to a nominee of the Depository to
the Depository or another nominee of the Depository.”

     In addition, any Global Security issued hereunder shall include a provision containing the
language set forth below, or language of similar effect:

     “This Security is a Global Security and shall be exchangeable for Securities registered
in the names of Persons other than the Depository with respect to this Global Security or
its nominee only if (x) such Depository notifies the Company that it is unwilling or unable
to continue as Depository for this Global Security or at any time ceases to be a clearing
agency registered as such under the Securities Exchange Act of 1934, as amended, if such
registration is required by applicable law or regulation, (y) the Company executes and
delivers to the Trustee a Company Order that this Global Security shall be exchangeable or
(z) there shall have occurred and be continuing an Event of Default with respect to the
Securities. If this Global Security is exchangeable pursuant to the preceding sentence it
shall be exchangeable for Securities issuable in denominations of $1,000 and any integral
multiple thereof, registered in such names as such Depository shall direct.”

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ARTICLE THREE

THE SECURITIES

Section 301. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. Prior to the issuance of Securities of any
series, there shall be (i) established in or pursuant to a Board Resolution and, subject to Section
303, set forth, or determined in the manner provided, in an Officers’ Certificate, or (ii)
established in one or more indentures supplemental hereto:

          (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from Securities or any other series);

          (2) any limit upon the aggregate principal amount of the Securities of the series which
may be authenticated and delivered under this Indenture (except for Securities authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Sections 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder);

          (3) the Person to whom any interest on a Security of the series shall be payable, if
other than the Person in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date of such interest;

          (4) the date or dates (or manner of determining the same) on which the principal of the
Securities of the series is payable;

          (5) the rate or rates (or manner of determining the same) at which the Securities of
the series shall bear interest, if any, the date or dates from which such interest shall
accrue, the Interest Payment Dates on which any such interest shall be payable and the
Regular Record Date for any interest payable on any Interest Payment Date;

          (6) whether the interest rate or interest rate formula, as the case may be, for
Securities of the series may be reset at the option of the Company and, if so, the date or
dates on which such interest rate or interest rate formula, as the case may be, may be used;

          (7) if other than as set forth herein, the place or places where the principal of (and
premium, if any) and interest on Securities of the series shall be payable;

19

 

          (8) the period or periods within which, the price or prices at which and the terms and
conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Company;

          (9) the obligation, if any, of the Company to redeem or purchase Securities of the
series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices at which the currency,
or currency unit in which, and the terms and conditions upon which Securities of the series
shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

          (10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

          (11) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

          (12) the currency, currencies or currency units in which payment of the principal of
and any premium and interest on any Securities of the series shall be payable if other than
the currency of the United States of America and the manner of determining the equivalent
thereof in the currency of the United States of America for purposes of the definition of
“Outstanding” in Section 101;

          (13) if the amount of payments of principal of (and premium, any) or interest on the
Securities of the series may be determined with reference to an index, the manner in which
such amounts shall be determined;

          (14) the application, if any, of Section 1006 to the Securities of the series;

          (15) if a Person other than U.S. Bank National Association is to act as Trustee for the
Securities of the series, the name and location of the Corporate Trust Office of such
Trustee;

          (16) if any of the Securities of the series are to be issued in whole or in part in the
form of one or more Global Securities, a statement to that effect and, in such case, the
Depository for such Global Security or Securities;

          (17) the extent and manner, if any, to which payment on or in respect of Securities of
the series will be senior or will be subordinated to the prior payment of other liabilities
and obligations of the Company;

          (18) the terms of any right to convert or exchange Securities of such series into any
other securities or property of the Company or of any other corporation or Person, and the
additions or changes, if any, to this Indenture with respect to the Securities of such
series to permit or facilitate such conversion or exchange; and

20

 

          (19) any other terms of the series.

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above.

     If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Corporate
Secretary or an Assistant Corporate Secretary of the Company and delivered to the Trustee at or
prior to the delivery of the Officers’ Certificate setting forth the terms of the series.

Section 302. Denominations.

     The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 301. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

Section 303. Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by any of its Chairman of the Board,
its President or one of its Vice Presidents, under its corporate seal reproduced thereon and
attested to by its Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company, to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and make
available for delivery such Securities. If the form or terms of the Securities of the series have
been established in or pursuant to one or more Board Resolutions as permitted by Sections 201 and
301, in authenticating such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall receive, and (subject to Section 601)
shall be fully protected in conclusively relying upon, an Opinion of Counsel stating,

     (a) if the form of such Securities has been established by or pursuant to Board Resolution as
permitted by Section 201, that such form has been established in conformity with the provisions of
this Indenture;

     (b) if the terms of such Securities have been established by or pursuant to Board Resolution
as permitted by Section 301, that such terms have been established in conformity with the
provisions of this Indenture;

21

 

     (c) that such Securities, when authenticated and delivered the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company, enforceable in accordance with
their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization and other
similar laws of general applicability relating to or affecting the enforcement of creditors’ rights
and to general equity principles; and

     (d) that all laws and requirements in respect of the execution and delivery by the Company of
such Securities have been complied with.

     With respect to Securities of a series constituting a medium-term note program, the Trustee may
conclusively rely on the documents and opinion delivered pursuant to Sections 201 and 301 and this
Section 303, as applicable (unless revoked by superseding comparable documents or opinions) as to
the authorization of the Board of Directors of any Securities delivered hereunder, the form thereof
and the legality, validity, binding effect and enforceability thereof. With respect to Securities
of a series constituting a medium-term note program, if the form and general terms of the
Securities of such series have been established by or pursuant to one or more Board Resolutions as
permitted by Sections 201 and 301, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled
to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of
Counsel stating, that the Securities have been duly authorized by the Company and, when duly
executed by the Company and completed and authenticated by the Trustee in accordance with the
Indenture and issued, delivered and paid for in accordance with any applicable distribution
agreement will have been duly issued under the Indenture and will constitute valid and binding
obligations of the Company entitled to the benefits provided by the Indenture, except that the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally from time to time in force and general
principles of equity. If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities pursuant to this Indenture
will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 801 or the Company Order
and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents are delivered at or prior
to the time of authentication upon original issuance of the first Security of such series.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security

22

 

shall have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 309, for all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

Section 304. Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company may execute, and
upon Company Order the Trustee shall authenticate and make available for delivery, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive, Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities.

     If temporary Securities of any series are issued, the Company will cause definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Company shall execute and (in accordance with a Company Order delivered at or prior to the
authentication of the first definitive Security of such series) the Trustee shall authenticate and
deliver in exchange therefor one or more definitive Securities of the same series, of authorized
denominations and of a like aggregate principal amount and tenor. Until so exchanged the temporary
Securities of any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series and tenor.

Section 305. Registration, Registration of Transfer and Exchange

     The Company shall cause to be kept a security register (the register so maintained being
herein sometimes referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Trustee shall have the right to examine the Security Register at
all reasonable times. Unless otherwise designated by the Company by written notice to the Trustee,
the Trustee shall be, and is hereby appointed “Security Registrar” for the purpose of registering
Securities and transfers of Securities as herein provided.

     Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

     At the option of the Holder, Securities of any series may be exchanged for other Securities of
the same series, of any authorized denominations and of a like aggregate principal

23

 

amount and tenor, upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall be
duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his attorney duly
authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 306, or 1107 not involving any transfer.

     The Company shall not be required (i) to issue, register the transfer of or exchange
Securities of any series during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 1103 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

     Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 301, a
Global Security of any series shall be exchangeable pursuant to this Section for Securities
registered in the names of Persons other than the Depository with respect to such series or its
nominee only as provided in this paragraph. A Global Security shall be exchangeable pursuant to
this Section if (x) such Depository notifies the Company that it is unwilling or unable to continue
as Depository for such series or at any time ceases to be a clearing agency registered as such
under the Securities Exchange Act of 1934, as amended, if such registration is required by
applicable law or regulation, and a successor depository is not appointed by the Company within 90
days of the date the Company receives notice from the Depository, (y) the Company executes and
delivers to the Trustee a Company Order that such Global Security shall be so exchangeable or (z)
there shall have occurred and be continuing an Event of Default with respect to the Securities. Any
Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for
Securities issuable in denominations of $1,000 and any integral multiple thereof, registered in
such names as the Depository for such Global Security shall direct.

     Notwithstanding any other provision of this Section, a Global Security may not be transferred
except as a whole by the Depository to a nominee of such Depository or by a nominee of such
Depository to such Depository or another nominee of such Depository.

24

 

Section 306. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee, and there is delivered to the Company
and the Trustee such security or indemnity as may be required by them to save each of them and any
agent of them harmless, the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

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

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

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

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

Section 307. Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

     Unless otherwise provided with respect to the Securities of any series, at the option of the
Company payment of interest may be made (i) by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or (ii) by such method or methods as
any Holder shall specify in writing from time to time to the Company or its agent.

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     Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Security of such series and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities
of such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following Clause (2).

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

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

Section 308. Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such

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Security is registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 307) any interest on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.

     No holder of any beneficial interest in any Global Security held on its behalf by a Depository
shall have any rights under this Indenture with respect to such Global Security, and such
Depository may be treated by the Company, the Trustee, and any agent of the Company or the Trustee
as the owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee
from giving effect to any written certification, proxy, or other authorization furnished by a
Depository, or impair, as between a Depository and such holders of beneficial interests, the
operation of customary practices governing the exercise of the rights of the Depository as Holder
of any Security.

Section 309. Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly cancelled by it; and any Security
surrendered to the Trustee for any such purpose shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. Notwithstanding any other provision of this
Indenture to the contrary, in the case of a series all the Securities of which are not to be
originally issued at one time, a Security of such series shall not be deemed to have been
Outstanding at any time hereunder if and to the extent that, subsequent to the authentication and
delivery thereof, such Security is delivered to the Trustee for cancellation by the Company or any
agent thereof upon the failure of the original purchaser thereof to make payment therefor against
delivery thereof, and any Security so delivered to the Trustee shall be promptly cancelled by it.
No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as
provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities
held by the Trustee shall be disposed of in accordance with the Trustee’s customary procedures.

Section 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

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Section 311. CUSIP Numbers.

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

ARTICLE FOUR

SATISFACTION AND DISCHARGE SECTION

Section 401. Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for), and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

          (1) either

          (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been delivered to the Trustee
for cancellation; or

          (B) all such Securities not theretofore delivered to the Trustee for cancellation

          (i) have become due and payable, or

          (ii) will become due and payable at their Stated Maturity within one
year, or

          (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company;

and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not

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theretofore delivered to the Trustee for cancellation, for principal (and premium,
if any) and interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date, as the
case may be;

          (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

          (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company under Section 306, the obligations of the Company to the Trustee under Section 607, if
money or U.S. Government Obligations shall have been deposited with the Trustee in accordance with
Section 1006, the obligations of the Company to the Trustee under Section 402(b), and, if money
shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section,
the obligations of the Trustee under Section 402 and the last paragraph of Section 1003, shall
survive.

Section 402. Application of Trust Money.

     (a) Subject to the provisions of the last paragraph of Section 1003, all money deposited with
the Trustee pursuant to Section 401, all money and U.S. Government Obligations deposited with the
Trustee (or other trustee satisfying the requirements of Section 609, collectively, for purposes of
this Section 402, the “Trustee”) pursuant to Section 1006 and all money received by the Trustee in
respect of U.S. Government Obligations deposited with the Trustee pursuant to Section 1006, shall
be held in trust and applied by the Trustee, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for whose payment such money has been
deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous
payments as contemplated by Section 408 or 1006.

     (b) Anything in this Article Four to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S. Government
Obligations held by it as provided in Section 1006 which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to
the Trustee, are in excess of the amount thereof which would then have been required to be
deposited for the purpose for which such money or U.S. Government Obligations were deposited or
received.

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ARTICLE FIVE

REMEDIES

Section 501. Events of Default.

     “Event of Default,” wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

          (1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

          (2) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or

          (3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or

          (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture in any material respect (other than a covenant or warranty a default in
the performance of which or the breach of which is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for the benefit of
series of Securities other than that series), and continuance of such default or breach for
a period of 90 days after there has been given, by overnight mail or other same day or
overnight delivery service which can provide evidence of delivery, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount
of the Outstanding Securities of that series a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

          (5) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment or composition of
or in respect of the Company under any applicable federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 90 consecutive days;
or

          (6) the commencement by the Company of a voluntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization

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or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree or order for relief in respect of
the Company in an involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any applicable Federal or State
law, or the consent by it to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the admission by it in writing of its
inability to pay its debts generally as they become due, or the taking of corporate action
by the Company in furtherance of any such action; or

          (7) any other Event of Default provided with respect to Securities of that series.

Section 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series may declare the principal amount (or,
if any of the Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) of all of the
Securities of that series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

          (1) the Company has paid or deposited with the Trustee a sum sufficient to pay

               (A) all overdue interest on all Securities of that series,

               (B) the principal of (and premium, if any, on) any Securities of that series which have
become due otherwise than by such declaration of acceleration and any interest thereon at
the rate or rates prescribed therefor in such Securities,

               (C) to the extent that payment of such interest is lawful, interest upon overdue
interest at the rate or rates prescribed therefor in such Securities, and

               (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, the Security Registrar, any Paying
Agent and their agents and counsel;

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     and

          (2) all Events of Default with respect to Securities of that series, other than the
nonpayment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right consequent thereon.

Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for principal (and premium, if
any) and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate or
rates prescribed therefor in such Securities, and, in addition thereto, such further amount as
shall be sufficient to cover the reasonable costs and expenses of collection, including the
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and other
amounts due the Trustee under Section 607.

     Until such demand is made by the Trustee, the Company may pay the principal of (and premium,
if any) and interest, if any, on the Securities to the Persons entitled thereto, whether or not the
principal (and premium, if any) and interest, if any, on the Securities are overdue.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

Section 504. Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any

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custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in
any such judicial proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 505. Trustee May Enforce Claims Without Possession of Securities.

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.

Section 506. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 607; and

     SECOND: To the payment of the amounts then due and unpaid for principal of (and
premium, if any) and interest on the Securities in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal (and premium, if
any) and interest, respectively; and

     THIRD: The remainder, if any, to the Company, its successors or assigns, or to
whomsoever may be lawfully entitled to receive such remainder or as a court of competent
jurisdiction shall direct.

Section 507. Limitation on Suits.

     No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless

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          (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;

          (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of that series shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

          (3) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in compliance
with such request;

          (4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

          (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders (it being understood that the Trustee does not
have an affirmative duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders), or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all of such Holders.

Section 508. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 307) any interest on such Security on the Stated Maturity
or Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment, and such rights shall not be
impaired without the consent of such Holder.

Section 509. Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then and in every such case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

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Section 510. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

Section 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

Section 512. Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Securities of such series, provided that

          (1) such direction shall not be in conflict with any rule of law or with this
Indenture,

          (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and

          (3) the Trustee shall have the right to decline to follow such direction if the Trustee
in good faith shall, by a Responsible Officer or Officers, determine that such direction
would be prejudicial to the Holders not joining in such direction or would involve the
Trustee in personal liability.

     The Trustee may, but shall not be obligated to, fix a record date for the purpose of
determining the Persons entitled to so direct the Trustee. If a record date is fixed, the Holders
on such record date, or their duly designated proxies, and only such Persons, shall be entitled to
so direct the Trustee, or to amend any such direction, whether or not such Holders remain Holders
after such record date; provided that no such direction or amendment shall be valid or effective
for more than 90 days after such record date.

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Section 513. Waiver of Past Defaults.

     By written instruction delivered to the Company and the Trustee, the Holders of not less than
a majority in principal amount of the Outstanding Securities of any series may on behalf of the
Holders of all the Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default in the payment of the principal of (or premium, if
any) or interest on any Security of such series, or in respect of a covenant or provision hereof
which under Article Nine cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.

     With respect to any series of Securities issued hereunder, the Company may, but shall not be
obligated to, fix a record date for the purpose of determining the Persons entitled to waive any
past default hereunder. If a record date is fixed, the Holders on such record date, or their duly
designated proxies, and only such persons, shall be entitled to waive any default hereunder, or to
retract (prior to the delivery to the Trustee of waivers from the Holders of a majority of such
Securities) any such waiver previously given, whether or not such Holders remain Holders after such
record date; provided, that no such waiver shall be valid or effective for more than 90 days after
such record date.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other, default or impair any right consequent thereon.

Section 514. Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs, including attorneys’ fees and expenses, against, any such party litigant, in the
manner and to the extent provided in the Trust Indenture Act. This Section 514 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 508 hereof, or a suit by Holders of
more than 10% in principal amount of the then Outstanding Securities.

Section 515. Waiver of Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

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ARTICLE SIX

THE TRUSTEE

Section 601. Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as provided in the Trust Indenture
Act. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured to it. Whether or not therein expressly so provided,
every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section.

Section 602. Notice of Defaults.

     If a default occurs hereunder with respect to Securities of any series, the Trustee shall give
the Holders of Securities of such series notice of such default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 90 days after the occurrence thereof. For the purpose of this Section
602, the term “default” means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of such series.

     Except in the case of an Event of Default arising from the failure to make a payment of
principal, premium, if any, or interest, if any, on any Security, the Trustee may withhold the
notice if and so long as, it in good faith determines that withholding the notice is in the
interests of the Holders.

Section 603. Certain Rights of Trustee.

     Subject to the provisions of Section 601:

     (a) the Trustee may conclusively rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or
parties;

     (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors may be
sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate;

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     (d) the Trustee may consult with counsel of its selection and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any willful misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

     (h) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture;

     (i) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action;

     (j) the Trustee shall not be deemed to have notice of any default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Securities and this Indenture;

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

     (l) the Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture (which certificate may be amended, supplemented or modified by the Company from time
to time).

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Section 604. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein (except the description of the Trustee) and in the Securities,
except the Trustee’s certificates of authentication, shall be taken as the statements of the
Company, and neither the Trustee nor any Authenticating Agent assumes responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be accountable
for the use or application by the Company of Securities or the proceeds thereof.

Section 605. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

Section 606. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.

Section 607. Compensation and Reimbursement.

     The Company agrees

          (1) to pay to the Trustee from time to time such compensation as shall be agreed in
writing between the Company and the Trustee for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

          (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and

          (3) to indemnify the Trustee for, and to hold it harmless against, any and all loss,
damage, claim, liability or expense incurred without negligence or willful misconduct on its
part, arising out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the reasonable costs and expenses of defending itself against
any claim (whether asserted by the Company, a Holder or any other Person) or liability in
connection with the exercise or performance of any of its powers or duties hereunder.

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     As security for the performance of the obligations of the Company under this Section the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of, premium, if any,
or interest on the Securities.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(5) or Section 501(6), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable federal or state bankruptcy, insolvency or other similar
law.

     The provisions of this Section shall survive the termination of this Indenture.

Section 608. Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

Section 609. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder with respect to the Securities of each series,
which may be the Trustee hereunder for securities of one or more other series. Each Trustee shall
be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000. If such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article Six.

Section 610. Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee,
pursuant to this Article Six shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 611.

     (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Trustee and to the Company.

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     (d) The Trustee may be removed by the Company at any time with respect to the securities of
any series by giving notice to the Trustee, provided that no Event of Default has occurred and is
continuing.

     (e) If an instrument of acceptance by a successor Trustee required by Section 611 shall not
have been delivered to the Trustee within 30 days after the giving of such notice of removal, the
Trustee being removed may petition, at the expense of the Company, any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     (f) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor
Trustee or Trustees with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable requirements of Section
611. If, within one year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the applicable requirements of
Section 611, become the successor Trustee with respect to the Securities of such series and to that
extent supersede the successor Trustee appointed by the Company. If no successor Trustee with
respect to the Securities of any series shall have been so appointed by the Company or the Holders
and accepted appointment in the manner required by Section 611, any Holder who has been a bona fide
Holder of a Security of such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

     (g) The Company shall give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

Section 611. Acceptance of Appointment by Successor.

     (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the

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retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on request of the
Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder with respect
to the Securities of that or those series to which the appointment of such successor Trustee
relates.

     (c) Upon request of any such successor Trustee, the Company shall execute any and all
instruments which may be reasonably required for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of
this Section, as the case may be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article Six.

Section 612. Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such

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authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

Section 614. Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon original issue and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee, the Trustee’s certificate of
authentication, or the delivery of the Securities to the Trustee for authentication, such reference
shall be deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent, a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent or delivery of Securities to the Authenticating Agent for authentication in
place of the Trustee, as the case may be. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any state thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by federal, state or District of Columbia authority. If
such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to
the requirements of said supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any
time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this
Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all the corporate agency or corporate trust business of an Authenticating Agent,
shall continue to be an Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further act on the part of
the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at

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any time such Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be
acceptable to the Company. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as if originally named as an Authenticating Agent. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternate certificate of authentication in the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	Dated:  ________________________ 	U.S. Bank National Association,

As Trustee

 	 
	 	By:  	 	 
	 	 	As Authenticating Agent 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 

ARTICLE SEVEN

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 701. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee

     (a) semi-annually, not later than February 1 and August 1 in each year, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of the
preceding January 15 or July 15, as the case may be, and

     (b) at such other times as the Trustee may request in writing, within 90 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

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Section 702. Preservation of Information; Communications to Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 701 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701
upon receipt of a new list so furnished.

     (b) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, shall be as provided by the Trust Indenture Act.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

Section 703. Reports by Trustee.

     (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313 (a) of the Trust Indenture Act, the
Trustee shall, within sixty days after each May 15 following the date of the initial issuance of
Securities under this Indenture deliver to Holders a brief report, dated as of such May 15, which
complies with the provisions of such Section 3 13(a).

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which any Securities are listed, with the Commission and
with the Company. The Company will promptly notify the Trustee in writing when any Securities are
listed on any stock exchange and of any delisting thereof.

Section 704. Reports by Company.

     The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided
that any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be filed with the Trustee
within 15 days after the same is so required to be filed with the Commission. Delivery of such
reports, information and documents to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers’ Certificates).

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ARTICLE EIGHT

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge into any other Person or sell its properties
and assets as, or substantially as, an entirety to any Person, unless:

          (1) the Person formed by such consolidation or with or into which the Company is merged
or the Person that purchases the properties and assets of the Company as, or substantially
as, an entirety shall be a corporation organized and existing under the laws of the United
States of America, any state thereof or the District of Columbia and shall expressly assume
the due and punctual payment of the principal of and any premium and interest on all the
Securities and the performance of every covenant of this Indenture on the part of the
Company to be performed or observed, by supplemental indenture reasonably satisfactory in
form to the Trustee, executed and delivered to the Trustee;

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

          (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, or sale and, if a supplemental
indenture is required in connection with such transaction, such supplemental indenture
comply with this Article and that all conditions precedent herein provided for relating to
such transaction have been complied with.

     Nothing contained in this Section 801 shall prevent the Company from merging any other
corporation (whether or not affiliated with the Company) into the Company in a transaction in which
the surviving entity is the Company or acquiring by purchase or otherwise all or any part of the
property or assets of any other corporation or Person (whether or not affiliated with the Company).

Section 802. Successor Corporation Substituted.

     Upon any consolidation of the Company with, or merger by the Company into, any other
corporation or any conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 801, the successor corporation formed by
such consolidation or into which the Company is merged or to which such conveyance, transfer or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor corporation had been
named as the Company herein, and thereafter, except in the case of a lease, the predecessor
corporation shall be relieved of all obligations and covenants under this Indenture and the
Securities.

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ARTICLE NINE

SUPPLEMENTAL INDENTURES

Section 901. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee, at any time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

          (1) to evidence the succession of another corporation to the Company and the assumption
by any such successor of the covenants of the Company herein and in the Securities; or

          (2) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company; or

          (3) to add any additional Events of Default with respect to any or all series of
Securities (and if such Event of Default applies to less than all series of Securities,
stating each series to which such Event Default applies); or

          (4) to add to or to change any of the provisions of this Indenture to such extent as
shall be necessary to permit or facilitate the issuance of Securities in bearer form,
registrable or not registrable as to principal, and with or without interest coupons, or to
permit or facilitate the issuance of Securities in uncertificated form; or

          (5) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change or elimination
(i) shall neither (A) apply to any Security of any series created prior to the execution of
such supplemental indenture and entitled to the benefit of such provision nor (B) modify the
rights of the Holder of any such Security with respect to such provision or (ii) shall
become effective only when there is no such Security Outstanding; or

          (6) to secure the Securities pursuant to the requirements of Section 1006 or otherwise;
or

          (7) to establish the form or terms of Securities of any series as permitted by Sections
201 and 301; or

          (8) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to

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provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 611(b); or

          (9) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of previously
issued and Outstanding Securities pursuant to Section 1006, provided that any such action
shall not adversely affect the interests of the Holders of Securities of such series or any
other series of Securities in any material respect; or

          (10) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture, provided that such action pursuant to
this Clause (10) shall not adversely affect the interests of the Holders of Securities of
any series in any material respect; or

          (11) to comply with the rules or regulations of any securities exchange or automated
quotation system on which any of the Securities may be listed or traded; or

          (12) to conform to any mandatory provisions of law.

Section 902. Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,

          (1) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date), or

          (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences) provided for in this
Indenture, or

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          (3) modify any of the provisions of this Section 902, Section 513 or Section 1008,
except to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the references to “the Trustee”
and concomitant changes in this Section and Section 1008 in accordance with the requirements
of Sections 611(b) and 901(8).

A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

     With respect to any series of Securities issued hereunder, the Company may, but shall not be
obligated to, fix a record date for the purpose of determining the Persons entitled to consent to
any indenture supplemental hereto. If a record date is fixed, the Holders on such record date or
their duly designated proxies, and only such Persons, shall be entitled to consent to such
supplemental indenture or to revoke (prior to the delivery to the Trustee of consents from the
Holders of not less than a majority of such Securities) any such consent previously given, whether
or not such Holders remain Holders after such record date; provided, that no such consent shall be
valid or effective for more than 90 days after such record date.

Section 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall receive, and (subject to Section 601) shall be fully protected in conclusively
relying upon, an Opinion of Counsel and an Officers’ Certificate stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

Section 905. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

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Section 906. Reference in Securities to Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

Section 907. Waiver of Compliance by Holders.

     Anything in this Indenture to the contrary notwithstanding, any of the acts which the Company
is required to do, or is prohibited from doing, by any of the provisions of this Indenture may, to
the extent that such provisions might be changed or eliminated by a supplemental indenture pursuant
to Section 902 upon consent of Holders of not less than a majority in aggregate principal amount of
the then Outstanding Securities of the series affected, be omitted or done by the Company if there
is obtained the prior consent or waiver of the Holders of at least a majority in aggregate
principal amount of the then Outstanding Securities of such series.

ARTICLE TEN

COVENANTS

Section 1001. Payment of Principal Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any) and interest on the Securities of
that series in accordance with the terms of the Securities and this Indenture.

Section 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. Unless otherwise designated by the Company by written notice to the
Trustee, such office or agency shall be the designated office of the Trustee in New York, New York.
The Company will give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

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     The Company may also from time to time designate one or more other offices or agencies
where the Securities of one or more series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its obligation to maintain an
office or agency in each Place of Payment for Securities of any series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation or rescission and of
any change in the location of any such other office or agency.

Section 1003. Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and premium, if any) or
interest on any of the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of (and premium, if any) or interest on any
Securities of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such
sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (i) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company (or any other obligor upon the Securities of that series)
in the making of any payment in respect of the Securities of that series, and upon the written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent
for payment in respect of the Securities of that series.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (and premium, if any) or interest on any Security of any
series and remaining unclaimed for two years after such principal (and premium, if any) or interest
has become due and payable shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for

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payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall thereupon cease.

Section 1004. Corporate Existence.

     Subject to Article Eight, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence, rights (charter and statutory)
and franchises; provided however, that the Company shall not be required to preserve any such right
or franchise if the Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.

Section 1005. Reserved.

Section 1006. Defeasance and Covenant Defeasance.

     (a) Company’s Option to Effect Defeasance and Covenant Defeasance. The Company may elect, at
any time, to have either Section 1006(b) or Section 1006(c) applied to the Outstanding Securities
of any series upon compliance with the conditions set forth in this Section 1006.

     (b) Defeasance and Discharge. Upon the Company’s exercise of the option provided in Section
1006(a) to have this Section 1006(b) applied to the Outstanding Securities of any series, the
Company shall be deemed to have been discharged from its obligations with respect to the
Outstanding Securities of such series as provided in this Section 1006(b) on and after the date the
conditions set forth in Section 1006(d) are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the
entire indebtedness represented by the Outstanding Securities of such series and to have satisfied
all of the Company’s other obligations under the Securities of such series and this Indenture
insofar as the Securities of such series are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), subject to the following which
shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of
Securities of such series to receive, solely from the trust fund described in Section 1006(d) and
as more fully set forth in such Section, payments in respect of the principal of and any premium
and interest on such Securities of such series when payments are due, (2) the Company’s obligations
with respect to the Securities of such series under Sections 304, 305, 306, 1002 and 1003, (3) the
rights, powers, trusts, duties and immunities of the Trustee hereunder, including, without
limitation, its rights under Section 607, and (4) this Section 1006. Subject to compliance with
this Section 1006, the Company may exercise its option provided in Section 1006(a) to have this
Section 1006(b) applied to the Outstanding Securities of any series notwithstanding the prior
exercise of its option provided in Section 1006(a) to have Section 1006(c) applied to the
Outstanding Securities of such series.

     (c) Covenant Defeasance. Upon the Company’s exercise of the option provided in Section 1006(a)
to have this Section 1006(c) applied to the Outstanding Securities of any series, (1) the Company
shall be released from its obligations under Section 801, and (2) the occurrence of any event
specified in Section 501(4) (with respect to Section 801), in each case with respect

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to the Outstanding Securities of such series as provided in this Section 1006(c) on and after
the date the conditions set forth in Section 1006(d) are satisfied (hereinafter called “Covenant
Defeasance”). For this purpose, such Covenant Defeasance means that the Company may omit to comply
with (and no Event of Default shall arise out of such non-compliance) and shall have no liability
in respect of any term, condition or limitation set forth in Section 801, whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or by reason of any
reference in any such Section to any other provision herein or in any other document, but the
remainder of this Indenture and the Securities of such series shall be unaffected thereby.

     (d) Conditions to Defeasance or Covenant Defeasance. The following shall be the conditions to
application of either Section 1006(b) or Section 1006(c) to the Outstanding Securities of any
series:

          (1) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee that satisfies the requirements contemplated by Section 609 and
agrees to comply with the provisions of this Section 1006 applicable to it) as trust funds
in trust for the purpose of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefit of the Holders of Outstanding Securities of such
series, (A) in the case of Securities of such series denominated in U.S. dollars, (i) money
in an amount, (ii) U.S. Government Obligations that through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide, not
later than one Business Day before the due date of any payment, money in an amount, or (iii)
a combination thereof, in each case sufficient, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or any such other qualifying trustee) to pay and discharge, the principal of and any
premium and interest on the Securities of such series on the respective Stated Maturities,
in accordance with the terms of this Indenture and the Securities of such series or (B) in
the case of Securities of such series denominated in a currency other than the U.S. dollar,
(i) money in such currency in an amount, or (ii) Foreign Government Obligations that through
the scheduled payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than one Business Day before the due date of any payment,
money in such currency in an amount, or (iii) a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay and discharge,
and which shall be applied by the Trustee (or any such other qualifying trustee) to pay and
discharge, the principal of and any premium and interest on the Securities of such series on
the respective Stated Maturities, in accordance with the terms of this Indenture and the
Securities of such series.

          (2) In the case of an election under Section 1006(b), the Company shall have delivered
to the Trustee an Opinion of Counsel stating that (i) the Company has received from the U.S.
Internal Revenue Service a letter ruling, or there has been published by the U.S. Internal
Revenue Service a Revenue Ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in either case to the
effect that, and based thereon such opinion shall confirm that,

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the Holders of the Outstanding Securities of such series will not recognize gain or
loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to
be effected with respect to the Securities of such series and will be subject to Federal
income tax on the same amount, in the same manner and at the same times as would be the case
if such deposit, Defeasance and discharge were not to occur.

          (3) In the case of an election under Section 1006(c), the Company shall have delivered
to the Trustee an Opinion of Counsel to the effect that the Holders of the Outstanding
Securities of such series will not recognize gain or loss for Federal income tax purposes as
result of the deposit and Covenant Defeasance to be effected with respect to the Securities
of such series and will be subject to Federal income tax on the same amount, in the same
manner and at the same times as would be the case if such deposit and Covenant Defeasance
were not to occur.

          (4) The Company shall have delivered to the Trustee an Officers’ Certificate to the
effect that the Securities of such series, if then listed on any securities exchange, will
not be delisted as a result of such deposit.

          (5) No Event of Default or event that (after notice or lapse of time or both) would
become an Event of Default shall have occurred and be continuing at the time of such deposit
or, with regard to any Event of Default or any such event specified in Sections 501(5) and
501(6), at any time on or prior to the 90th calendar day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until after such 90th
calendar day).

          (6) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

          (7) Such Defeasance or Covenant Defeasance shall not result in the trust arising from
such deposit constituting an investment company within the meaning of the Investment Company
Act of 1940, as amended, unless such trust shall be qualified under such Act or exempt from
regulation thereunder.

     (e) Deposited Money and U.S. Government Obligations or Foreign Government Obligations to be
Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of the last paragraph of
Section 1003, all money and U.S. Government Obligations or Foreign Government Obligations
(including the proceeds thereof) deposited with the Trustee or other qualifying trustee (solely for
purposes of this Section 1006(e) and Section 1006(f), the Trustee and any such other trustee are
referred to collectively as the “Trustee”) pursuant to Section 1006(d) in respect of the Securities
of any series shall be held in trust and applied by the Trustee, in accordance with the provisions
of the Securities of such series and this Indenture, to the payment, either directly or through any
such Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of Securities of such series, of all sums due and to become due on such
Securities in respect of principal and any premium and interest, but money so held in trust need
not be segregated from other funds except to the extent required by law.

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     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the U.S. Government Obligations or Foreign Government Obligations deposited
pursuant to Section 1006(d) or the principal and interest received in respect thereof other than
any such tax, fee or other charge that by law is for the account of the Holders of Outstanding
Securities.

     Anything in this Section 1006 to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any money or U.S. Government Obligations
or Foreign Government Obligations held by the Trustee as provided in Section 1006(d) with respect
to Securities of any series that, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Defeasance or Covenant Defeasance with respect to the Securities of such series.

     (f) Reinstatement. If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Section 1006 with respect to the Securities of any series by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s obligations under this Indenture and the
Securities of such series shall be revived and reinstated as though no deposit had occurred
pursuant to this Section 1006 with respect to Securities of such series until such time as the
Trustee or Paying Agent is permitted to apply all money held in trust pursuant to Section 1006(e)
with respect to Securities of such series in accordance with this Section 1006; provided, however,
that if the Company makes any payment of principal of or any premium or interest on any Security of
such series following the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of Securities of such series to receive such payment from the money so held
in trust.

Section 1007. Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of
the Company ending after the date hereof, an Officers’ Certificate, one of the signers of which
shall be the principal executive, principal financial or principal accounting officer of the
Company, stating whether or, not to the best knowledge of the signers thereof the Company is in
default in the performance and observance of any of the terms, provisions and conditions of this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and
if the Company shall be in default, specifying all such defaults and the nature and status thereof
of which they may have knowledge.

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

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Section 1008. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Section 1004, with respect to the Securities of any series if before the
time for such compliance the Holders of at least a majority in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such term, provision or condition, but no such waiver
shall extend to or affect such term, provision or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.

Section 1009. Calculation of Original Issue Discount.

     The Company shall file with the Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

ARTICLE ELEVEN

REDEMPTION OF SECURITIES

Section 1101. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article.

Section 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by an Officers’
Certificate. In case of any redemption at the election of the Company of the Securities of any
series, the Company shall, at least 60 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee in writing of
such Redemption Date, of the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers’ Certificate evidencing compliance with such restriction.

Section 1103. Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless all of the Securities
of such series and of a specified tenor are to be redeemed), the particular Securities to be

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redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series not previously called for redemption, by lot or such
other method as the Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for Securities of that
series or any integral multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of that series. If less
than all of the Securities of such series and of a specified tenor are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee, from the Outstanding Securities of such series and specified tenor
not previously called for redemption in accordance with the preceding sentence.

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

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

Section 1104. Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage pre-paid, mailed not less
than 30 nor more than 60 days prior to the Redemption Date, to each holder of Securities to be
redeemed, at his address appearing in the Security Register.

     All notices of redemption shall identify the Securities to be redeemed (including CUSIP
number(s)) and shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

          (3) if less than all the Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption of any Securities, the principal
amounts) of the particular Securities to be redeemed,

          (4) that on the Redemption Date the Redemption Price will become due and payable upon
each such Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date,

          (5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, and

          (6) that the redemption is for a sinking fund, if such is the case.

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     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s written request, by the Trustee in the name and at the
expense of the Company.

Section 1105. Deposit of Redemption Price.

     Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date, unless otherwise specified as
contemplated by Section 301) accrued interest on, all the Securities which are to be redeemed on
that date.

Section 1106. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date; provided, however, that,
unless otherwise specified as contemplated by Section 301, installments of interest whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of business on the relevant
Record Dates according to their terms and the provisions of Section 307.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in the Security.

Section 1107. Securities Redeemed in Part.

     Any Security (including any Global Security) which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the
Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same series and of like tenor,
of any authorized denomination as requested by such Holder, in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so surrendered;
provided, that if a Global Security is so surrendered, the new Global Security shall be in a
denomination equal to the unredeemed portion of the principal of the Global Security so
surrendered.

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ARTICLE TWELVE

SINKING FUNDS

Section 1201. Applicability of Article.

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301 for Securities
of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of,
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

Section 1202. Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

Section 1203. Redemption of Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period of time shall be acceptable to the Trustee), the Company will deliver to
the Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment
for that series pursuant to the terms of that series, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 1202 and will also deliver
to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking
fund payment date, the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the redemption thereof to
be given in the name of and at the expense of the Company in the manner provided in Section 1104.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Sections 1106 and 1107.

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     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

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

	 	 	 	 	 
	 	THE E.W. SCRIPPS COMPANY

 	 
	 	By:  	/s/ E. John Wolfzorn
 	 
	 	 	Name:  	E. John Wolfzorn 	 
	 	 	Title:  	Treasurer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/
Paul Schmalzel 	 
	 	 	Name:  	Paul Schmalzel 	 
	 	 	Title:  	Vice President 	 
	 

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